[Code of Federal Regulations]

[Title 42, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 42CFR23.41]



[Page 96]

 

                         TITLE 42--PUBLIC HEALTH

 

    CHAPTER I--PUBLIC HEALTH SERVICE, DEPARTMENT OF HEALTH AND HUMAN 

                                SERVICES

 

PART 23_NATIONAL HEALTH SERVICE CORPS--Table of Contents

 

                     Subpart C_Private Startup Loans

 

Sec. 23.41  What conditions are applicable to loans under this subpart?





    The regulations set out in subpart B of this part are fully 

applicable to loans awarded under section 338C(e)(1) of the Public 

Health Service Act, except as noted below;

    (a) Eligibility. (1) In lieu of Sec. 23.23(a), the following 

applies to loans made under this subpart:

    (i) Eligibility for loans is limited to NHSC scholarship recipients 

who plan to enter private practice and have not begun fulfilling their 

scholarship service obligation or are currently fulfilling their 

scholarship service obligation under section 338B of the Act and have 

completed less than 2 years of this obligation.

    (2) In lieu of Sec. 23.23(c), the following applies to loans made 

under this subpart:

    (i) NHSC scholarship recipients who have received loans under either 

this subpart or subpart B of this part are ineligible for loans under 

this subpart.

    (b) Loan amounts. (1) In lieu of Sec. 23.24, the following applies 

to loans made under this subpart:

    (i) The Secretary may make loans in the amount of $12,500 if the 

recipient agrees to practice in accordance with the loan agreement for a 

period of at least 1 year but less than 2 years or the remaining period 

of the borrower's NHSC scholarship service obligation, whichever is 

shorter.

    (ii) The Secretary may make loans in the amount of $25,000 if the 

recipient agrees to practice in accordance with the loan agreement for a 

period of at least 2 years or the remaining period of the borrower's 

NHSC scholarship service obligation, whichever is shorter.

    (c) Use of funds. (1) In lieu of Sec. 23.32(a), the following 

applies to loans made under this subpart:

    (i) The borrower must use the total amount of the loan only to 

purchase or lease, or both, the equipment and supplies needed for 

providing health services in his or her private practice. Equipment and 

supplies purchased and/or leased shall be limited to the items requested 

in the loan application and approved by the Secretary.



[51 FR 31950, Sept. 8, 1986]