---
kind: "section"
citation: "12 U.S.C. § 4744"
title: "12"
title_heading: "Banks and Banking"
number: "4744"
heading: "Participation agreements"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/4744"
units:
  - "Chapter 47 — Community Development Banking"
  - "Subchapter II — Small Business Capital Enhancement"
---

# §4744. Participation agreements

- (a) **In general—** A [participating State](/usc/12/4742.md?p=7) may enter into a participation agreement with any [financial institution](/usc/12/4742.md?p=5) determined by the [participating State](/usc/12/4742.md?p=7), after consultation with the [appropriate Federal banking agency](/usc/12/4702.md?p=2), to have sufficient commercial lending experience and financial and managerial capacity to participate in the [Program](/usc/12/4742.md?p=9). The determination by the [State](/usc/12/4702.md?p=18) shall not be reviewable by the [Fund](/usc/12/4702.md?p=10).
- (b) **Participating financial institutions—** Upon entering into the participation agreement with the [participating State](/usc/12/4742.md?p=7), the [financial institution](/usc/12/4742.md?p=5) shall become a [participating financial institution](/usc/12/4742.md?p=6) eligible to enroll loans under the [Program](/usc/12/4742.md?p=9).

## Source credit

(Pub. L. 103–325, title II, § 254, Sept. 23, 1994, 108 Stat. 2207.)