(a) No regional corporation shall be eligible to administer a Regional Revolving Loan Program unless it:

1. (1) represents a service delivery region;
2. (2) has available to it staff with sufficient expertise to analyze applications for financial assistance, to regularly monitor financial assistance to clients, and has made arrangements to provide management or technical assistance to clients;
3. (3) has an effective plan to market its services to eligible businesses through such entities as chambers of commerce, industry trade associations, banks, local development corporations, community-based organizations and industrial development agencies; and
4. (4) has established a loan committee composed of five or more persons experienced in commercial lending, or in the operation of a for-profit business, and a staff person of the regional office of the State Department of Economic Development.

(b) The corporation shall select regional corporations to administer Regional Revolving Loan Programs through one or more competitive processes. Each regional corporation applying to administer a Regional Revolving Loan Program shall submit a proposal that:

1. (1) describes the regional corporation, including its organization, membership, loan committee, staff, and sources of other funds, if any;
2. (2) identifies its service delivery region;
3. (3) explains the methods and criteria to determine whether a firm in its service delivery region seeking assistance from its Regional Revolving Loan Program is an eligible business;
4. (4) describes the means for coordinating financial assistance available from its Regional Revolving Loan Program with financial assistance available from other public funding sources within its service delivery region, and how such funds will be used to leverage private financing for eligible projects;
5. (5) lists the local revolving loan funds serving its service delivery region and their criteria for funding, assets, and funds available; and
6. (6) contains such other information as the corporation deems appropriate.

(c) The corporation shall select regional corporations to administer Regional Revolving Loan Programs for renewable five-year terms. In determining whether to select a regional corporation meeting the criteria set forth in subdivision (a) of this section to administer a Regional Revolving Loan Program, the corporation shall consider:

1. (1) the ability of the regional corporation to administer the financial assistance programs authorized hereunder;
2. (2) the extent of coordination with other publicly supported financial assistance programs available within the service delivery region;
3. (3) the degree of public and private support within the service delivery region for the regional corporation; and
4. (4) the ability of the regional corporation to provide financial and other assistance to businesses located in areas of economic distress.

(d) The corporation shall allocate trust fund proceeds among regional corporations as follows:

1. (1) Fifty percent of all trust fund proceeds shall be equally distributed among the service delivery regions.
2. (2) Fifty percent of all trust fund proceeds shall be distributed among the service delivery regions in accordance with the economic distress formula.