§ 16-a. Regional revolving loan program. (1) The corporation shall\nestablish a fund to be known as the "regional revolving loan trust fund"\nand shall pay into such fund any monies made available to the\ncorporation for such fund from any source. The monies held in or\ncredited to the fund shall be expended solely for the purposes set forth\nin this section. The corporation shall not commingle the monies of such\nfund with any other monies of the corporation or any monies held in\ntrust by the corporation.\n (2) The corporation shall allocate any monies made available for such\nfund for the purpose of making grants to regional corporations. The\ngrants shall be allocated as follows:\n (a) fifty percent divided equally among the regions;\n (b) fifty percent according to a formula weighted in favor of those\nregions with the greatest levels of economic distress as determined by\npoverty rates, number of persons receiving public assistance,\nunemployment rates, rate of employment decline and such other indicators\nof economic distress as the corporation deems appropriate; and\n (c) in the event a regional corporation advises the corporation that\nit does not require all or a portion of the funds to be distributed\npursuant to this subdivision, such funds shall be re-distributed by the\ncorporation equally among the other regional corporations.\n (3) In accordance with the rules and regulations of the corporation,\neach regional corporation shall establish two special accounts for\nmonies received by the regional corporation pursuant to the provisions\nof this section. The grant monies received from the corporation,\nearnings on such monies, and any principal repayments shall be deposited\nin a loan fund account; any interest earned by the regional corporation\non loans will be deposited in a separate interest repayment account. A\nregional corporation shall be authorized to provide financing assistance\nto eligible projects. Any interest earned from its loans may be used by\na regional corporation for the cost of administering the programs\nauthorized by this section.\n (3-a) Notwithstanding subdivision three of this section, where\napplicable, the corporation is authorized to enter into agreements as\nmay be necessary for the administration and reporting of funds repaid,\nreceived, expended or collected in a manner consistent with the\nprovisions in section sixteen-t of this act. The use of such funds by\nthe corporation shall be consistent with the terms, conditions and\nrestrictions set forth in subdivision four of this section, to provide\nfinancial assistance to eligible regional corporations as defined in\nsubdivision eighteen of section three of this act. Outstanding expenses,\nloans and other obligations executed prior to the effective date of this\nsubdivision shall be subject to the terms and conditions of the original\ncontract or contracts.\n (4) Regional corporations shall be selected by the corporation from\namong eligible applicants to administer a regional revolving loan\nprogram. An eligible applicant shall:\n (a) represent at least two entire contiguous counties;\n (b) have available to it staff with sufficient expertise to analyze\napplications for financial assistance, to regularly monitor financial\nassistance to clients, and have made arrangements to provide management\nor technical assistance to clients;\n (c) have an effective plan to market its services to small businesses\nthrough such entities as chambers of commerce, industry trade\nassociations, banks, local development corporations, community based\norganizations and industrial development agencies; and\n (d) have established a loan committee composed of five or more persons\nexperienced in commercial lending or in the operation of a for-profit\nbusiness and a staff person of the regional office of the department of\neconomic development. Such loan committee shall review every application\nto the regional corporation for financial assista
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