agreement The Under Secretary and a person or persons with whom the Under Secretary enters a partnership under paragraph (1) shall enter into an operating agreement that sets forth the roles, responsibilities, authorities, reporting requirements, and governance framework for the partnership and its operations. (c) Investment of equity (1) In general Pursuant to public-private partnerships entered into under subsection (b), a person or persons with whom the Under Secretary has entered into a partnership shall invest equity in domestic small businesses or nontraditional businesses consistent with subsection (a), with investments selected based on technical merit, economic value, and the Department’s modernization priorities. (2) Authorities A person or persons described in paragraph (1) shall have sole authority to operate, manage, and invest. (d) Loan guarantee (1) In general The Under Secretary shall provide an up to 80 percent loan guarantee, pursuant to the public-private partnerships entered into under subsection (b), with investment of equity that qualifies under subsection (c) and consistent with the goals set forth under subsection (a)(2). (2) Pilot program authority The temporary loan guarantee authority described under paragraph (1) is exclusively for the public-private partnerships authorized under this section and may not be utilized for other programs or purposes. (3) Subject to operating agreement The loan guarantee under paragraph (1) shall be subject to the operating agreement entered into under subsection (b)(3). (4) Use of funds Obligations incurred by the Under Secretary under this paragraph shall be subject to the availability of funds provided in advance specifically for the purpose of such loan guarantees. (e) Phased implementation schedule and required reports and briefings The program established under subsection (a) shall be carried out in two phases as follows: (1) Phase 1 (A) In general Phase 1 shall consist of an initial pilot program with one public-private partnership, consistent with