§ 632. — Smallbusiness concern.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 15USC632]
TITLE 15--COMMERCE AND TRADE
CHAPTER 14A--AID TO SMALL BUSINESS
Sec. 632. Small-business concern
(a) Criteria
(1) For the purposes of this chapter, a small-business concern,
including but not limited to enterprises that are engaged in the
business of production of food and fiber, ranching and raising of
livestock, agriculture, and all other farming and agricultural related
industries, shall be deemed to be one which is independently owned and
operated and which is not dominant in its field of operation: Provided,
That notwithstanding any other provision of law, an agricultural
enterprise shall be deemed to be a small business concern if it
(including its affiliates) has annual receipts not in excess of
$750,000.
(2) Establishment of size standards.--
(A) In general.--In addition to the criteria specified in
paragraph (1), the Administrator may specify detailed definitions or
standards by which a business concern may be determined to be a
small business concern for the purposes of this chapter or any other
Act.
(B) Additional criteria.--The standards described in paragraph
(1) may utilize number of employees, dollar volume of business, net
worth, net income, a combination thereof, or other appropriate
factors.
(C) Requirements.--Unless specifically authorized by statute, no
Federal department or agency may prescribe a size standard for
categorizing a business concern as a small business concern, unless
such proposed size standard--
(i) is proposed after an opportunity for public notice and
comment;
(ii) provides for determining--
(I) the size of a manufacturing concern as measured by
the manufacturing concern's average employment based upon
employment during each of the manufacturing concern's pay
periods for the preceding 12 months;
(II) the size of a business concern providing services
on the basis of the annual average gross receipts of the
business concern over a period of not less than 3 years;
(III) the size of other business concerns on the basis
of data over a period of not less than 3 years; or
(IV) other appropriate factors; and
(iii) is approved by the Administrator.
(3) When establishing or approving any size standard pursuant to
paragraph (2), the Administrator shall ensure that the size standard
varies from industry to industry to the extent necessary to reflect the
differing characteristics of the various industries and consider other
factors deemed to be relevant by the Administrator.
(b) ``Agency'' defined
For purposes of this chapter, any reference to an agency or
department of the United States, and the term ``Federal agency'', shall
have the meaning given the term ``agency'' by section 551(1) of title 5,
but does not include the United States Postal Service or the General
Accounting Office.
(c) Qualified employee trust; eligibility for loan guarantee;
``qualified employee trust'' defined; regulations for treatment
of trust as qualified employee trust
(1) For purposes of this chapter, a qualified employee trust shall
be eligible for any loan guarantee under section 636(a) of this title
with respect to a small business concern on the same basis as if such
trust were the same legal entity as such concern.
(2) For purposes of this chapter, the term ``qualified employee
trust'' means, with respect to a small business concern, a trust--
(A) which forms part of an employee stock ownership plan (as
defined in section 4975(e)(7) of title 26)--
(i) which is maintained by such concern, and
(ii) which provides that each participant in the plan is
entitled to direct the plan as to the manner in which voting
rights under qualifying employer securities (as defined in
section 4975(e)(8) of title 26) which are allocated to the
account of such participant are to be exercised with respect to
a corporate matter which (by law or charter) must be decided by
a majority vote of outstanding common shares voted; and
(B) in the case of any loan guarantee under section 636(a) of
this title, the trustee of which enters into an agreement with the
Administrator which is binding on the trust and on such small
business concern and which provides that--
(i) the loan guaranteed under section 636(a) of this title
shall be used solely for the purchase of qualifying employer
securities of such concern,
(ii) all funds acquired by the concern in such purchase
shall be used by such concern solely for the purposes for which
such loan was guaranteed,
(iii) such concern will provide such funds as may be
necessary for the timely repayment of such loan, and the
property of such concern shall be available as security for
repayment of such loan, and
(iv) all qualifying employer securities acquired by such
trust in such purchase shall be allocated to the accounts of
participants in such plan who are entitled to share in such
allocation, and each participant has a nonforfeitable right, not
later than the date such loan is repaid, to all such qualifying
employer securities which are so allocated to the participant's
account.
(3) Under regulations which may be prescribed by the Administrator,
a trust may be treated as a qualified employee trust with respect to a
small business concern if--
(A) the trust is maintained by an employee organization which
represents at least 51 percent of the employees of such concern, and
(B) such concern maintains a plan--
(i) which is an employee benefit plan which is designed to
invest primarily in qualifying employer securities (as defined
in section 4975(e)(8) of title 26),
(ii) which provides that each participant in the plan is
entitled to direct the plan as to the manner in which voting
rights under qualifying employer securities which are allocated
to the account of such participant are to be exercised with
respect to a corporate matter which (by law or charter) must be
decided by a majority vote of the outstanding common shares
voted,
(iii) which provides that each participant who is entitled
to distribution from the plan has a right, in the case of
qualifying employer securities which are not readily tradeable
on an established market, to require that the concern repurchase
such securities under a fair valuation formula, and
(iv) which meets such other requirements (similar to
requirements applicable to employee stock ownership plans as
defined in section 4975(e)(7) of title 26) as the Administrator
may prescribe, and
(C) in the case of a loan guarantee under section 636(a) of this
title, such organization enters into an agreement with the
Administration which is described in paragraph (2)(B).
(d) ``Qualified Indian tribe'' defined
For purposes of section 636 of this title, the term ``qualified
Indian tribe'' means an Indian tribe as defined in section 450b(e) of
title 25, which owns and controls 100 per centum of a small business
concern.
(e) ``Public or private organization for the handicapped'' defined
For purposes of section 636 of this title, the term ``public or
private organization for the handicapped'' means one--
(1) which is organized under the laws of the United States or of
any State, operated in the interest of handicapped individuals, the
net income of which does not inure in whole or in part to the
benefit of any shareholder or other individuals;
(2) which complies with any applicable occupational health and
safety standard prescribed by the Secretary of Labor; and
(3) which, in the production of commodities and in the provision
of services during any fiscal year in which it received financial
assistance under this subsection, employs handicapped individuals
for not less than 75 per centum of the man-hours required for the
production or provision of the commodities or services.
(f) ``Handicapped individual'' defined
For purposes of section 636 of this title, the term ``handicapped
individual'' means an individual--
(1) who has a physical, mental, or emotional impairment, defect,
ailment, disease, or disability of a permanent nature which in any
way limits the selection of any type of employment for which the
person would otherwise be qualified or qualifiable; or
(2) who is a service-disabled veteran.
(g) ``Energy measures'' defined
For purposes of section 636 of this title, the term ``energy
measures'' includes--
(1) solar thermal energy equipment which is either of the active
type based upon mechanically forced energy transfer or of the
passive type based on convective, conductive, or radiant energy
transfer or some combination of these types;
(2) photovoltaic cells and related equipment;
(3) a product or service the primary purpose of which is
conservation of energy through devices or techniques which increase
the energy efficiency of existing equipment, methods of operation,
or systems which use fossil fuels, and which is on the Energy
Conservation Measures list of the Secretary of Energy or which the
Administrator determines to be consistent with the intent of this
subsection;
(4) equipment the primary purpose of which is production of
energy from wood, biological waste, grain, or other biomass source
of energy;
(5) equipment the primary purpose of which is industrial
cogeneration of energy, district heating, or production of energy
from industrial waste;
(6) hydroelectric power equipment;
(7) wind energy conversion equipment; and
(8) engineering, architectural, consulting, or other
professional services which are necessary or appropriate to aid
citizens in using any of the measures described in paragraph (1)
through (7).
(h) ``Credit elsewhere'' defined
For purposes of this chapter the term ``credit elsewhere'' means the
availability of credit from non-Federal sources on reasonable terms and
conditions taking into consideration the prevailing rates and terms in
the community in or near where the concern transacts business, or the
homeowner resides, for similar purposes and periods of time.
(i) ``Homeowners'' defined
For purposes of section 636 of this title, the term ``homeowners''
includes owners and lessees of residential property and also includes
personal property.
(j) ``Small agricultural cooperative'' defined
For the purposes of section 636(b)(2) of this title, the term
``small agricultural cooperative'' means an association (corporate or
otherwise) acting pursuant to the provisions of the Agricultural
Marketing Act (12 U.S.C. 1141j), whose size does not exceed the size
standard established by the Administration for other similar
agricultural small business concerns. In determining such size, the
Administration shall regard the association as a business concern and
shall not include the income or employees of any member shareholder of
such cooperative.
(k) ``Disaster'' defined
For the purposes of this chapter, the term ``disaster'' means a
sudden event which causes severe damage including, but not limited to,
floods, hurricanes, tornadoes, earthquakes, fires, explosions,
volcanoes, windstorms, landslides or mudslides, tidal waves, commercial
fishery failures or fishery resource disasters (as determined by the
Secretary of Commerce under section 4107(b) of title 16), ocean
conditions resulting in the closure of customary fishing waters, riots,
civil disorders or other catastrophes, except it does not include
economic dislocations.
(l) ``Computer crime'' defined
For purposes of this chapter--
(1) \1\ the term ``computer crime'' means--
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\1\ So in original. No par. (2) has been enacted.
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(A) any crime committed against a small business concern by
means of the use of a computer; and
(B) any crime involving the illegal use of, or tampering
with, a computer owned or utilized by a small business concern.
(m) ``Simplified acquisition threshold'' defined
For purposes of this chapter, the term ``simplified acquisition
threshold'' has the meaning given such term in section 403(11) of title
41.
(n) ``Small business concern owned and controlled by women'' defined
For the purposes of this chapter, a small business concern is a
small business concern owned and controlled by women if--
(1) at least 51 percent of small business concern is owned by
one or more women or, in the case of any publicly owned business, at
least 51 percent of the stock of which is owned by one or more
women; and
(2) the management and daily business operations of the business
are controlled by one or more women.
(o) Definitions of bundling of contract requirements and related terms
In this chapter:
(1) Bundled contract
The term ``bundled contract'' means a contract that is entered
into to meet requirements that are consolidated in a bundling of
contract requirements.
(2) Bundling of contract requirements
The term ``bundling of contract requirements'' means
consolidating 2 or more procurement requirements for goods or
services previously provided or performed under separate smaller
contracts into a solicitation of offers for a single contract that
is likely to be unsuitable for award to a small-business concern due
to--
(A) the diversity, size, or specialized nature of the
elements of the performance specified;
(B) the aggregate dollar value of the anticipated award;
(C) the geographical dispersion of the contract performance
sites; or
(D) any combination of the factors described in
subparagraphs (A), (B), and (C).
(3) Separate smaller contract
The term ``separate smaller contract'', with respect to a
bundling of contract requirements, means a contract that has been
performed by 1 or more small business concerns or was suitable for
award to 1 or more small business concerns.
(p) Definitions relating to HUBZones
In this chapter:
(1) Historically underutilized business zone
The term ``historically underutilized business zone'' means any
area located within 1 or more--
(A) qualified census tracts;
(B) qualified nonmetropolitan counties;
(C) lands within the external boundaries of an Indian
reservation; or
(D) redesignated areas.
(2) HUBZone
The term ``HUBZone'' means a historically underutilized business
zone.
(3) HUBZone small business concern
The term ``HUBZone small business concern'' means--
(A) a small business concern that is owned and controlled by
one or more persons, each of whom is a United States citizen;
(B) a small business concern that is--
(i) an Alaska Native Corporation owned and controlled by
Natives (as determined pursuant to section 1626(e)(1) of
title 43); or
(ii) a direct or indirect subsidiary corporation, joint
venture, or partnership of an Alaska Native Corporation
qualifying pursuant to section 1626(e)(1) of title 43, if
that subsidiary, joint venture, or partnership is owned and
controlled by Natives (as determined pursuant to section
1626(e)(2) of title 43);
(C) a small business concern--
(i) that is wholly owned by one or more Indian tribal
governments, or by a corporation that is wholly owned by one
or more Indian tribal governments; or
(ii) that is owned in part by one or more Indian tribal
governments, or by a corporation that is wholly owned by one
or more Indian tribal governments, if all other owners are
either United States citizens or small business concerns; or
(D) a small business concern that is--
(i) wholly owned by a community development corporation
that has received financial assistance under part 1 of
subchapter A of the Community Economic Development Act of
1981 (42 U.S.C. 9805 et seq.); or
(ii) owned in part by one or more community development
corporations, if all other owners are either United States
citizens or small business concerns.
(4) Qualified areas
(A) Qualified census tract
The term ``qualified census tract'' has the meaning given
that term in section 42(d)(5)(C)(ii) of title 26.
(B) Qualified nonmetropolitan county
The term ``qualified nonmetropolitan county'' means any
county--
(i) that was not located in a metropolitan statistical
area (as defined in section 143(k)(2)(B) of title 26) at the
time of the most recent census taken for purposes of
selecting qualified census tracts under section
42(d)(5)(C)(ii) of title 26; and
(ii) in which--
(I) the median household income is less than 80
percent of the nonmetropolitan State median household
income, based on the most recent data available from the
Bureau of the Census of the Department of Commerce; or
(II) the unemployment rate is not less than 140
percent of the Statewide average unemployment rate for
the State in which the county is located, based on the
most recent data available from the Secretary of Labor.
(C) Redesignated area
The term ``redesignated area'' means any census tract that
ceases to be qualified under subparagraph (A) and any
nonmetropolitan county that ceases to be qualified under
subparagraph (B), except that a census tract or a
nonmetropolitan county may be a ``redesignated area'' only for
the 3-year period following the date on which the census tract
or nonmetropolitan county ceased to be so qualified.
(5) Qualified HUBZone small business concern
(A) In general
A HUBZone small business concern is ``qualified'', if--
(i) the small business concern has certified in writing
to the Administrator (or the Administrator otherwise
determines, based on information submitted to the
Administrator by the small business concern, or based on
certification procedures, which shall be established by the
Administration by regulation) that--
(I) it is a HUBZone small business concern--
(aa) pursuant to subparagraph (A), (B), or (D)
of paragraph (3), and that its principal office is
located in a HUBZone and not fewer than 35 percent
of its employees reside in a HUBZone; or
(bb) pursuant to paragraph (3)(C), and not fewer
than 35 percent of its employees engaged in
performing a contract awarded to the small business
concern on the basis of a preference provided under
section 657a(b) of this title reside within any
Indian reservation governed by one or more of the
tribal government owners, or reside within any
HUBZone adjoining any such Indian reservation;
(II) the small business concern will attempt to
maintain the applicable employment percentage under
subclause (I) during the performance of any contract
awarded to the small business concern on the basis of a
preference provided under section 657a(b) of this title;
and
(III) with respect to any subcontract entered into
by the small business concern pursuant to a contract
awarded to the small business concern under section 657a
of this title, the small business concern will ensure
that--
(aa) in the case of a contract for services
(except construction), not less than 50 percent of
the cost of contract performance incurred for
personnel will be expended for its employees or for
employees of other HUBZone small business concerns;
(bb) in the case of a contract for procurement
of supplies (other than procurement from a regular
dealer in such supplies), not less than 50 percent
of the cost of manufacturing the supplies (not
including the cost of materials) will be incurred in
connection with the performance of the contract in a
HUBZone by 1 or more HUBZone small business
concerns; and
(cc) in the case of a contract for the
procurement by the Secretary of Agriculture of
agricultural commodities, none of the commodity
being procured will be obtained by the prime
contractor through a subcontract for the purchase of
the commodity in substantially the final form in
which it is to be supplied to the Government; and
(ii) no certification made or information provided by
the small business concern under clause (i) has been, in
accordance with the procedures established under section
657a(c)(1) of this title--
(I) successfully challenged by an interested party;
or
(II) otherwise determined by the Administrator to be
materially false.
(B) Change in percentages
The Administrator may utilize a percentage other than the
percentage specified in item (aa) or (bb) of subparagraph
(A)(i)(III), if the Administrator determines that such action is
necessary to reflect conventional industry practices among small
business concerns that are below the numerical size standard for
businesses in that industry category.
(C) Construction and other contracts
The Administrator shall promulgate final regulations
imposing requirements that are similar to those specified in
items (aa) and (bb) of subparagraph (A)(i)(III) on contracts for
general and specialty construction, and on contracts for any
other industry category that would not otherwise be subject to
those requirements. The percentage applicable to any such
requirement shall be determined in accordance with subparagraph
(B).
(D) List of qualified small business concerns
The Administrator shall establish and maintain a list of
qualified HUBZone small business concerns, which list shall, to
the extent practicable--
(i) once the Administrator has made the certification
required by subparagraph (A)(i) regarding a qualified
HUBZone small business concern and has determined that
subparagraph (A)(ii) does not apply to that concern, include
the name, address, and type of business with respect to each
such small business concern;
(ii) be updated by the Administrator not less than
annually; and
(iii) be provided upon request to any Federal agency or
other entity.
(6) Native American small business concerns
(A) Alaska Native Corporation
The term ``Alaska Native Corporation'' has the same meaning
as the term ``Native Corporation'' in section 1602 of title 43.
(B) Alaska Native Village
The term ``Alaska Native Village'' has the same meaning as
the term ``Native village'' in section 1602 of title 43.
(C) Indian reservation
The term ``Indian reservation''--
(i) has the same meaning as the term ``Indian country''
in section 1151 of title 18, except that such term does not
include--
(I) any lands that are located within a State in
which a tribe did not exercise governmental jurisdiction
on December 21, 2000, unless that tribe is recognized
after December 21, 2000, by either an Act of Congress or
pursuant to regulations of the Secretary of the Interior
for the administrative recognition that an Indian group
exists as an Indian tribe (part 83 of title 25, Code of
Federal Regulations); and
(II) lands taken into trust or acquired by an Indian
tribe after December 21, 2000, if such lands are not
located within the external boundaries of an Indian
reservation or former reservation or are not contiguous
to the lands held in trust or restricted status on
December 21, 2000; and
(ii) in the State of Oklahoma, means lands that--
(I) are within the jurisdictional areas of an
Oklahoma Indian tribe (as determined by the Secretary of
the Interior); and
(II) are recognized by the Secretary of the Interior
as eligible for trust land status under part 151 of
title 25, Code of Federal Regulations (as in effect on
December 21, 2000).
(7) Agricultural commodity
The term ``agricultural commodity'' has the same meaning as in
section 5602 of title 7.
(q) Definitions relating to veterans
In this chapter, the following definitions apply:
(1) Service-disabled veteran
The term ``service-disabled veteran'' means a veteran with a
disability that is service-connected (as defined in section 101(16)
of title 38).
(2) Small business concern owned and controlled by service-
disabled veterans
The term ``small business concern owned and controlled by
service-disabled veterans'' means a small business concern--
(A) not less than 51 percent of which is owned by one or
more service-disabled veterans or, in the case of any publicly
owned business, not less than 51 percent of the stock of which
is owned by one or more service-disabled veterans; and
(B) the management and daily business operations of which
are 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.
(3) Small business concern owned and controlled by veterans
The term ``small business concern owned and controlled by
veterans'' means a small business concern--
(A) not less than 51 percent of which is owned by one or
more veterans or, in the case of any publicly owned business,
not less than 51 percent of the stock of which is owned by one
or more veterans; and
(B) the management and daily business operations of which
are controlled by one or more veterans.
(4) Veteran
The term ``veteran'' has the meaning given the term in section
101(2) of title 38.
(Pub. L. 85-536, Sec. 2[3], July 18, 1958, 72 Stat. 384; Pub. L. 94-305,
title I, Sec. 112(b), June 4, 1976, 90 Stat. 667; Pub. L. 95-507, title
II, Sec. 224(b), Oct. 24, 1978, 92 Stat. 1772; Pub. L. 96-302, title V,
Sec. 504, July 2, 1980, 94 Stat. 851; Pub. L. 96-481, title I, Sec. 108,
Oct. 21, 1980, 94 Stat. 2323; Pub. L. 97-35, title XIX, Sec. 1903, Aug.
13, 1981, 95 Stat. 771; Pub. L. 98-270, title III, Sec. 310, Apr. 18,
1984, 98 Stat. 161; Pub. L. 98-362, Sec. 6, July 16, 1984, 98 Stat. 434;
Pub. L. 98-473, title I, Sec. 111A(b), Oct. 12, 1984, 98 Stat. 1966;
Pub. L. 99-272, title XVIII, Sec. 18016, Apr. 7, 1986, 100 Stat. 371;
Pub. L. 99-500, Sec. 101(c) [title X, Sec. 921(f)], Oct. 18, 1986, 100
Stat. 1783-82, 1783-149, and Pub. L. 99-591, Sec. 101(c) [title X,
Sec. 921(f)], Oct. 30, 1986, 100 Stat. 3341-82, 3341-149; Pub. L. 99-
514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095; Pub. L. 99-661, div. A,
title IX, formerly title IV, Sec. 921(f), Nov. 14, 1986, 100 Stat. 3929,
renumbered title IX, Pub. L. 100-26, Sec. 3(5), Apr. 21, 1987, 101 Stat.
273; Pub. L. 100-26, Sec. 10(b)(2), Apr. 21, 1987, 101 Stat. 288; Pub.
L. 100-456, div. A, title VIII, Sec. 845, Sept. 29, 1988, 102 Stat.
2027; Pub. L. 100-590, title I, Sec. 119(b), Nov. 3, 1988, 102 Stat.
2999; Pub. L. 100-656, title VII, Sec. 732, Nov. 15, 1988, 102 Stat.
3897; Pub. L. 101-510, div. A, title VIII, Sec. 806(e)(1), Nov. 5, 1990,
104 Stat. 1592; Pub. L. 102-366, title II, Sec. 222(a), Sept. 4, 1992,
106 Stat. 999; Pub. L. 103-355, title IV, Sec. 4404(a), title VII,
Sec. 7106(d), Oct. 13, 1994, 108 Stat. 3349, 3376; Pub. L. 103-403,
title III, Sec. 301, Oct. 22, 1994, 108 Stat. 4187; Pub. L. 104-208,
div. D, title I, Sec. 104(b)(1), Sept. 30, 1996, 110 Stat. 3009-730;
Pub. L. 105-135, title IV, Sec. 412, title VI, Sec. 602(a), Dec. 2,
1997, 111 Stat. 2617, 2627; Pub. L. 106-50, title I, Sec. 103(a), title
IV, Sec. 401(a), Aug. 17, 1999, 113 Stat. 234, 243; Pub. L. 106-554,
Sec. 1(a)(9) [title VI, Secs. 602-604, 611, 612(b)-615(a), title VIII,
Sec. 806(b)], Dec. 21, 2000, 114 Stat. 2763, 2763A-697 to 2763A-701,
2763A-706.)
References in Text
The Agricultural Marketing Act (12 U.S.C. 1141j), referred to in
subsec. (j), is act June 15, 1929, ch. 24, 46 Stat. 11, as amended,
which is classified generally to chapter 7A (Sec. 1141 et seq.) of Title
12, Banks and Banking. For complete classification of this Act to the
Code, see section 1141j(f) of Title 12 and Tables.
The Community Economic Development Act of 1981, referred to in
subsec. (p)(3)(D)(i), is subchapter A (Secs. 611-633) of chapter 8 of
subtitle A of title VI of Pub. L. 97-35, Aug. 13, 1981, 95 Stat. 489, as
amended. Part 1 of subchapter A of the Act is classified generally to
part A (Sec. 9805 et seq.) of subchapter I of chapter 105 of Title 42,
The Public Health and Welfare. For complete classification of this Act
to the Code, see Short Title note set out under section 9801 of Title 42
and Tables.
Codification
``Section 450b(e) of title 25'', referred to in subsec. (d), was in
the original ``section 4(a) of the Indian Self-Determination and
Education Assistance Act'' which is classified to section 450b(a) of
Title 25, Indians, but has been editorially translated as section
450b(e) of Title 25 as the probable intent of Congress, in that the
definition of ``Indian Tribes'' is set out in subsec. (e) of section
450b of Title 25.
Pub. L. 99-591 is a corrected version of Pub. L. 99-500.
Prior Provisions
Prior similar provisions were contained in section 203 of act July
30, 1953, ch. 282, title II, 67 Stat. 233, which was previously
classified to this section. See Codification note set out under section
631 of this title.
Amendments
2000--Subsec. (a)(1). Pub. L. 106-554, Sec. 1(a)(9) [title VIII,
Sec. 806(b)], substituted ``$750,000'' for ``$500,000''.
Subsec. (p)(1)(D). Pub. L. 106-554, Sec. 1(a)(9) [title VI,
Sec. 613(1)], added subpar. (D).
Subsec. (p)(3). Pub. L. 106-554, Sec. 1(a)(9) [title VI, Sec. 602],
amended heading and text of par. (3) generally, substituting present
provisions for provisions which had defined ``HUBZone small business
concern'' as a small business concern that is owned and controlled by 1
or more persons, each of whom is a United States citizen, and the
principal office of which is located in a HUBZone.
Subsec. (p)(3)(D). Pub. L. 106-554, Sec. 1(a)(9) [title VI,
Sec. 614(1)], added subpar. (D).
Subsec. (p)(4)(A). Pub. L. 106-554, Sec. 1(a)(9) [title VI,
Sec. 611(a)], substituted ``section 42(d)(5)(C)(ii)'' for ``section
42(d)(5)(C)(ii)(I)''.
Subsec. (p)(4)(B). Pub. L. 106-554, Sec. 1(a)(9) [title VI,
Sec. 611(b)], added subpar. (B) and struck out heading and text of
former subpar. (B). Text read as follows: ``The term `qualified
nonmetropolitan county' means any county--
``(i) that, based on the most recent data available from the
Bureau of the Census of the Department of Commerce--
``(I) is not located in a metropolitan statistical area (as
defined in section 143(k)(2)(B) of title 26); and
``(II) in which the median household income is less than 80
percent of the nonmetropolitan State median household income; or
``(ii) that, based on the most recent data available from the
Secretary of Labor, has an unemployment rate that is not less than
140 percent of the statewide average unemployment rate for the State
in which the county is located.''
Subsec. (p)(4)(C). Pub. L. 106-554, Sec. 1(a)(9) [title VI,
Sec. 613(2)], added subpar. (C).
Subsec. (p)(5)(A)(i)(I). Pub. L. 106-554, Sec. 1(a)(9) [title VI,
Sec. 603(a)], added subcl. (I) and struck out former subcl. (I) which
read as follows: ``it is a HUBZone small business concern;''.
Subsec. (p)(5)(A)(i)(I)(aa). Pub. L. 106-554, Sec. 1(a)(9) [title
VI, Sec. 614(2)], substituted ``subparagraph (A), (B), or (D)'' for
``subparagraph (A) or (B)''.
Subsec. (p)(5)(A)(i)(II). Pub. L. 106-554, Sec. 1(a)(9) [title VI,
Sec. 603(a)], added subcl. (II) and struck out former subcl. (II) which
read as follows: ``not less than 35 percent of the employees of the
small business concern reside in a HUBZone, and the small business
concern will attempt to maintain this employment percentage during the
performance of any contract awarded to the small business concern on the
basis of a preference provided under section 657a(b) of this title;
and''.
Subsec. (p)(5)(A)(i)(III)(cc). Pub. L. 106-554, Sec. 1(a)(9) [title
VI, Sec. 612(b)(1)], added item (cc).
Subsec. (p)(5)(C). Pub. L. 106-554, Sec. 1(a)(9) [title VI,
Sec. 615(a)], which directed amendment of subpar. (C) by substituting
``items (aa) and (bb) of subparagraph (A)(i)(III)'' for ``subclause (IV)
and (V) of subparagraph (A)(i)'', was executed by making the
substitution for ``subclauses (IV) and (V) of subparagraph (A)(i)'', to
reflect the probable intent of Congress.
Subsec. (p)(5)(D)(i). Pub. L. 106-554, Sec. 1(a)(9) [title VI,
Sec. 603(b)], inserted ``once the Administrator has made the
certification required by subparagraph (A)(i) regarding a qualified
HUBZone small business concern and has determined that subparagraph
(A)(ii) does not apply to that concern,'' before ``include''.
Subsec. (p)(6). Pub. L. 106-554, Sec. 1(a)(9) [title VI, Sec. 604],
added par. (6).
Subsec. (p)(7). Pub. L. 106-554, Sec. 1(a)(9) [title VI,
Sec. 612(b)(2)], added par. (7).
1999--Subsec. (f). Pub. L. 106-50, Sec. 401(a), amended subsec. (f)
generally. Prior to amendment, subsec. (f) read as follows: ``For
purposes of section 636 of this title, the term `handicapped individual'
means a person who has a physical, mental, or emotional impairment,
defect, ailment, disease, or disability of a permanent nature which in
any way limits the selection of any type of employment for which the
person would otherwise be qualified or qualifiable.''
Subsec. (q). Pub. L. 106-50, Sec. 103(a), added subsec. (q).
1997--Subsec. (o). Pub. L. 105-135, Sec. 412, added subsec. (o).
Subsec. (p). Pub. L. 105-135, Sec. 602(a), added subsec. (p).
1996--Subsec. (k). Pub. L. 104-208 inserted ``commercial fishery
failures or fishery resource disasters (as determined by the Secretary
of Commerce under section 4107(b) of title 16),'' after ``tidal
waves,''.
1994--Subsec. (a)(2). Pub. L. 103-403 amended par. (2) generally.
Prior to amendment, par. (2) read as follows: ``In addition to the
criteria specified in paragraph (1), the Administrator may specify
detailed definitions or standards (by number of employees or dollar
volume of business) by which a business concern is to be recognized as a
small business concern for the purposes of this chapter or any other
Act. Unless specifically authorized by statute, the Secretary of a
department or the head of a Federal agency may not prescribe for the use
of such department or agency a size standard for categorizing a business
concern as a small business concern, unless such proposed size
standard--
``(A) is being proposed after an opportunity for public notice
and comment;
``(B) provides for determining, over a period of not less than 3
years--
``(i) the size of a manufacturing concern on the basis of
the number of its employees during that period; and
``(ii) the size of a concern providing services on basis of
the average gross receipts of the concern during that period;
and
``(C) is approved by the Administrator.''
Subsec. (m). Pub. L. 103-355, Sec. 4404(a), substituted ``
`simplified acquisition threshold' '' for `` `small purchase threshold'
''.
Subsec. (n). Pub. L. 103-355, Sec. 7106(d), added subsec. (n).
1992--Subsec. (a). Pub. L. 102-366 added pars. (2) and (3) and
struck out at end of par. (1) ``In addition to the foregoing criteria
the Administrator, in making a detailed definition, may use these
criteria, among others: Number of employees and dollar volume of
business: Provided, That the Administration shall not promulgate, amend,
or rescind any rule [or] regulation with respect to size standards prior
to March 31, 1981. Where the number of employees is used as one of the
criteria in making such definition for any of the purposes of this
chapter, the maximum number of employees which a small-business concern
may have under the definition shall vary from industry to industry to
the extent necessary to reflect differing characteristics of such
industries and to take proper account of other relevant factors.''
1990--Subsec. (m). Pub. L. 101-510 added subsec. (m).
1988--Subsec. (a). Pub. L. 100-656 struck out pars. (2) to (5) which
established a program for review of size standards for eligibility of
business concerns in certain industry categories for a procurement
restricted to small business concerns under section 637(a) or 644(a) of
this title and provided for adjustment of those standards and periodic
review of the program.
Pub. L. 100-456 inserted provisions in par. (4)(C) respecting
applicability of regulations to contracts entered into on or after Oct.
1, 1988.
Subsecs. (j) to (l). Pub. L. 100-590 added subsec. (k) and
redesignated subsec. (j), defining ``computer crime'', as (l).
1987--Subsec. (a)(3). Pub. L. 100-26, Sec. 10(b)(2)(A), substituted
``dollar value of the contracts to be awarded in that industry
category'' for ``value of contracts to be awarded under such sections''.
Subsec. (a)(4)(A)(i). Pub. L. 100-26, Sec. 10(b)(2)(B), substituted
``paragraph (3)'' for ``paragraph (3)(A)''.
Subsec. (a)(5). Pub. L. 100-26, Sec. 10(b)(2)(C), substituted
``shall be made not later than 180 days after the end of each such'' for
``made with the expiration of 180 days after each''.
1986--Subsec. (a). Pub. L. 99-500, Pub. L. 99-591, and Pub. L. 99-
661 amended subsec. (a) identically designating existing provision as
par. (1) and adding pars. (2) to (5).
Pub. L. 99-272 inserted proviso that notwithstanding any other
provision of law, an agricultural enterprise shall be deemed to be a
small business concern if it, including its affiliates, has annual
receipts not in excess of $500,000.
Subsec. (c)(2)(A), (3)(B)(i), (iv). Pub. L. 99-514 substituted
``Internal Revenue Code of 1986'' for ``Internal Revenue Code of 1954'',
which for purposes of codification was translated as ``title 26'' thus
requiring no change in text.
1984--Subsec. (j). Pub. L. 98-473 in subsec. (j) added by Pub. L.
98-270 substituted ``as a business concern and shall not include the
income or employees of any member shareholder of such cooperative'' for
``as an entity and shall not include the income or employees of any
member shareholder of such cooperative: Provided, That such an
association shall not be deemed to be a small agricultural cooperative
unless each member of the board of directors of the association, or each
member of the governing body of the association if it is not
incorporated, also individually qualifies as a small business concern''.
Pub. L. 98-362 added subsec. (j) defining ``computer crime''.
Pub. L. 98-270 added subsec. (j) defining ``small agricultural
cooperative''.
1981--Subsecs. (d) to (i). Pub. L. 97-35 added subsecs. (d) to (i).
1980--Subsec. (a). Pub. L. 96-481, in the additional criteria
inserted proviso that the Administration shall not promulgate, amend, or
rescind any rule or regulation with respect to size standards prior to
March 31, 1981.
Subsec. (c). Pub. L. 96-302 added subsec. (c).
1978--Pub. L. 95-507 designated existing provisions as subsec. (a)
and added subsec. (b).
1976--Pub. L. 94-305 inserted reference to enterprises that are
engaged in business of production of food and fiber, ranching and
raising of livestock, aquaculture, and all other farming and
agricultural related industries.
Effective Date of 1997 Amendment
Amendment by Pub. L. 105-135 effective Oct. 1, 1997, see section 3
of Pub. L. 105-135, set out as a note under section 631 of this title.
Effective Date of 1996 Amendment
Section 104(b)(2) of div. D of Pub. L. 104-208 provided that: ``The
amendment made by paragraph (1) [amending this section] shall be
effective with respect to any disaster occurring on or after March 1,
1994.''
Effective Date of 1994 Amendment
For effective date and applicability of amendment by Pub. L. 103-
355, see section 10001 of Pub. L. 103-355, set out as a note under
section 251 of Title 41, Public Contracts.
Effective Date of 1987 Amendment
Section 12(c) of Pub. L. 100-26 provided that: ``The amendments made
by sections 5 [amending section 2365 of Title 10, Armed Forces, and
amending provisions set out as notes under sections 1621, 2326, and 2437
of Title 10] and 10 [amending this section, sections 637 and 644 of this
title, and provisions set out as a note under this section] shall apply
as if included in each instance of the Defense Acquisition Improvement
Act (as specified in section 2) [title X of section 101(c) of Pub. L.
99-500 and Pub. L. 99-591, and title IX of div. A of Pub. L. 99-661]
when each was enacted [Oct. 18, 1986, Oct. 30, 1986, and Nov. 14, 1986,
respectively].''
Effective Date of 1986 Amendment; Initial Review of Standards
Section 101(c) [title X, Sec. 921(g), (h)] of Pub. L. 99-500 and
Pub. L. 99-591, and section 921(g), (h) of title IX, formerly title IV,
of Pub. L. 99-661; renumbered title IX and amended by Pub. L. 100-26,
Secs. 3(5), 10(a)(2), Apr. 21, 1987, 101 Stat. 273, 288; Pub. L. 100-
180, div. A, title VIII, Sec. 809(d), Dec. 4, 1987, 101 Stat. 1130,
provided that:
``(g) Effective Dates.--Except as otherwise provided in subsection
(h), the amendments made by this section [amending this section and
sections 637 and 644 of this title and enacting provisions set out as
notes below] shall take effect on October 1, 1987.
``(h) Initial Review of Size Standards.--(1) Paragraph (2) of
section 3(a) of the Small Business Act (as added by subsection (f)) [15
U.S.C. 632(a)(2)] shall take effect on the date of the enactment of this
Act [Oct. 18, 1986].
``(2) The first review conducted by the Administrator under such
paragraph shall review the periods beginning on October 1, 1983, and
ending on September 30, 1986, and shall be completed not later than 180
days after the date of the enactment of this Act.
``(3) If the Administrator of the Small Business Administration
determines, on the basis of the review referred to in paragraph (2),
that contracts awarded under the set-aside programs under sections 8(a)
and 15(a) of the Small Business Act [15 U.S.C. 637(a), 644(a)] in any
industry category subject to that review exceed 30 percent of the dollar
value of the total contract awards for that industry category, as
determined in accordance with the last sentence of section 15(a)(3) of
such Act, the Administrator shall propose adjustments to the size
standards for such industry category establishing eligibility for a set-
aside program to a size that will likely reduce the number of contracts
which may be set aside to approximately 30 percent of the dollar value
of the contracts to be awarded in that industry category. The
Administrator shall publish proposed regulations, including any revised
size standards, in the Federal Register by November 30, 1987, or the
date of enactment of the National Defense Authorization Act for Fiscal
Years 1988 and 1989 [Pub. L. 100-180, Dec. 4, 1987], whichever is later.
The proposed regulations shall provide not less than 60 days for public
comment. The Administrator shall issue final regulations not later than
May 31, 1988.
Effective Date of 1984 Amendments
Section 312 of title III of Pub. L. 98-270 provided that: ``The
amendments made by sections 310 and 311 of this title [amending this
section and section 636 of this title] shall apply to loans granted on
the basis of any disaster with respect to which a declaration has been
issued after September 1, 1982, under section 7(b)(2) (A), (B), or (C)
of the Small Business Act [15 U.S.C. 636(b)(2)(A), (B), (C)] or with
respect to which a certification has been made after such date under
section 7(b)(2)(D) of such Act.''
Section 313 of title III of Pub. L. 98-270 provided that: ``This
title [amending this section and sections 633, 636, and 647 of this
title, enacting provisions set out as notes under sections 632 and 636
of this title, and amending provisions set out as a note under section
631 of this title] shall take effect October 1, 1983.''
Amendment by Pub. L. 98-362 effective Oct. 1, 1984, see section 7(a)
of Pub. L. 98-362, set out as an Effective and Termination Dates of 1984
Amendments note under section 633 of this title.
Effective Date of 1981 Amendment
Amendment by Pub. L. 97-35 effective Aug. 13, 1981, but shall not
affect any financing made, obligated, or committed under this chapter or
chapter 14B of this title prior to Aug. 13, 1981, see section 1918 of
Pub. L. 97-35, set out as a note under section 631 of this title.
Effective Date of 1980 Amendment
Amendment by Pub. L. 96-302 effective Oct. 1, 1980, see section 507
of Pub. L. 96-302, set out as a note under section 631 of this title.
Regulations
Section 605 of title VI of Pub. L. 105-135 provided that:
``(a) In General.--Not later than 180 days after the date of
enactment of this Act [Dec. 2, 1997], the Administrator shall publish in
the Federal Register such final regulations as may be necessary to carry
out this title [see Short Title of 1997 Amendment note set out under
section 631 of this title] and the amendments made by this title.
``(b) Federal Acquisition Regulation.--Not later than 180 days after
the date on which final regulations are published under subsection (a),
the Federal Acquisition Regulatory Council shall amend the Federal
Acquisition Regulation in order to ensure consistency between the
Federal Acquisition Regulation, this title and the amendments made by
this title, and the final regulations published under subsection (a).''
Section 222(b) of Pub. L. 102-366 provided that:
``(1) In general.--Not later than 180 days after the date of
enactment of this Act [Sept. 4, 1992], the Administrator of the Small
Business Administration shall issue proposed regulations to implement
the amendments made by subsection (a) [amending this section]. Final
regulations shall be issued not later than 270 days after such date of
enactment.
``(2) Listing of additional size standards.--The regulations
required by paragraph (1) shall include a listing of all small business
size standards prescribed by statute or by individual Federal
departments and agencies, identifying the programs or purposes to which
such size standards apply.''
Continued Effectiveness of Numerical Size Standards in Effect on
September 30, 1988
The last sentence of section 732 of Pub. L. 100-656 which provided
that any numerical size standard that pertained to any of the designated
industry groups, and that was in effect on Sept. 30, 1988, was to remain
in effect for the duration of the Program, was repealed by Pub. L. 103-
160, div. A, title VIII, Sec. 850(1), Nov. 30, 1993, 107 Stat. 1726. See
section 717(f) of Pub. L. 100-656, set out as a note under section 644
of this title.
Report on Effect of 1986 Amendments
Section 101(c) [title X, Sec. 921(i)] of Pub. L. 99-500 and Pub. L.
99-591, and section 921(i) of title IX, formerly title IV, of Pub. L.
99-661; renumbered title IX, Pub. L. 100-26, Sec. 3(5), Apr. 21, 1987,
101 Stat. 273, directed Administrator of the Small Business
Administration, not later than July 15, 1987, to submit to Congress a
report on the amendments to sections 632, 637, and 644 of this title
made by this section which was to include Administrator's views on the
advisability and feasibility of implementing such amendments,
Administrator's findings and determinations under the review of size
standards for businesses that qualify as small businesses carried out
pursuant to 15 U.S.C. 632(a)(2)(B), a determination of whether or not
the amendments to section 632 of this title would further the interests
of the set-aside program, and recommendations for furthering certain
interests in a more efficient or effective manner than provided in such
amendments.
Section Referred to in Other Sections
This section is referred to in sections 78c, 631b, 634b, 636, 637,
638, 644, 657a, 662, 689, 694b, 695, 3703, 4721, 4724, 7101 of this
title; title 5 sections 601, 3703; title 7 sections 5623, 5923; title 10
sections 2225, 2319, 2323; title 12 sections 635, 635g, 1441a, 1835,
3013; title 13 section 91; title 22 section 6729; title 29 section 3031;
title 31 sections 3554, 3718, 6701; title 35 sections 41, 201; title 41
sections 253c, 405, 417a; title 42 sections 300u, 5197h, 5302, 6322,
7261b, 12002, 13556; title 49 sections 47107, 47113; title 50 App.
section 2152.
