---
kind: "section"
citation: "12 U.S.C. § 5701"
title: "12"
title_heading: "Banks and Banking"
number: "5701"
heading: "Definitions"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/5701"
units:
  - "Chapter 54 — State Small Business Credit Initiative"
---

# §5701. Definitions


In this chapter, the following definitions shall apply:

- (1) **Appropriate committees of Congress—** The term “appropriate committees of Congress” means—
  - (A) the Committee on Small Business and Entrepreneurship, the Committee on Agriculture, Nutrition, and Forestry, the Committee on Banking, Housing, and Urban Affairs, the Committee on Finance, the Committee on the Budget, and the Committee on Appropriations of the Senate; and
  - (B) the Committee on Small Business, the Committee on Agriculture, the Committee on Financial Services, the Committee on Ways and Means, the Committee on the Budget, and the Committee on Appropriations of the House of Representatives.
- (2) **Appropriate Federal banking agency—** The term “appropriate Federal banking agency”—
  - (A) has the same meaning as in [section 1813(q) of this title](/usc/12/1813.md?p=q); and
  - (B) includes the National [Credit](/usc/12/5481.md?p=7) Union Administration [Board](/usc/12/1861.md?p=b-3) in the case of any [credit](/usc/12/5481.md?p=7) union the deposits of which are insured in accordance with the Federal [Credit](/usc/12/5481.md?p=7) Union Act [[12 U.S.C. 1751](/usc/12/1751.md) et seq.].
- (3) **Enrolled loan—** The term “enrolled loan” means a loan made by a [financial institution](#5) lender that is enrolled by a [participating State](#6) in an approved [State capital access program](#11) in accordance with this chapter.
- (4) **Federal contribution—** The term “Federal contribution” means the portion of the contribution made by a [participating State](#6) to, or for the account of, an approved [State program](#13) that is made with Federal funds allocated to the [State](#10) by the [Secretary](#14) under [section 5702 of this title](/usc/12/5702.md).
- (5) **Financial institution—** The term “financial institution” means any [insured depository institution](/usc/12/1861.md?p=b-4), [insured credit union](/usc/12/5481.md?p=17), or [community development financial institution](#16), as those terms are each defined in [section 4702 of this title](/usc/12/4702.md).
- (6) **Participating State—** The term “participating State” means any [State](#10) that has been approved for participation in the [Program](#7) under [section 5703 of this title](/usc/12/5703.md).
- (7) **Program—** The term “Program” means the [State](#10) Small Business [Credit](/usc/12/5481.md?p=7) Initiative established under this chapter.
- (8) **Qualifying loan or swap funding facility—** The term “qualifying loan or swap funding facility” means a contractual arrangement between a [participating State](#6) and a private financial entity under which—
  - (A) the [participating State](#6) delivers funds to the entity as collateral;
  - (B) the entity provides funding from the arrangement back to the [participating State](#6); and
  - (C) the full amount of resulting funding from the arrangement, less any fees and other costs of the arrangement, is contributed to, or for the account of, an approved [State program](#13).
- (9) **Reserve fund—** The term “reserve fund” means a fund, established by a [participating State](#6), dedicated to a particular [financial institution](#5) lender, for the purposes of—
  - (A) depositing all required premium charges paid by the [financial institution](#5) lender and by each borrower receiving a loan under an approved [State program](#13) from that [financial institution](#5) lender;
  - (B) depositing contributions made by the [participating State](#6), including [State](#10) contributions made with [Federal contributions](#4); and
  - (C) covering losses on [enrolled loans](#3) by disbursing accumulated funds.
- (10) **State—** The term “State” means—
  - (A) a [State](#10) of the United States;
  - (B) the District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of Northern Mariana Islands, Guam, American Samoa, and the United States Virgin Islands;
  - (C) when designated by a [State](#10) of the United States, a political subdivision of that [State](#10) that the [Secretary](#14) determines has the capacity to participate in the [Program](#7);
  - (D) under the circumstances described in [section 5703(d) of this title](/usc/12/5703.md?p=d), a municipality of a [State](#10) of the United States to which the [Secretary](#14) has given a special permission under [section 5703(d) of this title](/usc/12/5703.md?p=d); and
  - (E) a [Tribal government](#19), or a group of [Tribal governments](#19) that jointly apply for an allocation.
- (11) **State capital access program—** The term “State capital access program” means a [program](#7) of a [State](#10) that—
  - (A) uses public resources to promote private access to [credit](/usc/12/5481.md?p=7); and
  - (B) meets the eligibility criteria in [section 5704(c) of this title](/usc/12/5704.md?p=c).
- (12) **State other credit support program—** The term “State other credit support program”—
  - (A) means a [program](#7) of a [State](#10) that—
    - (i) uses public resources to promote private access to [credit](/usc/12/5481.md?p=7);
    - (ii) is not a [State capital access program](#11); and
    - (iii) meets the eligibility criteria in [section 5705(c) of this title](/usc/12/5705.md?p=c); and
  - (B) includes, collateral support [programs](#7), loan participation [programs](#7), [State](#10)-run venture capital fund [programs](#7), and [credit](/usc/12/5481.md?p=7) guarantee [programs](#7).
- (13) **State program—** The term “State program” means a [State capital access program](#11) or a [State other credit support program](#12).
- (14) **Secretary—** The term “Secretary” means the Secretary of the Treasury.
- (15) **Business enterprise owned and controlled by socially and economically disadvantaged individuals—** The term “business enterprise owned and controlled by socially and economically disadvantaged individuals” means a business that—
  - (A) if privately owned, 51 percent is owned by one or more [socially and economically disadvantaged individuals](#18);
  - (B) if publicly owned, 51 percent of the stock is owned by one or more [socially and economically disadvantaged individuals](#18); and
  - (C) in the case of a mutual institution, a majority of the [Board](/usc/12/1861.md?p=b-3) of [Directors](/usc/12/5481.md?p=10), account holders, and the community which the institution services is predominantly comprised of [socially and economically disadvantaged individuals](#18).
- (16) **Community development financial institution—** The term “community development financial institution” has the meaning given that term under [section 4702 of this title](/usc/12/4702.md).
- (17) **Minority depository institution—** The term “minority depository institution” has the meaning given that term under [section 308(b)](/usc/12/308.md) of the [Financial Institutions](#5) Reform, Recovery, and Enforcement Act of 1989.
- (18) **Socially and economically disadvantaged individual—** The term “socially and economically disadvantaged individual” means an individual who is a socially disadvantaged individual or an economically disadvantaged individual, as such terms are defined, respectively, under [section 637 of title 15](/usc/15/637.md) and the regulations thereunder.
- (19) **Tribal government—** The term “Tribal government” means the recognized governing body of any Indian or Alaska Native tribe, band, nation, pueblo, village, community, component band, or component reservation, individually identified (including parenthetically) in the list published most recently as of March 11, 2021, pursuant to [section 5131 of title 25](/usc/25/5131.md).

## Source credit

(Pub. L. 111–240, title III, § 3002, Sept. 27, 2010, 124 Stat. 2568; Pub. L. 117–2, title III, § 3301(e), (f), Mar. 11, 2021, 135 Stat. 71.)

## Notes

### Editorial Notes

### References in Text

The Federal Credit Union Act, referred to in par. (2)(B), is act June 26, 1934, ch. 750, 48 Stat. 1216, which is classified principally to chapter 14 (§ 1751 et seq.) of this title. For complete classification of this Act to the Code, see section 1751 of this title and Tables.

Section 308(b) of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, referred to in par. (17), is section 308(b) of Pub. L. 101–73, which is set out in a note under section 1463 of this title.

### Amendments

2021—Par. (10)(E). Pub. L. 117–2, § 3301(e), added subpar. (E).

Pars. (15) to (19). Pub. L. 117–2, § 3301(f), added pars. (15) to (19).

### Statutory Notes and Related Subsidiaries

### Effective Date of 2021 Amendment

Pub. L. 117–2, title III, § 3301(g), Mar. 11, 2021, 135 Stat. 72, provided that: “The amendments made by this section [amending this section and sections 5702 to 5706, 5708, and 5710 of this title and enacting provisions set out as a note below] shall apply with respect to funds appropriated under this section and funds appropriated on and after the date of enactment of this section [Mar. 11, 2021].”

### Short Title

Pub. L. 111–240, title III, § 3001, Sept. 27, 2010, 124 Stat. 2568, provided that: “This title [enacting this chapter] may be cited as the ‘State Small Business Credit Initiative Act of 2010’.”

### Appropriation

Pub. L. 117–2, title III, § 3301(a)(2), Mar. 11, 2021, 135 Stat. 69, provided that: In general.—In addition to amounts otherwise available, there is hereby appropriated to the Secretary of the Treasury for fiscal year 2021, out of any money in the Treasury not otherwise appropriated, $10,000,000,000, to remain available until expended, to provide support to small businesses responding to and recovering from the economic effects of the COVID–19 pandemic, ensure business enterprises owned and controlled by socially and economically disadvantaged individuals have access to credit and investments, provide technical assistance to help small businesses applying for various support programs, and to pay reasonable costs of administering such Initiative. Rescission.—With respect to amounts appropriated under subparagraph (A)— the Secretary of the Treasury shall complete all disbursements and remaining obligations before September 30, 2030; and any amounts that remain unexpended (whether obligated or unobligated) on September 30, 2030, shall be rescinded and deposited into the general fund of the Treasury.”