### Question
What does participating financial institution mean?


### Answer
**Participating financial institution** has the following meaning in *12 U.S.C. § 4742*:

> any financial institution that has entered into a participation agreement with a participating State in accordance with section 4744 of this title

#### Citation:
  - *12 U.S.C. § 4742*
  - Heading: **CHAPTER 47-COMMUNITY DEVELOPMENT BANKING > SUBCHAPTER II-SMALL BUSINESS CAPITAL ENHANCEMENT**

