SPECIAL LOANS FOR CORPS MEMBERS TO ENTER PRIVATE PRACTICE.

SEC. 309. SPECIAL LOANS FOR CORPS MEMBERS TO ENTER PRIVATE PRACTICE. Section 338F (as redesignated by section 201(2) of this Act) is amended— (1) by striking out subsections (a) and (b) and inserting in lieu thereof the following new subsections: “(a) The Secretary may, out of appropriations authorized under section 338, make one loan to a Corps member who has agreed in writin — “(1) to engage in the private full-time clinical practice of the profession of the member in a health manpower shortage area (designated under section 332) for a period of not less than 2 years which— “(A) in the case of a Corps member who is required to complete a period of obligated service under this subpart, not later than 1 year after the date on which such individual completes such period of obligated service; and “(B) in the case of an individual who is not required to complete a period of obligated service under this subpart, begins at such time as the Secretary considers appropriate; “(2) to conduct such practice in accordance with section 338D(b)(1); and “(3) to such additional conditions as the Secretary may require to carry out this section. Such a loan shall be used to assist such individual in meeting the costs of beginning the practice of such individual’s profession in accordance with such agreement, including the costs of acquiring equipment and renovating facilities for use in providing health services, and of hiring nurses and other personnel to assist in providing health services. Such loan may not be used for the purchase or construction of any building. “(b)(1) The amount of a loan under subsection (a) to an individual shall not exceed $25,000. 101 STAT. 1007 “(2) The interest rate for any such loan shall not exceed an annual rate of 5 percent.”; (2) in the first sentence of subsection (c), by striking “grant or”; and (3) in subsection (d)(1)— (A) by striking “this section,” and inserting “this section (as in effect prior to October 1, 1984),”; and (B) by striking “338D(b)” and inserting “338E(b)”.