View all text of Chapter 54 [§ 5701 - § 5710]
§ 5702. Federal funds allocated to States
(a) Program established; purpose
(b) Allocation formula
(1) In general
(2) 2021 allocation formula
(A) In general
(B) Minimum allocation
(C)1
1 So in original. Two subpars. (C) have been enacted.
2020 State employment decline definedIn this paragraph and with respect to a State, the term “2020 State employment decline” means the excess (if any) of—(i) the number of individuals employed in such State determined for December 2019; over
(ii) the number of individuals employed in such State determined for December 2020.
(C)1 Separate allocation for Tribal governments
(i) In general
(ii) Notice of intent; timing of allocationWith respect to allocations to States that are Tribal governments, the Secretary may—(I) require Tribal governments that individually or jointly wish to participate in the Program to file a notice of intent with the Secretary not later than 30 days after March 11, 2021; and(II) notwithstanding paragraph (1), allocate Federal funds to participating Tribal governments not later than 60 days after March 11, 2021.
(D) Employment data
(c) Availability of allocated amountThe amount allocated by the Secretary to each participating State under subsection (b) shall be made available to the State as follows:
(1) Allocated amount generally to be available to State in one-thirds
(A) In generalThe Secretary shall—
(i) apportion the participating State’s allocated amount into thirds;
(ii) transfer to the participating State the first ⅓ when the Secretary approves the State for participation under section 5703 of this title; and
(iii) transfer to the participating State each successive ⅓ when the State has certified to the Secretary that it has expended, transferred, or obligated 80 percent of the last transferred ⅓ for Federal contributions to, or for the account of, State programs that have delivered loans or investments to eligible businesses.
(B) Authority to withhold pending audit
(C) Inspector General audits
(i) In general
(ii) Recoupment of misused transferred funds required
(iii) Penalty for misstatement
(iv) Municipalities
(D) Exception
(2) Transferred amounts
(3) Use of transferred fundsEach participating State may use funds transferred to it under this section only—
(A) for making Federal contributions to, or for the account of, an approved State program;
(B) as collateral for a qualifying loan or swap funding facility;
(C) in the case of the first ⅓ transferred, for paying administrative costs incurred by the State in implementing an approved State program in an amount not to exceed 5 percent of that first ⅓; or
(D) in the case of each successive ⅓ transferred, for paying administrative costs incurred by the State in implementing an approved State program in an amount not to exceed 3 percent of that successive ⅓.
(4) Termination of availability of amounts not transferred
(A) In generalAny portion of a participating State’s allocated amount that has not been transferred to the State under this section may be deemed by the Secretary to be no longer allocated to the State and no longer available to the State and shall be returned to the general fund of the Treasury or reallocated as described under subparagraph (B), if—
(i) the second ⅓ of a State’s allocated amount has not been transferred to the State before the end of the end of the 3-year period beginning on the date that the Secretary approves the State for participation; or
(ii) the last ⅓ of a State’s allocated amount has not been transferred to the State before the end of the end of the 6-year period beginning on the date that the Secretary approves the State for participation.
(B) Reallocation
(5) Transferred amounts not assistance
(6) DefinitionsIn this section—
(A) the term “allocated amount” means the total amount of Federal funds allocated by the Secretary under subsection (b) to the participating State; and
(B) the term “⅓” means—
(i) in the case of the first ⅓ and second ⅓, an amount equal to 33 percent of a participating State’s allocated amount; and
(ii) in the case of the last ⅓, an amount equal to 34 percent of a participating State’s allocated amount.
(d) Additional allocations to support business enterprises owned and controlled by socially and economically disadvantaged individualsOf the amounts appropriated for fiscal year 2021 to carry out the Program, the Secretary shall—
(1) allocate $1,500,000,000 to States from funds allocated under this section and, by regulation or other guidance, prescribe Program requirements that the funds be expended for business enterprises owned and controlled by socially and economically disadvantaged individuals; and
(2) allocate such amounts to States based on the needs of business enterprises owned and controlled by socially and economically disadvantaged individuals, as determined by the Secretary, in each State, and not subject to the allocation formula described under subsection (b).
(e) Incentive allocations to support business enterprises owned and controlled by socially and economically disadvantaged individuals
(f) Additional allocations to support very small businesses
(1) In general
(2) Very small business definedIn this subsection, the term “very small business”—
(A) means a business with fewer than 10 employees; and
(B) may include independent contractors and sole proprietors.
(Pub. L. 111–240, title III, § 3003, Sept. 27, 2010, 124 Stat. 2570; Pub. L. 117–2, title III, § 3301(a)(1)(A), (b), (c), Mar. 11, 2021, 135 Stat. 67, 69, 70.)