(a) There is created within the Arkansas Department 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 fund; and

(3) To be used as a revolving fund by the department for making loans to eligible participants to pay the direct costs of projects that are designed to correct or avoid violations of federal or state environmental regulations and have received a certificate of need from the department or to pay costs incurred by the department 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) This fund shall consist of the following:

(A) All funds transferred from the General Improvement Fund to be otherwise provided by law for the fund;

(B) All moneys received by the department 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 fund; and

(D) All sums recovered upon by the fund for losses to the fund or for loan losses under the loan program created in this subchapter and all other moneys received for the fund from any source.

(c)

(1) Subject to the provisions of this subchapter, the department is vested with full power, authority, and jurisdiction over the fund, including all moneys and property or securities belonging to the fund.

(2) The department may invest the 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 federal 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.