(a) There is created within the Division of Environmental Quality a revolving loan fund:
(1) Which shall be designated the “Small Business Revolving Loan Fund”;
(2) Into which shall be transferred or deposited the moneys to be provided by law for the Small Business Revolving Loan Fund; and
(3) To be used as a revolving fund by the division for making loans to eligible participants to pay the direct costs of projects that are designed to correct or avoid violations of federal environmental law or regulation or state environmental rules and have received a certificate of need from the division or to pay costs incurred by the division to provide management of lending activities.
(b)
(1) There is established on the books of the Treasurer of State, the Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the “Small Business Revolving Loan Fund”.
(2) The Small Business Revolving Loan Fund shall consist of the following:
(A) All funds transferred from the General Improvement Fund or its successor fund or fund accounts, including the Development and Enhancement Fund, to be otherwise provided by law for the Small Business Revolving Loan Fund;
(B) All moneys received by the division upon repayment of loans made from the furnishing of funds for loans under the program created by this subchapter;
(C) Interest earned upon any money in the Small Business Revolving Loan Fund; and
(D) All sums recovered upon by the Small Business Revolving Loan Fund for losses to the Small Business Revolving Loan Fund or for loan losses under the loan program created in this subchapter and all other moneys received for the Small Business Revolving Loan Fund from any source.
(c)
(1) Subject to the provisions of this subchapter, the division is vested with full power, authority, and jurisdiction over the Small Business Revolving Loan Fund, including all moneys and property or securities belonging to the Small Business Revolving Loan Fund.
(2) The division may invest the Small Business Revolving Loan Fund in direct general obligations of the United States, in certificates of deposit or savings accounts in an amount not to exceed the capital funds, represented by capital, surplus, and undivided profits in financial institutions located in Arkansas that are insured by an agency of the United States Government, and in repurchase agreements that are collateralized by direct general obligations of the United States or by bonds, notes, debentures, participation certificates, or other obligations issued by an agency of the United States, the principal and interest of which are guaranteed by the agency or the United States.