[Congressional Record Volume 145, Number 32 (Tuesday, March 2, 1999)]
[Senate]
[Page S2093]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                  SPACE TRANSPORTATION LOAN GUARANTEES

  Mr. BURNS. Mr. President, I am pleased to join Mr. Breaux in co-
sponsoring the Commercial Space Transportation Cost Reduction Act. This 
is a appropriate extension of programs that we have used to encourage 
other fledgling industries such as shipbuilding and rail. Through this 
legislation, we hope to build a commercially competitive launch 
industry here in America that brings the world's satellites to our 
doorstep for launch into orbit.
  This bill sets up loan guarantee programs; not grant handouts, but 
loan guarantees to help encourage commercial investment in start-up 
space industries. We want to encourage anyone with an idea good enough 
to raise some start up funds to approach the financial market with some 
assurance that their request for business loans will be approved. By 
placing $500 million in a NASA account in a guarantee program, we will 
leverage growth and investment to many times that. To encourage truly 
competitive ideas, we've placed a number of guidelines on this bill. We 
will only guarantee a maximum of 80% of the capitol required for a 
space vehicle construction project, the rest must be raised privately. 
Ten to twenty percent of the pool is set aside for small businesses, 
and we've specifically excluded the DoD launch vehicle development 
programs currently underway. There is a credit-worthiness requirement 
with specific loan criteria for being eligible for the loan. Finally, 
it guarantees the U.S. Government the best price for any launch system 
developed under this program. To make sure that no launch companies 
become dependent on this funding, we've provided for an expiration of 
this program in 10 years.
  I'm especially interested in the potential benefit to Montana. Many 
start-up companies choose to locate in Western states where they have 
room to actively test their ideas and inventions. When combined with 
VentureStar's interest in Montana, this loan guarantee program could 
help develop a space technology region in our state that would attract 
high-tech companies with high-tech jobs. Montana already has a lot to 
offer, and I'm convinced that this program is one more way to give 
potential businesses a reason to make Montana their headquarters.
  As seen this past summer, launching rockets is a risky business even 
for well-established companies. We need to find ways to encourage banks 
to qualitatively judge the overall risks and invest in creative new 
ways to get satellites into orbit. By providing loan guarantees to 
qualified companies, we can grow our capable domestic launch program 
into the world's choice for getting access to space. I strongly 
encourage my colleagues to support this bill.

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