---
kind: "section"
citation: "15 U.S.C. § 6905"
title: "15"
title_heading: "Commerce and Trade"
number: "6905"
heading: "Allocation of assistance; subgrants"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/15/6905"
units:
  - "Chapter 95 — Microenterprise Technical Assistance and Capacity Building Program"
---

# §6905. Allocation of assistance; subgrants

- (a) **Allocation of assistance—**
  - (1) **In general—** The [Administrator](/usc/15/6901.md?p=2) shall allocate assistance from the [Administration](/usc/15/6901.md?p=1) under this chapter to ensure that—
    - (A) activities described in [section 6903(1) of this title](/usc/15/6903.md?p=1) 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](/usc/15/6903.md?p=2) are funded using not less than 15 percent of amounts made available for such assistance.
  - (2) **Limit on individual assistance—** No single [person](/usc/15/7a.md?p=6) may receive more than 10 percent of the total funds appropriated under this chapter in a single fiscal year.
- (b) **Targeted assistance—** The [Administrator](/usc/15/6901.md?p=2) shall ensure that not less than 50 percent of the grants made under this chapter are used to benefit [very low-income persons](/usc/15/6901.md?p=13), 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](/usc/15/6901.md?p=10) organizations and programs, subject to such rules and regulations as the [Administrator](/usc/15/6901.md?p=2) 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)](#c-1).
- (d) **Diversity—** In making grants under this chapter, the [Administrator](/usc/15/6901.md?p=2) shall ensure that grant recipients include both large and small [microenterprise](/usc/15/6901.md?p=10) 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](/usc/15/6901.md?p=2) 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](/usc/15/636.md?p=m) does not receive preferential consideration over applications from other qualified organizations that are not participants in such program.

## Source credit

(Pub. L. 103–325, title I, § 176, as added Pub. L. 106–102, title VII, § 725, Nov. 12, 1999, 113 Stat. 1473.)