(1) The state funding board is authorized to make grants or loans, as funds are available, to any approved applicant county to assist that county in the construction or renovation of a correctional facility.
(2) No county shall award any construction contract in reliance on a grant or loan until such time as the state funding board and the county have executed a contract pursuant to § 41-8-110 or § 41-8-111, and until the state building commission has acted pursuant to § 4-15-102, when an application for a grant has been approved.