[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: 13CFR126.201]

[Page 454]
 
                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  Who does SBA consider to own a HUBZone SBC?

    An owner of a SBC seeking HUBZone certification or a qualified 
HUBZone SBC is a person who owns any legal or equitable interest in such 
SBC. If an Employee Stock Ownership Plan owns all or part of the 
concern, SBA considers each stock trustee and plan member to be an 
owner. If a trust owns all or part of the concern, SBA considers each 
trustee and trust beneficiary to be an owner. In addition:
    (a) Corporations. SBA considers any person who owns stock, whether 
voting or non-voting, to be an owner. SBA considers options to purchase 
stock and the right to convert debentures into voting stock to have been 
exercised.

    Example: U.S. citizens own all of the stock of a corporation. A 
corporate officer, a non-U.S. citizen, owns no stock in the corporation 
but owns options to purchase stock in the corporation. SBA will consider 
the options exercised and the individual to be an owner. Therefore, if 
that corporate officer has options to purchase 50% or more of the 
corporate stock, pursuant to Sec.  126.200, the corporation would not be 
eligible to be a qualified HUBZone SBC because it is not at least 51% 
owned and controlled by persons who are U.S. citizens.

    (b) Partnerships. SBA considers all partners, whether general or 
limited, to be owners in a partnership.
    (c) Sole proprietorships. The proprietor is the owner.
    (d) Limited liability companies. SBA considers each member to be an 
owner of a limited liability company.

[69 FR 29422, May 24, 2004, as amended at 70 FR 51249, Aug. 30, 2005; 71 
FR 69183, Nov. 30, 2006]