(a) The commission may provide a loan of financial assistance to a defense community for a project that will enhance the military or defense value of a military base or defense facility located in, near, or adjacent to the defense community. The loan shall be made from the Texas military value revolving loan account established under § 436.156.
(b) On receiving an application for a loan under this section, the commission shall confirm that the project adds military or defense value to the military base or defense facility.

(c) If the commission determines that a project will enhance the military or defense value of the military base or defense facility, the commission shall, in accordance with the criteria adopted by the commission under § 436.154(a):
(1) analyze the creditworthiness of the defense community to determine the defense community’s ability to repay the loan; and
(2) evaluate the feasibility of the project to be financed to ensure that the defense community has pledged a source of revenue or taxes sufficient to repay the loan for the project.
(d) If the commission confirms that the funds will be used to enhance the military or defense value of the military base or defense facility based on the base realignment and closure criteria, to overcome an action of the United States Department of Defense that will negatively impact the military base or defense facility, or for the recruitment or retention of a defense facility and the commission determines that the project is financially feasible, the commission may award a loan to the defense community for the project. The commission shall enter into a written agreement with a defense community that is awarded a loan. The agreement must contain the terms and conditions of the loan, including the loan repayment requirements.
(e) The commission shall notify the Texas Public Finance Authority of the amount of the loan and the recipient of the loan and request the authority to issue general obligation bonds in an amount necessary to fund the loan. The commission and the authority shall determine the amount and time of a bond issue to best provide funds for one or multiple loans.
(f) The commission shall administer the loans to ensure full repayment of the general obligation bonds issued to finance the project.
(g) The commission may provide a loan only for a project that is included in the political subdivision’s statement under § 397.002, Local Government Code, or to prepare a comprehensive defense installation and community strategic impact plan under § 397.003, Local Government Code.
(h) A project financed with a loan under this section must be completed on or before the fifth anniversary of the date the loan is awarded.
(i) The amount of a loan under this section may not exceed the total cost of the project.