(1) Upon a decision by the board to fund a research and commercialization project, the board will enter into a funding agreement with the applicant.

(2) The board may disburse the funds contemplated in the funding agreement according to performance benchmarks.

(3) The funding recipient must submit progress reports to the board as required in the funding agreement.   The progress reports shall include, but not be limited to:

(a) financial status of the project;

(b) overall project performance; and

(c) progress in accomplishing performance benchmarks.

(4) A final report is due upon completion of the project term.

(5) If the funding agreement is in the form of a loan, the interest on the loan will be at a rate determined by the board.   The funding agreement will contain, among other provisions, a default provision if the terms of the loan are not met.

(6) If the funding agreement is in the form of a grant, the statutorily required matching funds must be in the possession of the applicant at the time grant funds are disbursed.