§6905. Allocation of assistance; subgrants
(a) Allocation of assistance
(1) In general
The Administrator shall allocate assistance from the Administration under this chapter to ensure that-
(A) activities described in section 6903(1) of this title are funded using not less than 75 percent of amounts made available for such assistance; and
(B) activities described in section 6903(2) of this title are funded using not less than 15 percent of amounts made available for such assistance.
(2) Limit on individual assistance
No single person may receive more than 10 percent of the total funds appropriated under this chapter in a single fiscal year.
(b) Targeted assistance
The Administrator shall ensure that not less than 50 percent of the grants made under this chapter are used to benefit very low-income persons, including those residing on Indian reservations.
(c) Subgrants authorized
(1) In general
A qualified organization receiving assistance under this chapter may provide grants using that assistance to qualified small and emerging microenterprise organizations and programs, subject to such rules and regulations as the Administrator determines to be appropriate.
(2) Limit on administrative expenses
Not more than 7.5 percent of assistance received by a qualified organization under this chapter may be used for administrative expenses in connection with the making of subgrants under paragraph (1).
(d) Diversity
In making grants under this chapter, the Administrator shall ensure that grant recipients include both large and small microenterprise organizations, serving urban, rural, and Indian tribal communities serving diverse populations.
(e) Prohibition on preferential consideration of certain SBA program participants
In making grants under this chapter, the Administrator shall ensure that any application made by a qualified organization that is a participant in the program established under section 636(m) of this title does not receive preferential consideration over applications from other qualified organizations that are not participants in such program.
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