[Code of Federal Regulations]

[Title 13, Volume 1]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 13CFR124.110]



[Page 377]

 

                TITLE 13--BUSINESS CREDIT AND ASSISTANCE

 

                CHAPTER I--SMALL BUSINESS ADMINISTRATION

 

PART 124_8(a) BUSINESS DEVELOPMENT/SMALL DISADVANTAGED BUSINESS STATUS 

DETERMINATIONS--Table of Contents

 

                   Subpart A_8(a) Business Development

 

Sec. 124.110  Do Native Hawaiian Organizations have any special rules 

for applying to the 8(a) BD program?



    (a) Concerns owned by economically disadvantaged Native Hawaiian 

Organizations, as defined in Sec. 124.3, are eligible for participation 

in the 8(a) program and other federal programs requiring SBA to 

determine social and economic disadvantage as a condition of 

eligibility. Such concerns must meet all eligibility criteria set forth 

in Sec. Sec. 124.101 through 124.108 and Sec. 124.112 to the extent 

that they are not inconsistent with this section.

    (b) A concern owned by a Native Hawaiian Organization must qualify 

as a small business concern as defined in part 121 of this title. The 

size standard corresponding to the primary industry classification of 

the applicant concern applies for determining size. SBA will determine 

the concern's size independently, without regard to its affiliation with 

the Native Hawaiian Organization or any other business enterprise owned 

by the Native Hawaiian Organization, unless the Administrator determines 

that one or more such concerns owned by the Native Hawaiian Organization 

have obtained, or are likely to obtain, a substantial unfair competitive 

advantage within an industry category.

    (c) A Native Hawaiian Organization cannot own 51% or more of another 

firm which, either at the time of application or within the previous two 

years, has been operating in the 8(a) program under the same primary SIC 

code as the applicant. A Native Hawaiian Organization may, however, own 

a Participant or an applicant that conducts or will conduct secondary 

business in the 8(a) BD program under the same SIC code that a current 

Participant owned by the Native Hawaiian Organization operates in the 

8(a) BD program as its primary SIC code.

    (d) SBA does not deem an individual involved in the management or 

daily business operations of a Participant owned by a Native Hawaiian 

Organization to have used his or her individual eligibility within the 

meaning of Sec. 124.108(b).

    (e)(1) An applicant concern owned by a Native Hawaiian Organization 

must be in business for at least two years, as evidenced by income tax 

returns for each of the two previous tax years showing operating 

revenues in the primary industry in which the applicant is seeking 8(a) 

BD certification, or demonstrate potential for success as set forth in 

paragraph (e)(2) of this section.

    (2) In determining whether a concern owned by a Native Hawaiian 

Organization has the potential for success, SBA will look at a number of 

factors including, but not limited to:

    (i) The technical and managerial experience and competence of the 

individual(s) who will manage and control the daily operation of the 

concern.

    (ii) The financial capacity of the concern; and

    (iii) The concern's record of performance on any previous Federal or 

private sector contracts in the primary industry in which the concern is 

seeking 8(a) certification.



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