; and (ii) enter into 1 or more binding agreements that provide for the participating entity to distribute the grant funds for purposes authorized under subsection (c) such that— (I) in the case of the initial grant made to a participating entity under this section, not less than 75 percent of the amount of the grant shall be distributed before the end of the 2-year period beginning on the date on which the funds are deposited in the State or Tribal government loan fund of the participating entity; and (II) in the case of any subsequent grant made to a participating entity under this section, not less than 90 percent of the amount of the grant shall be distributed before the end of the 1-year period beginning on the date on which the funds are deposited in the State or Tribal government loan fund of the participating entity. (B) Noncompliance Except as provided in subparagraph (C), if a participating entity does not comply with subparagraph (A) with respect to a grant, the Administrator shall reallocate the grant in accordance with paragraph (3)(B). (C) Exception The Administrator may not reallocate any funds under subparagraph (B) to a participating entity that violated subparagraph (A) with respect to a grant made during the same fiscal year in which the funds to be reallocated were originally made available. (3) Allocation (A) In general The Administrator shall allocate amounts made available to carry out this section to participating entities— (i) for the participating entities to deposit in the State or Tribal government loan fund established by the participating entity