Who does SBA consider to control a VOSB or SDVOSB?

CFR · 2024-01-01 · US · Title 13

(a) (b) (c) (d) (e) (1) SBA will deem qualifying veterans to control the Board of Directors where: (i) One qualifying veteran owns 100% of all voting stock and is on the Board of Directors; (ii) One qualifying veteran owns at least 51% of all voting stock, the qualifying veteran is on the Board of Directors, and no supermajority voting requirements exist for shareholders to (iii) Two or more qualifying veterans together own at least 51% of all voting stock, each such qualifying veteran is on the Board of Directors, no supermajority voting requirements exist, and the qualifying veteran shareholders can demonstrate that they have made enforceable arrangements to permit one qualifying veteran to vote the stock of all qualifying veterans as a block without a shareholder meeting. Where the concern has supermajority voting requirements, the qualifying veteran shareholders must own at least that percentage of voting stock needed to overcome any such supermajority ownership requirements. (2) Where a concern does not meet the requirements set forth in paragraph (e)(1) of this section, the qualifying veteran(s) must control the Board of Directors through actual numbers of voting directors or, where permitted by state law, through weighted voting ( (i) Provisions for the establishment of a quorum cannot permit non-qualifying-veteran Directors to control the Board of Directors, directly or indirectly; and (ii) Any Executive Committee of Directors must be controlled by qualifying veteran

official document · source cfr-2024 · id 13:§ 128.203