---
kind: "section"
citation: "12 U.S.C. § 4709"
title: "12"
title_heading: "Banks and Banking"
number: "4709"
heading: "Encouragement of private entities"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/4709"
units:
  - "Chapter 47 — Community Development Banking"
  - "Subchapter I — Community Development Banking and Financial Institutions"
---

# §4709. Encouragement of private entities


The [Fund](/usc/12/4702.md?p=10) may facilitate the organization of corporations in which the Federal Government has no ownership interest. The purpose of any such entity shall be to assist [community development financial institutions](/usc/12/4702.md?p=5-A) in a manner that is complementary to the activities of the [Fund](/usc/12/4702.md?p=10) under this subchapter. Any such entity shall be managed exclusively by [persons](/usc/12/5481.md?p=19) not employed by the Federal Government or any agency or instrumentality thereof, or by any [State](/usc/12/4702.md?p=18) or local government or any agency or instrumentality thereof.


## Source credit

(Pub. L. 103–325, title I, § 110, Sept. 23, 1994, 108 Stat. 2177.)