[Code of Federal Regulations]
[Title 13, Volume 1]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 13CFR125.10]

[Page 441-442]
 
                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 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

[[Page 442]]

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.