§291j–2 Allocation Among States

Summary

Each year the Secretary must split the total loan principal available under this part among the States. The split follows rules and is based on each State’s share of the population, its financial need, and its need to build or modernize the covered health facilities. Money covers guaranteed loans for nonprofit private agencies and direct loans to public agencies. If a State received an allotment for a fiscal year that ended before July 1, 1973, and did not spend it by the end of that year, the money stays available to that State for the next two fiscal years only and is added to that State’s amounts for those years. With the State’s OK, any of that money still unspent after the first of those two years can be reallocated to other States that need it. Allotted or reallotted money for a year cannot be treated as available for a later year until its availability period ends. For the fiscal year ending June 30, 1971, and the next year, a State’s allotment may also be used to guarantee loans for nonprofit hospitals or similar facilities whose construction or modernization began on or after January 1, 1968, if the State certifies and the Secretary finds the project cannot be finished or kept operating without the loan; no State may use this for more than two projects.