(1)
Loans
(A)
In general
The Secretary shall use amounts in the Fund to provide loans to eligible units of local government to finance purchases of authorized equipment to monitor, remove, dispose of, and replace infested trees that are located—
(i)
on land under the jurisdiction of the eligible units of local government; and
(ii)
within the borders of quarantine areas infested by plant pests.
(B)
Maximum amount
The maximum amount of a loan that may be provided by the Secretary to an eligible unit of local government under this subsection shall be the lesser of—
(i)
the amount that the eligible unit of local government has appropriated to finance purchases of authorized equipment in accordance with subparagraph (A); or
(C)
Interest rate
The interest rate on any loan made by the Secretary under this paragraph shall be a rate equal to 2 percent.
(D)
Report
Not later than 180 days after the date on which an eligible unit of local government receives a loan provided by the Secretary under subparagraph (A), the eligible unit of local government shall submit to the Secretary a report that describes each purchase made by the eligible unit of local government using assistance provided through the loan.
(2)
Loan repayment schedule
(A)
In general
To be eligible to receive a loan from the Secretary under paragraph (1), in accordance with each requirement described in subparagraph (B), an eligible unit of local government shall enter into an agreement with the Secretary to establish a loan repayment schedule relating to the repayment of the loan.
(B)
Requirements relating to loan repayment schedule
A loan repayment schedule established under subparagraph (A) shall require the eligible unit of local government—
(i)
to repay to the Secretary of the Treasury, not later than 1 year after the date on which the eligible unit of local government receives a loan under paragraph (1), and semiannually thereafter, an amount equal to the quotient obtained by dividing—
(I)
the principal amount of the loan (including interest); by
(II)
the total quantity of payments that the eligible unit of local government is required to make during the repayment period of the loan; and
(ii)
not later than 20 years after the date on which the eligible unit of local government receives a loan under paragraph (1), to complete repayment to the Secretary of the Treasury of the loan made under this section (including interest).