; and (2) to provide housing for public employees. (d) Loans and grants (1) In general The Federal Cochair may provide grants and loans from the Fund to eligible entities under such terms and conditions the Federal Cochair may prescribe. (2) Purpose The purpose of a grant or loan under paragraph (1) shall be for planning and obtaining federally insured mortgage financing or other financial assistance for housing construction or rehabilitation projects for low-income and moderate-income households in rural Alaska villages. (e) Providing amounts to States for grants and loans The Federal Cochair may provide amounts to the State of Alaska, or political subdivisions thereof, for making the grants and loans described in subsection (d). (f) Loans (1) Limitation on available amounts A loan under subsection (d) for the cost of planning and obtaining financing (including the cost of preliminary surveys and analyses of market needs, preliminary site engineering and architectural fees, site options, application and mortgage commitment fees, legal fees, and construction loan fees and discounts) of a project described in that subsection may be for not more than 90 percent of that cost. (2) Interest A loan under subsection (d) shall be made without interest, except that a loan made to an eligible entity established for profit shall bear interest at the prevailing market rate authorized for an insured or guaranteed loan for that type of project. (3) Payment (A) In general The Federal Cochair shall require payment of a loan made under this section under terms and conditions the Secretary may require by not later than the date of completion of the project. (B) Cancellation For a loan other than a loan to an eligible entity established for profit, the Secretary may cancel any part of the debt with respect to a loan made under subsection (d) if the Secretary determines that a permanent loan to finance the project cannot be obtained in an amount adequate for repayment of a loan made under subsection (d). (g) Grants (1) In general A