{"identifier":"/us/usc/t15/s632","title":15,"num":"\u00a7\u202f632.","heading":"Definitions","text":"\u00a7\u202f632.\nDefinitions\n(a)\nSmall business concerns\n(1)\nIn general\nFor the purposes of this chapter, a small-business concern, including but not limited to enterprises that are engaged in the business of production of food and fiber, ranching and raising of livestock, aquaculture, and all other farming and agricultural related industries, shall be deemed to be one which is independently owned and operated and which is not dominant in its field of operation.\n(2)\nEstablishment of size standards\n(A)\nIn general\nIn addition to the criteria specified in paragraph (1) and subject to the requirements specified under subparagraph (C), the Administrator may specify detailed definitions or standards by which a business concern may be determined to be a small business concern for the purposes of this chapter or any other Act.\n(B)\nAdditional criteria\nThe standards described in paragraph (1) may utilize number of employees, dollar volume of business, net worth, net income, a combination thereof, or other appropriate factors.\n(C)\nRequirements\nUnless specifically authorized by statute, no Federal department (including the Administration when acting pursuant to subparagraph (A)) or agency may prescribe a size standard for categorizing a business concern as a small business concern, unless such proposed size standard\u2014\n(i) is proposed after an opportunity for public notice and comment;\n(ii) provides for determining\u2014\n(I) the size of a manufacturing concern as measured by the manufacturing concern\u2019s average employment based upon employment during each of the manufacturing concern\u2019s pay periods for the preceding 24 months;\n(II) the size of a business concern providing services on the basis of the annual average gross receipts of the business concern over a period of not less than 5 years;\n(III) the size of other business concerns on the basis of data over a period of not less than 3 years; or\n(IV) other appropriate factors; and\n(iii) is approved by the Administrator.\n(3)\nVariation by industry and consideration of other factors\nWhen establishing or approving any size standard pursuant to paragraph (2), the Administrator shall ensure that the size standard varies from industry to industry to the extent necessary to reflect the differing characteristics of the various industries and consider other factors deemed to be relevant by the Administrator.\n(4)\nExclusion of certain security expenses from consideration for purpose of small business size standards\n(A)\nDetermination required\nNot later than 30 days after\nJanuary 6, 2006\n(B)\nAction required\nNot later than 60 days after\n(i) initiate an adjustment to the size standards, as described in subparagraph (A), if the Administrator determines that such an adjustment would be fair and appropriate; or\n(ii) provide a report to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives explaining in detail the basis for the determination by the Administrator that such an adjustment would not be fair and appropriate.\n(C)\nQualified areas\nIn this paragraph, the term \u201cqualified area\u201d means\u2014\n(i) Iraq,\n(ii) Afghanistan, and\n(iii) any foreign country which included a combat zone, as that term is defined in\nsection 112(c)(2) of title 26\n(5)\nAlternative size standard\n(A)\nIn general\nThe Administrator shall establish an alternative size standard for applicants for business loans under\nsection 636(a) of this title\n15 U.S.C. 695\n(B)\nInterim rule\nUntil the date on which the alternative size standard established under subparagraph (A) is in effect, an applicant for a business loan under\n(i) the maximum tangible net worth of the applicant is not more than $15,000,000; and\n(ii) the average net income after Federal income taxes (excluding any carry-over losses) of the applicant for the 2 full fiscal years before the date of the application is not more than $5,000,000.\n(6)\nProposed rulemaking\nIn conducting rulemaking to revise, modify or establish size standards pursuant to this section, the Administrator shall consider, and address, and make publicly available as part of the notice of proposed rulemaking and notice of final rule each of the following:\n(A) a detailed description of the industry for which the new size standard is proposed;\n(B) an analysis of the competitive environment for that industry;\n(C) the approach the Administrator used to develop the proposed standard including the source of all data used to develop the proposed rule making; and\n(D) the anticipated effect of the proposed rulemaking on the industry, including the number of concerns not currently considered small that would be considered small under the proposed rule making and the number of concerns currently considered small that would be deemed other than small under the proposed rulemaking.\n(7)\nCommon size standards\nIn carrying out this subsection, the Administrator may establish or approve a single size standard for a grouping of 4-digit North American Industry Classification System codes only if the Administrator makes publicly available, not later than the date on which such size standard is established or approved, a justification demonstrating that such size standard is appropriate for each individual industry classification included in the grouping.\n(8)\nNumber of size standards\nThe Administrator shall not limit the number of size standards established pursuant to paragraph (2), and shall assign the appropriate size standard to each North American Industry Classification System Code.\n(9)\nPetitions for reconsideration of size standards\n(A)\nIn general\nA person may file a petition for reconsideration with the Office of Hearings and Appeals (as established under\nsection 634(i) of this title\n(B)\nTime limit\nA person filing a petition for reconsideration described in subparagraph (A) shall file such petition not later than 30 days after the publication in the Federal Register of the notice of final rule to revise, modify, or establish size standards described in paragraph (6).\n(C)\nProcess for agency review\nThe Office of Hearings and Appeals shall use the same process it uses to decide challenges to the size of a small business concern to decide a petition for review pursuant to this paragraph.\n(D)\nJudicial review\nThe publication of a final rule in the Federal Register described in subparagraph (B) shall be considered final agency action for purposes of seeking judicial review. Filing a petition for reconsideration under subparagraph (A) shall not be a condition precedent to judicial review of any such size standard.\n(E)\nRules or guidance\nThe Office of Hearings and Appeals shall begin accepting petitions for reconsideration described in subparagraph (A) after the date on which the Administration issues a rule or other guidance implementing this paragraph. Notwithstanding the provisions of subparagraph (B), petitions for reconsideration of size standards revised, modified, or established in a Federal Register final rule published between\nNovember 25, 2015\n(b)\n\u201cAgency\u201d defined\nFor purposes of this chapter, any reference to an agency or department of the United States, and the term \u201cFederal agency\u201d, shall have the meaning given the term \u201cagency\u201d by\nsection 551(1) of title 5\n(c)\nQualified employee trust; eligibility for loan guarantee; \u201cqualified employee trust\u201d defined; regulations for treatment of trust as qualified employee trust\n(1) For purposes of this chapter, a qualified employee trust shall be eligible for any loan guarantee under\nsection 636(a) of this title\n(2) For purposes of this chapter, the term \u201cqualified employee trust\u201d means, with respect to a small business concern, a trust\u2014\n(A) which forms part of an employee stock ownership plan (as defined in\n(i) which is maintained by such concern, and\n(ii) which provides that each participant is entitled to direct the plan trustee as to the manner of how to vote the qualified employer securities (as defined in\nsection 4975(e)(8) of title 26\n(B) in the case of any loan guarantee under\n(i) the loan guaranteed under\nsection 636(a) of this title\n(ii) all funds acquired by the concern in such purchase shall be used by such concern solely for the purposes for which such loan was guaranteed,\n(iii) such concern will provide such funds as may be necessary for the timely repayment of such loan, and the property of such concern shall be available as security for repayment of such loan, and\n(iv) all qualifying employer securities acquired by such trust in such purchase shall be allocated to the accounts of participants in such plan who are entitled to share in such allocation, and each participant has a nonforfeitable right, not later than the date such loan is repaid, to all such qualifying employer securities which are so allocated to the participant\u2019s account.\n(3) Under regulations which may be prescribed by the Administrator, a trust may be treated as a qualified employee trust with respect to a small business concern if\u2014\n(A) the trust is maintained by an employee organization which represents at least 51 percent of the employees of such concern, and\n(B) such concern maintains a plan\u2014\n(i) which is an employee benefit plan which is designed to invest primarily in qualifying employer securities (as defined in\nsection 4975(e)(8) of title 26\n(ii) which provides that each participant in the plan is entitled to direct the plan as to the manner in which voting rights under qualifying employer securities which are allocated to the account of such participant are to be exercised with respect to a corporate matter which (by law or charter) must be decided by a majority vote of the outstanding common shares voted,\n(iii) which provides that each participant who is entitled to distribution from the plan has a right, in the case of qualifying employer securities which are not readily tradeable on an established market, to require that the concern repurchase such securities under a fair valuation formula, and\n(iv) which meets such other requirements (similar to requirements applicable to employee stock ownership plans as defined in\nsection 4975(e)(7) of title 26\n(C) in the case of a loan guarantee under\nsection 636(a) of this title\n(d)\n\u201cQualified Indian tribe\u201d defined\nFor purposes of\nsection 636 of this title\n1\n1 So in original. Probably should be a reference to subsec. \u201c(e)\u201d of section 5304, which defines Indian tribe.\n(e)\n\u201cPublic or private organization for the handicapped\u201d defined\nFor purposes of\n(1) which is organized under the laws of the United States or of any State, operated in the interest of handicapped individuals, the net income of which does not inure in whole or in part to the benefit of any shareholder or other individuals;\n(2) which complies with any applicable occupational health and safety standard prescribed by the Secretary of Labor; and\n(3) which, in the production of commodities and in the provision of services during any fiscal year in which it received financial assistance under this subsection, employs handicapped individuals for not less than 75 per centum of the man-hours required for the production or provision of the commodities or services.\n(f)\n\u201cHandicapped individual\u201d defined\nFor purposes of\n(1) who has a physical, mental, or emotional impairment, defect, ailment, disease, or disability of a permanent nature which in any way limits the selection of any type of employment for which the person would otherwise be qualified or qualifiable; or\n(2) who is a service-disabled veteran.\n(g)\n\u201cEnergy measures\u201d defined\nFor purposes of\n(1) solar thermal energy equipment which is either of the active type based upon mechanically forced energy transfer or of the passive type based on convective, conductive, or radiant energy transfer or some combination of these types;\n(2) photovoltaic cells and related equipment;\n(3) a product or service the primary purpose of which is conservation of energy through devices or techniques which increase the energy efficiency of existing equipment, methods of operation, or systems which use fossil fuels, and which is on the Energy Conservation Measures list of the Secretary of Energy or which the Administrator determines to be consistent with the intent of this subsection;\n(4) equipment the primary purpose of which is production of energy from wood, biological waste, grain, or other biomass source of energy;\n(5) equipment the primary purpose of which is industrial cogeneration of energy, district heating, or production of energy from industrial waste;\n(6) hydroelectric power equipment;\n(7) wind energy conversion equipment; and\n(8) engineering, architectural, consulting, or other professional services which are necessary or appropriate to aid citizens in using any of the measures described in paragraph (1) through (7).\n(h)\n\u201cCredit elsewhere\u201d defined\nThe term \u201ccredit elsewhere\u201d means\u2014\n(1) for the purposes of this chapter (except as used in\n(A) the business industry in which the loan applicant operates;\n(B) whether the loan applicant is an enterprise that has been in operation for a period of not more than 2 years;\n(C) the adequacy of the collateral available to secure the requested loan;\n(D) the loan term necessary to reasonably assure the ability of the loan applicant to repay the debt from the actual or projected cash flow of the business; and\n(E) any other factor relating to the particular credit application, as documented in detail by the lender, that cannot be overcome except through obtaining a Federal loan guarantee under prudent lending standards; and\n(2) for the purposes of\nsection 636(b) of this title\n(i)\n\u201cHomeowners\u201d defined\nFor purposes of\nsection 636 of this title\n(j)\n\u201cSmall agricultural cooperative\u201d defined\nFor the purposes of this chapter, the term \u201csmall agricultural cooperative\u201d means an association (corporate or otherwise) acting pursuant to the provisions of the Agricultural Marketing Act (\n12 U.S.C. 1141j\n(k)\n\u201cDisaster\u201d defined\n(1) For the purposes of this chapter, the term \u201cdisaster\u201d means a sudden event which causes severe damage including, but not limited to, floods, hurricanes, tornadoes, earthquakes, fires, explosions, volcanoes, windstorms, landslides or mudslides, tidal waves, commercial fishery failures or fishery resource disasters (as determined by the Secretary of Commerce under the Fishery Resource Disasters Improvement Act), ocean conditions resulting in the closure of customary fishing waters, riots, civil disorders or other catastrophes, except it does not include economic dislocations.\n(2) For purposes of\n(A) drought;\n(B) below average water levels in the Great Lakes, or on any body of water in the United States that supports commerce by small business concerns; and\n(C) ice storms and blizzards.\n(l)\n\u201cComputer crime\u201d defined\nFor purposes of this chapter\u2014\n(1)\n(A) any crime committed against a small business concern by means of the use of a computer; and\n(B) any crime involving the illegal use of, or tampering with, a computer owned or utilized by a small business concern.\n(m)\nDefinitions relating to contracting\nIn this chapter:\n(1)\nPrime contract\nThe term \u201cprime contract\u201d has the meaning given such term in\nsection 8701(4) of title 41\n(2)\nPrime contractor\nThe term \u201cprime contractor\u201d has the meaning given such term in\nsection 8701(5) of title 41\n(3)\nSimplified acquisition threshold\nThe term \u201csimplified acquisition threshold\u201d has the meaning given such term in\nsection 134 of title 41\n(4)\nMicro-purchase threshold\nThe term \u201cmicro-purchase threshold\u201d has the meaning given such term in\nsection 1902 of title 41\n(5)\nTotal purchases and contracts for property and services\nThe term \u201ctotal purchases and contracts for property and services\u201d shall mean total number and total dollar amount of contracts and orders for property and services.\n(n)\n\u201cSmall business concern owned and controlled by women\u201d defined\nFor the purposes of this chapter, a small business concern is a small business concern owned and controlled by women if\u2014\n(1) at least 51 percent of small\n3\n3 So in original. Probably should be preceded by \u201cthe\u201d.\n(2) the management and daily business operations of the business are controlled by one or more women.\n(o)\nDefinitions of bundling of contract requirements and related terms\nIn this chapter:\n(1)\nBundled contract\nThe term \u201cbundled contract\u201d means a contract that is entered into to meet requirements that are consolidated in a bundling of contract requirements.\n(2)\nBundling of contract requirements\nThe term \u201cbundling of contract requirements\u201d means consolidating 2 or more procurement requirements for goods or services previously provided or performed under separate smaller contracts into a solicitation of offers for a single contract that is likely to be unsuitable for award to a small-business concern due to\u2014\n(A) the diversity, size, or specialized nature of the elements of the performance specified;\n(B) the aggregate dollar value of the anticipated award;\n(C) the geographical dispersion of the contract performance sites; or\n(D) any combination of the factors described in subparagraphs (A), (B), and (C).\n(3)\nSeparate smaller contract\nThe term \u201cseparate smaller contract\u201d, with respect to a bundling of contract requirements, means a contract that has been performed by 1 or more small business concerns or was suitable for award to 1 or more small business concerns.\n(p)\nQualified HUBZone small business concern\nIn this chapter, the term \u201cqualified HUBZone small business concern\u201d has the meaning given such term in\nsection 657a(b) of this title\n(q)\nDefinitions relating to veterans\nIn this chapter, the following definitions apply:\n(1)\nService-disabled veteran\nThe term \u201cservice-disabled veteran\u201d means a veteran with a disability that is service-connected (as defined in\nsection 101(16) of title 38\n(2)\nSmall business concern owned and controlled by service-disabled veterans\nThe term \u201csmall business concern owned and controlled by service-disabled veterans\u201d means any of the following:\n(A) A small business concern\u2014\n(i) not less than 51 percent of which is owned by one or more service-disabled veterans or, in the case of any publicly owned business, not less than 51 percent of the stock (not including any stock owned by an ESOP) of which is owned by one or more service-disabled veterans; and\n(ii) the management and daily business operations of which are controlled by one or more service-disabled veterans or, in the case of a veteran with permanent and severe disability, the spouse or permanent caregiver of such veteran.\n(B) A small business concern\u2014\n(i) not less than 51 percent of which is owned by one or more service-disabled veterans with a disability that is rated by the Secretary of Veterans Affairs as a permanent and total disability who are unable to manage the daily business operations of such concern; or\n(ii) in the case of a publicly owned business, not less than 51 percent of the stock (not including any stock owned by an ESOP) of which is owned by one or more such veterans.\n(C)\n(i) During the time period described in clause (ii), a small business concern that was a small business concern described in subparagraph (A) or (B) immediately prior to the death of a service-disabled veteran who was the owner of the concern, the death of whom causes the concern to be less than 51 percent owned by one or more service-disabled veterans, if\u2014\n(I) the surviving spouse of the deceased veteran acquires such veteran\u2019s ownership interest in such concern;\n(II) such veteran had a service-connected disability (as defined in\nsection 101(16) of title 38\n(III) immediately prior to the death of such veteran, and during the period described in clause (ii), the small business concern is included in the database described in\nsection 657f of this title\n(ii) The time period described in this clause is the time period beginning on the date of the veteran\u2019s death and ending on the earlier of\u2014\n(I) the date on which the surviving spouse remarries;\n(II) the date on which the surviving spouse relinquishes an ownership interest in the small business concern; or\n(III) the date that\u2014\n(aa) in the case of a surviving spouse of a veteran with a service-connected disability rated as 100 percent disabling or who dies as a result of a service-connected disability, is 10 years after the date of the death of the veteran; or\n(bb) in the case of a surviving spouse of a veteran with a service-connected disability rated as less than 100 percent disabling who does not die as a result of a service-connected disability, is 3 years after the date of the death of the veteran.\n(3)\nSmall business concern owned and controlled by veterans\nThe term \u201csmall business concern owned and controlled by veterans\u201d means a small business concern\u2014\n(A) not less than 51 percent of which is owned by one or more veterans or, in the case of any publicly owned business, not less than 51 percent of the stock of which is owned by one or more veterans; and\n(B) the management and daily business operations of which are controlled by one or more veterans.\n(4)\nVeteran\nThe term \u201cveteran\u201d has the meaning given the term in\nsection 101(2) of title 38\n(5)\nRelief from time limitations\n(A)\nIn general\nAny time limitation on any qualification, certification, or period of participation imposed under this chapter on any program that is available to small business concerns shall be extended for a small business concern that\u2014\n(i) is owned and controlled by\u2014\n(I) a veteran who was called or ordered to active duty under a provision of law specified in\nsection 101(a)(13)(B) of title 10\nSeptember 11, 2001\n(II) a service-disabled veteran who became such a veteran due to an injury or illness incurred or aggravated in the active military, naval, or air service during a period of active duty pursuant to a call or order to active duty under a provision of law referred to in subclause (I) on or after\nSeptember 11, 2001\n(ii) was subject to the time limitation during such period of active duty.\n(B)\nDuration\nUpon submission of proper documentation to the Administrator, the extension of a time limitation under subparagraph (A) shall be equal to the period of time that such veteran who owned or controlled such a concern was on active duty as described in that subparagraph.\n(C)\nException for programs subject to Federal Credit Reform Act of 1990\nThe provisions of subparagraphs (A) and (B) shall not apply to any programs subject to the Federal Credit Reform Act of 1990 (\n2 U.S.C. 661\n(6)\nESOP\nThe term \u201cESOP\u201d has the meaning given the term \u201cemployee stock ownership plan\u201d in\nsection 4975(e)(7) of title 26\n(7)\nSurviving spouse\nThe term \u201csurviving spouse\u201d has the meaning given such term in\nsection 101(3) of title 38\n(r)\nDefinitions relating to small business lending companies\nAs used in\n(1)\nSmall business lending company\nThe term \u201csmall business lending company\u201d means a business concern that is authorized by the Administrator to make loans pursuant to\nsection 636(a) of this title\n(2)\nNon-Federally regulated lender\nThe term \u201cnon-Federally regulated lender\u201d means a business concern if\u2014\n(A) such concern is authorized by the Administrator to make loans under\nsection 636 of this title\n(B) such concern is subject to regulation by a State; and\n(C) the lending activities of such concern are not regulated by any Federal banking authority.\n(s)\nMajor disaster\nIn this chapter, the term \u201cmajor disaster\u201d has the meaning given that term in\nsection 5122 of title 42\n(t)\nSmall business development center\nIn this chapter, the term \u201csmall business development center\u201d means a small business development center described in\nsection 648 of this title\n(u)\nRegion of the Administration\nIn this chapter, the term \u201cregion of the Administration\u201d means the geographic area served by a regional office of the Administration established under\nsection 633(a) of this title\n(v)\nMultiple award contract\nIn this chapter, the term \u201cmultiple award contract\u201d means\u2014\n(1) a multiple award task order contract or delivery order contract that is entered into under the authority of sections 4101, 4103, 4105, and 4106 of title 41; and\n(2) any other indefinite delivery, indefinite quantity contract that is entered into by the head of a Federal agency with 2 or more sources pursuant to the same solicitation.\n(w)\nPresumption\n(1)\nIn general\nIn every contract, subcontract, cooperative agreement, cooperative research and development agreement, or grant which is set aside, reserved, or otherwise classified as intended for award to small business concerns, there shall be a presumption of loss to the United States based on the total amount expended on the contract, subcontract, cooperative agreement, cooperative research and development agreement, or grant whenever it is established that a business concern other than a small business concern willfully sought and received the award by misrepresentation.\n(2)\nDeemed certifications\nThe following actions shall be deemed affirmative, willful, and intentional certifications of small business size and status:\n(A) Submission of a bid or proposal for a Federal grant, contract, subcontract, cooperative agreement, or cooperative research and development agreement reserved, set aside, or otherwise classified as intended for award to small business concerns.\n(B) Submission of a bid or proposal for a Federal grant, contract, subcontract, cooperative agreement, or cooperative research and development agreement which in any way encourages a Federal agency to classify the bid or proposal, if awarded, as an award to a small business concern.\n(C) Registration on any Federal electronic database for the purpose of being considered for award of a Federal grant, contract, subcontract, cooperative agreement, or cooperative research agreement, as a small business concern.\n(3)\nCertification by signature of responsible official\n(A)\nIn general\nEach solicitation, bid, or application for a Federal contract, subcontract, or grant shall contain a certification concerning the small business size and status of a business concern seeking the Federal contract, subcontract, or grant.\n(B)\nContent of certifications\nA certification that a business concern qualifies as a small business concern of the exact size and status claimed by the business concern for purposes of bidding on a Federal contract or subcontract, or applying for a Federal grant, shall contain the signature of an authorized official on the same page on which the certification is contained.\n(4)\nRegulations\nThe Administrator shall promulgate regulations to provide adequate protections to individuals and business concerns from liability under this subsection in cases of unintentional errors, technical malfunctions, and other similar situations.\n(x)\nAnnual certification\n(1)\nIn general\nEach business certified as a small business concern under this chapter shall annually certify its small business size and, if appropriate, its small business status, by means of a confirming entry on the Online Representations and Certifications Application database of the Administration, or any successor thereto.\n(2)\nRegulations\nNot later than 1 year after\n(A) no business concern continues to be certified as a small business concern on the Online Representations and Certifications Application database of the Administration, or any successor thereto, without fulfilling the requirements for annual certification under this subsection; and\n(B) the requirements of this subsection are implemented in a manner presenting the least possible regulatory burden on small business concerns.\n(y)\nPolicy on prosecutions of small business size and status fraud\nNot later than 1 year after\nSeptember 27, 2010\n(z)\nAquaculture business disaster assistance\nSubject to\nsection 647(a) of this title\nsection 647(b)(1) of this title\nsection 636(b)(2) of this title\n(aa)\nVenture capital operating company\nIn this chapter, the term \u201cventure capital operating company\u201d means an entity described in clause (i), (v), or (vi) of section 121.103(b)(5) of title 13, Code of Federal Regulations (or any successor thereto).\n(bb)\nHedge fund\nIn this chapter, the term \u201chedge fund\u201d has the meaning given that term in\nsection 1851(h)(2) of title 12\n(cc)\nPrivate equity firm\nIn this chapter, the term \u201cprivate equity firm\u201d has the meaning given the term \u201cprivate equity fund\u201d in\nsection 1851(h)(2) of title 12\n(dd)\nDefinitions pertaining to subcontracting\nIn this chapter:\n(1)\nSubcontract\nThe term \u201csubcontract\u201d means a legally binding agreement between a contractor that is already under contract to another party to perform work, and a third party, hereinafter referred to as the subcontractor, for the subcontractor to perform a part, or all, of the work that the contractor has undertaken.\n(2)\nFirst tier subcontractor\nThe term \u201cfirst tier subcontractor\u201d means a subcontractor who has a subcontract directly with the prime contractor.\n(3)\nAt any tier\nThe term \u201cat any tier\u201d means any subcontractor other than a subcontractor who is a first tier subcontractor.\n(ee)\nPuerto Rico business\nIn this chapter, the term \u201cPuerto Rico business\u201d means a small business concern that has its principal office located in the Commonwealth of Puerto Rico.\n(ff)\nCovered territory business\nIn this chapter, the term \u201ccovered territory business\u201d means a small business concern that has its principal office located in one of the following:\n(1) The United States Virgin Islands.\n(2) American Samoa.\n(3) Guam.\n(4) The Northern Mariana Islands.","url":"https://projectusc.org/usc/t15/s632.html","content":[{"t":"sec","id":"/us/usc/t15/s632","children":[{"t":"num","text":"\u00a7\u202f632."},{"t":"heading","text":"Definitions"},{"t":"subsec","id":"/us/usc/t15/s632/a","children":[{"t":"num","text":"(a)"},{"t":"heading","text":"Small business concerns"},{"t":"para","id":"/us/usc/t15/s632/a/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"For the purposes of this chapter, a small-business concern, including but not limited to enterprises that are engaged in the business of production of food and fiber, ranching and raising of livestock, aquaculture, and all other farming and agricultural related industries, shall be deemed to be one which is independently owned and operated and which is not dominant in its field of operation.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s632/a/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Establishment of size standards"},{"t":"subpara","id":"/us/usc/t15/s632/a/2/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"In addition to the criteria specified in paragraph (1) and subject to the requirements specified under subparagraph (C), the Administrator may specify detailed definitions or standards by which a business concern may be determined to be a small business concern for the purposes of this chapter or any other Act.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t15/s632/a/2/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Additional criteria"},{"t":"content","children":[{"t":"p","text":"The standards described in paragraph (1) may utilize number of employees, dollar volume of business, net worth, net income, a combination thereof, or other appropriate factors.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t15/s632/a/2/C","children":[{"t":"num","text":"(C)"},{"t":"heading","text":"Requirements"},{"t":"chapeau","text":"Unless specifically authorized by statute, no Federal department (including the Administration when acting pursuant to subparagraph (A)) or agency may prescribe a size standard for categorizing a business concern as a small business concern, unless such proposed size standard\u2014"},{"t":"clause","id":"/us/usc/t15/s632/a/2/C/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" is proposed after an opportunity for public notice and comment;","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t15/s632/a/2/C/ii","children":[{"t":"num","text":"(ii)"},{"t":"chapeau","text":" provides for determining\u2014"},{"t":"subclause","id":"/us/usc/t15/s632/a/2/C/ii/I","children":[{"t":"num","text":"(I)"},{"t":"content","text":" the size of a manufacturing concern as measured by the manufacturing concern\u2019s average employment based upon employment during each of the manufacturing concern\u2019s pay periods for the preceding 24 months;","tail":"\n"}],"tail":"\n"},{"t":"subclause","id":"/us/usc/t15/s632/a/2/C/ii/II","children":[{"t":"num","text":"(II)"},{"t":"content","text":" the size of a business concern providing services on the basis of the annual average gross receipts of the business concern over a period of not less than 5 years;","tail":"\n"}],"tail":"\n"},{"t":"subclause","id":"/us/usc/t15/s632/a/2/C/ii/III","children":[{"t":"num","text":"(III)"},{"t":"content","text":" the size of other business concerns on the basis of data over a period of not less than 3 years; or","tail":"\n"}],"tail":"\n"},{"t":"subclause","id":"/us/usc/t15/s632/a/2/C/ii/IV","children":[{"t":"num","text":"(IV)"},{"t":"content","text":" other appropriate factors; and","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t15/s632/a/2/C/iii","children":[{"t":"num","text":"(iii)"},{"t":"content","text":" is approved by the Administrator.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s632/a/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Variation by industry and consideration of other factors"},{"t":"content","children":[{"t":"p","text":"When establishing or approving any size standard pursuant to paragraph (2), the Administrator shall ensure that the size standard varies from industry to industry to the extent necessary to reflect the differing characteristics of the various industries and consider other factors deemed to be relevant by the Administrator.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s632/a/4","children":[{"t":"num","text":"(4)"},{"t":"heading","text":"Exclusion of certain security expenses from consideration for purpose of small business size standards"},{"t":"subpara","id":"/us/usc/t15/s632/a/4/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"Determination required"},{"t":"content","children":[{"t":"p","text":"Not later than 30 days after ","children":[{"t":"text","text":"January 6, 2006","tail":", the Administrator shall review the application of size standards established pursuant to paragraph (2) to small business concerns that are performing contracts in qualified areas and determine whether it would be fair and appropriate to exclude from consideration in the average annual gross receipts of such small business concerns any payments made to such small business concerns by Federal agencies to reimburse such small business concerns for the cost of subcontracts entered for the sole purpose of providing security services in a qualified area."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t15/s632/a/4/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Action required"},{"t":"chapeau","text":"Not later than 60 days after ","children":[{"t":"text","text":"January 6, 2006","tail":", the Administrator shall either\u2014"}]},{"t":"clause","id":"/us/usc/t15/s632/a/4/B/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" initiate an adjustment to the size standards, as described in subparagraph (A), if the Administrator determines that such an adjustment would be fair and appropriate; or","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t15/s632/a/4/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" provide a report to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives explaining in detail the basis for the determination by the Administrator that such an adjustment would not be fair and appropriate.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t15/s632/a/4/C","children":[{"t":"num","text":"(C)"},{"t":"heading","text":"Qualified areas"},{"t":"chapeau","text":"In this paragraph, the term \u201cqualified area\u201d means\u2014"},{"t":"clause","id":"/us/usc/t15/s632/a/4/C/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" Iraq,","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t15/s632/a/4/C/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" Afghanistan, and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t15/s632/a/4/C/iii","children":[{"t":"num","text":"(iii)"},{"t":"content","text":" any foreign country which included a combat zone, as that term is defined in ","children":[{"t":"ref","text":"section 112(c)(2) of title 26","href":"/us/usc/t26/s112/c/2","tail":", at the time of performance of the relevant Federal contract or subcontract."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s632/a/5","children":[{"t":"num","text":"(5)"},{"t":"heading","text":"Alternative size standard"},{"t":"subpara","id":"/us/usc/t15/s632/a/5/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"The Administrator shall establish an alternative size standard for applicants for business loans under ","children":[{"t":"ref","text":"section 636(a) of this title","href":"/us/usc/t15/s636/a","tail":" and applicants for development company loans under title V of the Small Business Investment Act of 1958 ("},{"t":"ref","text":"15 U.S.C. 695","href":"/us/usc/t15/s695","tail":" et seq.), that uses maximum tangible net worth and average net income as an alternative to the use of industry standards."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t15/s632/a/5/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Interim rule"},{"t":"chapeau","text":"Until the date on which the alternative size standard established under subparagraph (A) is in effect, an applicant for a business loan under ","children":[{"t":"ref","text":"section 636(a) of this title","href":"/us/usc/t15/s636/a","tail":" or an applicant for a development company loan under title V of the Small Business Investment Act of 1958 may be eligible for such a loan if\u2014"}]},{"t":"clause","id":"/us/usc/t15/s632/a/5/B/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" the maximum tangible net worth of the applicant is not more than $15,000,000; and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t15/s632/a/5/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" the average net income after Federal income taxes (excluding any carry-over losses) of the applicant for the 2 full fiscal years before the date of the application is not more than $5,000,000.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s632/a/6","children":[{"t":"num","text":"(6)"},{"t":"heading","text":"Proposed rulemaking"},{"t":"chapeau","text":"In conducting rulemaking to revise, modify or establish size standards pursuant to this section, the Administrator shall consider, and address, and make publicly available as part of the notice of proposed rulemaking and notice of final rule each of the following:"},{"t":"subpara","id":"/us/usc/t15/s632/a/6/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" a detailed description of the industry for which the new size standard is proposed;","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t15/s632/a/6/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" an analysis of the competitive environment for that industry;","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t15/s632/a/6/C","children":[{"t":"num","text":"(C)"},{"t":"content","text":" the approach the Administrator used to develop the proposed standard including the source of all data used to develop the proposed rule making; and","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t15/s632/a/6/D","children":[{"t":"num","text":"(D)"},{"t":"content","text":" the anticipated effect of the proposed rulemaking on the industry, including the number of concerns not currently considered small that would be considered small under the proposed rule making and the number of concerns currently considered small that would be deemed other than small under the proposed rulemaking.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s632/a/7","children":[{"t":"num","text":"(7)"},{"t":"heading","text":"Common size standards"},{"t":"content","children":[{"t":"p","text":"In carrying out this subsection, the Administrator may establish or approve a single size standard for a grouping of 4-digit North American Industry Classification System codes only if the Administrator makes publicly available, not later than the date on which such size standard is established or approved, a justification demonstrating that such size standard is appropriate for each individual industry classification included in the grouping.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s632/a/8","children":[{"t":"num","text":"(8)"},{"t":"heading","text":"Number of size standards"},{"t":"content","children":[{"t":"p","text":"The Administrator shall not limit the number of size standards established pursuant to paragraph (2), and shall assign the appropriate size standard to each North American Industry Classification System Code.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s632/a/9","children":[{"t":"num","text":"(9)"},{"t":"heading","text":"Petitions for reconsideration of size standards"},{"t":"subpara","id":"/us/usc/t15/s632/a/9/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"A person may file a petition for reconsideration with the Office of Hearings and Appeals (as established under ","children":[{"t":"ref","text":"section 634(i) of this title","href":"/us/usc/t15/s634/i","tail":") of a size standard revised, modified, or established by the Administrator pursuant to this subsection."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t15/s632/a/9/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Time limit"},{"t":"content","children":[{"t":"p","text":"A person filing a petition for reconsideration described in subparagraph (A) shall file such petition not later than 30 days after the publication in the Federal Register of the notice of final rule to revise, modify, or establish size standards described in paragraph (6).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t15/s632/a/9/C","children":[{"t":"num","text":"(C)"},{"t":"heading","text":"Process for agency review"},{"t":"content","children":[{"t":"p","text":"The Office of Hearings and Appeals shall use the same process it uses to decide challenges to the size of a small business concern to decide a petition for review pursuant to this paragraph.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t15/s632/a/9/D","children":[{"t":"num","text":"(D)"},{"t":"heading","text":"Judicial review"},{"t":"content","children":[{"t":"p","text":"The publication of a final rule in the Federal Register described in subparagraph (B) shall be considered final agency action for purposes of seeking judicial review. Filing a petition for reconsideration under subparagraph (A) shall not be a condition precedent to judicial review of any such size standard.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t15/s632/a/9/E","children":[{"t":"num","text":"(E)"},{"t":"heading","text":"Rules or guidance"},{"t":"content","children":[{"t":"p","text":"The Office of Hearings and Appeals shall begin accepting petitions for reconsideration described in subparagraph (A) after the date on which the Administration issues a rule or other guidance implementing this paragraph. Notwithstanding the provisions of subparagraph (B), petitions for reconsideration of size standards revised, modified, or established in a Federal Register final rule published between ","children":[{"t":"text","text":"November 25, 2015","tail":", and the effective date of such rule or other guidance shall be considered timely if filed within 30 days of such effective date."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t15/s632/b","children":[{"t":"num","text":"(b)"},{"t":"heading","text":"\u201cAgency\u201d defined"},{"t":"content","children":[{"t":"p","text":"For purposes of this chapter, any reference to an agency or department of the United States, and the term \u201cFederal agency\u201d, shall have the meaning given the term \u201cagency\u201d by ","children":[{"t":"ref","text":"section 551(1) of title 5","href":"/us/usc/t5/s551/1","tail":", but does not include the United States Postal Service or the Government Accountability Office."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t15/s632/c","children":[{"t":"num","text":"(c)"},{"t":"heading","text":"Qualified employee trust; eligibility for loan guarantee; \u201cqualified employee trust\u201d defined; regulations for treatment of trust as qualified employee trust"},{"t":"para","id":"/us/usc/t15/s632/c/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" For purposes of this chapter, a qualified employee trust shall be eligible for any loan guarantee under ","children":[{"t":"ref","text":"section 636(a) of this title","href":"/us/usc/t15/s636/a","tail":" with respect to a small business concern on the same basis as if such trust were the same legal entity as such concern."}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s632/c/2","children":[{"t":"num","text":"(2)"},{"t":"chapeau","text":" For purposes of this chapter, the term \u201cqualified employee trust\u201d means, with respect to a small business concern, a trust\u2014"},{"t":"subpara","id":"/us/usc/t15/s632/c/2/A","children":[{"t":"num","text":"(A)"},{"t":"chapeau","text":" which forms part of an employee stock ownership plan (as defined in ","children":[{"t":"ref","text":"section 4975(e)(7) of title 26","href":"/us/usc/t26/s4975/e/7","tail":")\u2014"}]},{"t":"clause","id":"/us/usc/t15/s632/c/2/A/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" which is maintained by such concern, and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t15/s632/c/2/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" which provides that each participant is entitled to direct the plan trustee as to the manner of how to vote the qualified employer securities (as defined in ","children":[{"t":"ref","text":"section 4975(e)(8) of title 26","href":"/us/usc/t26/s4975/e/8","tail":"), which are allocated to the account of such participant with respect to a corporate matter which (by law or charter) must be decided by a vote conducted in accordance with section 409(e) of the title 26; and"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t15/s632/c/2/B","children":[{"t":"num","text":"(B)"},{"t":"chapeau","text":" in the case of any loan guarantee under ","children":[{"t":"ref","text":"section 636(a) of this title","href":"/us/usc/t15/s636/a","tail":", the trustee of which enters into an agreement with the Administrator which is binding on the trust and on such small business concern and which provides that\u2014"}]},{"t":"clause","id":"/us/usc/t15/s632/c/2/B/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" the loan guaranteed under ","children":[{"t":"ref","text":"section 636(a) of this title","href":"/us/usc/t15/s636/a","tail":" shall be used solely for the purchase of qualifying employer securities of such concern,"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t15/s632/c/2/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" all funds acquired by the concern in such purchase shall be used by such concern solely for the purposes for which such loan was guaranteed,","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t15/s632/c/2/B/iii","children":[{"t":"num","text":"(iii)"},{"t":"content","text":" such concern will provide such funds as may be necessary for the timely repayment of such loan, and the property of such concern shall be available as security for repayment of such loan, and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t15/s632/c/2/B/iv","children":[{"t":"num","text":"(iv)"},{"t":"content","text":" all qualifying employer securities acquired by such trust in such purchase shall be allocated to the accounts of participants in such plan who are entitled to share in such allocation, and each participant has a nonforfeitable right, not later than the date such loan is repaid, to all such qualifying employer securities which are so allocated to the participant\u2019s account.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s632/c/3","children":[{"t":"num","text":"(3)"},{"t":"chapeau","text":" Under regulations which may be prescribed by the Administrator, a trust may be treated as a qualified employee trust with respect to a small business concern if\u2014"},{"t":"subpara","id":"/us/usc/t15/s632/c/3/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" the trust is maintained by an employee organization which represents at least 51 percent of the employees of such concern, and","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t15/s632/c/3/B","children":[{"t":"num","text":"(B)"},{"t":"chapeau","text":" such concern maintains a plan\u2014"},{"t":"clause","id":"/us/usc/t15/s632/c/3/B/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" which is an employee benefit plan which is designed to invest primarily in qualifying employer securities (as defined in ","children":[{"t":"ref","text":"section 4975(e)(8) of title 26","href":"/us/usc/t26/s4975/e/8","tail":"),"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t15/s632/c/3/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" which provides that each participant in the plan is entitled to direct the plan as to the manner in which voting rights under qualifying employer securities which are allocated to the account of such participant are to be exercised with respect to a corporate matter which (by law or charter) must be decided by a majority vote of the outstanding common shares voted,","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t15/s632/c/3/B/iii","children":[{"t":"num","text":"(iii)"},{"t":"content","text":" which provides that each participant who is entitled to distribution from the plan has a right, in the case of qualifying employer securities which are not readily tradeable on an established market, to require that the concern repurchase such securities under a fair valuation formula, and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t15/s632/c/3/B/iv","children":[{"t":"num","text":"(iv)"},{"t":"content","text":" which meets such other requirements (similar to requirements applicable to employee stock ownership plans as defined in ","children":[{"t":"ref","text":"section 4975(e)(7) of title 26","href":"/us/usc/t26/s4975/e/7","tail":") as the Administrator may prescribe, and"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t15/s632/c/3/C","children":[{"t":"num","text":"(C)"},{"t":"content","text":" in the case of a loan guarantee under ","children":[{"t":"ref","text":"section 636(a) of this title","href":"/us/usc/t15/s636/a","tail":", such organization enters into an agreement with the Administration which is described in paragraph (2)(B)."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t15/s632/d","children":[{"t":"num","text":"(d)"},{"t":"heading","text":"\u201cQualified Indian tribe\u201d defined"},{"t":"content","children":[{"t":"p","text":"For purposes of ","children":[{"t":"ref","text":"section 636 of this title","href":"/us/usc/t15/s636","tail":", the term \u201cqualified Indian tribe\u201d means an Indian tribe as defined in section 5304(a)\u202f"},{"t":"ref","text":"1"},{"t":"num","text":"1","tail":"\u202fSo in original. Probably should be a reference to subsec. \u201c(e)\u201d of section 5304, which defines Indian tribe."},{"t":"text","text":"\u202fSo in original. Probably should be a reference to subsec. \u201c(e)\u201d of section 5304, which defines Indian tribe.","tail":" of title 25, which owns and controls 100 per centum of a small business concern."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t15/s632/e","children":[{"t":"num","text":"(e)"},{"t":"heading","text":"\u201cPublic or private organization for the handicapped\u201d defined"},{"t":"chapeau","text":"For purposes of ","children":[{"t":"ref","text":"section 636 of this title","href":"/us/usc/t15/s636","tail":", the term \u201cpublic or private organization for the handicapped\u201d means one\u2014"}]},{"t":"para","id":"/us/usc/t15/s632/e/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" which is organized under the laws of the United States or of any State, operated in the interest of handicapped individuals, the net income of which does not inure in whole or in part to the benefit of any shareholder or other individuals;","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s632/e/2","children":[{"t":"num","text":"(2)"},{"t":"content","text":" which complies with any applicable occupational health and safety standard prescribed by the Secretary of Labor; and","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s632/e/3","children":[{"t":"num","text":"(3)"},{"t":"content","text":" which, in the production of commodities and in the provision of services during any fiscal year in which it received financial assistance under this subsection, employs handicapped individuals for not less than 75 per centum of the man-hours required for the production or provision of the commodities or services.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t15/s632/f","children":[{"t":"num","text":"(f)"},{"t":"heading","text":"\u201cHandicapped individual\u201d defined"},{"t":"chapeau","text":"For purposes of ","children":[{"t":"ref","text":"section 636 of this title","href":"/us/usc/t15/s636","tail":", the term \u201chandicapped individual\u201d means an individual\u2014"}]},{"t":"para","id":"/us/usc/t15/s632/f/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" who has a physical, mental, or emotional impairment, defect, ailment, disease, or disability of a permanent nature which in any way limits the selection of any type of employment for which the person would otherwise be qualified or qualifiable; or","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s632/f/2","children":[{"t":"num","text":"(2)"},{"t":"content","text":" who is a service-disabled veteran.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t15/s632/g","children":[{"t":"num","text":"(g)"},{"t":"heading","text":"\u201cEnergy measures\u201d defined"},{"t":"chapeau","text":"For purposes of ","children":[{"t":"ref","text":"section 636 of this title","href":"/us/usc/t15/s636","tail":", the term \u201cenergy measures\u201d includes\u2014"}]},{"t":"para","id":"/us/usc/t15/s632/g/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" solar thermal energy equipment which is either of the active type based upon mechanically forced energy transfer or of the passive type based on convective, conductive, or radiant energy transfer or some combination of these types;","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s632/g/2","children":[{"t":"num","text":"(2)"},{"t":"content","text":" photovoltaic cells and related equipment;","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s632/g/3","children":[{"t":"num","text":"(3)"},{"t":"content","text":" a product or service the primary purpose of which is conservation of energy through devices or techniques which increase the energy efficiency of existing equipment, methods of operation, or systems which use fossil fuels, and which is on the Energy Conservation Measures list of the Secretary of Energy or which the Administrator determines to be consistent with the intent of this subsection;","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s632/g/4","children":[{"t":"num","text":"(4)"},{"t":"content","text":" equipment the primary purpose of which is production of energy from wood, biological waste, grain, or other biomass source of energy;","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s632/g/5","children":[{"t":"num","text":"(5)"},{"t":"content","text":" equipment the primary purpose of which is industrial cogeneration of energy, district heating, or production of energy from industrial waste;","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s632/g/6","children":[{"t":"num","text":"(6)"},{"t":"content","text":" hydroelectric power equipment;","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s632/g/7","children":[{"t":"num","text":"(7)"},{"t":"content","text":" wind energy conversion equipment; and","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s632/g/8","children":[{"t":"num","text":"(8)"},{"t":"content","text":" engineering, architectural, consulting, or other professional services which are necessary or appropriate to aid citizens in using any of the measures described in paragraph (1) through (7).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t15/s632/h","children":[{"t":"num","text":"(h)"},{"t":"heading","text":"\u201cCredit elsewhere\u201d defined"},{"t":"chapeau","text":"The term \u201ccredit elsewhere\u201d means\u2014"},{"t":"para","id":"/us/usc/t15/s632/h/1","children":[{"t":"num","text":"(1)"},{"t":"chapeau","text":" for the purposes of this chapter (except as used in ","children":[{"t":"ref","text":"section 636(b) of this title","href":"/us/usc/t15/s636/b","tail":"), the availability of credit on reasonable terms and conditions to the individual loan applicant from non-Federal, non-State, or non-local government sources, considering factors associated with conventional lending practices, including\u2014"}]},{"t":"subpara","id":"/us/usc/t15/s632/h/1/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" the business industry in which the loan applicant operates;","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t15/s632/h/1/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" whether the loan applicant is an enterprise that has been in operation for a period of not more than 2 years;","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t15/s632/h/1/C","children":[{"t":"num","text":"(C)"},{"t":"content","text":" the adequacy of the collateral available to secure the requested loan;","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t15/s632/h/1/D","children":[{"t":"num","text":"(D)"},{"t":"content","text":" the loan term necessary to reasonably assure the ability of the loan applicant to repay the debt from the actual or projected cash flow of the business; and","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t15/s632/h/1/E","children":[{"t":"num","text":"(E)"},{"t":"content","text":" any other factor relating to the particular credit application, as documented in detail by the lender, that cannot be overcome except through obtaining a Federal loan guarantee under prudent lending standards; and","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s632/h/2","children":[{"t":"num","text":"(2)"},{"t":"content","text":" for the purposes of ","children":[{"t":"ref","text":"section 636(b) of this title","href":"/us/usc/t15/s636/b","tail":", the availability of credit on reasonable terms and conditions from non-Federal sources taking into consideration the prevailing rates and terms in the community in or near where the applicant business concern transacts business, or the applicant homeowner resides, for similar purposes and periods of time."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t15/s632/i","children":[{"t":"num","text":"(i)"},{"t":"heading","text":"\u201cHomeowners\u201d defined"},{"t":"content","children":[{"t":"p","text":"For purposes of ","children":[{"t":"ref","text":"section 636 of this title","href":"/us/usc/t15/s636","tail":", the term \u201chomeowners\u201d includes owners and lessees of residential property and also includes personal property."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t15/s632/j","children":[{"t":"num","text":"(j)"},{"t":"heading","text":"\u201cSmall agricultural cooperative\u201d defined"},{"t":"content","children":[{"t":"p","text":"For the purposes of this chapter, the term \u201csmall agricultural cooperative\u201d means an association (corporate or otherwise) acting pursuant to the provisions of the Agricultural Marketing Act (","children":[{"t":"ref","text":"12 U.S.C. 1141j","href":"/us/usc/t12/s1141j","tail":"), whose size does not exceed the size standard established by the Administration for other similar agricultural small business concerns. In determining such size, the Administration shall regard the association as a business concern and shall not include the income or employees of any member shareholder of such cooperative."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t15/s632/k","children":[{"t":"num","text":"(k)"},{"t":"heading","text":"\u201cDisaster\u201d defined"},{"t":"para","id":"/us/usc/t15/s632/k/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" For the purposes of this chapter, the term \u201cdisaster\u201d means a sudden event which causes severe damage including, but not limited to, floods, hurricanes, tornadoes, earthquakes, fires, explosions, volcanoes, windstorms, landslides or mudslides, tidal waves, commercial fishery failures or fishery resource disasters (as determined by the Secretary of Commerce under the Fishery Resource Disasters Improvement Act), ocean conditions resulting in the closure of customary fishing waters, riots, civil disorders or other catastrophes, except it does not include economic dislocations.","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s632/k/2","children":[{"t":"num","text":"(2)"},{"t":"chapeau","text":" For purposes of ","children":[{"t":"ref","text":"section 636(b)(2) of this title","href":"/us/usc/t15/s636/b/2","tail":", the term \u201cdisaster\u201d includes\u2014"}]},{"t":"subpara","id":"/us/usc/t15/s632/k/2/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" drought;","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t15/s632/k/2/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" below average water levels in the Great Lakes, or on any body of water in the United States that supports commerce by small business concerns; and","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t15/s632/k/2/C","children":[{"t":"num","text":"(C)"},{"t":"content","text":" ice storms and blizzards.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t15/s632/l","children":[{"t":"num","text":"(l)"},{"t":"heading","text":"\u201cComputer crime\u201d defined"},{"t":"chapeau","text":"For purposes of this chapter\u2014"},{"t":"para","id":"/us/usc/t15/s632/l/1","children":[{"t":"num","text":"(1)"},{"t":"chapeau","text":"\u202f","children":[{"t":"ref","text":"2"},{"t":"num","text":"2","tail":"\u202fSo in original. No par. (2) has been enacted."},{"t":"text","text":"\u202fSo in original. No par. (2) has been enacted.","tail":" the term \u201ccomputer crime\u201d means\u2014"}]},{"t":"subpara","id":"/us/usc/t15/s632/l/1/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" any crime committed against a small business concern by means of the use of a computer; and","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t15/s632/l/1/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" any crime involving the illegal use of, or tampering with, a computer owned or utilized by a small business concern.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t15/s632/m","children":[{"t":"num","text":"(m)"},{"t":"heading","text":"Definitions relating to contracting"},{"t":"chapeau","text":"In this chapter:"},{"t":"para","id":"/us/usc/t15/s632/m/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"Prime contract"},{"t":"content","children":[{"t":"p","text":"The term \u201cprime contract\u201d has the meaning given such term in ","children":[{"t":"ref","text":"section 8701(4) of title 41","href":"/us/usc/t41/s8701/4","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s632/m/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Prime contractor"},{"t":"content","children":[{"t":"p","text":"The term \u201cprime contractor\u201d has the meaning given such term in ","children":[{"t":"ref","text":"section 8701(5) of title 41","href":"/us/usc/t41/s8701/5","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s632/m/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Simplified acquisition threshold"},{"t":"content","children":[{"t":"p","text":"The term \u201csimplified acquisition threshold\u201d has the meaning given such term in ","children":[{"t":"ref","text":"section 134 of title 41","href":"/us/usc/t41/s134","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s632/m/4","children":[{"t":"num","text":"(4)"},{"t":"heading","text":"Micro-purchase threshold"},{"t":"content","children":[{"t":"p","text":"The term \u201cmicro-purchase threshold\u201d has the meaning given such term in ","children":[{"t":"ref","text":"section 1902 of title 41","href":"/us/usc/t41/s1902","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s632/m/5","children":[{"t":"num","text":"(5)"},{"t":"heading","text":"Total purchases and contracts for property and services"},{"t":"content","children":[{"t":"p","text":"The term \u201ctotal purchases and contracts for property and services\u201d shall mean total number and total dollar amount of contracts and orders for property and services.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t15/s632/n","children":[{"t":"num","text":"(n)"},{"t":"heading","text":"\u201cSmall business concern owned and controlled by women\u201d defined"},{"t":"chapeau","text":"For the purposes of this chapter, a small business concern is a small business concern owned and controlled by women if\u2014"},{"t":"para","id":"/us/usc/t15/s632/n/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" at least 51 percent of small\u202f","children":[{"t":"ref","text":"3"},{"t":"num","text":"3","tail":"\u202fSo in original. Probably should be preceded by \u201cthe\u201d."},{"t":"text","text":"\u202fSo in original. Probably should be preceded by \u201cthe\u201d.","tail":" business concern is owned by one or more women or, in the case of any publicly owned business, at least 51 percent of the stock of which is owned by one or more women; and"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s632/n/2","children":[{"t":"num","text":"(2)"},{"t":"content","text":" the management and daily business operations of the business are controlled by one or more women.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t15/s632/o","children":[{"t":"num","text":"(o)"},{"t":"heading","text":"Definitions of bundling of contract requirements and related terms"},{"t":"chapeau","text":"In this chapter:"},{"t":"para","id":"/us/usc/t15/s632/o/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"Bundled contract"},{"t":"content","children":[{"t":"p","text":"The term \u201cbundled contract\u201d means a contract that is entered into to meet requirements that are consolidated in a bundling of contract requirements.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s632/o/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Bundling of contract requirements"},{"t":"chapeau","text":"The term \u201cbundling of contract requirements\u201d means consolidating 2 or more procurement requirements for goods or services previously provided or performed under separate smaller contracts into a solicitation of offers for a single contract that is likely to be unsuitable for award to a small-business concern due to\u2014"},{"t":"subpara","id":"/us/usc/t15/s632/o/2/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" the diversity, size, or specialized nature of the elements of the performance specified;","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t15/s632/o/2/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" the aggregate dollar value of the anticipated award;","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t15/s632/o/2/C","children":[{"t":"num","text":"(C)"},{"t":"content","text":" the geographical dispersion of the contract performance sites; or","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t15/s632/o/2/D","children":[{"t":"num","text":"(D)"},{"t":"content","text":" any combination of the factors described in subparagraphs (A), (B), and (C).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s632/o/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Separate smaller contract"},{"t":"content","children":[{"t":"p","text":"The term \u201cseparate smaller contract\u201d, with respect to a bundling of contract requirements, means a contract that has been performed by 1 or more small business concerns or was suitable for award to 1 or more small business concerns.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t15/s632/p","children":[{"t":"num","text":"(p)"},{"t":"heading","text":"Qualified HUBZone small business concern"},{"t":"content","children":[{"t":"p","text":"In this chapter, the term \u201cqualified HUBZone small business concern\u201d has the meaning given such term in ","children":[{"t":"ref","text":"section 657a(b) of this title","href":"/us/usc/t15/s657a/b","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t15/s632/q","children":[{"t":"num","text":"(q)"},{"t":"heading","text":"Definitions relating to veterans"},{"t":"chapeau","text":"In this chapter, the following definitions apply:"},{"t":"para","id":"/us/usc/t15/s632/q/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"Service-disabled veteran"},{"t":"content","children":[{"t":"p","text":"The term \u201cservice-disabled veteran\u201d means a veteran with a disability that is service-connected (as defined in ","children":[{"t":"ref","text":"section 101(16) of title 38","href":"/us/usc/t38/s101/16","tail":")."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s632/q/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Small business concern owned and controlled by service-disabled veterans"},{"t":"chapeau","text":"The term \u201csmall business concern owned and controlled by service-disabled veterans\u201d means any of the following:"},{"t":"subpara","id":"/us/usc/t15/s632/q/2/A","children":[{"t":"num","text":"(A)"},{"t":"chapeau","text":" A small business concern\u2014"},{"t":"clause","id":"/us/usc/t15/s632/q/2/A/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" not less than 51 percent of which is owned by one or more service-disabled veterans or, in the case of any publicly owned business, not less than 51 percent of the stock (not including any stock owned by an ESOP) of which is owned by one or more service-disabled veterans; and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t15/s632/q/2/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" the management and daily business operations of which are controlled by one or more service-disabled veterans or, in the case of a veteran with permanent and severe disability, the spouse or permanent caregiver of such veteran.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t15/s632/q/2/B","children":[{"t":"num","text":"(B)"},{"t":"chapeau","text":" A small business concern\u2014"},{"t":"clause","id":"/us/usc/t15/s632/q/2/B/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" not less than 51 percent of which is owned by one or more service-disabled veterans with a disability that is rated by the Secretary of Veterans Affairs as a permanent and total disability who are unable to manage the daily business operations of such concern; or","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t15/s632/q/2/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" in the case of a publicly owned business, not less than 51 percent of the stock (not including any stock owned by an ESOP) of which is owned by one or more such veterans.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t15/s632/q/2/C","children":[{"t":"num","text":"(C)"},{"t":"clause","id":"/us/usc/t15/s632/q/2/C/i","children":[{"t":"num","text":"(i)"},{"t":"chapeau","text":" During the time period described in clause (ii), a small business concern that was a small business concern described in subparagraph (A) or (B) immediately prior to the death of a service-disabled veteran who was the owner of the concern, the death of whom causes the concern to be less than 51 percent owned by one or more service-disabled veterans, if\u2014"},{"t":"subclause","id":"/us/usc/t15/s632/q/2/C/i/I","children":[{"t":"num","text":"(I)"},{"t":"content","text":" the surviving spouse of the deceased veteran acquires such veteran\u2019s ownership interest in such concern;","tail":"\n"}],"tail":"\n"},{"t":"subclause","id":"/us/usc/t15/s632/q/2/C/i/II","children":[{"t":"num","text":"(II)"},{"t":"content","text":" such veteran had a service-connected disability (as defined in ","children":[{"t":"ref","text":"section 101(16) of title 38","href":"/us/usc/t38/s101/16","tail":"); and"}],"tail":"\n"}],"tail":"\n"},{"t":"subclause","id":"/us/usc/t15/s632/q/2/C/i/III","children":[{"t":"num","text":"(III)"},{"t":"content","text":" immediately prior to the death of such veteran, and during the period described in clause (ii), the small business concern is included in the database described in ","children":[{"t":"ref","text":"section 657f of this title","href":"/us/usc/t15/s657f","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t15/s632/q/2/C/ii","children":[{"t":"num","text":"(ii)"},{"t":"chapeau","text":" The time period described in this clause is the time period beginning on the date of the veteran\u2019s death and ending on the earlier of\u2014"},{"t":"subclause","id":"/us/usc/t15/s632/q/2/C/ii/I","children":[{"t":"num","text":"(I)"},{"t":"content","text":" the date on which the surviving spouse remarries;","tail":"\n"}],"tail":"\n"},{"t":"subclause","id":"/us/usc/t15/s632/q/2/C/ii/II","children":[{"t":"num","text":"(II)"},{"t":"content","text":" the date on which the surviving spouse relinquishes an ownership interest in the small business concern; or","tail":"\n"}],"tail":"\n"},{"t":"subclause","id":"/us/usc/t15/s632/q/2/C/ii/III","children":[{"t":"num","text":"(III)"},{"t":"chapeau","text":" the date that\u2014"},{"t":"num","text":"(aa)"},{"t":"content","text":" in the case of a surviving spouse of a veteran with a service-connected disability rated as 100 percent disabling or who dies as a result of a service-connected disability, is 10 years after the date of the death of the veteran; or"},{"t":"text","text":"\n","tail":"\n"},{"t":"num","text":"(bb)"},{"t":"content","text":" in the case of a surviving spouse of a veteran with a service-connected disability rated as less than 100 percent disabling who does not die as a result of a service-connected disability, is 3 years after the date of the death of the veteran."},{"t":"text","text":"\n","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s632/q/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Small business concern owned and controlled by veterans"},{"t":"chapeau","text":"The term \u201csmall business concern owned and controlled by veterans\u201d means a small business concern\u2014"},{"t":"subpara","id":"/us/usc/t15/s632/q/3/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" not less than 51 percent of which is owned by one or more veterans or, in the case of any publicly owned business, not less than 51 percent of the stock of which is owned by one or more veterans; and","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t15/s632/q/3/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" the management and daily business operations of which are controlled by one or more veterans.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s632/q/4","children":[{"t":"num","text":"(4)"},{"t":"heading","text":"Veteran"},{"t":"content","children":[{"t":"p","text":"The term \u201cveteran\u201d has the meaning given the term in ","children":[{"t":"ref","text":"section 101(2) of title 38","href":"/us/usc/t38/s101/2","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s632/q/5","children":[{"t":"num","text":"(5)"},{"t":"heading","text":"Relief from time limitations"},{"t":"subpara","id":"/us/usc/t15/s632/q/5/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"In general"},{"t":"chapeau","text":"Any time limitation on any qualification, certification, or period of participation imposed under this chapter on any program that is available to small business concerns shall be extended for a small business concern that\u2014"},{"t":"clause","id":"/us/usc/t15/s632/q/5/A/i","children":[{"t":"num","text":"(i)"},{"t":"chapeau","text":" is owned and controlled by\u2014"},{"t":"subclause","id":"/us/usc/t15/s632/q/5/A/i/I","children":[{"t":"num","text":"(I)"},{"t":"content","text":" a veteran who was called or ordered to active duty under a provision of law specified in ","children":[{"t":"ref","text":"section 101(a)(13)(B) of title 10","href":"/us/usc/t10/s101/a/13/B","tail":" on or after "},{"t":"text","text":"September 11, 2001","tail":"; or"}],"tail":"\n"}],"tail":"\n"},{"t":"subclause","id":"/us/usc/t15/s632/q/5/A/i/II","children":[{"t":"num","text":"(II)"},{"t":"content","text":" a service-disabled veteran who became such a veteran due to an injury or illness incurred or aggravated in the active military, naval, or air service during a period of active duty pursuant to a call or order to active duty under a provision of law referred to in subclause (I) on or after ","children":[{"t":"text","text":"September 11, 2001","tail":"; and"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t15/s632/q/5/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" was subject to the time limitation during such period of active duty.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t15/s632/q/5/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Duration"},{"t":"content","children":[{"t":"p","text":"Upon submission of proper documentation to the Administrator, the extension of a time limitation under subparagraph (A) shall be equal to the period of time that such veteran who owned or controlled such a concern was on active duty as described in that subparagraph.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t15/s632/q/5/C","children":[{"t":"num","text":"(C)"},{"t":"heading","text":"Exception for programs subject to Federal Credit Reform Act of 1990"},{"t":"content","children":[{"t":"p","text":"The provisions of subparagraphs (A) and (B) shall not apply to any programs subject to the Federal Credit Reform Act of 1990 (","children":[{"t":"ref","text":"2 U.S.C. 661","href":"/us/usc/t2/s661","tail":" et seq.)."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s632/q/6","children":[{"t":"num","text":"(6)"},{"t":"heading","text":"ESOP"},{"t":"content","children":[{"t":"p","text":"The term \u201cESOP\u201d has the meaning given the term \u201cemployee stock ownership plan\u201d in ","children":[{"t":"ref","text":"section 4975(e)(7) of title 26","href":"/us/usc/t26/s4975/e/7","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s632/q/7","children":[{"t":"num","text":"(7)"},{"t":"heading","text":"Surviving spouse"},{"t":"content","children":[{"t":"p","text":"The term \u201csurviving spouse\u201d has the meaning given such term in ","children":[{"t":"ref","text":"section 101(3) of title 38","href":"/us/usc/t38/s101/3","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t15/s632/r","children":[{"t":"num","text":"(r)"},{"t":"heading","text":"Definitions relating to small business lending companies"},{"t":"chapeau","text":"As used in ","children":[{"t":"ref","text":"section 650 of this title","href":"/us/usc/t15/s650","tail":":"}]},{"t":"para","id":"/us/usc/t15/s632/r/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"Small business lending company"},{"t":"content","children":[{"t":"p","text":"The term \u201csmall business lending company\u201d means a business concern that is authorized by the Administrator to make loans pursuant to ","children":[{"t":"ref","text":"section 636(a) of this title","href":"/us/usc/t15/s636/a","tail":" and whose lending activities are not subject to regulation by any Federal or State regulatory agency."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s632/r/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Non-Federally regulated lender"},{"t":"chapeau","text":"The term \u201cnon-Federally regulated lender\u201d means a business concern if\u2014"},{"t":"subpara","id":"/us/usc/t15/s632/r/2/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" such concern is authorized by the Administrator to make loans under ","children":[{"t":"ref","text":"section 636 of this title","href":"/us/usc/t15/s636","tail":";"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t15/s632/r/2/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" such concern is subject to regulation by a State; and","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t15/s632/r/2/C","children":[{"t":"num","text":"(C)"},{"t":"content","text":" the lending activities of such concern are not regulated by any Federal banking authority.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t15/s632/s","children":[{"t":"num","text":"(s)"},{"t":"heading","text":"Major disaster"},{"t":"content","children":[{"t":"p","text":"In this chapter, the term \u201cmajor disaster\u201d has the meaning given that term in ","children":[{"t":"ref","text":"section 5122 of title 42","href":"/us/usc/t42/s5122","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t15/s632/t","children":[{"t":"num","text":"(t)"},{"t":"heading","text":"Small business development center"},{"t":"content","children":[{"t":"p","text":"In this chapter, the term \u201csmall business development center\u201d means a small business development center described in ","children":[{"t":"ref","text":"section 648 of this title","href":"/us/usc/t15/s648","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t15/s632/u","children":[{"t":"num","text":"(u)"},{"t":"heading","text":"Region of the Administration"},{"t":"content","children":[{"t":"p","text":"In this chapter, the term \u201cregion of the Administration\u201d means the geographic area served by a regional office of the Administration established under ","children":[{"t":"ref","text":"section 633(a) of this title","href":"/us/usc/t15/s633/a","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t15/s632/v","children":[{"t":"num","text":"(v)"},{"t":"heading","text":"Multiple award contract"},{"t":"chapeau","text":"In this chapter, the term \u201cmultiple award contract\u201d means\u2014"},{"t":"para","id":"/us/usc/t15/s632/v/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" a multiple award task order contract or delivery order contract that is entered into under the authority of sections 4101, 4103, 4105, and 4106 of title 41; and","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s632/v/2","children":[{"t":"num","text":"(2)"},{"t":"content","text":" any other indefinite delivery, indefinite quantity contract that is entered into by the head of a Federal agency with 2 or more sources pursuant to the same solicitation.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t15/s632/w","children":[{"t":"num","text":"(w)"},{"t":"heading","text":"Presumption"},{"t":"para","id":"/us/usc/t15/s632/w/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"In every contract, subcontract, cooperative agreement, cooperative research and development agreement, or grant which is set aside, reserved, or otherwise classified as intended for award to small business concerns, there shall be a presumption of loss to the United States based on the total amount expended on the contract, subcontract, cooperative agreement, cooperative research and development agreement, or grant whenever it is established that a business concern other than a small business concern willfully sought and received the award by misrepresentation.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s632/w/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Deemed certifications"},{"t":"chapeau","text":"The following actions shall be deemed affirmative, willful, and intentional certifications of small business size and status:"},{"t":"subpara","id":"/us/usc/t15/s632/w/2/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" Submission of a bid or proposal for a Federal grant, contract, subcontract, cooperative agreement, or cooperative research and development agreement reserved, set aside, or otherwise classified as intended for award to small business concerns.","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t15/s632/w/2/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" Submission of a bid or proposal for a Federal grant, contract, subcontract, cooperative agreement, or cooperative research and development agreement which in any way encourages a Federal agency to classify the bid or proposal, if awarded, as an award to a small business concern.","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t15/s632/w/2/C","children":[{"t":"num","text":"(C)"},{"t":"content","text":" Registration on any Federal electronic database for the purpose of being considered for award of a Federal grant, contract, subcontract, cooperative agreement, or cooperative research agreement, as a small business concern.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s632/w/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Certification by signature of responsible official"},{"t":"subpara","id":"/us/usc/t15/s632/w/3/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"Each solicitation, bid, or application for a Federal contract, subcontract, or grant shall contain a certification concerning the small business size and status of a business concern seeking the Federal contract, subcontract, or grant.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t15/s632/w/3/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Content of certifications"},{"t":"content","children":[{"t":"p","text":"A certification that a business concern qualifies as a small business concern of the exact size and status claimed by the business concern for purposes of bidding on a Federal contract or subcontract, or applying for a Federal grant, shall contain the signature of an authorized official on the same page on which the certification is contained.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s632/w/4","children":[{"t":"num","text":"(4)"},{"t":"heading","text":"Regulations"},{"t":"content","children":[{"t":"p","text":"The Administrator shall promulgate regulations to provide adequate protections to individuals and business concerns from liability under this subsection in cases of unintentional errors, technical malfunctions, and other similar situations.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t15/s632/x","children":[{"t":"num","text":"(x)"},{"t":"heading","text":"Annual certification"},{"t":"para","id":"/us/usc/t15/s632/x/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"Each business certified as a small business concern under this chapter shall annually certify its small business size and, if appropriate, its small business status, by means of a confirming entry on the Online Representations and Certifications Application database of the Administration, or any successor thereto.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s632/x/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Regulations"},{"t":"chapeau","text":"Not later than 1 year after ","children":[{"t":"text","text":"September 27, 2010","tail":", the Administrator, in consultation with the Inspector General and the Chief Counsel for Advocacy of the Administration, shall promulgate regulations to ensure that\u2014"}]},{"t":"subpara","id":"/us/usc/t15/s632/x/2/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" no business concern continues to be certified as a small business concern on the Online Representations and Certifications Application database of the Administration, or any successor thereto, without fulfilling the requirements for annual certification under this subsection; and","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t15/s632/x/2/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" the requirements of this subsection are implemented in a manner presenting the least possible regulatory burden on small business concerns.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t15/s632/y","children":[{"t":"num","text":"(y)"},{"t":"heading","text":"Policy on prosecutions of small business size and status fraud"},{"t":"content","children":[{"t":"p","text":"Not later than 1 year after ","children":[{"t":"text","text":"September 27, 2010","tail":", the Administrator, in consultation with the Attorney General, shall issue a Government-wide policy on prosecution of small business size and status fraud, which shall direct Federal agencies to appropriately publicize the policy."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t15/s632/z","children":[{"t":"num","text":"(z)"},{"t":"heading","text":"Aquaculture business disaster assistance"},{"t":"content","children":[{"t":"p","text":"Subject to ","children":[{"t":"ref","text":"section 647(a) of this title","href":"/us/usc/t15/s647/a","tail":" and notwithstanding "},{"t":"ref","text":"section 647(b)(1) of this title","href":"/us/usc/t15/s647/b/1","tail":", the Administrator may provide disaster assistance under "},{"t":"ref","text":"section 636(b)(2) of this title","href":"/us/usc/t15/s636/b/2","tail":" to aquaculture enterprises that are small businesses."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t15/s632/aa","children":[{"t":"num","text":"(aa)"},{"t":"heading","text":"Venture capital operating company"},{"t":"content","children":[{"t":"p","text":"In this chapter, the term \u201cventure capital operating company\u201d means an entity described in clause (i), (v), or (vi) of section 121.103(b)(5) of title 13, Code of Federal Regulations (or any successor thereto).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t15/s632/bb","children":[{"t":"num","text":"(bb)"},{"t":"heading","text":"Hedge fund"},{"t":"content","children":[{"t":"p","text":"In this chapter, the term \u201chedge fund\u201d has the meaning given that term in ","children":[{"t":"ref","text":"section 1851(h)(2) of title 12","href":"/us/usc/t12/s1851/h/2","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t15/s632/cc","children":[{"t":"num","text":"(cc)"},{"t":"heading","text":"Private equity firm"},{"t":"content","children":[{"t":"p","text":"In this chapter, the term \u201cprivate equity firm\u201d has the meaning given the term \u201cprivate equity fund\u201d in ","children":[{"t":"ref","text":"section 1851(h)(2) of title 12","href":"/us/usc/t12/s1851/h/2","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t15/s632/dd","children":[{"t":"num","text":"(dd)"},{"t":"heading","text":"Definitions pertaining to subcontracting"},{"t":"chapeau","text":"In this chapter:"},{"t":"para","id":"/us/usc/t15/s632/dd/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"Subcontract"},{"t":"content","children":[{"t":"p","text":"The term \u201csubcontract\u201d means a legally binding agreement between a contractor that is already under contract to another party to perform work, and a third party, hereinafter referred to as the subcontractor, for the subcontractor to perform a part, or all, of the work that the contractor has undertaken.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s632/dd/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"First tier subcontractor"},{"t":"content","children":[{"t":"p","text":"The term \u201cfirst tier subcontractor\u201d means a subcontractor who has a subcontract directly with the prime contractor.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s632/dd/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"At any tier"},{"t":"content","children":[{"t":"p","text":"The term \u201cat any tier\u201d means any subcontractor other than a subcontractor who is a first tier subcontractor.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t15/s632/ee","children":[{"t":"num","text":"(ee)"},{"t":"heading","text":"Puerto Rico business"},{"t":"content","children":[{"t":"p","text":"In this chapter, the term \u201cPuerto Rico business\u201d means a small business concern that has its principal office located in the Commonwealth of Puerto Rico.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t15/s632/ff","children":[{"t":"num","text":"(ff)"},{"t":"heading","text":"Covered territory business"},{"t":"chapeau","text":"In this chapter, the term \u201ccovered territory business\u201d means a small business concern that has its principal office located in one of the following:"},{"t":"para","id":"/us/usc/t15/s632/ff/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" The United States Virgin Islands.","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s632/ff/2","children":[{"t":"num","text":"(2)"},{"t":"content","text":" American Samoa.","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s632/ff/3","children":[{"t":"num","text":"(3)"},{"t":"content","text":" Guam.","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t15/s632/ff/4","children":[{"t":"num","text":"(4)"},{"t":"content","text":" The Northern Mariana Islands.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"}]}]}