((a)) ** In general** Funds may be provided for the cost (as defined in ) of loan guarantees issued under title XIV  to carry out commercial demonstration projects for ethanol derived from sugarcane, bagasse, and other sugarcane byproducts.section 661a of title 21

((b)) ** Demonstration projects** The Secretary may issue loan guarantees under this section to projects to demonstrate commercially the feasibility and viability of producing ethanol using sugarcane, sugarcane bagasse, and other sugarcane byproducts as a feedstock.

((c)) ** Requirements** An applicant for a loan guarantee under this section may provide assurances, satisfactory to the Secretary, that—

((1)) the project design has been validated through the operation of a continuous process facility;

((2)) the project has been subject to a full technical review;

((3)) the project, with the loan guarantee, is economically viable; and

((4)) there is a reasonable assurance of repayment of the guaranteed loan.

((d)) ** Limitations**

((1)) ** Maximum guarantee** Except as provided in paragraph (2), a loan guarantee under this section—

((A)) may be issued for up to 80 percent of the estimated cost of a project; but

((B)) shall not exceed $50,000,000 for any 1 project.

((2)) ** Additional guarantees**

((A)) ** In general** The Secretary may issue additional loan guarantees for a project to cover—

((i)) up to 80 percent of the excess of actual project costs; but

((ii)) not to exceed 15 percent of the amount of the original loan guarantee.

((B)) ** Principal and interest** Subject to subparagraph (A), the Secretary shall guarantee 100 percent of the principal and interest of a loan guarantee made under subparagraph (A).