; and (2) in clause (iii)— (A) by striking The Associate Administrator and inserting the following: (I) In general The Associate Administrator ; and (B) by adding at the end the following: (II) Grantees that use less than the full amount of a grant (aa) In general Subject to item (bb), for a State, territory, or commonwealth that does not expend the entire amount of a grant under the program before the end of the period of the grant established under subclause (I), the State, territory, or commonwealth may expend amounts remaining available under the grant as of the last day of such period during the first fiscal year after such period, in an amount not to exceed 20 percent of the amount originally made available under such grant. (bb) Forfeited grants Item (aa) shall not apply to a grant under the program to a State, territory, or commonwealth that was forfeited due to a significant program violation by the State, territory, or commonwealth. (cc) Return of grant funds A State, territory, or commonwealth shall return to the Treasury— (AA) any amounts remaining available under a grant under the program at the end of the period of the grant established under subclause (I) that are not available for expenditure under item (aa) of this subclause; and (BB) any amounts that are available for expenditure under item (aa) and are not expended on or before the date that is 1 year after the last day of the original period of the grant established under subclause (I). . (c) Funding formula Section 22(l) of the Small Business Act ( 15 U.S.C. 649(l) ) is amended by inserting after paragraph (4), as amended by subsection (a) of this section, the following: (5) Funding formula (A) Minimum allocation Subject to paragraph (4), and except as provided otherwise in this paragraph, the minimum amount of a grant under the program for a fiscal year— (i) for a territory or commonwealth, shall be the amount equal to 0.5 percent of the total amount appropriated for the program for the fiscal year