PUBLIC LAW 103-382—OCT. 20, 1994 108 STAT. 3829 "(3) ALLOWABLE ACTIVITIES. — An eligible applicant receiving a grant or subgrant under this part may use the grant or subgrant funds only for— "(A) post-award planning and design of the educational program, which may include— "(i) refinement of the desired educational results and of the methods for measuring progress toward achieving those results; and "(ii) professional development of teachers and other staff who will work in the charter school; and "(B) initial implementation of the charter school, which may include— "(i) informing the community about the school; "(ii) acquiring necessary equipment and educational materials and supplies; "(iii) acquiring or developing curriculum materials; and "(iv) other initial operational costs that cannot be met from State or local sources. "(4) ADMINISTRATIVE EXPENSES.— Each State educational agency receiving a grant pursuant to this part may reserve not more than 5 percent of such grant funds for administrative expenses associated with the charter school grant program assisted under this part. "(5) REVOLVING LOAN FUNDS. —Each State educational agency receiving a grant pursuant to this part may reserve not more than 20 percent of the grant amount for the establishment of a revolving loan fund. Such fund may be used to make loans to eligible applicants that have received a subgrant under this part, under such terms as may be determined by the State educational agency, for the initial operation of the charter school grant program of such recipient until such time as the recipient begins receiving ongoing operational support from State or local financing sources. "SEC. 10305. NATIONAL ACTIVITIES. 20 USC 8065. "The Secretary may reserve not more than ten percent of the funds available to carry out this part for any fiscal year for— "(1) peer review of applications under section 10304(c); "(2) an evaluation of the impact of charter schools on student achievement, including those assisted under this part; and "(3) other activities designed to enhance the success of the activities assisted under this part, such as— "(A) development and dissemination of model State charter school laws and model contracts or other means of authorizing and monitoring the performance of charter schools; and "(B) collection and dissemination of information on successful charter schools. "SEC. 10306. DEFINrnONS. 20 USC 8066. "As used in this part: "(1) The term 'charter school' means a public school that— "(A) in accordance with an enabling State statute, is exempted from significant State or local rules that inhibit the flexible operation and management of public schools.