Title III, SEC. 3441. LOANS AND LOAN GUARANTEES REGARDING PLANS AND NETWORKS. (a) In General. The Secretary may make loans to, and guarantee the payment of principal and interest to Federal and non-Federal lenders on behalf of, public and private entities for the capital costs of developing qualified community health groups (as defined in section 3421(a)). (b) Preferences; Accessibility of Services; Certain Other Provisions. The provisions of subpart B apply to loans and loan guarantees under subsection (a) to the same extent and in the same manner as such provisions apply to awards of grants and contracts under section 3421. (c) Use of Assistance. (1) In general. With respect to the development of qualified community health groups, the capital costs for which loans made pursuant to subsection (a) may be expended are, subject to paragraphs (2) and (3), the following: (A) The acquisition, modernization, expansion or construction of facilities, or the conversion of unneeded hospital facilities to facilities that will assure or enhance the provision and accessibility of health care and enabling services to medically underserved populations. (B) The purchase of major equipment, including equipment necessary for the support of external and internal information systems. (C) The establishment of reserves required for furnishing services on a prepaid basis. (D) Such other capital costs as the Secretary may determine are necessary to achieve the objectives of this section. (2) Priorities regarding use of funds. In providing loans or loan guarantees under subsection (a) for an entity, the Secretary shall give priority to authorizing the use of amounts for projects for the renovation and modernization of medical facilities necessary to prevent or eliminate safety hazards, avoid noncompliance with licensure or accreditation standards, or projects to replace obsolete facilities. (3) Limitation. The Secretary may authorize the use of amounts under subsection (a) for the construction of new buildings only if the Secretary determines that appropriate facilities are not available through acquiring, modernizing, expanding or converting existing buildings, or that construction new buildings will cost less. (d) Amount of assistance. The principal amount of loans or loan guarantees under subsection (a) may, when added to any other assistance under this section, cover up to 100 percent of the costs involved.