### Question
Can you define what loan-eligible State means?


### Answer
**Loan-eligible State** is defined as the following in *42 U.S.C. § 606*:

> a State against which a penalty has not been imposed under section 609(a)(1) of this title

#### Citation:
  - *42 U.S.C. § 606*
  - Heading: **CHAPTER 7-SOCIAL SECURITY > SUBCHAPTER IV-GRANTS TO STATES FOR AID AND SERVICES TO NEEDY FAMILIES WITH CHILDREN AND FOR CHILD-WELFARE SERVICES > Part A-Block Grants to States for Temporary Assistance for Needy Families**

