(1) Based on a consideration of socioeconomic factors and measures of financial condition, and in accordance with the provisions of the intended use plan, the department may agree not to impose the loan loss surcharge on the borrowers.

(2) The department may allow a disadvantaged municipality to repay its loan over a term not to exceed 30 years, rather than 20 years, provided that the term of the loan does not exceed the expected design life of the project being financed.