(1) The criteria used by the department to make development loans to a certified MBDC will include the criteria required for certification as an MBDC as set forth in ARM 8.99.404 plus the following additional requirements:

(a) legally binding commitment(s) for MBDC operating income other than earned income; and

(b) legally binding commitment(s) for matching loan funds.

(2) Development loan funds will be awarded pursuant to a promissory note, development loan agreement, and security agreement between the department and the MBDC.

(3) The department will consider the following in determining the amount of a development loan awarded to a MBDC:

(a) financial stability and sources and sufficiency of operating income of the MBDC;

(b) market potential of the MBDC;

(c) expertise and, where applicable, performance of the MBDC in management of revolving loan fund; and

(d) geographic and rural-to-urban balance in distribution of program funds.