[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: 13CFR125.10]



[Page 439-440]

 

                TITLE 13--BUSINESS CREDIT AND ASSISTANCE

 

                CHAPTER I--SMALL BUSINESS ADMINISTRATION

 

PART 125_GOVERNMENT CONTRACTING PROGRAMS--Table of Contents

 

       Subpart B_Eligibility Requirements for the SDVO SBC Program

 

Sec. 125.10  Who does SBA consider to control an SDVO SBC?



    (a) General. To be an eligible SDVO SBC, the management and daily 

business operations of the concern must be 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). Control by one or more service-disabled veterans



[[Page 440]]



means that both the long-term decisions making and the day-to-day 

management and administration of the business operations must be 

conducted 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).

    (b) Managerial position and experience. A service-disabled veteran 

(or in the case of a service-disabled veteran with permanent and severe 

disability, the spouse or permanent caregiver of such veteran) must hold 

the highest officer position in the concern (usually President or Chief 

Executive Officer) and must have managerial experience of the extent and 

complexity needed to run the concern. The service-disabled veteran 

manager (or in the case of a veteran with permanent and severe 

disability, the spouse or permanent caregiver of such veteran) need not 

have the technical expertise or possess the required license to be found 

to control the concern if the service-disabled veteran can demonstrate 

that he or she has ultimate managerial and supervisory control over 

those who possess the required licenses or technical expertise.

    (c) Control over a partnership. In the case of a partnership, 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) must serve as general partners, with control over all 

partnership decisions.

    (d) Control over a limited liability company. In the case of a 

limited liability company, one or more service-disabled veterans (or in 

the case of a veteran with permanent or severe disability, the spouse or 

permanent caregiver of such veteran) must serve as managing members, 

with control over all decisions of the limited liability company.

    (e) Control over a corporation. 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) must 

control the Board of Directors of the concern. Service-disabled veterans 

are considered to control the Board of Directors when either:

    (1) One of more service-disabled veterans own at least 51% of all 

voting stock of the concern, are on the Board of Directors and have the 

percentage of voting stock necessary to overcome any super majority 

voting requirements; or

    (2) Service-disabled veterans comprise the majority of voting 

directors through actual numbers or, where permitted by state law, 

through weighted voting.