(1) When allocating available funds among applicants for assistance pursuant to this subpart, the board shall select those programs of forest practices which in its judgment produce the greatest public benefit, giving consideration to the following factors:

  (a) The need for and potential commercial benefits if the practices are undertaken.

  (b) The financial resources of the applicant.

  (c) The need for and potential benefits to long-term production, maintenance, and enhancement of the total forest resource system.

  (2) The board shall give preference to applications covering forest land that has been substantially damaged by fire, flood, insects, disease, or other natural causes within 36 months before submission of an application under this subpart.

  (3) The board shall also give preference to applications with respect to which 1 or more of the following factors is present:

  (a) The forest management plan involves reforesting forest land with a more commercially valuable forest tree species than it previously produced.

  (b) The forest management plan would provide relatively more employment opportunities than other proposed plans.

  (c) The forest land is located in a county with high unemployment.

  (d) A small business entity will carry out the proposed plan.

  (e) The forest management plan or other actions of the member would increase recreational opportunities for the public.

  (4) The board shall establish the criteria for evaluation and approval of applications for financial assistance.