(a) All of the following child care and development programs, other than those providing extended day care services, shall be eligible to receive a loan for the renovation and repair of facilities used for the program or to lease relocatable facilities to be used for the program:

1. (1) Private nonprofit child care and development programs currently, or soon to be, under contract with the department pursuant to Section 10268.5.
2. (2) Child care and development programs operated by, or in a facility owned by, a public entity.

(c) A recipient of a loan pursuant to this section shall assure the board that the renovated facility shall be used for the purposes of the child care and development program for the entire loan period, which shall be determined by the board as follows:

1. (1) For loans equal to or less than thirty thousand dollars ($30,000), not less than three years.
2. (2) For loans exceeding thirty thousand dollars ($30,000), the loan period shall increase one year for each additional ten thousand dollars ($10,000) or part thereof, to a maximum of fifty thousand dollars ($50,000).