### Question
What is the definition of participating financial institution?


### Answer
The definition of **participating financial institution** is as follows 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**

