; and (ii) a set aside of 25 percent of each such amount for covered loans made to nonprofit organizations, of which not more than 12.5 percent of each such amount set aside may be used to make covered loans to nonprofit organizations with 500 or more employees. . (2) Set aside for community financial institutions Of amounts appropriated by the Paycheck Protection Program and Health Care Enhancement Act ( Public Law 116–139 ) under the heading Small Business Administration—Business Loans Program Account, CARES Act that have not been obligated or expended, the lesser of 25 percent of such amounts or $10,000,000,000 shall be set aside for the cost to guarantee covered loans made under section 7(a)(36) of the Small Business Act ( 15 U.S.C. 636(a)(36) ) by community financial institutions (as such term is defined in subparagraph (A)(xi) of such section). (3) Amounts returned Section 7(a)(36) of the Small Business Act ( 15 U.S.C. 636(a)(36) ) is amended by adding at the end the following new subparagraph: (T) Amounts returned Any amounts returned to the Secretary of the Treasury due to the cancellation of a covered loan shall be solely used for the cost to guarantee covered loans made to eligible recipients with 10 or fewer employees. . (j) Treatment of certain criminal violations (1) In general Section 7(a)(36) of the Small Business Act ( 15 U.S.C. 636(a)(36) ), as amended by subsection (i), is further amended by adding at the end the following new subparagraph: (U) Treatment of certain criminal violations (i) Financial fraud or deception A entity that is a business, organization, cooperative, or enterprise may not receive a covered loan if an owner of 20 percent or more of the equity of such entity, during the 5-year period preceding the date on which such entity applies for a covered loan, has been convicted of a felony of financial fraud or deception under Federal, State, or Tribal law. (ii) Arrests or convictions An entity that is a business, organization, cooperative, or enterprise shall be an eligible recipient