Title 12 — Banks and BankingRelease 119-73
§4744 Participation agreements
Title 12 › Chapter CHAPTER 47— - COMMUNITY DEVELOPMENT BANKING › Subchapter SUBCHAPTER II— - SMALL BUSINESS CAPITAL ENHANCEMENT › § 4744
Summary
A State may contract with a lender it decides, after consulting the federal banking agency, has enough experience and capacity. The Fund cannot review that decision. The lender can enroll loans.
Full Legal Text
Title 12, §4744
Banks and Banking — Source: USLM XML via OLRC
(a)A participating State may enter into a participation agreement with any financial institution determined by the participating State, after consultation with the appropriate Federal banking agency, to have sufficient commercial lending experience and financial and managerial capacity to participate in the Program. The determination by the State shall not be reviewable by the Fund.
(b)Upon entering into the participation agreement with the participating State, the financial institution shall become a participating financial institution eligible to enroll loans under the Program.
Reference
Citations & Metadata
Citation
12 U.S.C. § 4744
Title 12 — Banks and Banking
Last Updated
Apr 6, 2026
Release point: 119-73