; (2) 18 percent for allocation for minority-owned and minority-serving entities in accordance with subsection (c)(2); and (3) 6 percent for allocation for Indian Tribes and insular areas in accordance with subsection (c)(3). (c) Allocations (1) Entitlement communities and nonentitlement areas Of the amount allocated under subsection (b)(1)— (A) 70 percent shall be allocated for entitlement communities in accordance with the formula under section 106(b) of the Housing and Community Development Act of 1974 ( 42 U.S.C. 5306(b) ); and (B) 30 percent shall be allocated to States, for use in nonentitlement areas, in accordance with the formula under section 106(d)(1) of the Housing and Community Development Act of 1974 ( 42 U.S.C. 5306(d)(1) ). (2) Competitive awards to minority-owned entities (A) In general The Secretary of Housing and Urban Development shall allocate the amount allocated under subsection (b)(3) directly and on a competitive basis for grants to eligible minority-owned entities and minority-serving entities. (B) Competition Allocation for non-business grants under this paragraph shall be made pursuant to a competition for such grants, as the Secretary shall provide, that— (i) takes into account the need for grant assistance for the area in which, and for the activities for which the grant amounts will be used