A.__The size of the region served by the corporation and the expected demand for loan funds in that region;

B.__The demand for funds from other eligible corporations in relation to the total amount available in the fund; and

C.__Whether an eligible corporation serves a geographic area or segment of potential business borrowers not served by other applicants.

The authority shall allocate funds in the program considering each of the factors in this subsection and such other factors as the authority establishes by rule.__The authority may reserve up to 50% of the funds appropriated for loans to be made by the authority.__Funds allocated to a corporation must be disbursed directly to and retained by the eligible corporation in accordance with the contract between the corporation and the authority.__Funds must be disbursed to the corporation in the form of a loan or grant.__The authority may disburse fund amounts in one lump sum or periodic disbursements.

4.__Contract.__A corporation that has been approved for participation in the program may enter into a contract with the authority.__The contract governs the administration of the program and the use of funds.__The contract must provide that a corporation shall, at a minimum, conform to the following terms and conditions:

A.__The corporation shall certify that it will use funds only for eligible purposes;

B.__The corporation shall review each application for financial assistance, determine the feasibility of the application and approve or deny the application;

C.__An officer or employee of the corporation or a member of its credit committee may not participate in any way in, or have any influence over, a decision on a project in which that officer, employee or member has a direct or indirect personal financial interest;

D.__If the corporation breaches its contract with the authority or ceases to operate a loan program in substantial conformance with its proposal to the authority, the authority may withhold further funding and may require