; and (B) for a purpose described in subsection (c)(2). (7) Administrative costs; technical assistance The Administrator shall reserve not more than 2.5 percent of the amount made available to carry out this section in a fiscal year— (A) for administrative costs incurred in carrying out this section; and (B) to provide technical assistance to recipients of grants under this section. (c) Use of funds (1) In general Amounts deposited in a State loan fund, including repayments of loans made from the fund and interest earned on the amounts in the fund, shall be used— (A) consistent with paragraphs (2) and (3) and subsection (g), to provide financial assistance for— (i) homeowners, businesses, and nonprofit organizations that are eligible to participate in the national flood insurance program; and (ii) any local government that participates in the national flood insurance program; (B) as a source of revenue and security for leveraged loans, the proceeds of which shall be deposited in the State loan fund; or (C) for the sale of bonds as security for payment of the principal and interest on revenue or general obligation bonds issued by the participating State to provide matching funds under subsection (g), if the proceeds from the sale of the bonds are deposited in the State loan fund. (2) Purposes A recipient of financial assistance provided through amounts from a State loan fund— (A) shall use the amounts to reduce— (i) flood risk; or (ii) potential flood claims submitted under the national flood insurance program; (B) shall use the amounts in a cost-effective manner under requirements established by the State, which may require an applicant for financial assistance to submit any information that the State considers relevant or necessary before the date on which the applicant receives the assistance; (C) shall use the amounts for projects that— (i) meet design and construction standards established by the Administrator; (ii) are located in communities that— (I) participate in the national flood insurance program