Summary

Pursuant to a legislative requirement, GAO reviewed the Emergency Steel Guarantee Loan Board's and the Emergency Gas and Oil Guaranteed Loan Board's new rules on the Emergency Steel Guarantee Loan Program and the Emergency Oil and Gas Guaranteed Loan Program. GAO noted that: (1) the rules would establish the procedures for providing guarantees of up to $1 billion in loans for qualified steel and iron ore companies and $500 million in loans for qualified oil and gas companies; (2) both programs will be administered by both Boards; (3) prior to the issuance of the loan guarantee and while any guarantee is outstanding, the company must agree to permit an audit by GAO or its designee, and an independent auditor acceptable to the Boards; (4) audited financial statements are required to be submitted with an application; (5) the final rules have an announced effective date of December 27, 1999; and (6) both the Emergency Steel Guarantee Loan Board and the Emergency Oil and Gas Guaranteed Loan Board complied with applicable requirements in promulgating the rule.