(a) When funding is available, the authority shall make the funding available to eligible applicants selected by the authority to participate in the program. Unless otherwise prohibited by law, the authority shall use the available funding to do all of the following:

1. (1) Develop an application process for awarding grants to eligible applicants pursuant to the program and require each eligible applicant to submit an application in the form and manner prescribed by the authority.
2. (2) Set aside at least 20 percent of any amount made available in a program funding round for eligible applicants that are small and emerging community development financial institutions.
3. (3) Ensure that eligible recipients receiving grants pursuant to the program serve geographically diverse areas, both urban and rural, across this state.

(b)

1. (1) When funding is available, the authority shall make grants available in one or more rounds of funding availability, not to exceed fifteen million dollars ($15,000,000) in total grants in any calendar year.
2. (2) Awards shall be announced by February 1 of each year. The first round of funding shall be awarded by February 1, 2024.
3. (3) Funds shall be available for use by the grantee for a period of two years, as specified in the grant agreement entered into pursuant to Section 44558.3. Grant funds shall be used as prescribed by the article and the grant agreement for a period of two years. Upon the expiration of that two-year period and that grant agreement, there shall be no limitation on the use of the grant funds.
4. (4) Any income generated from the grant award during the term of grant agreement entered into pursuant to Section 44558.3 shall be reinvested by the grantee into activities allowable under the grant agreement.

(c) As part of the application process described in subdivision (a), the authority shall determine the amount that any eligible applicant who submits a timely and complete application may receive per calendar year, subject to the following conditions:

1. (1) All eligible applicants that submit a timely and complete application shall receive a grant. In each round of funding the authority shall, in announcing the availability of funding, establish a minimum and maximum grant amount.
2. (2) For the purpose of determining the amount of individual grants, the authority shall develop criteria to adjust the size of awards based on the total amount of loans closed by the applicant in the most recently completed fiscal year.
3. (3) After receiving a grant in one year, an eligible applicant may apply in a future funding round if the eligible applicant has made reasonable progress in deploying the previously awarded grant funding.