These organizations shall be eligible to apply for such a grant:
a tax-exempt charitable organization;
a state, regional, or local economic development organization;
an institution of higher education;
a state-chartered development, credit, or finance corporation; or
any combination of these.
Failure to obtain non-federal funding must be for two consecutive years before an eligible entity shall become ineligible for advance disbursements, or for any other SBA-funded project.
An SBA employee shall:
make a prior site visit to any grant applicant to ensure that the applicant has sufficient resources to provide the services for which the grant is being made; and
conduct an annual review of the entity's compliance with the grant agreement, including a financial examination.
An eligible entity whose review identifies problems shall develop a remedial plan of action for the Office to approve or amend, subject to appeal. The Office shall terminate any grant for failure of compliance with a plan of action.
Upon request by an eligible entity, the SBA may waive, in whole or in part, although not for more than two years, the requirement to obtain non-federal funds for a grant recipient's counseling and training activities.