Title 12, Banks and BankingRelease 119-110
§4744 Participation Agreements
Title 12 › CHAPTER 47 — COMMUNITY DEVELOPMENT BANKING › SUBCHAPTER II — SMALL BUSINESS CAPITAL ENHANCEMENT › § 4744
Summary
A program state can sign an agreement with any lender it decides, after consulting the federal banking agency, has enough commercial lending experience and financial and management ability. The Fund cannot review that choice. Once signed, lender can enroll loans.
Full Legal Text
Title 12, §4744
Banks and Banking, Source: USLM XML via OLRC
(a)In general
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)Participating financial institutions
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
Sep 22, 2026
Release point: 119-110