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response, should be responsive to and designed to benefit individuals, households, small <br />businesses, nonprofits, or impacted industries that did experience a public health or negative <br />economic impact. <br />Determining the Appropriate Eligible Use Category <br />Public Comment: Some commenters expressed uncertainty about how to analyze <br />negative economic impacts to different entities (e.g., households, small businesses, nonprofits). <br />For example, commenters asked whether a nonprofit, which did not experience a negative <br />economic impact itself, could be granted funds to provide services to individuals experiencing <br />homelessness, who did experience negative economic impacts. Other commenters proposed <br />providing assistance to support the expansion of small businesses, under the theory that this <br />would create more job opportunities for unemployed workers who experienced negative <br />economic impacts. <br />Treasury Response: In the final rule, Treasury is clarifying that recipients should assess a <br />potential use of funds based on which beneficiary experienced the negative economic impact, in <br />other words, the households, small businesses, nonprofits, or impacted industries that <br />experienced the negative economic impact. <br />Treasury notes that recipients may award SLFRF funds to many different types of <br />organizations to carry out eligible uses of funds and serve beneficiaries on behalf of a recipient. <br />When a recipient provides funds to another entity to carry out eligible uses of funds and serve <br />beneficiaries the entity becomes a subrecipient (see section Distinguishing a Subrecipient versus <br />a Beneficiary). For example, a recipient may grant funds to a nonprofit organization to provide <br />food assistance (an eligible use) to low-income households (the beneficiaries). Recipients only <br />27 <br />