---
kind: "section"
citation: "42 U.S.C. § 291m–1"
title: "42"
title_heading: "The Public Health and Welfare"
number: "291m–1"
heading: "Loans for certain hospital experimentation projects"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/291m-1"
units:
  - "Chapter 6A — Public Health Service"
  - "Subchapter IV — Construction and Modernization of Hospitals and Other Medical Facilities"
  - "Part D — General Provisions"
---

# §291m–1. Loans for certain hospital experimentation projects

- (a) **Other public or private sources unavailable for alleviation of hardship due to increased construction costs—** In order to alleviate hardship on any recipient of a grant under [section 291n](/usc/42/291n.md)[^1] of this title (as in effect immediately before August 18, 1964) for a [project](/usc/42/13641.md?p=2) for the [construction](/usc/42/291o.md?p=i) of an experimental or demonstration facility having as its specific purpose the application of novel means for the reduction of [hospital](/usc/42/291o.md?p=c) costs with respect to which there has been a substantial increase in the cost of such [construction](/usc/42/291o.md?p=i) (over the estimated cost of such [project](/usc/42/13641.md?p=2) on the basis of which such grant was made) through no fault of such recipient, the [Secretary](/usc/42/201.md?p=c) is authorized to make a loan to such recipient not exceeding 66⅔ per centum of such increased costs, as determined by the [Secretary](/usc/42/201.md?p=c), if the [Secretary](/usc/42/201.md?p=c) determines that such recipient is unable to obtain such an amount for such purpose from other public or private sources.
- (b) **Application; form; information—** Any such loan shall be made only on the basis of an application submitted to the [Secretary](/usc/42/201.md?p=c) in such form and containing such information and assurances as he may prescribe.
- (c) **Interest; repayment period—** Each such loan shall bear interest at the rate of 2½ per centum per annum on the unpaid balance thereof and shall be repayable over a period determined by the [Secretary](/usc/42/201.md?p=c) to be appropriate, but not exceeding fifty years.
- (d) **Authorization of appropriation—** There are hereby authorized to be appropriated $3,500,000 to carry out the provisions of this section.

## Footnotes

[^1]: See References in Text note below.

## Source credit

(July 1, 1944, ch. 373, title VI, § 643A, formerly § 623A, as added Pub. L. 90–174, § 11, Dec. 5, 1967, 81 Stat. 541, and renumbered § 643A, Pub. L. 91–296, title II, § 201, June 30, 1970, 84 Stat. 344.)

## Notes

### Editorial Notes

### References in Text

Section 291n of this title, referred to in subsec. (a), was repealed by Pub. L. 90–174, § 3(b)(1), Dec. 5, 1967, 81 Stat. 535.