; from (II) the amount of the grant under the program to the State, territory, or commonwealth for the prior fiscal year. (iii) Exception for increase in grantees resulting in insufficient funding If the number of States, territories, or commonwealths participating in the program has increased from the prior fiscal year to such an extent that funding is not sufficient to provide each grantee the minimum amount required under this paragraph (including any reductions under clause (i) or (ii) of this subparagraph, if applicable) the Administrator may make pro rata reductions to the minimum grant amount otherwise required under this paragraph on a one-time basis to ensure that all qualified applicants may receive grants. (D) Violations The amount of a grant to a State, territory, or commonwealth may be less than the minimum amount determined under subparagraph (B) (including any substitution of amounts under clauses (i) and (ii) of subparagraph (C), as applicable), if the State, territory, or commonwealth has been found to have committed a significant violation of the rules or policies of the program. . (b) Permitting carryover of unused grant funds Section 22(l)(3)(C) of the Small Business Act ( 15 U.S.C. 649(l)(3)(C) ) is amended— (1) in clause (ii), by striking 40 percent and inserting 30 percent ; and (2) in clause (iii)— (A) by striking The Associate Administrator and inserting the following: (I) In general The Associate Administrator