For the funds to be used to provide grants and loans under section 19608(1)(a)(iv), all of the following apply:

  (a) To receive grant or loan funds, approved applicants must enter into a grant or loan agreement with the department. At a minimum, the grant or loan agreement shall contain all of the following:

  (i) The approved eligible activities to be undertaken with grant or loan funds.

  (ii) An implementation schedule for the approved eligible activities.

  (iii) Reporting requirements, including, at a minimum, the following:

  (A) The grant or loan recipient shall submit progress status reports to the department during the implementation of the brownfield project that include documentation of project costs and expenditures, at a frequency determined by the department.

  (B) The grant or loan recipient shall provide a final report upon completion of the grant- or loan-funded activities within a time frame determined by the department.

  (iv) If the property is not owned by the grant or loan recipient, an executed agreement that meets the requirements of section 19609(2)(c)(ix).

  (v) When entering into a loan agreement, the loan recipient shall provide financial assurance of repayment of the loan including pledges of revenue sharing, escrow account, letter of credit, or other acceptable mechanism negotiated with the department. Use of real property as a means to secure a loan is not considered an acceptable mechanism. The department is authorized to include in the loan agreement a provision that permits the release of the financial assurance in favor of a pledge of the right of first refusal of the tax increment revenue to the department under the brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2672, if the brownfield project has been substantially completed and the annual tax increment being captured relative to the brownfield project is equal to or greater than 125% of the annual loan reimbursement payment.

  (vi) Other provisions as considered appropriate by the department.

  (b) All eligible activities must be consistent with an approved grant or loan work plan.

  (c) Unless otherwise approved by the director of the department, only activities carried out and costs incurred after execution of a grant or loan agreement are eligible.

  (d) Grant funds shall be disbursed on a reimbursement basis upon receipt of appropriate documentation.

  (e) Loan funds shall be disbursed in draws based on an approved work plan, and supporting documentation must be submitted after expenses are incurred.

  (f) The department shall specify documentation requirements for grants and loans on a form prescribed for requesting reimbursement or draws.