PUBLIC LAW 103-325—SEPT. 23, 1994 108 STAT. 2205 (7) the term "participating State" means any State that has been approved for participation in the Program in accordance with section 253; (8) the term "passive real estate ownership" means ownership of real estate for the purpose of deriving income from speculation, trade, or rental, except that such term shall not include— (A) the ownership of that portion of real estate being "'-'•' used or intended to be used for the operation of the business of the owner of the real estate (other than the business of passive ownership of real estate); or (B) the ownership of real estate for the purpose of construction or renovation, until the completion of the construction or renovation phase; (9) the term "Program" means the Small Business Capital Enhancement Program established under this subtitle; (10) the term "reserve fund" means a fund, established by a participating State, earmarked for a particular participating financial institution, for the purposes of— (A) depositing all required premium charges paid by the participating financial institution and by each borrower receiving a loan under the Program from a participating financial institution; (B) depositing contributions made by the participating State; and (C) covering losses on enrolled loans by disbursing accumulated funds; and (11) the term "State" means— (A) a State of the United States; (B) the District of Columbia; (C) any political subdivision of a State of the United States, which subdivision has a population in excess of the population of the least populated State of the United States; and (D) any other political subdivision of a State of the United States that the Fund determines has the capacity to participate in the program. SEC. 253. APPROVING STATES FOR PARTICIPATION. 12 USC 4743. (a) APPLICATION. — Any State may apply to the Fund for approval to be a participating State under the Program and to be eligible for reimbursement by the Fund pursuant to section 257. (b) APPROVAL CRITERIA.—The Fund shall approve a State to be a participating State, if— (1) a specific department or agency of the State has been designated to implement the Program; (2) all legal actions necessary to enable such designated department or agency to implement the Program have been accomplished; (3) funds in the amount of at least $1 for every 2 people residing in the State (as of the last decennial census for which data have been released) are available and have been legally committed to contributions by the State to reserve funds, with such funds being available without time limit and without requiring additional legal action, except that such requirements shall not be construed to limit the authority of the State to
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