15 U.S.C. § 632 (COMMERCE AND TRADE)
§ 632. Definitions
(a) Small business concerns
(1) In general
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, aquaculture, 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.
(2) Establishment of size standards
(A) In general
In addition to the criteria specified in paragraph (1) and subject to the requirements specified under subparagraph (C), 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 (including the Administration when acting pursuant to subparagraph (A)) 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 24 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 5 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) Variation by industry and consideration of other factors
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.
(4) Exclusion of certain security expenses from consideration for purpose of small business size standards
(A) Determination required
Not later than 30 days after January 6, 2006, the Administrator shall review the application of size standards established pursuant to paragraph (2) to small business concerns that are performing contracts in qualified areas and determine whether it would be fair and appropriate to exclude from consideration in the average annual gross receipts of such small business concerns any payments made to such small business concerns by Federal agencies to reimburse such small business concerns for the cost of subcontracts entered for the sole purpose of providing security services in a qualified area.
(B) Action required
Not later than 60 days after January 6, 2006, the Administrator shall either—
(i) initiate an adjustment to the size standards, as described in subparagraph (A), if the Administrator determines that such an adjustment would be fair and appropriate; or
(ii) provide a report to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives explaining in detail the basis for the determination by the Administrator that such an adjustment would not be fair and appropriate.
(C) Qualified areas
In this paragraph, the term “qualified area” means—
(i) Iraq,
(ii) Afghanistan, and
(iii) any foreign country which included a combat zone, as that term is defined in section 112(c)(2) of title 26, at the time of performance of the relevant Federal contract or subcontract.
(5) Alternative size standard
(A) In general
The Administrator shall establish an alternative size standard for applicants for business loans under section 636(a) of this title and applicants for development company loans under title V of the Small Business Investment Act of 1958 (15 U.S.C. 695 et seq.), that uses maximum tangible net worth and average net income as an alternative to the use of industry standards.
(B) Interim rule
Until the date on which the alternative size standard established under subparagraph (A) is in effect, an applicant for a business loan under section 636(a) of this title or an applicant for a development company loan under title V of the Small Business Investment Act of 1958 may be eligible for such a loan if—
(i) the maximum tangible net worth of the applicant is not more than $15,000,000; and
(ii) the average net income after Federal income taxes (excluding any carry-over losses) of the applicant for the 2 full fiscal years before the date of the application is not more than $5,000,000.
(6) Proposed rulemaking
In conducting rulemaking to revise, modify or establish size standards pursuant to this section, the Administrator shall consider, and address, and make publicly available as part of the notice of proposed rulemaking and notice of final rule each of the following:
(A) a detailed description of the industry for which the new size standard is proposed;
(B) an analysis of the competitive environment for that industry;
(C) the approach the Administrator used to develop the proposed standard including the source of all data used to develop the proposed rule making; and
(D) the anticipated effect of the proposed rulemaking on the industry, including the number of concerns not currently considered small that would be considered small under the proposed rule making and the number of concerns currently considered small that would be deemed other than small under the proposed rulemaking.
(7) Common size standards
In carrying out this subsection, the Administrator may establish or approve a single size standard for a grouping of 4-digit North American Industry Classification System codes only if the Administrator makes publicly available, not later than the date on which such size standard is established or approved, a justification demonstrating that such size standard is appropriate for each individual industry classification included in the grouping.
(8) Number of size standards
The Administrator shall not limit the number of size standards established pursuant to paragraph (2), and shall assign the appropriate size standard to each North American Industry Classification System Code.
(9) Petitions for reconsideration of size standards
(A) In general
A person may file a petition for reconsideration with the Office of Hearings and Appeals (as established under section 634(i) of this title) of a size standard revised, modified, or established by the Administrator pursuant to this subsection.
(B) Time limit
A person filing a petition for reconsideration described in subparagraph (A) shall file such petition not later than 30 days after the publication in the Federal Register of the notice of final rule to revise, modify, or establish size standards described in paragraph (6).
(C) Process for agency review
The Office of Hearings and Appeals shall use the same process it uses to decide challenges to the size of a small business concern to decide a petition for review pursuant to this paragraph.
(D) Judicial review
The publication of a final rule in the Federal Register described in subparagraph (B) shall be considered final agency action for purposes of seeking judicial review. Filing a petition for reconsideration under subparagraph (A) shall not be a condition precedent to judicial review of any such size standard.
(E) Rules or guidance
The Office of Hearings and Appeals shall begin accepting petitions for reconsideration described in subparagraph (A) after the date on which the Administration issues a rule or other guidance implementing this paragraph. Notwithstanding the provisions of subparagraph (B), petitions for reconsideration of size standards revised, modified, or established in a Federal Register final rule published between November 25, 2015, and the effective date of such rule or other guidance shall be considered timely if filed within 30 days of such effective date.
(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 Government Accountability 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 is entitled to direct the plan trustee as to the manner of how to vote the qualified employer securities (as defined in section 4975(e)(8) of title 26), which are allocated to the account of such participant with respect to a corporate matter which (by law or charter) must be decided by a vote conducted in accordance with section 409(e) of the title 26; 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 5304(a) 1 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
The term “credit elsewhere” means—
(1) for the purposes of this chapter (except as used in section 636(b) of this title), the availability of credit on reasonable terms and conditions to the individual loan applicant from non-Federal, non-State, or non-local government sources, considering factors associated with conventional lending practices, including—
(A) the business industry in which the loan applicant operates;
(B) whether the loan applicant is an enterprise that has been in operation for a period of not more than 2 years;
(C) the adequacy of the collateral available to secure the requested loan;
(D) the loan term necessary to reasonably assure the ability of the loan applicant to repay the debt from the actual or projected cash flow of the business; and
(E) any other factor relating to the particular credit application, as documented in detail by the lender, that cannot be overcome except through obtaining a Federal loan guarantee under prudent lending standards; and
(2) for the purposes of section 636(b) of this title, the availability of credit on reasonable terms and conditions from non-Federal sources taking into consideration the prevailing rates and terms in the community in or near where the applicant business concern transacts business, or the applicant 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 this chapter, 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
(1) 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 the Fishery Resource Disasters Improvement Act), ocean conditions resulting in the closure of customary fishing waters, riots, civil disorders or other catastrophes, except it does not include economic dislocations.
(2) For purposes of section 636(b)(2) of this title, the term “disaster” includes—
(A) drought;
(B) below average water levels in the Great Lakes, or on any body of water in the United States that supports commerce by small business concerns; and
(C) ice storms and blizzards.
(l) “Computer crime” defined
For purposes of this chapter—
(1) 2 the term “computer crime” means—
(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) Definitions relating to contracting
In this chapter:
(1) Prime contract
The term “prime contract” has the meaning given such term in section 8701(4) of title 41.
(2) Prime contractor
The term “prime contractor” has the meaning given such term in section 8701(5) of title 41.
(3) Simplified acquisition threshold
The term “simplified acquisition threshold” has the meaning given such term in section 134 of title 41.
(4) Micro-purchase threshold
The term “micro-purchase threshold” has the meaning given such term in section 1902 of title 41.
(5) Total purchases and contracts for property and services
The term “total purchases and contracts for property and services” shall mean total number and total dollar amount of contracts and orders for property and services.
(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 3 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) Qualified HUBZone small business concern
In this chapter, the term “qualified HUBZone small business concern” has the meaning given such term in section 657a(b) of this title.
(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 any of the following:
(A) A small business concern—
(i) 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 (not including any stock owned by an ESOP) of which is owned by one or more service-disabled veterans; and
(ii) 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.
(B) A small business concern—
(i) not less than 51 percent of which is owned by one or more service-disabled veterans with a disability that is rated by the Secretary of Veterans Affairs as a permanent and total disability who are unable to manage the daily business operations of such concern; or
(ii) in the case of a publicly owned business, not less than 51 percent of the stock (not including any stock owned by an ESOP) of which is owned by one or more such veterans.
(C)
(i) During the time period described in clause (ii), a small business concern that was a small business concern described in subparagraph (A) or (B) immediately prior to the death of a service-disabled veteran who was the owner of the concern, the death of whom causes the concern to be less than 51 percent owned by one or more service-disabled veterans, if—
(I) the surviving spouse of the deceased veteran acquires such veteran’s ownership interest in such concern;
(II) such veteran had a service-connected disability (as defined in section 101(16) of title 38); and
(III) immediately prior to the death of such veteran, and during the period described in clause (ii), the small business concern is included in the database described in section 657f of this title.
(ii) The time period described in this clause is the time period beginning on the date of the veteran’s death and ending on the earlier of—
(I) the date on which the surviving spouse remarries;
(II) the date on which the surviving spouse relinquishes an ownership interest in the small business concern; or
(III) the date that—
(aa) in the case of a surviving spouse of a veteran with a service-connected disability rated as 100 percent disabling or who dies as a result of a service-connected disability, is 10 years after the date of the death of the veteran; or
(bb) in the case of a surviving spouse of a veteran with a service-connected disability rated as less than 100 percent disabling who does not die as a result of a service-connected disability, is 3 years after the date of the death of the 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.
(5) Relief from time limitations
(A) In general
Any time limitation on any qualification, certification, or period of participation imposed under this chapter on any program that is available to small business concerns shall be extended for a small business concern that—
(i) is owned and controlled by—
(I) a veteran who was called or ordered to active duty under a provision of law specified in section 101(a)(13)(B) of title 10 on or after September 11, 2001; or
(II) a service-disabled veteran who became such a veteran due to an injury or illness incurred or aggravated in the active military, naval, or air service during a period of active duty pursuant to a call or order to active duty under a provision of law referred to in subclause (I) on or after September 11, 2001; and
(ii) was subject to the time limitation during such period of active duty.
(B) Duration
Upon submission of proper documentation to the Administrator, the extension of a time limitation under subparagraph (A) shall be equal to the period of time that such veteran who owned or controlled such a concern was on active duty as described in that subparagraph.
(C) Exception for programs subject to Federal Credit Reform Act of 1990
The provisions of subparagraphs (A) and (B) shall not apply to any programs subject to the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.).
(6) ESOP
The term “ESOP” has the meaning given the term “employee stock ownership plan” in section 4975(e)(7) of title 26.
(7) Surviving spouse
The term “surviving spouse” has the meaning given such term in section 101(3) of title 38.
(r) Definitions relating to small business lending companies
As used in section 650 of this title:
(1) Small business lending company
The term “small business lending company” means a business concern that is authorized by the Administrator to make loans pursuant to section 636(a) of this title and whose lending activities are not subject to regulation by any Federal or State regulatory agency.
(2) Non-Federally regulated lender
The term “non-Federally regulated lender” means a business concern if—
(A) such concern is authorized by the Administrator to make loans under section 636 of this title;
(B) such concern is subject to regulation by a State; and
(C) the lending activities of such concern are not regulated by any Federal banking authority.
(s) Major disaster
In this chapter, the term “major disaster” has the meaning given that term in section 5122 of title 42.
(t) Small business development center
In this chapter, the term “small business development center” means a small business development center described in section 648 of this title.
(u) Region of the Administration
In this chapter, the term “region of the Administration” means the geographic area served by a regional office of the Administration established under section 633(a) of this title.
(v) Multiple award contract
In this chapter, the term “multiple award contract” means—
(1) a multiple award task order contract or delivery order contract that is entered into under the authority of sections 4101, 4103, 4105, and 4106 of title 41; and
(2) any other indefinite delivery, indefinite quantity contract that is entered into by the head of a Federal agency with 2 or more sources pursuant to the same solicitation.
(w) Presumption
(1) In general
In every contract, subcontract, cooperative agreement, cooperative research and development agreement, or grant which is set aside, reserved, or otherwise classified as intended for award to small business concerns, there shall be a presumption of loss to the United States based on the total amount expended on the contract, subcontract, cooperative agreement, cooperative research and development agreement, or grant whenever it is established that a business concern other than a small business concern willfully sought and received the award by misrepresentation.
(2) Deemed certifications
The following actions shall be deemed affirmative, willful, and intentional certifications of small business size and status:
(A) Submission of a bid or proposal for a Federal grant, contract, subcontract, cooperative agreement, or cooperative research and development agreement reserved, set aside, or otherwise classified as intended for award to small business concerns.
(B) Submission of a bid or proposal for a Federal grant, contract, subcontract, cooperative agreement, or cooperative research and development agreement which in any way encourages a Federal agency to classify the bid or proposal, if awarded, as an award to a small business concern.
(C) Registration on any Federal electronic database for the purpose of being considered for award of a Federal grant, contract, subcontract, cooperative agreement, or cooperative research agreement, as a small business concern.
(3) Certification by signature of responsible official
(A) In general
Each solicitation, bid, or application for a Federal contract, subcontract, or grant shall contain a certification concerning the small business size and status of a business concern seeking the Federal contract, subcontract, or grant.
(B) Content of certifications
A certification that a business concern qualifies as a small business concern of the exact size and status claimed by the business concern for purposes of bidding on a Federal contract or subcontract, or applying for a Federal grant, shall contain the signature of an authorized official on the same page on which the certification is contained.
(4) Regulations
The Administrator shall promulgate regulations to provide adequate protections to individuals and business concerns from liability under this subsection in cases of unintentional errors, technical malfunctions, and other similar situations.
(x) Annual certification
(1) In general
Each business certified as a small business concern under this chapter shall annually certify its small business size and, if appropriate, its small business status, by means of a confirming entry on the Online Representations and Certifications Application database of the Administration, or any successor thereto.
(2) Regulations
Not later than 1 year after September 27, 2010, the Administrator, in consultation with the Inspector General and the Chief Counsel for Advocacy of the Administration, shall promulgate regulations to ensure that—
(A) no business concern continues to be certified as a small business concern on the Online Representations and Certifications Application database of the Administration, or any successor thereto, without fulfilling the requirements for annual certification under this subsection; and
(B) the requirements of this subsection are implemented in a manner presenting the least possible regulatory burden on small business concerns.
(y) Policy on prosecutions of small business size and status fraud
Not later than 1 year after September 27, 2010, the Administrator, in consultation with the Attorney General, shall issue a Government-wide policy on prosecution of small business size and status fraud, which shall direct Federal agencies to appropriately publicize the policy.
(z) Aquaculture business disaster assistance
Subject to section 647(a) of this title and notwithstanding section 647(b)(1) of this title, the Administrator may provide disaster assistance under section 636(b)(2) of this title to aquaculture enterprises that are small businesses.
(aa) Venture capital operating company
In this chapter, the term “venture capital operating company” means an entity described in clause (i), (v), or (vi) of section 121.103(b)(5) of title 13, Code of Federal Regulations (or any successor thereto).
(bb) Hedge fund
In this chapter, the term “hedge fund” has the meaning given that term in section 1851(h)(2) of title 12.
(cc) Private equity firm
In this chapter, the term “private equity firm” has the meaning given the term “private equity fund” in section 1851(h)(2) of title 12.
(dd) Definitions pertaining to subcontracting
In this chapter:
(1) Subcontract
The term “subcontract” means a legally binding agreement between a contractor that is already under contract to another party to perform work, and a third party, hereinafter referred to as the subcontractor, for the subcontractor to perform a part, or all, of the work that the contractor has undertaken.
(2) First tier subcontractor
The term “first tier subcontractor” means a subcontractor who has a subcontract directly with the prime contractor.
(3) At any tier
The term “at any tier” means any subcontractor other than a subcontractor who is a first tier subcontractor.
(ee) Puerto Rico business
In this chapter, the term “Puerto Rico business” means a small business concern that has its principal office located in the Commonwealth of Puerto Rico.
(ff) Covered territory business
In this chapter, the term “covered territory business” means a small business concern that has its principal office located in one of the following:
(1) The United States Virgin Islands.
(2) American Samoa.
(3) Guam.
(4) The Northern Mariana Islands.
(Pub. L. 85–536, § 2[3], July 18, 1958, 72 Stat. 384; Pub. L. 94–305, title I, § 112(b), June 4, 1976, 90 Stat. 667; Pub. L. 95–507, title II, § 224(b), Oct. 24, 1978, 92 Stat. 1772; Pub. L. 96–302, title V, § 504, July 2, 1980, 94 Stat. 851; Pub. L. 96–481, title I, § 108, Oct. 21, 1980, 94 Stat. 2323; Pub. L. 97–35, title XIX, § 1903, Aug. 13, 1981, 95 Stat. 771; Pub. L. 98–270, title III, § 310, Apr. 18, 1984, 98 Stat. 161; Pub. L. 98–362, § 6, July 16, 1984, 98 Stat. 434; Pub. L. 98–473, title I, § 111A(b), Oct. 12, 1984, 98 Stat. 1966; Pub. L. 99–272, title XVIII, § 18016, Apr. 7, 1986, 100 Stat. 371; Pub. L. 99–500, § 101(c) [title X, § 921(f)], Oct. 18, 1986, 100 Stat. 1783–82, 1783–149, and Pub. L. 99–591, § 101(c) [title X, § 921(f)], Oct. 30, 1986, 100 Stat. 3341–82, 3341–149; Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095; Pub. L. 99–661, div. A, title IX, formerly title IV, § 921(f), Nov. 14, 1986, 100 Stat. 3929, renumbered title IX, Pub. L. 100–26, § 3(5), Apr. 21, 1987, 101 Stat. 273; Pub. L. 100–26, § 10(b)(2), Apr. 21, 1987, 101 Stat. 288; Pub. L. 100–456, div. A, title VIII, § 845, Sept. 29, 1988, 102 Stat. 2027; Pub. L. 100–590, title I, § 119(b), Nov. 3, 1988, 102 Stat. 2999; Pub. L. 100–656, title VII, § 732, Nov. 15, 1988, 102 Stat. 3897; Pub. L. 101–510, div. A, title VIII, § 806(e)(1), Nov. 5, 1990, 104 Stat. 1592; Pub. L. 102–366, title II, § 222(a), Sept. 4, 1992, 106 Stat. 999; Pub. L. 103–355, title IV, § 4404(a), title VII, § 7106(d), Oct. 13, 1994, 108 Stat. 3349, 3376; Pub. L. 103–403, title III, § 301, Oct. 22, 1994, 108 Stat. 4187; Pub. L. 104–208, div. D, title I, § 104(b)(1), Sept. 30, 1996, 110 Stat. 3009–730; Pub. L. 105–135, title IV, § 412, title VI, § 602(a), Dec. 2, 1997, 111 Stat. 2617, 2627; Pub. L. 106–50, title I, § 103(a), title IV, § 401(a), Aug. 17, 1999, 113 Stat. 234, 243; Pub. L. 106–554, § 1(a)(9) [title VI, §§ 602–604, 611, 612(b)–615(a), title VIII, § 806(b)], Dec. 21, 2000, 114 Stat. 2763, 2763A–697 to 2763A–701, 2763A–706; Pub. L. 108–271, § 8(b), July 7, 2004, 118 Stat. 814; Pub. L. 108–447, div. K, title I, §§ 151, 152(a)(1), (3)–(c)(1), 162, Dec. 8, 2004, 118 Stat. 3456, 3457, 3465; Pub. L. 109–59, title X, § 10203, Aug. 10, 2005, 119 Stat. 1933; Pub. L. 109–163, div. A, title VIII, §§ 844, 845(a)(1), Jan. 6, 2006, 119 Stat. 3389, 3390; Pub. L. 110–186, title II, § 205, Feb. 14, 2008, 122 Stat. 629; Pub. L. 110–234, title XII, §§ 12063(c)(1), 12071, May 22, 2008, 122 Stat. 1408, 1411; Pub. L. 110–246, § 4(a), title XII, §§ 12063(c)(1), 12071, June 18, 2008, 122 Stat. 1664, 2170, 2173; Pub. L. 111–240, title I, §§ 1116, 1202(b)(1), 1311, 1341, 1342, 1343(b), 1501, Sept. 27, 2010, 124 Stat. 2509, 2521, 2536, 2543–2545, 2550; Pub. L. 112–81, div. E, title LI, § 5107(b), Dec. 31, 2011, 125 Stat. 1829; Pub. L. 112–239, div. A, title XVI, §§ 1661, 1696(b)(1), Jan. 2, 2013, 126 Stat. 2083, 2090; Pub. L. 113–66, div. A, title XVI, § 1614(b), Dec. 26, 2013, 127 Stat. 949; Pub. L. 114–92, div. A, title VIII, §§ 866(a), 869(b), Nov. 25, 2015, 129 Stat. 929, 938; Pub. L. 114–187, title IV, § 412(a)(1), June 30, 2016, 130 Stat. 595; Pub. L. 114–328, div. A, title XVIII, §§ 1831(b), 1832(a), 1833(b), Dec. 23, 2016, 130 Stat. 2658, 2661; Pub. L. 115–91, div. A, title XVII, §§ 1701(a)(2), (3), 1702(b), Dec. 12, 2017, 131 Stat. 1795, 1796, 1803; Pub. L. 115–189, §§ 3(e), 4(a)(1), June 21, 2018, 132 Stat. 1496; Pub. L. 115–232, div. A, title VIII, §§ 861(a), 862(h), Aug. 13, 2018, 132 Stat. 1896, 1900; Pub. L. 115–324, § 2, Dec. 17, 2018, 132 Stat. 4444; Pub. L. 116–92, div. A, title VIII, § 876, Dec. 20, 2019, 133 Stat. 1528; Pub. L. 116–283, div. A, title VIII, §§ 862(b)(3)(A), 863(a), 866(a)(1), Jan. 1, 2021, 134 Stat. 3779, 3784, 3785; Pub. L. 117–328, div. S, title II, § 204(b), Dec. 29, 2022, 136 Stat. 5270.)
heading: Editorial Notes
heading: References in Text
text: The Small Business Investment Act of 1958, referred to in subsec. (a)(5), is Pub. L. 85–699, Aug. 21, 1958, 72 Stat. 689. Title V of the Act is classified generally to subchapter V (§ 695 et seq.) of chapter 14B of this title. For complete classification of this Act to the Code, see Short Title note set out under section 661 of this title and Tables.
The Agricultural Marketing Act (12 U.S.C. 1141j), referred to in subsec. (j), is act June 15, 1929, ch. 24, 46 Stat. 11, which is classified generally to chapter 7A (§ 1141 et seq.) of Title 12, Banks and Banking. For complete classification of this Act to the Code, see section 1141j(e) of Title 12 and Tables.
The Fishery Resource Disasters Improvement Act, referred to in subsec. (k)(1), is title II of Pub. L. 117–328, div. S, Dec. 29, 2022, 136 Stat. 5261. For complete classification of this Act to the Code, see Short Title of 2022 Amendment note set out under section 1801 of Title 16, Conservation, and Tables.
The Federal Credit Reform Act of 1990, referred to in subsec. (q)(5)(C), is title V of Pub. L. 93–344, as added by Pub. L. 101–508, title XIII, § 13201(a), Nov. 5, 1990, 104 Stat. 1388–609, which is classified generally to subchapter III (§ 661 et seq.) of chapter 17A of Title 2, The Congress. For complete classification of this Act to the Code, see Short Title note set out under section 621 of Title 2 and Tables.
heading: Codification
text: In subsec. (m), “section 134 of title 41” substituted for “section 4(11) of the Office of Federal Procurement Policy Act (41 U.S.C. 403(11))” on authority of Pub. L. 111–350, § 6(c), Jan. 4, 2011, 124 Stat. 3854, which Act enacted Title 41, Public Contracts.
In subsec. (v)(1), “sections 4101, 4103, 4105, and 4106 of title 41” substituted for “sections 303H through 303K of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 253h through 253k)” on authority of Pub. L. 111–350, § 6(c), Jan. 4, 2011, 124 Stat. 3854, which Act enacted Title 41, Public Contracts.
Pub. L. 110–234 and Pub. L. 110–246 made identical amendments to this section. The amendments by Pub. L. 110–234 were repealed by section 4(a) of Pub. L. 110–246.
Pub. L. 99–591 is a corrected version of Pub. L. 99–500.
heading: Prior Provisions
text: 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.
heading: Amendments
text: 2022—Subsec. (k)(1). Pub. L. 117–328 substituted “(as determined by the Secretary of Commerce under the Fishery Resource Disasters Improvement Act)” for “(as determined by the Secretary of Commerce under section 4107(b) of title 16)”.
2021—Subsec. (a)(2)(A). Pub. L. 116–283, § 863(a)(1), inserted “and subject to the requirements specified under subparagraph (C)” after “paragraph (1)”.
Subsec. (a)(2)(C). Pub. L. 116–283, § 863(a)(2)(A), inserted “(including the Administration when acting pursuant to subparagraph (A))” after “no Federal department or agency” in introductory provisions.
Subsec. (a)(2)(C)(ii)(I). Pub. L. 116–283, § 863(a)(2)(B), substituted “24 months” for “12 months”.
Subsec. (q)(2)(C)(i)(III). Pub. L. 116–283, § 862(b)(3)(A), substituted “section 657f of this title” for “section 8127(f) of title 38”.
Subsec. (ff). Pub. L. 116–283, § 866(a)(1), added subsec. (ff).
2019—Subsec. (q)(2)(C)(i)(II). Pub. L. 116–92, § 876(1), struck out “rated as 100 percent disabling under the laws administered by the Secretary of Veterans Affairs or such veteran died as a result of a service-connected disability” before the semicolon.
Subsec. (q)(2)(C)(ii)(III). Pub. L. 116–92, § 876(2), amended subcl. (III) generally. Prior to amendment, subcl. (III) read as follows: “immediately prior to the death of such veteran, and during the period described in clause (ii), the small business concern is included in the database described in section 8127(f) of title 38.”
2018—Subsec. (a)(2)(C)(ii)(II). Pub. L. 115–324 substituted “5 years” for “3 years”.
Subsec. (c)(2)(A)(ii). Pub. L. 115–232, § 862(h), amended cl. (ii) generally. Prior to amendment, cl. (ii) read as follows: “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”.
Subsec. (h). Pub. L. 115–189, § 4(a)(1), added subsec. (h) and struck out former subsec. (h). Prior to amendment, text read as follows: “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.”
Subsec. (r)(2). Pub. L. 115–189, § 3(e), substituted “regulated lender” for “regulated SBA lender” in heading and text.
Subsec. (ee). Pub. L. 115–232, § 861(a), added subsec. (ee).
2017—Subsec. (m). Pub. L. 115–91, § 1702(b), amended subsec. (m) generally. Prior to amendment, text defined the term “simplified acquisition threshold”.
Subsec. (p). Pub. L. 115–91, § 1701(a)(2), (3), added subsec. (p) and redesignated and transferred former subsec. (p) of this section to subsec. (b) of section 657a of this title.
2016—Subsec. (a)(1). Pub. L. 114–328, § 1831(b), substituted “operation” for “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”.
Subsec. (a)(9)(E). Pub. L. 114–328, § 1833(b), added subpar. (E).
Subsec. (p)(4)(A). Pub. L. 114–187 amended subpar. (A) generally. Prior to amendment, text read as follows: “The term ‘qualified census tract’ has the meaning given that term in section 42(d)(5)(C)(ii) of title 26.”
Subsec. (q)(2). Pub. L. 114–328, § 1832(a)(1), amended par. (2) generally. Text read as follows: “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.”
Subsec. (q)(6), (7). Pub. L. 114–328, § 1832(a)(2), added pars. (6) and (7).
2015—Subsec. (a)(9). Pub. L. 114–92, § 869(b), added par. (9).
Subsec. (p)(1)(F). Pub. L. 114–92, § 866(a)(1), added subpar. (F).
Subsec. (p)(3)(D) to (F). Pub. L. 114–92, § 866(a)(2), added subpar. (D) and redesignated former subpars. (D) and (E) as (E) and (F), respectively.
Subsec. (p)(4)(D). Pub. L. 114–92, § 866(a)(3)(A), amended subpar. (D) generally, substituting new definition of “base closure area” for prior definition which consisted of provisions similar to those in new cl. (i)(I).
Subsec. (p)(4)(E). Pub. L. 114–92, § 866(a)(3)(B), added subpar. (E).
Subsec. (p)(5)(A)(i)(I)(aa). Pub. L. 114–92, § 866(a)(4)(A), substituted “subparagraph (A), (B), (C), (D), (E), or (F) of paragraph (3)” for “subparagraph (A), (B), (C), (D), or (E) of paragraph (3)” and struck out “or” at end.
Subsec. (p)(5)(A)(i)(I)(bb), (cc). Pub. L. 114–92, § 866(a)(4)(B), (C), added item (bb) and redesignated former item (bb) as (cc).
2013—Pub. L. 112–239, § 1661(1), inserted section catchline.
Subsec. (a). Pub. L. 112–239, § 1661(2)(A), inserted heading.
Subsec. (a)(1), (3). Pub. L. 112–239, § 1661(2)(B), (C), inserted heading.
Subsec. (a)(5). Pub. L. 112–239, § 1661(2)(D), realigned margins.
Subsec. (a)(6) to (8). Pub. L. 112–239, § 1661(2)(E), added pars. (6) to (8).
Subsec. (p)(5)(A)(i)(III). Pub. L. 112–239, § 1696(b)(1)(A), added subcl. (III) and struck out former subcl. (III) which read as follows: “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”.
Subsec. (p)(5)(B) to (D). Pub. L. 112–239, § 1696(b)(1)(B), (C), redesignated subpar. (D) as (B) and struck out former subpars. (B) and (C) which read as follows:
“(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).”
Subsec. (dd). Pub. L. 113–66 added subsec. (dd).
2011—Subsecs. (aa) to (cc). Pub. L. 112–81 added subsecs. (aa) to (cc).
2010—Subsec. (a)(5). Pub. L. 111–240, § 1116, added par. (5).
Subsecs. (t), (u). Pub. L. 111–240, § 1202(b)(1), added subsecs. (t) and (u).
Subsec. (v). Pub. L. 111–240, § 1311, added subsec. (v).
Subsec. (w). Pub. L. 111–240, § 1341, added subsec. (w).
Subsec. (x). Pub. L. 111–240, § 1342, added subsec. (x).
Subsec. (y). Pub. L. 111–240, § 1343(b), added subsec. (y).
Subsec. (z). Pub. L. 111–240, § 1501, added subsec. (z).
2008—Subsec. (k)(2)(C). Pub. L. 110–246, § 12071, added subpar. (C).
Subsec. (q)(5). Pub. L. 110–186 added par. (5).
Subsec. (s). Pub. L. 110–246, § 12063(c)(1), added subsec. (s).
2006—Subsec. (a)(4). Pub. L. 109–163, § 844, added par. (4).
Subsec. (k). Pub. L. 109–163, § 845(a)(1), designated existing provisions as par. (1) and added par. (2).
2005—Subsec. (p)(4)(B)(ii)(III). Pub. L. 109–59 added subcl. (III).
2004—Subsec. (b). Pub. L. 108–271 substituted “Government Accountability Office” for “General Accounting Office”.
Subsec. (j). Pub. L. 108–447, § 151(b), struck out “of section 636(b)(2)” after “For the purposes”.
Subsec. (p)(1)(E). Pub. L. 108–447, § 152(a)(1), added subpar. (E).
Subsec. (p)(3)(A). Pub. L. 108–447, § 151(a)(1)(A), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “a small business concern that is owned and controlled by one or more persons, each of whom is a United States citizen;”.
Subsec. (p)(3)(E). Pub. L. 108–447, § 151(a)(1)(B)–(D), added subpar. (E).
Subsec. (p)(4)(B)(ii)(II). Pub. L. 108–447, § 152(b), amended subcl. (II) generally. Prior to amendment, subcl. (II) read as follows: “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.”
Subsec. (p)(4)(C). Pub. L. 108–447, § 152(c)(1), substituted “only until the later of—
“(i) the date on which the Census Bureau publicly releases the first results from the 2010 decennial census; or
“(ii) 3 years after”
for “only for the 3-year period following”.
Subsec. (p)(4)(D). Pub. L. 108–447, § 152(a)(3), added subpar. (D).
Subsec. (p)(5)(A)(i)(I)(aa). Pub. L. 108–447, § 151(a)(2), substituted “(C), (D), or (E)” for “or (D)”.
Subsec. (r). Pub. L. 108–447, § 162, added subsec. (r).
2000—Subsec. (a)(1). Pub. L. 106–554, § 1(a)(9) [title VIII, § 806(b)], substituted “$750,000” for “$500,000”.
Subsec. (p)(1)(D). Pub. L. 106–554, § 1(a)(9) [title VI, § 613(1)], added subpar. (D).
Subsec. (p)(3). Pub. L. 106–554, § 1(a)(9) [title VI, § 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, § 1(a)(9) [title VI, § 614(1)], added subpar. (D).
Subsec. (p)(4)(A). Pub. L. 106–554, § 1(a)(9) [title VI, § 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, § 1(a)(9) [title VI, § 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, § 1(a)(9) [title VI, § 613(2)], added subpar. (C).
Subsec. (p)(5)(A)(i)(I). Pub. L. 106–554, § 1(a)(9) [title VI, § 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, § 1(a)(9) [title VI, § 614(2)], substituted “subparagraph (A), (B), or (D)” for “subparagraph (A) or (B)”.
Subsec. (p)(5)(A)(i)(II). Pub. L. 106–554, § 1(a)(9) [title VI, § 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, § 1(a)(9) [title VI, § 612(b)(1)], added item (cc).
Subsec. (p)(5)(C). Pub. L. 106–554, § 1(a)(9) [title VI, § 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, § 1(a)(9) [title VI, § 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, § 1(a)(9) [title VI, § 604], added par. (6).
Subsec. (p)(7). Pub. L. 106–554, § 1(a)(9) [title VI, § 612(b)(2)], added par. (7).
1999—Subsec. (f). Pub. L. 106–50, § 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, § 103(a), added subsec. (q).
1997—Subsec. (o). Pub. L. 105–135, § 412, added subsec. (o).
Subsec. (p). Pub. L. 105–135, § 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, § 4404(a), substituted “ ‘simplified acquisition threshold’ ” for “ ‘small purchase threshold’ ”.
Subsec. (n). Pub. L. 103–355, § 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, § 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, § 10(b)(2)(B), substituted “paragraph (3)” for “paragraph (3)(A)”.
Subsec. (a)(5). Pub. L. 100–26, § 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.
heading: Statutory Notes and Related Subsidiaries
heading: Effective Date of 2021 Amendment
text: Pub. L. 116–283, div. A, title VIII, § 862(b)(3), Jan. 1, 2021, 134 Stat. 3778, provided that the amendment made by section 862(b)(3)(A) shall take effect on the transfer date (2 years after Jan. 1, 2021, see section 862(a) of Pub. L. 116–283, set out as a note under section 657f of this title).
Pub. L. 116–283, div. A, title VIII, § 863(b), Jan. 1, 2021, 134 Stat. 3784, provided that: “This section [amending this section] and the amendments made by this section shall take effect 1 year after the date of the enactment of this Act [Jan. 1, 2021].”
heading: Effective Date of 2019 Amendment
text: Pub. L. 116–92, div. A, title VIII, § 876, Dec. 20, 2019, 133 Stat. 1528, provided that the amendment made by section 876 is effective on the date specified in section 1832(e) of Pub. L. 114–328 (Oct. 1, 2018, see Effective Date of 2016 Amendment note below).
heading: Effective Date of 2017 Amendment
text: Amendment by section 1701 of Pub. L. 115–91 effective Jan. 1, 2020, see section 1701(j) of Pub. L. 115–91, set out as a note under section 657a of this title.
heading: Effective Date of 2016 Amendment
text: Pub. L. 114–328, div. A, title XVIII, § 1832(e), Dec. 23, 2016, 130 Stat. 2660, provided that: “The amendments made by subsections (a), (b), (c), and (d) [amending this section, section 637 of this title, and section 8127 of Title 38, Veterans’ Benefits] shall take effect on the date on which the Administrator of the Small Business Administration and the Secretary of Veterans Affairs jointly issue regulations implementing such sections [probably should be “subsections”] [regulations effective Oct. 1, 2018, see 83 F.R. 48908; see also section 862(c)(3) of Pub. L. 116–283, set out as a note under section 657f of this title].”
heading: Effective Date of 2015 Amendment
text: Pub. L. 114–92, div. A, title VIII, § 866(b), Nov. 25, 2015, 129 Stat. 931, provided that: “The amendments made by subsection (a)(3)(B) [amending this section] shall apply to a major disaster declared by the President under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170) or a catastrophic incident that occurs on or after the date of enactment of such subsection [Nov. 25, 2015].”
heading: Effective Date of 2008 Amendment
text: Amendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as an Effective Date note under section 8701 of Title 7, Agriculture.
heading: Effective Date of 1997 Amendment
text: 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.
heading: Effective Date of 1996 Amendment
text: Pub. L. 104–208, div. D, title I, § 104(b)(2), Sept. 30, 1996, 110 Stat. 3009–731, 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.”
heading: Effective Date of 1994 Amendment
text: 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 8752 of Title 10, Armed Forces.
heading: Effective Date of 1987 Amendment
text: Pub. L. 100–26, § 12(c), Apr. 21, 1987, 101 Stat. 289, 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].”
heading: Effective Date of 1986 Amendment; Initial Review of Standards
text: Section 101(c) [title X, § 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, §§ 3(5), 10(a)(2), Apr. 21, 1987, 101 Stat. 273, 288; Pub. L. 100–180, div. A, title VIII, § 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.
heading: Effective Date of 1984 Amendments
text: Pub. L. 98–270, title III, § 312, Apr. 18, 1984, 98 Stat. 161, 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.”
Pub. L. 98–270, title III, § 313, Apr. 18, 1984, 98 Stat. 162, 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.
heading: Effective Date of 1981 Amendment
text: 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.
heading: Effective Date of 1980 Amendment
text: 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.
heading: Regulations
text: Pub. L. 114–328, div. A, title XVIII, § 1835, Dec. 23, 2016, 130 Stat. 2662, provided that: “Not later than 180 days after the date of enactment of this Act [Dec. 23, 2016], the Administrator of the Small Business Administration and the Secretary of Veterans Affairs shall issue guidance pertaining to the amendments made by this title [see Tables for classification] to the Small Business Act [15 U.S.C. 631 et seq.] and section 8127 of title 38, United States Code. The Administrator and the Secretary shall provide notice and opportunity for comment on such guidance for a period of not less than 60 days.”
Pub. L. 114–187, title IV, § 412(a)(2), June 30, 2016, 130 Stat. 595, provided that: “The Administrator of the Small Business Administration shall issue regulations to implement the amendment made by paragraph (1) [amending this section] not later than 90 days after the date of the enactment of this Act [June 30, 2016].”
Pub. L. 112–239, div. A, title XVI, § 1696(c), Jan. 2, 2013, 126 Stat. 2091, provided that: “Not later than 180 days after the date of enactment of this part [Jan. 2, 2013], the Administrator of the Small Business Administration shall issue guidance with respect to the changes made to the Small Business Act [15 U.S.C. 631 et seq.] by the amendments in this subtitle [subtitle C (§§ 1621–1699a) of title XVI of div. A of Pub. L. 112–239, see Tables for classification], with opportunities for notice and comment.”
Pub. L. 109–163, div. A, title VIII, § 845(d), Jan. 6, 2006, 119 Stat. 3391, provided that: “Not later than 45 days after the date of enactment of this Act [Jan. 6, 2006], the Administrator of the Small Business Administration shall promulgate final rules to carry out this section [amending this section and section 636 of this title] and the amendments made by this section.”
Pub. L. 105–135, title VI, § 605, Dec. 2, 1997, 111 Stat. 2635, 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).”
Pub. L. 102–366, title II, § 222(b), Sept. 4, 1992, 106 Stat. 999, 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.”
heading: Implementation
text: Pub. L. 113–66, div. A, title XVI, § 1614(c), Dec. 26, 2013, 127 Stat. 949, provided that:
“(1) Requirement for plan.—
Not later than 180 days after the date of the enactment of this Act [Dec. 26, 2013], the Administrator of the Small Business Administration, the Secretary of Defense, and the Administrator of General Services shall submit to the Committee on Small Business and the Committee on Armed Services of the House of Representatives and the Committee on Small Business and Entrepreneurship and the Committee on Armed Services of the Senate a plan to implement this section [amending this section and section 637 of this title] and the amendments made by this section. The plan shall contain assurances that the appropriate tracking mechanisms are in place to enable transparency of subcontracting activities at all tiers.
“(2) Completion of plan actions.—
Not later than one year after the date of the enactment of this Act, the Administrator of the Small Business Administration, the Secretary of Defense, and the Administrator of General Services shall complete the actions required by the plan.
“(3) Regulations.—
No later than 18 months after the date of the enactment of this Act, the Administrator of the Small Business Administration shall promulgate any regulations necessary, and the Federal Acquisition Regulation shall be revised, to implement this section and the amendments made by this section.
“(4) Applicability.—
Any regulations promulgated pursuant to paragraph (3) shall apply to contracts entered into after the last day of the fiscal year in which the regulations are promulgated.”
heading: Small Business Compliance Guide
text: Pub. L. 112–239, div. A, title XVI, § 1681(c), Jan. 2, 2013, 126 Stat. 2086, provided that: “Not later than 270 days after the date of enactment of this part [Jan. 2, 2013], the Administrator of the Small Business Administration shall issue (pursuant to section 212 of the Small Business Regulatory Enforcement Fairness Act of 1996 [Pub. L. 104–121; 5 U.S.C. 601 note]) a compliance guide to assist business concerns in accurately determining their status as a small business concern.”
heading: Prohibition on Using TARP Funds or Tax Increases
text: Pub. L. 111–240, title I, § 1136, Sept. 27, 2010, 124 Stat. 2520, provided that:
“(a) In General.—
Except as provided in subsection (b), nothing in section 1111 [amending section 636 of this title and enacting provisions set out as a note under section 636 of this title], 1112 [amending section 696 of this title], 1113 [amending section 636 of this title], 1114 [124 Stat. 2508], 1115 [amending section 689d of this title], 1116 [amending this section], 1117 [amending section 634 of this title], 1118 [124 Stat. 2509], 1122 [amending section 696 of this title and enacting provisions set out as a note under section 696 of this title], or 1131 [amending section 636 of this title and enacting provisions set out as notes under section 636 of this title], or an amendment made by such sections, shall be construed to limit the ability of Congress to appropriate funds.
“(b) TARP Funds and Tax Increases.—
“(1) In general.—
Any covered amounts may not be used to carry out section 1111, 1112, 1113, 1114, 1115, 1116, 1117, 1118, 1122, or 1131, or an amendment made by such sections.
“(2) Definition.—
In this subsection, the term ‘covered amounts’ means—
“(A) the amounts made available to the Secretary of the Treasury under title I of the Emergency Economic Stabilization Act of 2008 S.C. [sic] 5201 et seq.) [12 U.S.C. 5211 et seq.] to purchase (under section 101 [12 U.S.C. 5211]) or guarantee (under section 102 [12 U.S.C. 5212]) assets under that Act [12 U.S.C. 5201 et seq.]; and
“(B) any revenue increase attributable to any amendment to the Internal Revenue Code of 1986 [26 U.S.C. 1 et seq.] made during the period beginning on the date of enactment of this Act [Sept. 27, 2010] and ending on December 31, 2010.”
heading: Updated Size Standards
text: Pub. L. 114–328, div. A, title XVIII, § 1831(c), Dec. 23, 2016, 130 Stat. 2658, provided that: “Size standards established for agricultural enterprises under section 3(a) of the Small Business Act (15 U.S.C. 632(a)) shall be subject to the rolling review procedures established under section 1344(a) of the Small Business Jobs Act of 2010 [Pub. L. 111–240] (15 U.S.C. 632 note) [set out below].”
Pub. L. 111–240, title I, § 1344, Sept. 27, 2010, 124 Stat. 2545, provided that:
“(a) Rolling Review.—
“(1) In general.—
The Administrator shall—
“(A) during the 18-month period beginning on the date of enactment of this Act [Sept. 27, 2010], and during every 18-month period thereafter, conduct a detailed review of not less than ⅓ of the size standards for small business concerns established under section 3(a)(2) of the Small Business Act (15 U.S.C. 632(a)(2)), which shall include holding not less than 2 public forums located in different geographic regions of the United States;
“(B) after completing each review under subparagraph (A) make appropriate adjustments to the size standards established under section 3(a)(2) of the Small Business Act to reflect market conditions;
“(C) make publicly available—
“(i) information regarding the factors evaluated as part of each review conducted under subparagraph (A); and
“(ii) information regarding the criteria used for any revised size standards promulgated under subparagraph (B); and
“(D) not later than 30 days after the date on which the Administrator completes each review under subparagraph (A), submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives and make publicly available a report regarding the review, including why the Administrator—
“(i) used the factors and criteria described in subparagraph (C); and
“(ii) adjusted or did not adjust each size standard that was reviewed under the review.
“(2) Complete review of size standards.—
The Administrator shall ensure that each size standard for small business concerns established under section 3(a)(2) of the Small Business Act (15 U.S.C. 632(a)(2)) is reviewed under paragraph (1) not less frequently than once every 5 years.
“(b) Rules.—
Not later than 1 year after the date of enactment of this Act [Sept. 27, 2010], the Administrator shall promulgate rules for conducting the reviews required under subsection (a).”
[For definitions of “Administrator” and “small business concern” as used in section 1344 of Pub. L. 111–240, set out above, see section 1001 of Pub. L. 111–240, set out under this section.]
heading: HUBZone Status Time Line and Commencement
text: Pub. L. 112–239, div. A, title XVI, § 1698, Jan. 2, 2013, 126 Stat. 2091, provided that:
“(a) Definition.—
In this section, the term ‘covered base closure area’ means a base closure area that, on or before the date of enactment of this Act [Jan. 2, 2013], was treated as a HUBZone for purposes of the Small Business Act (15 U.S.C. 631 et seq.) pursuant to section 152(a)(2) of the Small Business Reauthorization and Manufacturing Assistance Act of 2004 [Pub. L. 108–447] (15 U.S.C. 632 note).
“(b) Treatment as HUBZone.—
“(1) In general.—
Subject to paragraph (2), a covered base closure area shall be treated as a HUBZone for purposes of the Small Business Act (15 U.S.C. 631 et seq.) during the 5-year period beginning on the date of enactment of this Act.
“(2) Limitation.—
The total period of time that a covered base closure area is treated as a HUBZone for purposes of the Small Business Act (15 U.S.C. 631 et seq.) pursuant to this section and section 152(a)(2) of the Small Business Reauthorization and Manufacturing Assistance Act of 2004 (15 U.S.C. 632 note) may not exceed 5 years.”
Pub. L. 108–447, div. K, title I, § 152(a)(2), Dec. 8, 2004, 118 Stat. 3457, which required that a base closure area that had undergone final closure be treated as a HUBZone for purposes of this chapter for 5 years, was repealed by Pub. L. 115–91, div. A, title XVII, § 1701(f), (j), Dec. 12, 2017, 131 Stat. 1800, 1803, effective Jan. 1, 2020.
heading: Continued Effectiveness of Numerical Size Standards in Effect on September 30, 1988
text: 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, § 850(1), Nov. 30, 1993, 107 Stat. 1726.
heading: Report on Effect of 1986 Amendments
text: Section 101(c) [title X, § 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, § 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.
heading: Definitions
text: Pub. L. 111–240, title I, § 1001, Sept. 27, 2010, 124 Stat. 2507, provided that:
“In this title [enacting sections 634g, 648b, and 657q of this title and section 4713a of Title 12, Banks and Banking, amending this section, sections 631, 633, 634, 634c, 636, 637, 644, 648, 649, 656, 657a, 689d, 695, and 696 of this title, section 604 of Title 5, Government Organization and Employees, and section 2382 of Title 10, Armed Forces, repealing former section 634g of this title, enacting provisions set out as notes under this section and sections 631, 636, 637, 644, 649, 649b, and 696 of this title, and sections 428 and 433 of Title 41, Public Contracts, amending provisions set out as notes under section 631 of this title, and repealing provisions set out as notes under section 644 of this title]—
“(1) the terms ‘Administration’ and ‘Administrator’ mean the Small Business Administration and the Administrator thereof, respectively; and
“(2) the term ‘small business concern’ has the meaning given that term under section 3 of the Small Business Act (15 U.S.C. 632).”