[Code of Federal Regulations]
[Title 13, Volume 1]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 13CFR126.201]

[Page 418-419]
 
                TITLE 13--BUSINESS CREDIT AND ASSISTANCE
 
                CHAPTER I--SMALL BUSINESS ADMINISTRATION
 
PART 126--HUBZONE PROGRAM--Table of Contents
 
          Subpart B--Requirements to be a Qualified HUBZone SBC
 
Sec. 126.201  For this purpose, who does SBA consider to own a HUBZone SBC?

    An owner of a HUBZone SBC is a person who owns any legal or 
equitable interest in such HUBZone SBC. More specifically:
    (a) Corporations. SBA will consider any person who owns stock, 
whether voting or non-voting, to be an owner. SBA will consider options 
to purchase stock to have been exercised. SBA will

[[Page 419]]

consider the right to convert debentures into voting stock to have been 
exercised.
    (b) Partnerships. SBA will consider a partner, whether general or 
limited, to be an owner if that partner owns an equitable interest in 
the partnership.
    (c) Sole proprietorships. The proprietor is the owner.
    (d) Limited liability companies. SBA will consider each member to be 
an owner of a limited liability company.

    Example 1: All stock of a corporation is owned by U.S. citizens. The 
president of the corporation, a non-U.S. citizen, owns no stock in the 
corporation, but owns options to purchase stock in the corporation. SBA 
will consider the option exercised, and the corporation is not eligible 
to be a qualified HUBZone SBC.
    Example 2: A partnership is owned 99.9 percent by persons who are 
U.S. citizens, and 0.1 percent by someone who is not. The partnership is 
not eligible because it is not 100 percent owned by U.S. citizens.