---
kind: "section"
citation: "42 U.S.C. § 291j–1"
title: "42"
title_heading: "The Public Health and Welfare"
number: "291j–1"
heading: "Loan guarantees and loans"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/291j-1"
units:
  - "Chapter 6A — Public Health Service"
  - "Subchapter IV — Construction and Modernization of Hospitals and Other Medical Facilities"
  - "Part B — Loan Guarantees and Loans for Modernization and Construction of Hospitals and Other Medical Facilities"
---

# §291j–1. Loan guarantees and loans

- (a) **Authority of Secretary—**
  - (1) In order to assist [nonprofit](/usc/42/300s–3.md?p=3) private [agencies](/usc/42/8262.md?p=1) to carry out needed [projects](/usc/42/13641.md?p=2) for the [modernization](/usc/42/300s–3.md?p=9) or [construction](/usc/42/300s–3.md?p=7) of [nonprofit](/usc/42/300s–3.md?p=3) private [hospitals](/usc/42/300s–3.md?p=1), facilities for long-term care, outpatient facilities, and [rehabilitation facilities](/usc/42/300s–3.md?p=5), the [Secretary](/usc/42/201.md?p=c), during the period July 1, 1970, through June 30, 1974, may, in accordance with the provisions of this part, guarantee to non-Federal lenders making loans to such [agencies](/usc/42/8262.md?p=1) for such [projects](/usc/42/13641.md?p=2), payment of principal of and interest on loans, made by such lenders, which are approved under this part.
  - (2) In order to assist [public agencies](/usc/42/11851.md?p=8) to carry out needed [projects](/usc/42/13641.md?p=2) for the [modernization](/usc/42/300s–3.md?p=9) or [construction](/usc/42/300s–3.md?p=7) of [public health centers](/usc/42/300s–3.md?p=2), and public [hospitals](/usc/42/300s–3.md?p=1), facilities for long-term care, outpatient facilities, and [rehabilitation facilities](/usc/42/300s–3.md?p=5), the [Secretary](/usc/42/201.md?p=c), during the period July 1, 1970, through June 30, 1974, may, in accordance with the provisions of this part, make loans to such [agencies](/usc/42/8262.md?p=1) which shall be sold and guaranteed in accordance with [section 291j–7 of this title](/usc/42/291j–7.md).
- (b) **Cost limitations—**
  - (1) No loan guarantee under this part with respect to any [modernization](/usc/42/300s–3.md?p=9) or [construction](/usc/42/300s–3.md?p=7) [project](/usc/42/13641.md?p=2) may apply to so much of the principal amount thereof as, when added to the amount of any grant or loan under part A with respect to such [project](/usc/42/13641.md?p=2), exceeds 90 per centum of the cost of such [project](/usc/42/13641.md?p=2).
  - (2) No loan to a [public agency](/usc/42/11851.md?p=8) under this part shall be made in an amount which, when added to the amount of any grant or loan under part A with respect to such [project](/usc/42/13641.md?p=2), exceeds 90 per centum of the cost of such [project](/usc/42/13641.md?p=2).
- (c) **Administrative assistance—** The [Secretary](/usc/42/201.md?p=c), with the consent of the [Secretary](/usc/42/201.md?p=c) of Housing and Urban Development, shall obtain from the Department of Housing and Urban Development such assistance with respect to the administration of this part as will promote efficiency and economy thereof.

## Source credit

(July 1, 1944, ch. 373, title VI, § 621, as added Pub. L. 91–296, title II, § 201, June 30, 1970, 84 Stat. 344; amended Pub. L. 93–45, title I, § 108(b)(1), June 18, 1973, 87 Stat. 93.)

## Notes

### Editorial Notes

### Amendments

1973—Subsec. (a). Pub. L. 93–45 extended termination date of guarantee and loan making period in pars. (1) and (2) from June 30, 1973, to June 30, 1974.