Capitalization grants to fund state revolving funds

(a) Eligibility of state for capitalization grant To be eligible for a capitalization grant, a State shall— (1) establish a revolving fund that complies with the requirements of this Act; and (2) establish a process for applications and criteria for making loans from the revolving fund, subject to the requirements in section 2(d). (b) Upon receipt of capitalization grant Upon the receipt of a capitalization grant, a State shall deposit such capitalization grant into the revolving fund of the State. (c) Distribution For a fiscal year, the Secretary shall apportion amounts made available for capitalization grants under this section among the States eligible under subsection (a) in the ratio that— (1) the population of underserved communities in each State eligible under subsection (a), bears to (2) the population of underserved communities in all States eligible under subsection (a).