(a) Awarded funds may not be used for any costs incurred by an applicant in the development, preparation, submission, or review of applications.(b) Awarded funds may be used only for capital improvements and may not be used for operating expenses, debt retirement, or recruitment or retention of practitioners.(c) Loans awarded will be made with an interest rate below the current market rate and may be made at no interest at the discretion of the department based upon the financial need and condition of the applicant.(d) Grant, loan and loan guarantee recipients must execute a contract with the department which will include the budget, reporting requirements, general provisions for department contracts, and any other specifics that might apply to the award.