- (a) The Arkansas Natural Resources Commission is authorized to make either loans or grants to eligible entities with limited financial capacity to provide them with the nonfederal share of the cost for a water resources development project.
(b) The commission may provide financial assistance to an eligible entity in the form of loans or grants for a project without the requirement of a cooperative agreement between the entity and the federal government if the commission determines that:
- (1) The project is of such type or size that cost sharing is not efficient or effective; or
- (2) Current conditions make the financing of the project through cooperative agreement with the federal government within a reasonable time unlikely.
- (c) Loans from the Arkansas Water Resources Cost Share Revolving Fund shall be repaid in full at an interest rate up to the maximum allowed under Arkansas Constitution, Article 19, § 13, as amended by Ark. Const. Amend. 60.