(1) The department shall, after consultation with the department of environmental quality, establish loan application procedures, including forms for the applications.  Each application for a loan must include:

(a) a reasonably detailed description of the project;

(b) a reasonably detailed estimate of the cost of the project;

(c) a timetable for the construction of the project and for payment of the cost of the project;

(d) identification of the source or sources of funds to be used in addition to the proceeds of the loan to pay the cost of the project;

(e) the source or sources of revenue proposed to be used to repay the loan;

(f) a current financial statement of the system showing assets, liabilities, revenues, and expenses;

(g) a statement as to whether, at the time of application, there are any outstanding loans, notes, bonds or other obligations payable from the revenue of the public water system and, if so, a description of the loans, notes, bonds or other obligations;

(h) if the applicant is a private person, a statement as to whether, at the time of the application, there are any outstanding loans, notes, or other obligations of the private person and, if so, a description of the loans, notes, or other obligations;

(i) any information that the department may require in order to determine the effect of making the loan on the tax exempt status of the states bonds; and

(j) any other information that the department or the department of environmental quality may require to determine the feasibility of a project and the applicants ability to repay the loan, including but not limited to:

(i) engineering reports;

(ii) economic feasibility studies; and

(iii) legal opinions.

(2) Each application for a loan subsidy must include:

(a) a reasonably detailed description of the project;

(b) a reasonably detailed estimate of the cost of the project;

(c) a timetable for the construction of the project and for payment of the cost of the project;

(d) identification of the source or sources of funds to be used in addition to the proceeds of the grant to pay the cost of the project;

(e) a statement as to whether, at the time of application, there are any outstanding loans, notes, bonds or other obligations payable from the revenue of the public water system and, if so, a description of the loans, notes, bonds or other obligations;

(f) an explanation, including supporting information, as to why a subsidy is requested;

(g) evidence that the applicant qualifies as a disadvantaged municipality; and

(h) any other information that the department or the department of environmental quality may require.