(a) Application.--The owner or operator of a public airport may apply for a loan from the Aviation Development Account. Applications for the loans shall be made in such manner and on such forms as are prescribed by the department.

(b) Limits on loans.--The department may, prior to approving any loan, appropriate from the Aviation Development Account an amount equal to the cost of administering the cost of the aviation development loan program. The department, following its review of each loan application, may approve any loan sought solely for aviation development at an airport located in this Commonwealth. No loan shall be approved for more than 10% of the total moneys contained in the Aviation Development Account at the time when the loan is applied for, or $100,000, whichever is greater.

(c) Interest and repayment period.--All loans approved by the department, under this section, shall bear interest at a rate substantially equal to the department's cost of administering the airport development program, including debt service, and shall be repaid within a period not to exceed ten years.

(d) Notice to treasurer.--The department, following its review of each loan application, shall notify the treasurer of each applicant who qualifies for a loan and the amount of the loan for which the applicant is eligible. Within 30 days of receiving this notice, the treasurer shall issue to the qualifying applicant the full amount of the loan.