; (2) to encourage community development financial institutions to establish and maintain small business loan programs that would help provide borrowers access to mainstream financial institutions and combat high cost small business lending; and (3) to encourage community development financial institutions to expand the development services they offer and to serve new investment areas and new targeted populations. (b) Grants (1) Loan-loss reserve fund grants (A) In general The Fund shall make grants to community development financial institutions to enable such institutions to establish a loan-loss reserve fund in order to defray the costs of a small business loan program established or maintained by such institution. (B) Application A community development financial institution that wishes to receive a grant under this paragraph shall submit an application to the Administrator in such form and manner and containing such information as the Administrator may require. (C) Matching requirement A community development financial institution shall provide non-Federal matching funds in an amount equal to 50 percent of the amount of any grant received under this paragraph. (D) Use of funds Any grant amounts received by a community development financial institution under this paragraph— (i) may not be used by such institution to provide direct loans to small businesses; (ii) may be used by such institution to help recapture a portion or all of a defaulted loan made under the small business loan program of such institution on or after the date of the enactment of this section