(1)

1. (a) If an eligible entity wishes to receive a loan or grant from the board, the eligible entity shall file an application with the board that contains the information required by the board.
2. (b) The board shall review an application for a loan or grant filed under Subsection (1)(a) before approving the loan or grant.
3. (c) The board may approve a loan or grant application subject to the applicant's compliance with the one or more conditions established by the board.

(2) In determining whether an eligible entity may receive a loan or grant, the board shall give priority to:

1. (a) a capital project or infrastructure, including:

   1. (i) electrical power;
   2. (ii) water; and
   3. (iii) a one time need project;

2. (b) a housing project that consists of:

   1. (i) the purchase of new housing;
   2. (ii) the construction of new housing; or
   3. (iii) a significant remodeling of existing housing; or

3. (c) a matching educational endowment that:

   1. (i) promotes economic development within the Utah portion of the Navajo Reservation;
   2. (ii) promotes the preservation of Navajo culture, history, and language; or
   3. (iii) supports a postsecondary educational opportunity for a Navajo student enrolled in a course or program taught within the Utah portion of the Navajo Reservation.

(3) A loan or grant issued under this chapter may not fund:

1. (a) a start-up or operational cost of a private business venture;
2. (b) a general operating budget of an eligible entity; or
3. (c) a project that will operate or be located outside of the Navajo Reservation in San Juan County, Utah, except for an educational endowment approved by the board under Subsection (2)(c).

(4)

1. (a) The board may not approve a loan unless the loan:

   1. (i) specifies the terms for repayment; and
   2. (ii) is secured by proceeds from a general obligation, special assessment, or revenue bond, note, or other obligation.
2. (b) The division shall deposit a loan repayment or interest on a loan issued under this chapter into the revitalization fund.

(5) The board shall give a priority to a loan or grant if the loan or grant includes matching money or in-kind services from:

1. (a) the Navajo Nation;
2. (b) San Juan County;
3. (c) the state;
4. (d) the federal government;
5. (e) a Utah Navajo Chapter; or
6. (f) other private or public organization.

(6) The division shall distribute loan and grant money:

1. (a) if the loan or grant is approved by the board;

2. (b) in accordance with the instructions of the board, except that the board may not instruct that money be distributed in a manner:

   1. (i) inconsistent with this chapter; or
   2. (ii) in violation of a rule or procedure of the department; and
3. (c) in the case of a loan, in accordance with Section 63A-3-205.