(1) The department shall distribute assistance grants annually as follows:

(a) $25,000 to each CRDC for providing services to their respective regions. For the purpose of this rule, services means work in the development and management of revolving loan funds, business technical assistance, state and federal grants and programs, local and regional planning, business retention and expansion programs, and business recruitment programs;

(b) $60,000 to CRDCs according to the following formula:

(i) 35% shall be distributed based on the number of counties in the region served;

(ii) 25% shall be distributed based on the population of the region served;

(iii) 25% shall be distributed based on the size of the geographic area of the region served; and

(iv) 15% shall be distributed based on the number of incorporated cities or towns in the region served;

(c) all remaining assistance grants will be distributed, in the department's sole discretion, to CRDCs for demonstrated capacity building needs.