What does it mean to be unconditionally owned by one or more disadvantaged individuals?

CFR · 2024-01-01 · US · Title 13

An applicant or Participant must be at least 51 percent unconditionally and directly owned by one or more socially and economically disadvantaged individuals who are citizens of the United States, except for concerns owned by Indian tribes, Alaska Native Corporations, Native Hawaiian Organizations, or Community Development Corporations (CDCs). (a) (b) (c) (d) (e) (f) (1) At least 51 percent of the annual distribution of dividends paid on the stock of a corporate applicant concern; (2) 100 percent of the value of each share of stock owned by them in the event that the stock is sold; and (3) At least 51 percent of the retained earnings of the concern and 100 percent of the unencumbered value of each share of stock owned in the event of dissolution of the corporation. (g) (i) The concerns are connected by any common ownership or management, regardless of amount or position; (ii) The concerns have a contractual relationship that was not conducted at arm's length; (iii) The concerns share common facilities; or (iv) The concerns operate in the same primary NAICS code and the individual seeking to qualify the applicant concern does not have management or technical experience in that primary NAICS code. (2) If the AA/BD approves an application under paragraph (g)(1) of this section, SBA will, as part of its annual review, assess whether the firm continues to operate independently of the other current or former 8(a) concern of an immediate family member. SBA may initiate proceedings t

official document · source cfr-2024 · id 13:§ 124.105