The Department annually shall establish a reserve fund to be used for grant and loan amendments in order to meet change orders, cost overruns, and emergency projects. Financial assistance provided under this chapter may not be applied to projects whose construction was initiated before approval by the Board of Public Works. State Loans. Loans for water supply facility projects shall bear the same rate of interest as the bonds from which the proceeds are used to provide the loan. The loan shall be repaid within 30 years and the first payment shall be made at a time stipulated by the Board of Public Works. Costs associated with the sale, administration, and registration of bonds may be included in the repayment schedule, as required by the Board of Public Works. State Loan Guarantees. A loan guarantee of the principal of, or interest on, any commercial loan or obligation to finance an eligible project may be made under the following conditions: The applicant certifies that it is unable to obtain sufficient credit on reasonable terms to finance its actual needs without the guarantee; and The Board of Public Works determines that there is a reasonable assurance of repayment of the loan obligation.