(a) Overview.

1. (1)

   1. (A) Acts 2021, No. 522, created the Arkansas Military Affairs Council Act.
   2. (B) The act codified the existing Military Affairs Grant Program administered by the Arkansas Economic Development Commission.

2. (2) Funds allocated to the Military Affairs Grant Program may be granted, at the discretion of the Executive Director of the Arkansas Economic Development Commission, to applicants meeting eligibility requirements for projects and programs that strengthen and sustain military installations in Arkansas, resulting in economic growth in:

   1. (A) Host communities;
   2. (B) Surrounding regions; and
   3. (C) The State of Arkansas.
3. (3) As such, grants are intended to leverage, not supplant, other funding sources.

(b) Program rule summary.

1. (1) The commission will periodically solicit Military Affairs Grant Program applications as funding becomes available.
2. (2) Eligible applicants shall submit completed applications, on forms prescribed by the commission and in accordance with submittal deadlines, to request grant funding from the Military Affairs Grant Program.
3. (3) The Military Affairs Director, with advice from the Governor’s Arkansas Military Affairs Council, shall review and recommend applications for grant funding to the Executive Director of the Arkansas Economic Development Commission.
4. (4) Applicants receiving approval from the Executive Director of the Arkansas Economic Development Commission shall execute grant agreements with the commission specifying grant terms and conditions.
5. (5) Grant funding shall be made available to grantees on a cost-incurred basis, subsequent to submittal of requests for payment on forms prescribed by the commission.
6. (6) Grantees shall submit quarterly progress reports throughout the duration of the grant project in accordance with grant terms and conditions.
7. (7) A contingency of up to ten percent (10%) of the grant award may be withheld from final payment until all closeout documents have been submitted and have been approved by the commission.