### Question
How is the "loan-eligible State" defined?


### Answer
The term **loan-eligible State** is defined in *42 U.S.C. § 606* as follows -

> 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 6-THE CHILDREN'S BUREAU > 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**

