Title 15 — Commerce and Trade — § 632. Definitions
Summary
Section 632 of Title 15—Commerce and Trade, on pages 769 to 782, sets out the definitions for the Small Business Act chapter of the United States Code. Subsection (a) provides that a small-business concern is one which is independently owned and operated and which is not dominant in its field of operation, including enterprises in food and fiber production, ranching, aquaculture and other farming, and directs the Administrator to set size standards that vary from industry to industry. Later subsections define terms used throughout the chapter, among them definitions relating to veterans and HUBZone terms. Editorial notes on references, codification and amendments run alongside the text. Page 782 begins Section 633, which says that in the chapter “United States” includes the several States, the Territories and possessions, the Commonwealth of Puerto Rico and the District of Columbia.
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Page 769 TITLE 15—COMMERCE AND TRADE § 632
Editorial Notes (III) the size of other business concerns
REFERENCES IN TEXT
on the basis of data over a period of not
less than 3 years; or
This subtitle, referred to in subsec. (a), is subtitle D (IV) other appropriate factors; and
(§§ 141–147) of title I of div. K of Pub. L. 108–447, Dec. 8,
2004, 118 Stat. 3453, which enacted this section, amended (iii) is approved by the Administrator.
sections 637, 648, 657b, and 657c of this title, enacted (3) Variation by industry and consideration of
provisions set out as note under section 637 of this title, other factors
and amended provisions set out as a note under section
657b of this title. For complete classification of subtitle When establishing or approving any size
D to the Code, see Tables. standard pursuant to paragraph (2), the Ad-
ministrator shall ensure that the size standard
CODIFICATION
varies from industry to industry to the extent
Section was enacted as part of the Small Business necessary to reflect the differing characteris-
Reauthorization and Manufacturing Assistance Act of tics of the various industries and consider
2004, and also as part of the Consolidated Appropria- other factors deemed to be relevant by the Ad-
tions Act, 2005, and not as part of the Small Business
Act which comprises this chapter.
ministrator.
(4) Exclusion of certain security expenses from
§ 632. Definitions consideration for purpose of small business
size standards
(a) Small business concerns
(A) Determination required
(1) In general
Not later than 30 days after January 6,
For the purposes of this chapter, a small- 2006, the Administrator shall review the ap-
business concern, including but not limited to plication of size standards established pursu-
enterprises that are engaged in the business of ant to paragraph (2) to small business con-
production of food and fiber, ranching and cerns that are performing contracts in quali-
raising of livestock, aquaculture, and all other fied areas and determine whether it would be
farming and agricultural related industries, fair and appropriate to exclude from consid-
shall be deemed to be one which is independ- eration in the average annual gross receipts
ently owned and operated and which is not of such small business concerns any pay-
dominant in its field of operation. ments made to such small business concerns
(2) Establishment of size standards by Federal agencies to reimburse such small
(A) In general business concerns for the cost of sub-
contracts entered for the sole purpose of pro-
In addition to the criteria specified in
viding security services in a qualified area.
paragraph (1) and subject to the require-
ments specified under subparagraph (C), the (B) Action required
Administrator may specify detailed defini- Not later than 60 days after January 6,
tions or standards by which a business con- 2006, the Administrator shall either—
cern may be determined to be a small busi- (i) initiate an adjustment to the size
ness concern for the purposes of this chapter standards, as described in subparagraph
or any other Act. (A), if the Administrator determines that
(B) Additional criteria such an adjustment would be fair and ap-
propriate; or
The standards described in paragraph (1) (ii) provide a report to the Committee on
may utilize number of employees, dollar vol- Small Business and Entrepreneurship of
ume of business, net worth, net income, a the Senate and the Committee on Small
combination thereof, or other appropriate Business of the House of Representatives
factors. explaining in detail the basis for the deter-
(C) Requirements mination by the Administrator that such
Unless specifically authorized by statute, an adjustment would not be fair and appro-
no Federal department (including the Ad- priate.
ministration when acting pursuant to sub- (C) Qualified areas
paragraph (A)) or agency may prescribe a In this paragraph, the term ‘‘qualified
size standard for categorizing a business area’’ means—
concern as a small business concern, unless (i) Iraq,
such proposed size standard— (ii) Afghanistan, and
(i) is proposed after an opportunity for (iii) any foreign country which included
public notice and comment; a combat zone, as that term is defined in
(ii) provides for determining— section 112(c)(2) of title 26, at the time of
(I) the size of a manufacturing concern performance of the relevant Federal con-
as measured by the manufacturing con- tract or subcontract.
cern’s average employment based upon
(5) Alternative size standard
employment during each of the manufac-
turing concern’s pay periods for the pre- (A) In general
ceding 24 months; The Administrator shall establish an al-
(II) the size of a business concern pro- ternative size standard for applicants for
viding services on the basis of the annual business loans under section 636(a) of this
average gross receipts of the business title and applicants for development com-
concern over a period of not less than 5 pany loans under title V of the Small Busi-
years; ness Investment Act of 1958 (15 U.S.C. 695 et
§ 632 TITLE 15—COMMERCE AND TRADE Page 770
seq.), that uses maximum tangible net worth fied, or established by the Administrator
and average net income as an alternative to pursuant to this subsection.
the use of industry standards. (B) Time limit
(B) Interim rule A person filing a petition for reconsider-
Until the date on which the alternative ation described in subparagraph (A) shall file
size standard established under subpara- such petition not later than 30 days after the
graph (A) is in effect, an applicant for a busi- publication in the Federal Register of the
ness loan under section 636(a) of this title or notice of final rule to revise, modify, or es-
an applicant for a development company tablish size standards described in paragraph
loan under title V of the Small Business In- (6).
vestment Act of 1958 may be eligible for such (C) Process for agency review
a loan if—
The Office of Hearings and Appeals shall
(i) the maximum tangible net worth of
use the same process it uses to decide chal-
the applicant is not more than $15,000,000;
lenges to the size of a small business concern
and
to decide a petition for review pursuant to
(ii) the average net income after Federal
this paragraph.
income taxes (excluding any carry-over
losses) of the applicant for the 2 full fiscal (D) Judicial review
years before the date of the application is The publication of a final rule in the Fed-
not more than $5,000,000. eral Register described in subparagraph (B)
(6) Proposed rulemaking shall be considered final agency action for
purposes of seeking judicial review. Filing a
In conducting rulemaking to revise, modify
petition for reconsideration under subpara-
or establish size standards pursuant to this
graph (A) shall not be a condition precedent
section, the Administrator shall consider, and
to judicial review of any such size standard.
address, and make publicly available as part of
the notice of proposed rulemaking and notice (E) Rules or guidance
of final rule each of the following: The Office of Hearings and Appeals shall
(A) a detailed description of the industry begin accepting petitions for reconsideration
for which the new size standard is proposed; described in subparagraph (A) after the date
(B) an analysis of the competitive environ- on which the Administration issues a rule or
ment for that industry; other guidance implementing this para-
(C) the approach the Administrator used to graph. Notwithstanding the provisions of
develop the proposed standard including the subparagraph (B), petitions for reconsider-
source of all data used to develop the pro- ation of size standards revised, modified, or
posed rule making; and established in a Federal Register final rule
(D) the anticipated effect of the proposed published between November 25, 2015, and
rulemaking on the industry, including the the effective date of such rule or other guid-
number of concerns not currently considered ance shall be considered timely if filed with-
small that would be considered small under in 30 days of such effective date.
the proposed rule making and the number of (b) ‘‘Agency’’ defined
concerns currently considered small that
would be deemed other than small under the For purposes of this chapter, any reference to
proposed rulemaking. an agency or department of the United States,
and the term ‘‘Federal agency’’, shall have the
(7) Common size standards meaning given the term ‘‘agency’’ by section
In carrying out this subsection, the Admin- 551(1) of title 5, but does not include the United
istrator may establish or approve a single size States Postal Service or the Government Ac-
standard for a grouping of 4-digit North Amer- countability Office.
ican Industry Classification System codes (c) Qualified employee trust; eligibility for loan
only if the Administrator makes publicly guarantee; ‘‘qualified employee trust’’ de-
available, not later than the date on which fined; regulations for treatment of trust as
such size standard is established or approved, qualified employee trust
a justification demonstrating that such size
standard is appropriate for each individual in- (1) For purposes of this chapter, a qualified
dustry classification included in the grouping. employee trust shall be eligible for any loan
guarantee under section 636(a) of this title with
(8) Number of size standards respect to a small business concern on the same
The Administrator shall not limit the num- basis as if such trust were the same legal entity
ber of size standards established pursuant to as such concern.
paragraph (2), and shall assign the appropriate (2) For purposes of this chapter, the term
size standard to each North American Indus- ‘‘qualified employee trust’’ means, with respect
try Classification System Code. to a small business concern, a trust—
(9) Petitions for reconsideration of size stand- (A) which forms part of an employee stock
ards ownership plan (as defined in section 4975(e)(7)
of title 26)—
(A) In general (i) which is maintained by such concern,
A person may file a petition for reconsid- and
eration with the Office of Hearings and Ap- (ii) which provides that each participant is
peals (as established under section 634(i) of entitled to direct the plan trustee as to the
this title) of a size standard revised, modi- manner of how to vote the qualified em-
Page 771 TITLE 15—COMMERCE AND TRADE § 632
ployer securities (as defined in section ters into an agreement with the Administra-
4975(e)(8) of title 26), which are allocated to tion which is described in paragraph (2)(B).
the account of such participant with respect (d) ‘‘Qualified Indian tribe’’ defined
to a corporate matter which (by law or char-
For purposes of section 636 of this title, the
ter) must be decided by a vote conducted in
term ‘‘qualified Indian tribe’’ means an Indian
accordance with section 409(e) of the title 26;
tribe as defined in section 5304(a) 1 of title 25,
and
which owns and controls 100 per centum of a
(B) in the case of any loan guarantee under small business concern.
section 636(a) of this title, the trustee of which (e) ‘‘Public or private organization for the handi-
enters into an agreement with the Adminis- capped’’ defined
trator which is binding on the trust and on
For purposes of section 636 of this title, the
such small business concern and which pro-
term ‘‘public or private organization for the
vides that—
(i) the loan guaranteed under section 636(a) handicapped’’ means one—
of this title shall be used solely for the pur- (1) which is organized under the laws of the
chase of qualifying employer securities of United States or of any State, operated in the
such concern, interest of handicapped individuals, the net in-
(ii) all funds acquired by the concern in come of which does not inure in whole or in
such purchase shall be used by such concern part to the benefit of any shareholder or other
solely for the purposes for which such loan individuals;
was guaranteed, (2) which complies with any applicable occu-
(iii) such concern will provide such funds pational health and safety standard prescribed
as may be necessary for the timely repay- by the Secretary of Labor; and
ment of such loan, and the property of such (3) which, in the production of commodities
concern shall be available as security for re- and in the provision of services during any fis-
payment of such loan, and cal year in which it received financial assist-
(iv) all qualifying employer securities ac- ance under this subsection, employs handi-
quired by such trust in such purchase shall capped individuals for not less than 75 per cen-
be allocated to the accounts of participants tum of the man-hours required for the produc-
in such plan who are entitled to share in tion or provision of the commodities or serv-
such allocation, and each participant has a ices.
nonforfeitable right, not later than the date (f) ‘‘Handicapped individual’’ defined
such loan is repaid, to all such qualifying For purposes of section 636 of this title, the
employer securities which are so allocated term ‘‘handicapped individual’’ means an indi-
to the participant’s account. vidual—
(3) Under regulations which may be prescribed (1) who has a physical, mental, or emotional
by the Administrator, a trust may be treated as impairment, defect, ailment, disease, or dis-
a qualified employee trust with respect to a ability of a permanent nature which in any
small business concern if— way limits the selection of any type of em-
(A) the trust is maintained by an employee ployment for which the person would other-
organization which represents at least 51 per- wise be qualified or qualifiable; or
cent of the employees of such concern, and (2) who is a service-disabled veteran.
(B) such concern maintains a plan— (g) ‘‘Energy measures’’ defined
(i) which is an employee benefit plan For purposes of section 636 of this title, the
which is designed to invest primarily in term ‘‘energy measures’’ includes—
qualifying employer securities (as defined in (1) solar thermal energy equipment which is
section 4975(e)(8) of title 26), either of the active type based upon mechani-
(ii) which provides that each participant in cally forced energy transfer or of the passive
the plan is entitled to direct the plan as to type based on convective, conductive, or radi-
the manner in which voting rights under ant energy transfer or some combination of
qualifying employer securities which are al- these types;
located to the account of such participant (2) photovoltaic cells and related equipment;
are to be exercised with respect to a cor- (3) a product or service the primary purpose
porate matter which (by law or charter) of which is conservation of energy through de-
must be decided by a majority vote of the vices or techniques which increase the energy
outstanding common shares voted, efficiency of existing equipment, methods of
(iii) which provides that each participant operation, or systems which use fossil fuels,
who is entitled to distribution from the plan and which is on the Energy Conservation
has a right, in the case of qualifying em- Measures list of the Secretary of Energy or
ployer securities which are not readily which the Administrator determines to be
tradeable on an established market, to re- consistent with the intent of this subsection;
quire that the concern repurchase such secu- (4) equipment the primary purpose of which
rities under a fair valuation formula, and is production of energy from wood, biological
(iv) which meets such other requirements
waste, grain, or other biomass source of en-
(similar to requirements applicable to em-
ergy;
ployee stock ownership plans as defined in (5) equipment the primary purpose of which
section 4975(e)(7) of title 26) as the Adminis- is industrial cogeneration of energy, district
trator may prescribe, and
(C) in the case of a loan guarantee under sec- 1 So in original. Probably should be a reference to subsec. ‘‘(e)’’
tion 636(a) of this title, such organization en- of section 5304, which defines Indian tribe.
§ 632 TITLE 15—COMMERCE AND TRADE Page 772
heating, or production of energy from indus- explosions, volcanoes, windstorms, landslides or
trial waste; mudslides, tidal waves, commercial fishery fail-
(6) hydroelectric power equipment; ures or fishery resource disasters (as determined
(7) wind energy conversion equipment; and by the Secretary of Commerce under the Fish-
(8) engineering, architectural, consulting, or ery Resource Disasters Improvement Act), ocean
other professional services which are nec- conditions resulting in the closure of customary
essary or appropriate to aid citizens in using fishing waters, riots, civil disorders or other ca-
any of the measures described in paragraph (1) tastrophes, except it does not include economic
through (7). dislocations.
(h) ‘‘Credit elsewhere’’ defined (2) For purposes of section 636(b)(2) of this
title, the term ‘‘disaster’’ includes—
The term ‘‘credit elsewhere’’ means— (A) drought;
(1) for the purposes of this chapter (except as (B) below average water levels in the Great
used in section 636(b) of this title), the avail- Lakes, or on any body of water in the United
ability of credit on reasonable terms and con- States that supports commerce by small busi-
ditions to the individual loan applicant from ness concerns; and
non-Federal, non-State, or non-local govern- (C) ice storms and blizzards.
ment sources, considering factors associated (l) ‘‘Computer crime’’ defined
with conventional lending practices, includ- For purposes of this chapter—
ing— (1) 2 the term ‘‘computer crime’’ means—
(A) the business industry in which the loan (A) any crime committed against a small
applicant operates; business concern by means of the use of a
(B) whether the loan applicant is an enter- computer; and
prise that has been in operation for a period (B) any crime involving the illegal use of,
of not more than 2 years; or tampering with, a computer owned or uti-
(C) the adequacy of the collateral available lized by a small business concern.
to secure the requested loan; (m) Definitions relating to contracting
(D) the loan term necessary to reasonably
In this chapter:
assure the ability of the loan applicant to
repay the debt from the actual or projected (1) Prime contract
cash flow of the business; and The term ‘‘prime contract’’ has the meaning
(E) any other factor relating to the par- given such term in section 8701(4) of title 41.
ticular credit application, as documented in (2) Prime contractor
detail by the lender, that cannot be over- The term ‘‘prime contractor’’ has the mean-
come except through obtaining a Federal ing given such term in section 8701(5) of title
loan guarantee under prudent lending stand- 41.
ards; and (3) Simplified acquisition threshold
(2) for the purposes of section 636(b) of this The term ‘‘simplified acquisition threshold’’
title, the availability of credit on reasonable has the meaning given such term in section 134
terms and conditions from non-Federal of title 41.
sources taking into consideration the pre- (4) Micro-purchase threshold
vailing rates and terms in the community in
or near where the applicant business concern The term ‘‘micro-purchase threshold’’ has
transacts business, or the applicant home- the meaning given such term in section 1902 of
title 41.
owner resides, for similar purposes and periods
of time. (5) Total purchases and contracts for property
and services
(i) ‘‘Homeowners’’ defined
The term ‘‘total purchases and contracts for
For purposes of section 636 of this title, the property and services’’ shall mean total num-
term ‘‘homeowners’’ includes owners and lessees ber and total dollar amount of contracts and
of residential property and also includes per- orders for property and services.
sonal property.
(n) ‘‘Small business concern owned and con-
(j) ‘‘Small agricultural cooperative’’ defined trolled by women’’ defined
For the purposes of this chapter, the term For the purposes of this chapter, a small busi-
‘‘small agricultural cooperative’’ means an asso- ness concern is a small business concern owned
ciation (corporate or otherwise) acting pursuant and controlled by women if—
to the provisions of the Agricultural Marketing (1) at least 51 percent of small 3 business con-
Act (12 U.S.C. 1141j), whose size does not exceed cern is owned by one or more women or, in the
the size standard established by the Administra- case of any publicly owned business, at least 51
tion for other similar agricultural small busi- percent of the stock of which is owned by one
ness concerns. In determining such size, the Ad- or more women; and
ministration shall regard the association as a (2) the management and daily business oper-
business concern and shall not include the in- ations of the business are controlled by one or
come or employees of any member shareholder more women.
of such cooperative. (o) Definitions of bundling of contract require-
(k) ‘‘Disaster’’ defined ments and related terms
(1) For the purposes of this chapter, the term In this chapter:
‘‘disaster’’ means a sudden event which causes
severe damage including, but not limited to, 2 So in original. No par. (2) has been enacted.
floods, hurricanes, tornadoes, earthquakes, fires, 3 So in original. Probably should be preceded by ‘‘the’’.
Page 773 TITLE 15—COMMERCE AND TRADE § 632
(1) Bundled contract manage the daily business operations of
The term ‘‘bundled contract’’ means a con- such concern; or
tract that is entered into to meet require- (ii) in the case of a publicly owned busi-
ments that are consolidated in a bundling of ness, not less than 51 percent of the stock
(not including any stock owned by an
contract requirements.
ESOP) of which is owned by one or more
(2) Bundling of contract requirements such veterans.
The term ‘‘bundling of contract require- (C)(i) During the time period described in
ments’’ means consolidating 2 or more pro- clause (ii), a small business concern that was
curement requirements for goods or services a small business concern described in sub-
previously provided or performed under sepa- paragraph (A) or (B) immediately prior to
rate smaller contracts into a solicitation of of- the death of a service-disabled veteran who
fers for a single contract that is likely to be was the owner of the concern, the death of
unsuitable for award to a small-business con- whom causes the concern to be less than 51
cern due to— percent owned by one or more service-dis-
(A) the diversity, size, or specialized na- abled veterans, if—
ture of the elements of the performance (I) the surviving spouse of the deceased
specified; veteran acquires such veteran’s ownership
(B) the aggregate dollar value of the an- interest in such concern;
ticipated award; (II) such veteran had a service-connected
(C) the geographical dispersion of the con- disability (as defined in section 101(16) of
tract performance sites; or title 38); and
(D) any combination of the factors de- (III) immediately prior to the death of
scribed in subparagraphs (A), (B), and (C). such veteran, and during the period de-
scribed in clause (ii), the small business
(3) Separate smaller contract
concern is included in the database de-
The term ‘‘separate smaller contract’’, with scribed in section 657f of this title.
respect to a bundling of contract require-
(ii) The time period described in this
ments, means a contract that has been per-
clause is the time period beginning on the
formed by 1 or more small business concerns
date of the veteran’s death and ending on
or was suitable for award to 1 or more small
the earlier of—
business concerns. (I) the date on which the surviving
(p) Qualified HUBZone small business concern spouse remarries;
In this chapter, the term ‘‘qualified HUBZone (II) the date on which the surviving
small business concern’’ has the meaning given spouse relinquishes an ownership interest
such term in section 657a(b) of this title. in the small business concern; or
(III) the date that—
(q) Definitions relating to veterans (aa) in the case of a surviving spouse of
In this chapter, the following definitions a veteran with a service-connected dis-
apply: ability rated as 100 percent disabling or
who dies as a result of a service-con-
(1) Service-disabled veteran
nected disability, is 10 years after the
The term ‘‘service-disabled veteran’’ means date of the death of the veteran; or
a veteran with a disability that is service-con- (bb) in the case of a surviving spouse of
nected (as defined in section 101(16) of title 38). a veteran with a service-connected dis-
(2) Small business concern owned and con- ability rated as less than 100 percent dis-
trolled by service-disabled veterans abling who does not die as a result of a
service-connected disability, is 3 years
The term ‘‘small business concern owned after the date of the death of the vet-
and controlled by service-disabled veterans’’ eran.
means any of the following:
(3) Small business concern owned and con-
(A) A small business concern—
trolled by veterans
(i) not less than 51 percent of which is
owned by one or more service-disabled vet- The term ‘‘small business concern owned
erans or, in the case of any publicly owned and controlled by veterans’’ means a small
business, not less than 51 percent of the business concern—
stock (not including any stock owned by (A) not less than 51 percent of which is
an ESOP) of which is owned by one or owned by one or more veterans or, in the
more service-disabled veterans; and case of any publicly owned business, not less
(ii) the management and daily business than 51 percent of the stock of which is
operations of which are controlled by one owned by one or more veterans; and
(B) the management and daily business op-
or more service-disabled veterans or, in
erations of which are controlled by one or
the case of a veteran with permanent and
more veterans.
severe disability, the spouse or permanent
caregiver of such veteran. (4) Veteran
The term ‘‘veteran’’ has the meaning given
(B) A small business concern—
the term in section 101(2) of title 38.
(i) not less than 51 percent of which is
owned by one or more service-disabled vet- (5) Relief from time limitations
erans with a disability that is rated by the (A) In general
Secretary of Veterans Affairs as a perma- Any time limitation on any qualification,
nent and total disability who are unable to certification, or period of participation im-
§ 632 TITLE 15—COMMERCE AND TRADE Page 774
posed under this chapter on any program (t) Small business development center
that is available to small business concerns In this chapter, the term ‘‘small business de-
shall be extended for a small business con- velopment center’’ means a small business de-
cern that— velopment center described in section 648 of this
(i) is owned and controlled by— title.
(I) a veteran who was called or ordered (u) Region of the Administration
to active duty under a provision of law
specified in section 101(a)(13)(B) of title In this chapter, the term ‘‘region of the Ad-
10 on or after September 11, 2001; or ministration’’ means the geographic area served
(II) a service-disabled veteran who be- by a regional office of the Administration estab-
came such a veteran due to an injury or lished under section 633(a) of this title.
illness incurred or aggravated in the ac- (v) Multiple award contract
tive military, naval, or air service dur- In this chapter, the term ‘‘multiple award con-
ing a period of active duty pursuant to a tract’’ means—
call or order to active duty under a pro- (1) a multiple award task order contract or
vision of law referred to in subclause (I) delivery order contract that is entered into
on or after September 11, 2001; and under the authority of sections 4101, 4103, 4105,
(ii) was subject to the time limitation and 4106 of title 41; and
during such period of active duty. (2) any other indefinite delivery, indefinite
quantity contract that is entered into by the
(B) Duration head of a Federal agency with 2 or more
Upon submission of proper documentation sources pursuant to the same solicitation.
to the Administrator, the extension of a (w) Presumption
time limitation under subparagraph (A) (1) In general
shall be equal to the period of time that such
veteran who owned or controlled such a con- In every contract, subcontract, cooperative
cern was on active duty as described in that agreement, cooperative research and develop-
subparagraph. ment agreement, or grant which is set aside,
reserved, or otherwise classified as intended
(C) Exception for programs subject to Fed- for award to small business concerns, there
eral Credit Reform Act of 1990 shall be a presumption of loss to the United
The provisions of subparagraphs (A) and States based on the total amount expended on
(B) shall not apply to any programs subject the contract, subcontract, cooperative agree-
to the Federal Credit Reform Act of 1990 (2 ment, cooperative research and development
U.S.C. 661 et seq.). agreement, or grant whenever it is established
(6) ESOP that a business concern other than a small
business concern willfully sought and received
The term ‘‘ESOP’’ has the meaning given the award by misrepresentation.
the term ‘‘employee stock ownership plan’’ in
(2) Deemed certifications
section 4975(e)(7) of title 26.
The following actions shall be deemed af-
(7) Surviving spouse
firmative, willful, and intentional certifi-
The term ‘‘surviving spouse’’ has the mean- cations of small business size and status:
ing given such term in section 101(3) of title 38. (A) Submission of a bid or proposal for a
(r) Definitions relating to small business lending Federal grant, contract, subcontract, coop-
companies erative agreement, or cooperative research
and development agreement reserved, set
As used in section 650 of this title: aside, or otherwise classified as intended for
(1) Small business lending company award to small business concerns.
The term ‘‘small business lending company’’ (B) Submission of a bid or proposal for a
means a business concern that is authorized Federal grant, contract, subcontract, coop-
by the Administrator to make loans pursuant erative agreement, or cooperative research
to section 636(a) of this title and whose lend- and development agreement which in any
ing activities are not subject to regulation by way encourages a Federal agency to classify
any Federal or State regulatory agency. the bid or proposal, if awarded, as an award
to a small business concern.
(2) Non-Federally regulated lender (C) Registration on any Federal electronic
The term ‘‘non-Federally regulated lender’’ database for the purpose of being considered
means a business concern if— for award of a Federal grant, contract, sub-
(A) such concern is authorized by the Ad- contract, cooperative agreement, or coopera-
ministrator to make loans under section 636 tive research agreement, as a small business
of this title; concern.
(B) such concern is subject to regulation (3) Certification by signature of responsible of-
by a State; and ficial
(C) the lending activities of such concern (A) In general
are not regulated by any Federal banking
authority. Each solicitation, bid, or application for a
Federal contract, subcontract, or grant shall
(s) Major disaster contain a certification concerning the small
In this chapter, the term ‘‘major disaster’’ has business size and status of a business con-
the meaning given that term in section 5122 of cern seeking the Federal contract, sub-
title 42. contract, or grant.
Page 775 TITLE 15—COMMERCE AND TRADE § 632
(B) Content of certifications (cc) Private equity firm
A certification that a business concern In this chapter, the term ‘‘private equity
qualifies as a small business concern of the firm’’ has the meaning given the term ‘‘private
exact size and status claimed by the business equity fund’’ in section 1851(h)(2) of title 12.
concern for purposes of bidding on a Federal (dd) Definitions pertaining to subcontracting
contract or subcontract, or applying for a
Federal grant, shall contain the signature of In this chapter:
an authorized official on the same page on (1) Subcontract
which the certification is contained. The term ‘‘subcontract’’ means a legally
(4) Regulations binding agreement between a contractor that
The Administrator shall promulgate regula- is already under contract to another party to
tions to provide adequate protections to indi- perform work, and a third party, hereinafter
viduals and business concerns from liability referred to as the subcontractor, for the sub-
under this subsection in cases of unintentional contractor to perform a part, or all, of the
errors, technical malfunctions, and other simi- work that the contractor has undertaken.
lar situations. (2) First tier subcontractor
(x) Annual certification The term ‘‘first tier subcontractor’’ means a
(1) In general subcontractor who has a subcontract directly
with the prime contractor.
Each business certified as a small business
concern under this chapter shall annually cer- (3) At any tier
tify its small business size and, if appropriate, The term ‘‘at any tier’’ means any subcon-
its small business status, by means of a con- tractor other than a subcontractor who is a
firming entry on the Online Representations first tier subcontractor.
and Certifications Application database of the
(ee) Puerto Rico business
Administration, or any successor thereto.
In this chapter, the term ‘‘Puerto Rico busi-
(2) Regulations
ness’’ means a small business concern that has
Not later than 1 year after September 27, its principal office located in the Common-
2010, the Administrator, in consultation with wealth of Puerto Rico.
the Inspector General and the Chief Counsel
(ff) Covered territory business
for Advocacy of the Administration, shall pro-
mulgate regulations to ensure that— In this chapter, the term ‘‘covered territory
(A) no business concern continues to be business’’ means a small business concern that
certified as a small business concern on the has its principal office located in one of the fol-
Online Representations and Certifications lowing:
Application database of the Administration, (1) The United States Virgin Islands.
or any successor thereto, without fulfilling (2) American Samoa.
the requirements for annual certification (3) Guam.
under this subsection; and (4) The Northern Mariana Islands.
(B) the requirements of this subsection are (Pub. L. 85–536, § 2[3], July 18, 1958, 72 Stat. 384;
implemented in a manner presenting the Pub. L. 94–305, title I, § 112(b), June 4, 1976, 90
least possible regulatory burden on small Stat. 667; Pub. L. 95–507, title II, § 224(b), Oct. 24,
business concerns. 1978, 92 Stat. 1772; Pub. L. 96–302, title V, § 504,
(y) Policy on prosecutions of small business size July 2, 1980, 94 Stat. 851; Pub. L. 96–481, title I,
and status fraud § 108, Oct. 21, 1980, 94 Stat. 2323; Pub. L. 97–35,
Not later than 1 year after September 27, 2010, title XIX, § 1903, Aug. 13, 1981, 95 Stat. 771; Pub.
the Administrator, in consultation with the At- L. 98–270, title III, § 310, Apr. 18, 1984, 98 Stat. 161;
torney General, shall issue a Government-wide Pub. L. 98–362, § 6, July 16, 1984, 98 Stat. 434; Pub.
policy on prosecution of small business size and L. 98–473, title I, § 111A(b), Oct. 12, 1984, 98 Stat.
status fraud, which shall direct Federal agencies 1966; Pub. L. 99–272, title XVIII, § 18016, Apr. 7,
to appropriately publicize the policy. 1986, 100 Stat. 371; Pub. L. 99–500, § 101(c) [title X,
§ 921(f)], Oct. 18, 1986, 100 Stat. 1783–82, 1783–149,
(z) Aquaculture business disaster assistance
and Pub. L. 99–591, § 101(c) [title X, § 921(f)], Oct.
Subject to section 647(a) of this title and not- 30, 1986, 100 Stat. 3341–82, 3341–149; Pub. L. 99–514,
withstanding section 647(b)(1) of this title, the § 2, Oct. 22, 1986, 100 Stat. 2095; Pub. L. 99–661,
Administrator may provide disaster assistance div. A, title IX, formerly title IV, § 921(f), Nov.
under section 636(b)(2) of this title to aqua- 14, 1986, 100 Stat. 3929, renumbered title IX, Pub.
culture enterprises that are small businesses. L. 100–26, § 3(5), Apr. 21, 1987, 101 Stat. 273; Pub.
(aa) Venture capital operating company L. 100–26, § 10(b)(2), Apr. 21, 1987, 101 Stat. 288;
In this chapter, the term ‘‘venture capital op- Pub. L. 100–456, div. A, title VIII, § 845, Sept. 29,
erating company’’ means an entity described in 1988, 102 Stat. 2027; Pub. L. 100–590, title I,
clause (i), (v), or (vi) of section 121.103(b)(5) of § 119(b), Nov. 3, 1988, 102 Stat. 2999; Pub. L.
title 13, Code of Federal Regulations (or any suc- 100–656, title VII, § 732, Nov. 15, 1988, 102 Stat.
cessor thereto). 3897; Pub. L. 101–510, div. A, title VIII, § 806(e)(1),
Nov. 5, 1990, 104 Stat. 1592; Pub. L. 102–366, title
(bb) Hedge fund II, § 222(a), Sept. 4, 1992, 106 Stat. 999; Pub. L.
In this chapter, the term ‘‘hedge fund’’ has the 103–355, title IV, § 4404(a), title VII, § 7106(d), Oct.
meaning given that term in section 1851(h)(2) of 13, 1994, 108 Stat. 3349, 3376; Pub. L. 103–403, title
title 12. III, § 301, Oct. 22, 1994, 108 Stat. 4187; Pub. L.
§ 632 TITLE 15—COMMERCE AND TRADE Page 776
104–208, div. D, title I, § 104(b)(1), Sept. 30, 1996, CODIFICATION
110 Stat. 3009–730; Pub. L. 105–135, title IV, § 412, In subsec. (m), ‘‘section 134 of title 41’’ substituted for
title VI, § 602(a), Dec. 2, 1997, 111 Stat. 2617, 2627; ‘‘section 4(11) of the Office of Federal Procurement Pol-
Pub. L. 106–50, title I, § 103(a), title IV, § 401(a), icy Act (41 U.S.C. 403(11))’’ on authority of Pub. L.
Aug. 17, 1999, 113 Stat. 234, 243; Pub. L. 106–554, 111–350, § 6(c), Jan. 4, 2011, 124 Stat. 3854, which Act en-
§ 1(a)(9) [title VI, §§ 602–604, 611, 612(b)–615(a), acted Title 41, Public Contracts.
title VIII, § 806(b)], Dec. 21, 2000, 114 Stat. 2763, In subsec. (v)(1), ‘‘sections 4101, 4103, 4105, and 4106 of
title 41’’ substituted for ‘‘sections 303H through 303K of
2763A–697 to 2763A–701, 2763A–706; Pub. L. 108–271, the Federal Property and Administrative Services Act
§ 8(b), July 7, 2004, 118 Stat. 814; Pub. L. 108–447, of 1949 (41 U.S.C. 253h through 253k)’’ on authority of
div. K, title I, §§ 151, 152(a)(1), (3)–(c)(1), 162, Dec. Pub. L. 111–350, § 6(c), Jan. 4, 2011, 124 Stat. 3854, which
8, 2004, 118 Stat. 3456, 3457, 3465; Pub. L. 109–59, Act enacted Title 41, Public Contracts.
title X, § 10203, Aug. 10, 2005, 119 Stat. 1933; Pub. Pub. L. 110–234 and Pub. L. 110–246 made identical
L. 109–163, div. A, title VIII, §§ 844, 845(a)(1), Jan. amendments to this section. The amendments by Pub.
6, 2006, 119 Stat. 3389, 3390; Pub. L. 110–186, title L. 110–234 were repealed by section 4(a) of Pub. L.
II, § 205, Feb. 14, 2008, 122 Stat. 629; Pub. L. 110–246.
Pub. L. 99–591 is a corrected version of Pub. L. 99–500.
110–234, title XII, §§ 12063(c)(1), 12071, May 22,
2008, 122 Stat. 1408, 1411; Pub. L. 110–246, § 4(a), PRIOR PROVISIONS
title XII, §§ 12063(c)(1), 12071, June 18, 2008, 122 Prior similar provisions were contained in section 203
Stat. 1664, 2170, 2173; Pub. L. 111–240, title I, of act July 30, 1953, ch. 282, title II, 67 Stat. 233, which
§§ 1116, 1202(b)(1), 1311, 1341, 1342, 1343(b), 1501, was previously classified to this section. See Codifica-
Sept. 27, 2010, 124 Stat. 2509, 2521, 2536, 2543–2545, tion note set out under section 631 of this title.
2550; Pub. L. 112–81, div. E, title LI, § 5107(b), Dec. AMENDMENTS
31, 2011, 125 Stat. 1829; Pub. L. 112–239, div. A,
2022—Subsec. (k)(1). Pub. L. 117–328 substituted ‘‘(as
title XVI, §§ 1661, 1696(b)(1), Jan. 2, 2013, 126 Stat.
determined by the Secretary of Commerce under the
2083, 2090; Pub. L. 113–66, div. A, title XVI, Fishery Resource Disasters Improvement Act)’’ for ‘‘(as
§ 1614(b), Dec. 26, 2013, 127 Stat. 949; Pub. L. determined by the Secretary of Commerce under sec-
114–92, div. A, title VIII, §§ 866(a), 869(b), Nov. 25, tion 4107(b) of title 16)’’.
2015, 129 Stat. 929, 938; Pub. L. 114–187, title IV, 2021—Subsec. (a)(2)(A). Pub. L. 116–283, § 863(a)(1), in-
§ 412(a)(1), June 30, 2016, 130 Stat. 595; Pub. L. serted ‘‘and subject to the requirements specified under
114–328, div. A, title XVIII, §§ 1831(b), 1832(a), subparagraph (C)’’ after ‘‘paragraph (1)’’.
1833(b), Dec. 23, 2016, 130 Stat. 2658, 2661; Pub. L. Subsec. (a)(2)(C). Pub. L. 116–283, § 863(a)(2)(A), in-
serted ‘‘(including the Administration when acting pur-
115–91, div. A, title XVII, §§ 1701(a)(2), (3), 1702(b), suant to subparagraph (A))’’ after ‘‘no Federal depart-
Dec. 12, 2017, 131 Stat. 1795, 1796, 1803; Pub. L. ment or agency’’ in introductory provisions.
115–189, §§ 3(e), 4(a)(1), June 21, 2018, 132 Stat. Subsec. (a)(2)(C)(ii)(I). Pub. L. 116–283, § 863(a)(2)(B),
1496; Pub. L. 115–232, div. A, title VIII, §§ 861(a), substituted ‘‘24 months’’ for ‘‘12 months’’.
862(h), Aug. 13, 2018, 132 Stat. 1896, 1900; Pub. L. Subsec. (q)(2)(C)(i)(III). Pub. L. 116–283, § 862(b)(3)(A),
115–324, § 2, Dec. 17, 2018, 132 Stat. 4444; Pub. L. substituted ‘‘section 657f of this title’’ for ‘‘section
116–92, div. A, title VIII, § 876, Dec. 20, 2019, 133 8127(f) of title 38’’.
Stat. 1528; Pub. L. 116–283, div. A, title VIII, Subsec. (ff). Pub. L. 116–283, § 866(a)(1), added subsec.
(ff).
§§ 862(b)(3)(A), 863(a), 866(a)(1), Jan. 1, 2021, 134 2019—Subsec. (q)(2)(C)(i)(II). Pub. L. 116–92, § 876(1),
Stat. 3779, 3784, 3785; Pub. L. 117–328, div. S, title struck out ‘‘rated as 100 percent disabling under the
II, § 204(b), Dec. 29, 2022, 136 Stat. 5270.) laws administered by the Secretary of Veterans Affairs
or such veteran died as a result of a service-connected
Editorial Notes disability’’ before the semicolon.
Subsec. (q)(2)(C)(ii)(III). Pub. L. 116–92, § 876(2),
amended subcl. (III) generally. Prior to amendment,
REFERENCES IN TEXT
subcl. (III) read as follows: ‘‘immediately prior to the
The Small Business Investment Act of 1958, referred death of such veteran, and during the period described
to in subsec. (a)(5), is Pub. L. 85–699, Aug. 21, 1958, 72 in clause (ii), the small business concern is included in
Stat. 689. Title V of the Act is classified generally to the database described in section 8127(f) of title 38.’’
subchapter V (§ 695 et seq.) of chapter 14B of this title. 2018—Subsec. (a)(2)(C)(ii)(II). Pub. L. 115–324 sub-
For complete classification of this Act to the Code, see stituted ‘‘5 years’’ for ‘‘3 years’’.
Short Title note set out under section 661 of this title Subsec. (c)(2)(A)(ii). Pub. L. 115–232, § 862(h), amended
and Tables. cl. (ii) generally. Prior to amendment, cl. (ii) read as
The Agricultural Marketing Act (12 U.S.C. 1141j), re- follows: ‘‘which provides that each participant in the
ferred to in subsec. (j), is act June 15, 1929, ch. 24, 46 plan is entitled to direct the plan as to the manner in
Stat. 11, which is classified generally to chapter 7A which voting rights under qualifying employer securi-
(§ 1141 et seq.) of Title 12, Banks and Banking. For com- ties (as defined in section 4975(e)(8) of title 26) which
plete classification of this Act to the Code, see section are allocated to the account of such participant are to
1141j(e) of Title 12 and Tables. be exercised with respect to a corporate matter which
The Fishery Resource Disasters Improvement Act, re- (by law or charter) must be decided by a majority vote
ferred to in subsec. (k)(1), is title II of Pub. L. 117–328, of outstanding common shares voted; and’’.
div. S, Dec. 29, 2022, 136 Stat. 5261. For complete classi- Subsec. (h). Pub. L. 115–189, § 4(a)(1), added subsec. (h)
fication of this Act to the Code, see Short Title of 2022 and struck out former subsec. (h). Prior to amendment,
Amendment note set out under section 1801 of Title 16, text read as follows: ‘‘For purposes of this chapter the
Conservation, and Tables. term ‘credit elsewhere’ means the availability of credit
The Federal Credit Reform Act of 1990, referred to in from non-Federal sources on reasonable terms and con-
subsec. (q)(5)(C), is title V of Pub. L. 93–344, as added by ditions taking into consideration the prevailing rates
Pub. L. 101–508, title XIII, § 13201(a), Nov. 5, 1990, 104 and terms in the community in or near where the con-
Stat. 1388–609, which is classified generally to sub- cern transacts business, or the homeowner resides, for
chapter III (§ 661 et seq.) of chapter 17A of Title 2, The similar purposes and periods of time.’’
Congress. For complete classification of this Act to the Subsec. (r)(2). Pub. L. 115–189, § 3(e), substituted ‘‘reg-
Code, see Short Title note set out under section 621 of ulated lender’’ for ‘‘regulated SBA lender’’ in heading
Title 2 and Tables. and text.
Page 777 TITLE 15—COMMERCE AND TRADE § 632
Subsec. (ee). Pub. L. 115–232, § 861(a), added subsec. dealer in such supplies), not less than 50 percent of
(ee). the cost of manufacturing the supplies (not including
2017—Subsec. (m). Pub. L. 115–91, § 1702(b), amended the cost of materials) will be incurred in connection
subsec. (m) generally. Prior to amendment, text de- with the performance of the contract in a HUBZone
fined the term ‘‘simplified acquisition threshold’’. by 1 or more HUBZone small business concerns; and
Subsec. (p). Pub. L. 115–91, § 1701(a)(2), (3), added sub- ‘‘(cc) in the case of a contract for the procurement
sec. (p) and redesignated and transferred former subsec. by the Secretary of Agriculture of agricultural com-
(p) of this section to subsec. (b) of section 657a of this modities, none of the commodity being procured will
title. be obtained by the prime contractor through a sub-
2016—Subsec. (a)(1). Pub. L. 114–328, § 1831(b), sub- contract for the purchase of the commodity in sub-
stituted ‘‘operation’’ for ‘‘operation: Provided, That stantially the final form in which it is to be supplied
notwithstanding any other provision of law, an agricul- to the Government; and’’.
tural enterprise shall be deemed to be a small business Subsec. (p)(5)(B) to (D). Pub. L. 112–239, § 1696(b)(1)(B),
concern if it (including its affiliates) has annual re- (C), redesignated subpar. (D) as (B) and struck out
ceipts not in excess of $750,000’’. former subpars. (B) and (C) which read as follows:
Subsec. (a)(9)(E). Pub. L. 114–328, § 1833(b), added sub- ‘‘(B) Change in percentages
par. (E). ‘‘The Administrator may utilize a percentage other
Subsec. (p)(4)(A). Pub. L. 114–187 amended subpar. (A) than the percentage specified in item (aa) or (bb) of
generally. Prior to amendment, text read as follows: subparagraph (A)(i)(III), if the Administrator deter-
‘‘The term ‘qualified census tract’ has the meaning mines that such action is necessary to reflect conven-
given that term in section 42(d)(5)(C)(ii) of title 26.’’ tional industry practices among small business con-
Subsec. (q)(2). Pub. L. 114–328, § 1832(a)(1), amended cerns that are below the numerical size standard for
par. (2) generally. Text read as follows: ‘‘The term businesses in that industry category.
‘small business concern owned and controlled by serv- ‘‘(C) Construction and other contracts
ice-disabled veterans’ means a small business concern— ‘‘The Administrator shall promulgate final regula-
‘‘(A) not less than 51 percent of which is owned by tions imposing requirements that are similar to those
one or more service-disabled veterans or, in the case specified in items (aa) and (bb) of subparagraph
of any publicly owned business, not less than 51 per- (A)(i)(III) on contracts for general and specialty con-
cent of the stock of which is owned by one or more struction, and on contracts for any other industry
service-disabled veterans; and category that would not otherwise be subject to those
‘‘(B) the management and daily business operations
requirements. The percentage applicable to any such
of which are controlled by one or more service-dis-
requirement shall be determined in accordance with
abled veterans or, in the case of a veteran with per-
subparagraph (B).’’
manent and severe disability, the spouse or perma- Subsec. (dd). Pub. L. 113–66 added subsec. (dd).
nent caregiver of such veteran.’’ 2011—Subsecs. (aa) to (cc). Pub. L. 112–81 added sub-
Subsec. (q)(6), (7). Pub. L. 114–328, § 1832(a)(2), added
secs. (aa) to (cc).
pars. (6) and (7).
2010—Subsec. (a)(5). Pub. L. 111–240, § 1116, added par.
2015—Subsec. (a)(9). Pub. L. 114–92, § 869(b), added par.
(5).
(9).
Subsec. (p)(1)(F). Pub. L. 114–92, § 866(a)(1), added sub- Subsecs. (t), (u). Pub. L. 111–240, § 1202(b)(1), added
par. (F). subsecs. (t) and (u).
Subsec. (p)(3)(D) to (F). Pub. L. 114–92, § 866(a)(2), Subsec. (v). Pub. L. 111–240, § 1311, added subsec. (v).
added subpar. (D) and redesignated former subpars. (D) Subsec. (w). Pub. L. 111–240, § 1341, added subsec. (w).
Subsec. (x). Pub. L. 111–240, § 1342, added subsec. (x).
and (E) as (E) and (F), respectively.
Subsec. (p)(4)(D). Pub. L. 114–92, § 866(a)(3)(A), amend- Subsec. (y). Pub. L. 111–240, § 1343(b), added subsec.
ed subpar. (D) generally, substituting new definition of (y).
‘‘base closure area’’ for prior definition which consisted Subsec. (z). Pub. L. 111–240, § 1501, added subsec. (z).
2008—Subsec. (k)(2)(C). Pub. L. 110–246, § 12071, added
of provisions similar to those in new cl. (i)(I).
Subsec. (p)(4)(E). Pub. L. 114–92, § 866(a)(3)(B), added subpar. (C).
subpar. (E). Subsec. (q)(5). Pub. L. 110–186 added par. (5).
Subsec. (p)(5)(A)(i)(I)(aa). Pub. L. 114–92, § 866(a)(4)(A), Subsec. (s). Pub. L. 110–246, § 12063(c)(1), added subsec.
substituted ‘‘subparagraph (A), (B), (C), (D), (E), or (F) (s).
of paragraph (3)’’ for ‘‘subparagraph (A), (B), (C), (D), or 2006—Subsec. (a)(4). Pub. L. 109–163, § 844, added par.
(E) of paragraph (3)’’ and struck out ‘‘or’’ at end. (4).
Subsec. (p)(5)(A)(i)(I)(bb), (cc). Pub. L. 114–92, Subsec. (k). Pub. L. 109–163, § 845(a)(1), designated ex-
§ 866(a)(4)(B), (C), added item (bb) and redesignated isting provisions as par. (1) and added par. (2).
former item (bb) as (cc). 2005—Subsec. (p)(4)(B)(ii)(III). Pub. L. 109–59 added
2013—Pub. L. 112–239, § 1661(1), inserted section catch- subcl. (III).
line. 2004—Subsec. (b). Pub. L. 108–271 substituted ‘‘Govern-
Subsec. (a). Pub. L. 112–239, § 1661(2)(A), inserted head- ment Accountability Office’’ for ‘‘General Accounting
ing. Office’’.
Subsec. (a)(1), (3). Pub. L. 112–239, § 1661(2)(B), (C), in- Subsec. (j). Pub. L. 108–447, § 151(b), struck out ‘‘of sec-
serted heading. tion 636(b)(2)’’ after ‘‘For the purposes’’.
Subsec. (a)(5). Pub. L. 112–239, § 1661(2)(D), realigned Subsec. (p)(1)(E). Pub. L. 108–447, § 152(a)(1), added sub-
margins. par. (E).
Subsec. (a)(6) to (8). Pub. L. 112–239, § 1661(2)(E), added Subsec. (p)(3)(A). Pub. L. 108–447, § 151(a)(1)(A), amend-
pars. (6) to (8). ed subpar. (A) generally. Prior to amendment, subpar.
Subsec. (p)(5)(A)(i)(III). Pub. L. 112–239, § 1696(b)(1)(A), (A) read as follows: ‘‘a small business concern that is
added subcl. (III) and struck out former subcl. (III) owned and controlled by one or more persons, each of
which read as follows: ‘‘with respect to any subcontract whom is a United States citizen;’’.
entered into by the small business concern pursuant to Subsec. (p)(3)(E). Pub. L. 108–447, § 151(a)(1)(B)–(D),
a contract awarded to the small business concern under added subpar. (E).
section 657a of this title, the small business concern Subsec. (p)(4)(B)(ii)(II). Pub. L. 108–447, § 152(b),
will ensure that— amended subcl. (II) generally. Prior to amendment,
‘‘(aa) in the case of a contract for services (except subcl. (II) read as follows: ‘‘the unemployment rate is
construction), not less than 50 percent of the cost of not less than 140 percent of the Statewide average un-
contract performance incurred for personnel will be employment rate for the State in which the county is
expended for its employees or for employees of other located, based on the most recent data available from
HUBZone small business concerns; the Secretary of Labor.’’
‘‘(bb) in the case of a contract for procurement of Subsec. (p)(4)(C). Pub. L. 108–447, § 152(c)(1), sub-
supplies (other than procurement from a regular stituted ‘‘only until the later of—
§ 632 TITLE 15—COMMERCE AND TRADE Page 778
‘‘(i) the date on which the Census Bureau publicly Subsec. (p)(7). Pub. L. 106–554, § 1(a)(9) [title VI,
releases the first results from the 2010 decennial cen- § 612(b)(2)], added par. (7).
sus; or 1999—Subsec. (f). Pub. L. 106–50, § 401(a), amended sub-
‘‘(ii) 3 years after’’ sec. (f) generally. Prior to amendment, subsec. (f) read
for ‘‘only for the 3-year period following’’. as follows: ‘‘For purposes of section 636 of this title, the
Subsec. (p)(4)(D). Pub. L. 108–447, § 152(a)(3), added term ‘handicapped individual’ means a person who has
subpar. (D). a physical, mental, or emotional impairment, defect,
Subsec. (p)(5)(A)(i)(I)(aa). Pub. L. 108–447, § 151(a)(2), ailment, disease, or disability of a permanent nature
substituted ‘‘(C), (D), or (E)’’ for ‘‘or (D)’’. which in any way limits the selection of any type of
Subsec. (r). Pub. L. 108–447, § 162, added subsec. (r). employment for which the person would otherwise be
2000—Subsec. (a)(1). Pub. L. 106–554, § 1(a)(9) [title qualified or qualifiable.’’
VIII, § 806(b)], substituted ‘‘$750,000’’ for ‘‘$500,000’’. Subsec. (q). Pub. L. 106–50, § 103(a), added subsec. (q).
Subsec. (p)(1)(D). Pub. L. 106–554, § 1(a)(9) [title VI, 1997—Subsec. (o). Pub. L. 105–135, § 412, added subsec.
§ 613(1)], added subpar. (D). (o).
Subsec. (p)(3). Pub. L. 106–554, § 1(a)(9) [title VI, § 602],
Subsec. (p). Pub. L. 105–135, § 602(a), added subsec. (p).
amended heading and text of par. (3) generally, sub- 1996—Subsec. (k). Pub. L. 104–208 inserted ‘‘commer-
stituting present provisions for provisions which had cial fishery failures or fishery resource disasters (as de-
defined ‘‘HUBZone small business concern’’ as a small termined by the Secretary of Commerce under section
business concern that is owned and controlled by 1 or 4107(b) of title 16),’’ after ‘‘tidal waves,’’.
more persons, each of whom is a United States citizen, 1994—Subsec. (a)(2). Pub. L. 103–403 amended par. (2)
and the principal office of which is located in a generally. Prior to amendment, par. (2) read as follows:
HUBZone. ‘‘In addition to the criteria specified in paragraph (1),
Subsec. (p)(3)(D). Pub. L. 106–554, § 1(a)(9) [title VI,
the Administrator may specify detailed definitions or
§ 614(1)], added subpar. (D).
standards (by number of employees or dollar volume of
Subsec. (p)(4)(A). Pub. L. 106–554, § 1(a)(9) [title VI,
business) by which a business concern is to be recog-
§ 611(a)], substituted ‘‘section 42(d)(5)(C)(ii)’’ for ‘‘sec-
nized as a small business concern for the purposes of
tion 42(d)(5)(C)(ii)(I)’’.
Subsec. (p)(4)(B). Pub. L. 106–554, § 1(a)(9) [title VI, this chapter or any other Act. Unless specifically au-
§ 611(b)], added subpar. (B) and struck out heading and thorized by statute, the Secretary of a department or
text of former subpar. (B). Text read as follows: ‘‘The the head of a Federal agency may not prescribe for the
term ‘qualified nonmetropolitan county’ means any use of such department or agency a size standard for
county— categorizing a business concern as a small business
‘‘(i) that, based on the most recent data available concern, unless such proposed size standard—
from the Bureau of the Census of the Department of ‘‘(A) is being proposed after an opportunity for pub-
Commerce— lic notice and comment;
‘‘(I) is not located in a metropolitan statistical ‘‘(B) provides for determining, over a period of not
area (as defined in section 143(k)(2)(B) of title 26); less than 3 years—
and ‘‘(i) the size of a manufacturing concern on the
‘‘(II) in which the median household income is basis of the number of its employees during that pe-
less than 80 percent of the nonmetropolitan State riod; and
median household income; or ‘‘(ii) the size of a concern providing services on
‘‘(ii) that, based on the most recent data available basis of the average gross receipts of the concern
from the Secretary of Labor, has an unemployment during that period; and
rate that is not less than 140 percent of the statewide ‘‘(C) is approved by the Administrator.’’
average unemployment rate for the State in which Subsec. (m). Pub. L. 103–355, § 4404(a), substituted
the county is located.’’ ‘‘ ‘simplified acquisition threshold’ ’’ for ‘‘ ‘small pur-
Subsec. (p)(4)(C). Pub. L. 106–554, § 1(a)(9) [title VI, chase threshold’ ’’.
§ 613(2)], added subpar. (C). Subsec. (n). Pub. L. 103–355, § 7106(d), added subsec.
Subsec. (p)(5)(A)(i)(I). Pub. L. 106–554, § 1(a)(9) [title (n).
VI, § 603(a)], added subcl. (I) and struck out former 1992—Subsec. (a). Pub. L. 102–366 added pars. (2) and
subcl. (I) which read as follows: ‘‘it is a HUBZone small (3) and struck out at end of par. (1) ‘‘In addition to the
business concern;’’. foregoing criteria the Administrator, in making a de-
Subsec. (p)(5)(A)(i)(I)(aa). Pub. L. 106–554, § 1(a)(9) tailed definition, may use these criteria, among others:
[title VI, § 614(2)], substituted ‘‘subparagraph (A), (B), Number of employees and dollar volume of business:
or (D)’’ for ‘‘subparagraph (A) or (B)’’. Provided, That the Administration shall not promul-
Subsec. (p)(5)(A)(i)(II). Pub. L. 106–554, § 1(a)(9) [title gate, amend, or rescind any rule [or] regulation with
VI, § 603(a)], added subcl. (II) and struck out former respect to size standards prior to March 31, 1981. Where
subcl. (II) which read as follows: ‘‘not less than 35 per- the number of employees is used as one of the criteria
cent of the employees of the small business concern re- in making such definition for any of the purposes of
side in a HUBZone, and the small business concern will this chapter, the maximum number of employees which
attempt to maintain this employment percentage dur- a small-business concern may have under the definition
ing the performance of any contract awarded to the shall vary from industry to industry to the extent nec-
small business concern on the basis of a preference pro- essary to reflect differing characteristics of such indus-
vided under section 657a(b) of this title; and’’. tries and to take proper account of other relevant fac-
Subsec. (p)(5)(A)(i)(III)(cc). Pub. L. 106–554, § 1(a)(9) tors.’’
[title VI, § 612(b)(1)], added item (cc). 1990—Subsec. (m). Pub. L. 101–510 added subsec. (m).
Subsec. (p)(5)(C). Pub. L. 106–554, § 1(a)(9) [title VI, 1988—Subsec. (a). Pub. L. 100–656 struck out pars. (2)
§ 615(a)], which directed amendment of subpar. (C) by to (5) which established a program for review of size
substituting ‘‘items (aa) and (bb) of subparagraph standards for eligibility of business concerns in certain
(A)(i)(III)’’ for ‘‘subclause (IV) and (V) of subparagraph industry categories for a procurement restricted to
(A)(i)’’, was executed by making the substitution for small business concerns under section 637(a) or 644(a) of
‘‘subclauses (IV) and (V) of subparagraph (A)(i)’’, to re- this title and provided for adjustment of those stand-
flect the probable intent of Congress. ards and periodic review of the program.
Subsec. (p)(5)(D)(i). Pub. L. 106–554, § 1(a)(9) [title VI, Pub. L. 100–456 inserted provisions in par. (4)(C) re-
§ 603(b)], inserted ‘‘once the Administrator has made specting applicability of regulations to contracts en-
the certification required by subparagraph (A)(i) re- tered into on or after Oct. 1, 1988.
garding a qualified HUBZone small business concern Subsecs. (j) to (l). Pub. L. 100–590 added subsec. (k)
and has determined that subparagraph (A)(ii) does not and redesignated subsec. (j), defining ‘‘computer
apply to that concern,’’ before ‘‘include’’. crime’’, as (l).
Subsec. (p)(6). Pub. L. 106–554, § 1(a)(9) [title VI, § 604], 1987—Subsec. (a)(3). Pub. L. 100–26, § 10(b)(2)(A), sub-
added par. (6). stituted ‘‘dollar value of the contracts to be awarded in
Page 779 TITLE 15—COMMERCE AND TRADE § 632
that industry category’’ for ‘‘value of contracts to be EFFECTIVE DATE OF 2016 AMENDMENT
awarded under such sections’’.
Pub. L. 114–328, div. A, title XVIII, § 1832(e), Dec. 23,
Subsec. (a)(4)(A)(i). Pub. L. 100–26, § 10(b)(2)(B), sub-
2016, 130 Stat. 2660, provided that: ‘‘The amendments
stituted ‘‘paragraph (3)’’ for ‘‘paragraph (3)(A)’’.
made by subsections (a), (b), (c), and (d) [amending this
Subsec. (a)(5). Pub. L. 100–26, § 10(b)(2)(C), substituted
section, section 637 of this title, and section 8127 of
‘‘shall be made not later than 180 days after the end of
Title 38, Veterans’ Benefits] shall take effect on the
each such’’ for ‘‘made with the expiration of 180 days
date on which the Administrator of the Small Business
after each’’.
1986—Subsec. (a). Pub. L. 99–500, Pub. L. 99–591, and Administration and the Secretary of Veterans Affairs
Pub. L. 99–661 amended subsec. (a) identically desig- jointly issue regulations implementing such sections
nating existing provision as par. (1) and adding pars. (2) [probably should be ‘‘subsections’’] [regulations effec-
to (5). tive Oct. 1, 2018, see 83 F.R. 48908; see also section
Pub. L. 99–272 inserted proviso that notwithstanding 862(c)(3) of Pub. L. 116–283, set out as a note under sec-
any other provision of law, an agricultural enterprise tion 657f of this title].’’
shall be deemed to be a small business concern if it, in- EFFECTIVE DATE OF 2015 AMENDMENT
cluding its affiliates, has annual receipts not in excess
of $500,000. Pub. L. 114–92, div. A, title VIII, § 866(b), Nov. 25, 2015,
Subsec. (c)(2)(A), (3)(B)(i), (iv). Pub. L. 99–514 sub- 129 Stat. 931, provided that: ‘‘The amendments made by
stituted ‘‘Internal Revenue Code of 1986’’ for ‘‘Internal subsection (a)(3)(B) [amending this section] shall apply
Revenue Code of 1954’’, which for purposes of codifica- to a major disaster declared by the President under sec-
tion was translated as ‘‘title 26’’ thus requiring no tion 401 of the Robert T. Stafford Disaster Relief and
change in text. Emergency Assistance Act (42 U.S.C. 5170) or a cata-
1984—Subsec. (j). Pub. L. 98–473 in subsec. (j) added by strophic incident that occurs on or after the date of en-
Pub. L. 98–270 substituted ‘‘as a business concern and actment of such subsection [Nov. 25, 2015].’’
shall not include the income or employees of any mem- EFFECTIVE DATE OF 2008 AMENDMENT
ber shareholder of such cooperative’’ for ‘‘as an entity
and shall not include the income or employees of any Amendment of this section and repeal of Pub. L.
member shareholder of such cooperative: Provided, 110–234 by Pub. L. 110–246 effective May 22, 2008, the
That such an association shall not be deemed to be a date of enactment of Pub. L. 110–234, see section 4 of
small agricultural cooperative unless each member of Pub. L. 110–246, set out as an Effective Date note under
the board of directors of the association, or each mem- section 8701 of Title 7, Agriculture.
ber of the governing body of the association if it is not EFFECTIVE DATE OF 1997 AMENDMENT
incorporated, also individually qualifies as a small
business concern’’. Amendment by Pub. L. 105–135 effective Oct. 1, 1997,
Pub. L. 98–362 added subsec. (j) defining ‘‘computer see section 3 of Pub. L. 105–135, set out as a note under
crime’’. section 631 of this title.
Pub. L. 98–270 added subsec. (j) defining ‘‘small agri- EFFECTIVE DATE OF 1996 AMENDMENT
cultural cooperative’’.
1981—Subsecs. (d) to (i). Pub. L. 97–35 added subsecs. Pub. L. 104–208, div. D, title I, § 104(b)(2), Sept. 30, 1996,
(d) to (i). 110 Stat. 3009–731, provided that: ‘‘The amendment
1980—Subsec. (a). Pub. L. 96–481, in the additional cri- made by paragraph (1) [amending this section] shall be
teria inserted proviso that the Administration shall effective with respect to any disaster occurring on or
not promulgate, amend, or rescind any rule or regula- after March 1, 1994.’’
tion with respect to size standards prior to March 31,
EFFECTIVE DATE OF 1994 AMENDMENT
1981.
Subsec. (c). Pub. L. 96–302 added subsec. (c). For effective date and applicability of amendment by
1978—Pub. L. 95–507 designated existing provisions as Pub. L. 103–355, see section 10001 of Pub. L. 103–355, set
subsec. (a) and added subsec. (b). out as a note under section 8752 of Title 10, Armed
1976—Pub. L. 94–305 inserted reference to enterprises Forces.
that are engaged in business of production of food and
fiber, ranching and raising of livestock, aquaculture, EFFECTIVE DATE OF 1987 AMENDMENT
and all other farming and agricultural related indus- Pub. L. 100–26, § 12(c), Apr. 21, 1987, 101 Stat. 289, pro-
tries. vided that: ‘‘The amendments made by sections 5
[amending section 2365 of Title 10, Armed Forces, and
Statutory Notes and Related Subsidiaries amending provisions set out as notes under sections
1621, 2326, and 2437 of Title 10] and 10 [amending this
EFFECTIVE DATE OF 2021 AMENDMENT
section, sections 637 and 644 of this title, and provisions
Pub. L. 116–283, div. A, title VIII, § 862(b)(3), Jan. 1, set out as a note under this section] shall apply as if in-
2021, 134 Stat. 3778, provided that the amendment made cluded in each instance of the Defense Acquisition Im-
by section 862(b)(3)(A) shall take effect on the transfer provement Act (as specified in section 2) [title X of sec-
date (2 years after Jan. 1, 2021, see section 862(a) of Pub. tion 101(c) of Pub. L. 99–500 and Pub. L. 99–591, and title
L. 116–283, set out as a note under section 657f of this IX of div. A of Pub. L. 99–661] when each was enacted
title). [Oct. 18, 1986, Oct. 30, 1986, and Nov. 14, 1986, respec-
Pub. L. 116–283, div. A, title VIII, § 863(b), Jan. 1, 2021, tively].’’
134 Stat. 3784, provided that: ‘‘This section [amending
this section] and the amendments made by this section EFFECTIVE DATE OF 1986 AMENDMENT; INITIAL REVIEW
shall take effect 1 year after the date of the enactment OF STANDARDS
of this Act [Jan. 1, 2021].’’ 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,
EFFECTIVE DATE OF 2019 AMENDMENT
formerly title IV, of Pub. L. 99–661; renumbered title IX
Pub. L. 116–92, div. A, title VIII, § 876, Dec. 20, 2019, 133 and amended by Pub. L. 100–26, §§ 3(5), 10(a)(2), Apr. 21,
Stat. 1528, provided that the amendment made by sec- 1987, 101 Stat. 273, 288; Pub. L. 100–180, div. A, title VIII,
tion 876 is effective on the date specified in section § 809(d), Dec. 4, 1987, 101 Stat. 1130, provided that:
1832(e) of Pub. L. 114–328 (Oct. 1, 2018, see Effective Date ‘‘(g) EFFECTIVE DATES.—Except as otherwise provided
of 2016 Amendment note below). in subsection (h), the amendments made by this section
[amending this section and sections 637 and 644 of this
EFFECTIVE DATE OF 2017 AMENDMENT
title and enacting provisions set out as notes below]
Amendment by section 1701 of Pub. L. 115–91 effective shall take effect on October 1, 1987.
Jan. 1, 2020, see section 1701(j) of Pub. L. 115–91, set out ‘‘(h) INITIAL REVIEW OF SIZE STANDARDS.—(1) Para-
as a note under section 657a of this title. graph (2) of section 3(a) of the Small Business Act (as
§ 632 TITLE 15—COMMERCE AND TRADE Page 780
added by subsection (f)) [15 U.S.C. 632(a)(2)] shall take ment on such guidance for a period of not less than 60
effect on the date of the enactment of this Act [Oct. 18, days.’’
1986]. Pub. L. 114–187, title IV, § 412(a)(2), June 30, 2016, 130
‘‘(2) The first review conducted by the Administrator Stat. 595, provided that: ‘‘The Administrator of the
under such paragraph shall review the periods begin- Small Business Administration shall issue regulations
ning on October 1, 1983, and ending on September 30, to implement the amendment made by paragraph (1)
1986, and shall be completed not later than 180 days [amending this section] not later than 90 days after the
after the date of the enactment of this Act. date of the enactment of this Act [June 30, 2016].’’
‘‘(3) If the Administrator of the Small Business Ad- Pub. L. 112–239, div. A, title XVI, § 1696(c), Jan. 2, 2013,
ministration determines, on the basis of the review re- 126 Stat. 2091, provided that: ‘‘Not later than 180 days
ferred to in paragraph (2), that contracts awarded after the date of enactment of this part [Jan. 2, 2013],
under the set-aside programs under sections 8(a) and the Administrator of the Small Business Administra-
15(a) of the Small Business Act [15 U.S.C. 637(a), 644(a)] tion shall issue guidance with respect to the changes
in any industry category subject to that review exceed made to the Small Business Act [15 U.S.C. 631 et seq.]
30 percent of the dollar value of the total contract by the amendments in this subtitle [subtitle C
awards for that industry category, as determined in ac- (§§ 1621–1699a) of title XVI of div. A of Pub. L. 112–239,
cordance with the last sentence of section 15(a)(3) of see Tables for classification], with opportunities for no-
such Act, the Administrator shall propose adjustments tice and comment.’’
Pub. L. 109–163, div. A, title VIII, § 845(d), Jan. 6, 2006,
to the size standards for such industry category estab-
119 Stat. 3391, provided that: ‘‘Not later than 45 days
lishing eligibility for a set-aside program to a size that
after the date of enactment of this Act [Jan. 6, 2006],
will likely reduce the number of contracts which may
the Administrator of the Small Business Administra-
be set aside to approximately 30 percent of the dollar
tion shall promulgate final rules to carry out this sec-
value of the contracts to be awarded in that industry
tion [amending this section and section 636 of this title]
category. The Administrator shall publish proposed and the amendments made by this section.’’
regulations, including any revised size standards, in the Pub. L. 105–135, title VI, § 605, Dec. 2, 1997, 111 Stat.
Federal Register by November 30, 1987, or the date of 2635, provided that:
enactment of the National Defense Authorization Act ‘‘(a) IN GENERAL.—Not later than 180 days after the
for Fiscal Years 1988 and 1989 [Pub. L. 100–180, Dec. 4, date of enactment of this Act [Dec. 2, 1997], the Admin-
1987], whichever is later. The proposed regulations shall istrator shall publish in the Federal Register such final
provide not less than 60 days for public comment. The regulations as may be necessary to carry out this title
Administrator shall issue final regulations not later [see Short Title of 1997 Amendment note set out under
than May 31, 1988. section 631 of this title] and the amendments made by
this title.
EFFECTIVE DATE OF 1984 AMENDMENTS
‘‘(b) FEDERAL ACQUISITION REGULATION.—Not later
Pub. L. 98–270, title III, § 312, Apr. 18, 1984, 98 Stat. 161, than 180 days after the date on which final regulations
provided that: ‘‘The amendments made by sections 310 are published under subsection (a), the Federal Acquisi-
and 311 of this title [amending this section and section tion Regulatory Council shall amend the Federal Ac-
636 of this title] shall apply to loans granted on the quisition Regulation in order to ensure consistency be-
basis of any disaster with respect to which a declara- tween the Federal Acquisition Regulation, this title
tion has been issued after September 1, 1982, under sec- and the amendments made by this title, and the final
tion 7(b)(2) (A), (B), or (C) of the Small Business Act [15 regulations published under subsection (a).’’
U.S.C. 636(b)(2)(A), (B), (C)] or with respect to which a Pub. L. 102–366, title II, § 222(b), Sept. 4, 1992, 106 Stat.
certification has been made after such date under sec- 999, provided that:
tion 7(b)(2)(D) of such Act.’’ ‘‘(1) IN GENERAL.—Not later than 180 days after the
Pub. L. 98–270, title III, § 313, Apr. 18, 1984, 98 Stat. 162, date of enactment of this Act [Sept. 4, 1992], the Admin-
provided that: ‘‘This title [amending this section and istrator of the Small Business Administration shall
sections 633, 636, and 647 of this title, enacting provi- issue proposed regulations to implement the amend-
sions set out as notes under sections 632 and 636 of this ments made by subsection (a) [amending this section].
title, and amending provisions set out as a note under Final regulations shall be issued not later than 270 days
section 631 of this title] shall take effect October 1, after such date of enactment.
‘‘(2) LISTING OF ADDITIONAL SIZE STANDARDS.—The reg-
1983.’’
ulations required by paragraph (1) shall include a list-
Amendment by Pub. L. 98–362 effective Oct. 1, 1984,
ing of all small business size standards prescribed by
see section 7(a) of Pub. L. 98–362, set out as an Effective
statute or by individual Federal departments and agen-
and Termination Dates of 1984 Amendments note under
cies, identifying the programs or purposes to which
section 633 of this title.
such size standards apply.’’
EFFECTIVE DATE OF 1981 AMENDMENT
IMPLEMENTATION
Amendment by Pub. L. 97–35 effective Aug. 13, 1981, Pub. L. 113–66, div. A, title XVI, § 1614(c), Dec. 26, 2013,
but shall not affect any financing made, obligated, or 127 Stat. 949, provided that:
committed under this chapter or chapter 14B of this ‘‘(1) REQUIREMENT FOR PLAN.—Not later than 180 days
title prior to Aug. 13, 1981, see section 1918 of Pub. L. after the date of the enactment of this Act [Dec. 26,
97–35, set out as a note under section 631 of this title. 2013], the Administrator of the Small Business Admin-
EFFECTIVE DATE OF 1980 AMENDMENT istration, the Secretary of Defense, and the Adminis-
trator of General Services shall submit to the Com-
Amendment by Pub. L. 96–302 effective Oct. 1, 1980, mittee on Small Business and the Committee on Armed
see section 507 of Pub. L. 96–302, set out as a note under Services of the House of Representatives and the Com-
section 631 of this title. mittee on Small Business and Entrepreneurship and
REGULATIONS the Committee on Armed Services of the Senate a plan
to implement this section [amending this section and
Pub. L. 114–328, div. A, title XVIII, § 1835, Dec. 23, 2016, section 637 of this title] and the amendments made by
130 Stat. 2662, provided that: ‘‘Not later than 180 days this section. The plan shall contain assurances that the
after the date of enactment of this Act [Dec. 23, 2016], appropriate tracking mechanisms are in place to enable
the Administrator of the Small Business Administra- transparency of subcontracting activities at all tiers.
tion and the Secretary of Veterans Affairs shall issue ‘‘(2) COMPLETION OF PLAN ACTIONS.—Not later than
guidance pertaining to the amendments made by this one year after the date of the enactment of this Act,
title [see Tables for classification] to the Small Busi- the Administrator of the Small Business Administra-
ness Act [15 U.S.C. 631 et seq.] and section 8127 of title tion, the Secretary of Defense, and the Administrator
38, United States Code. The Administrator and the Sec- of General Services shall complete the actions required
retary shall provide notice and opportunity for com- by the plan.
Page 781 TITLE 15—COMMERCE AND TRADE § 632
‘‘(3) REGULATIONS.—No later than 18 months after the 632(a)(2)), which shall include holding not less than
date of the enactment of this Act, the Administrator of 2 public forums located in different geographic re-
the Small Business Administration shall promulgate gions of the United States;
any regulations necessary, and the Federal Acquisition ‘‘(B) after completing each review under subpara-
Regulation shall be revised, to implement this section graph (A) make appropriate adjustments to the size
and the amendments made by this section. standards established under section 3(a)(2) of the
‘‘(4) APPLICABILITY.—Any regulations promulgated Small Business Act to reflect market conditions;
pursuant to paragraph (3) shall apply to contracts en- ‘‘(C) make publicly available—
tered into after the last day of the fiscal year in which ‘‘(i) information regarding the factors evaluated
the regulations are promulgated.’’ as part of each review conducted under subpara-
graph (A); and
SMALL BUSINESS COMPLIANCE GUIDE ‘‘(ii) information regarding the criteria used for
Pub. L. 112–239, div. A, title XVI, § 1681(c), Jan. 2, 2013, any revised size standards promulgated under
126 Stat. 2086, provided that: ‘‘Not later than 270 days subparagraph (B); and
after the date of enactment of this part [Jan. 2, 2013], ‘‘(D) not later than 30 days after the date on
the Administrator of the Small Business Administra- which the Administrator completes each review
tion shall issue (pursuant to section 212 of the Small under subparagraph (A), submit to the Committee
Business Regulatory Enforcement Fairness Act of 1996 on Small Business and Entrepreneurship of the Sen-
[Pub. L. 104–121; 5 U.S.C. 601 note]) a compliance guide ate and the Committee on Small Business of the
to assist business concerns in accurately determining House of Representatives and make publicly avail-
their status as a small business concern.’’ able a report regarding the review, including why
the Administrator—
PROHIBITION ON USING TARP FUNDS OR TAX ‘‘(i) used the factors and criteria described in
INCREASES subparagraph (C); and
Pub. L. 111–240, title I, § 1136, Sept. 27, 2010, 124 Stat. ‘‘(ii) adjusted or did not adjust each size stand-
2520, provided that: ard that was reviewed under the review.
‘‘(a) IN GENERAL.—Except as provided in subsection ‘‘(2) COMPLETE REVIEW OF SIZE STANDARDS.—The Ad-
(b), nothing in section 1111 [amending section 636 of ministrator shall ensure that each size standard for
this title and enacting provisions set out as a note small business concerns established under section
under section 636 of this title], 1112 [amending section 3(a)(2) of the Small Business Act (15 U.S.C. 632(a)(2))
696 of this title], 1113 [amending section 636 of this is reviewed under paragraph (1) not less frequently
title], 1114 [124 Stat. 2508], 1115 [amending section 689d than once every 5 years.
of this title], 1116 [amending this section], 1117 [amend- ‘‘(b) RULES.—Not later than 1 year after the date of
ing section 634 of this title], 1118 [124 Stat. 2509], 1122 enactment of this Act [Sept. 27, 2010], the Adminis-
[amending section 696 of this title and enacting provi- trator shall promulgate rules for conducting the re-
sions set out as a note under section 696 of this title], views required under subsection (a).’’
or 1131 [amending section 636 of this title and enacting [For definitions of ‘‘Administrator’’ and ‘‘small busi-
provisions set out as notes under section 636 of this ness concern’’ as used in section 1344 of Pub. L. 111–240,
title], or an amendment made by such sections, shall be set out above, see section 1001 of Pub. L. 111–240, set out
construed to limit the ability of Congress to appro- under this section.]
priate funds. HUBZONE STATUS TIME LINE AND COMMENCEMENT
‘‘(b) TARP FUNDS AND TAX INCREASES.—
‘‘(1) IN GENERAL.—Any covered amounts may not be Pub. L. 112–239, div. A, title XVI, § 1698, Jan. 2, 2013,
used to carry out section 1111, 1112, 1113, 1114, 1115, 126 Stat. 2091, provided that:
1116, 1117, 1118, 1122, or 1131, or an amendment made ‘‘(a) DEFINITION.—In this section, the term ‘covered
by such sections. base closure area’ means a base closure area that, on or
‘‘(2) DEFINITION.—In this subsection, the term ‘cov- before the date of enactment of this Act [Jan. 2, 2013],
ered amounts’ means— was treated as a HUBZone for purposes of the Small
‘‘(A) the amounts made available to the Secretary Business Act (15 U.S.C. 631 et seq.) pursuant to section
of the Treasury under title I of the Emergency Eco- 152(a)(2) of the Small Business Reauthorization and
nomic Stabilization Act of 2008 S.C. [sic] 5201 et Manufacturing Assistance Act of 2004 [Pub. L. 108–447]
seq.) [12 U.S.C. 5211 et seq.] to purchase (under sec- (15 U.S.C. 632 note).
tion 101 [12 U.S.C. 5211]) or guarantee (under section ‘‘(b) TREATMENT AS HUBZONE.—
102 [12 U.S.C. 5212]) assets under that Act [12 U.S.C. ‘‘(1) IN GENERAL.—Subject to paragraph (2), a cov-
5201 et seq.]; and ered base closure area shall be treated as a HUBZone
‘‘(B) any revenue increase attributable to any for purposes of the Small Business Act (15 U.S.C. 631
amendment to the Internal Revenue Code of 1986 [26 et seq.) during the 5-year period beginning on the
U.S.C. 1 et seq.] made during the period beginning date of enactment of this Act.
on the date of enactment of this Act [Sept. 27, 2010] ‘‘(2) LIMITATION.—The total period of time that a
and ending on December 31, 2010.’’ covered base closure area is treated as a HUBZone for
purposes of the Small Business Act (15 U.S.C. 631 et
UPDATED SIZE STANDARDS seq.) pursuant to this section and section 152(a)(2) of
Pub. L. 114–328, div. A, title XVIII, § 1831(c), Dec. 23, the Small Business Reauthorization and Manufac-
2016, 130 Stat. 2658, provided that: ‘‘Size standards es- turing Assistance Act of 2004 (15 U.S.C. 632 note) may
tablished for agricultural enterprises under section 3(a) not exceed 5 years.’’
of the Small Business Act (15 U.S.C. 632(a)) shall be sub- Pub. L. 108–447, div. K, title I, § 152(a)(2), Dec. 8, 2004,
ject to the rolling review procedures established under 118 Stat. 3457, which required that a base closure area
section 1344(a) of the Small Business Jobs Act of 2010 that had undergone final closure be treated as a
[Pub. L. 111–240] (15 U.S.C. 632 note) [set out below].’’ HUBZone for purposes of this chapter for 5 years, was
Pub. L. 111–240, title I, § 1344, Sept. 27, 2010, 124 Stat. repealed by Pub. L. 115–91, div. A, title XVII, § 1701(f),
2545, provided that: (j), Dec. 12, 2017, 131 Stat. 1800, 1803, effective Jan. 1,
‘‘(a) ROLLING REVIEW.— 2020.
‘‘(1) IN GENERAL.—The Administrator shall—
CONTINUED EFFECTIVENESS OF NUMERICAL SIZE
‘‘(A) during the 18-month period beginning on the
STANDARDS IN EFFECT ON SEPTEMBER 30, 1988
date of enactment of this Act [Sept. 27, 2010], and
during every 18-month period thereafter, conduct a The last sentence of section 732 of Pub. L. 100–656
detailed review of not less than 1⁄3 of the size stand- which provided that any numerical size standard that
ards for small business concerns established under pertained to any of the designated industry groups, and
section 3(a)(2) of the Small Business Act (15 U.S.C. that was in effect on Sept. 30, 1988, was to remain in ef-
§ 633 TITLE 15—COMMERCE AND TRADE Page 782
fect for the duration of the Program, was repealed by (b) Appointment of Administrator, Deputy Ad-
Pub. L. 103–160, div. A, title VIII, § 850(1), Nov. 30, 1993, ministrator, and Associate Administrators;
107 Stat. 1726. duties of Administrator: preparation of data
base and publication of economic indices and
REPORT ON EFFECT OF 1986 AMENDMENTS annual report; risk management database;
computer security and education program
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
(1) The management of the Administration
title IV, of Pub. L. 99–661; renumbered title IX, Pub. L. shall be vested in an Administrator who shall be
100–26, § 3(5), Apr. 21, 1987, 101 Stat. 273, directed Admin- appointed from civilian life by the President, by
istrator of the Small Business Administration, not and with the advice and consent of the Senate,
later than July 15, 1987, to submit to Congress a report and who shall be a person of outstanding quali-
on the amendments to sections 632, 637, and 644 of this fications known to be familiar and sympathetic
title made by this section which was to include Admin- with small-business needs and problems. The
istrator’s views on the advisability and feasibility of Administrator shall not engage in any other
implementing such amendments, Administrator’s find- business, vocation, or employment than that of
ings and determinations under the review of size stand- serving as Administrator. In carrying out the
ards for businesses that qualify as small businesses car- programs administered by the Small Business
ried out pursuant to 15 U.S.C. 632(a)(2)(B), a determina-
Administration including its lending and guar-
tion of whether or not the amendments to section 632
of this title would further the interests of the set-aside anteeing functions, the Administrator shall not
program, and recommendations for furthering certain discriminate on the basis of sex or marital sta-
interests in a more efficient or effective manner than tus against any person or small business concern
provided in such amendments. applying for or receiving assistance from the
Small Business Administration, and the Small
DEFINITIONS
Business Administration shall give special con-
sideration to veterans of the Armed Forces of
Pub. L. 111–240, title I, § 1001, Sept. 27, 2010, 124 Stat. the United States and their survivors or depend-
2507, provided that: ‘‘In this title [enacting sections ents. The President also may appoint a Deputy
634g, 648b, and 657q of this title and section 4713a of Administrator, by and with the advice and con-
Title 12, Banks and Banking, amending this section, sent of the Senate. The Administrator is author-
sections 631, 633, 634, 634c, 636, 637, 644, 648, 649, 656, 657a, ized to appoint Associate Administrators (in-
689d, 695, and 696 of this title, section 604 of Title 5, cluding the Associate Administrator specified in
Government Organization and Employees, and section section 671 of this title) to assist in the execu-
2382 of Title 10, Armed Forces, repealing former section
tion of the functions vested in the Administra-
634g of this title, enacting provisions set out as notes
under this section and sections 631, 636, 637, 644, 649,
tion. One such Associate Administrator shall be
649b, and 696 of this title, and sections 428 and 433 of the Associate Administrator for Veterans Busi-
Title 41, Public Contracts, amending provisions set out ness Development, who shall administer the Of-
as notes under section 631 of this title, and repealing fice of Veterans Business Development estab-
provisions set out as notes under section 644 of this lished under section 657b of this title. One of the
title]— Associate Administrators shall be designated at
‘‘(1) the terms ‘Administration’ and ‘Administrator’ the time of his appointment as the Associate
mean the Small Business Administration and the Ad- Administrator for Minority Small Business and
ministrator thereof, respectively; and Capital Ownership Development who shall be an
‘‘(2) the term ‘small business concern’ has the employee in the competitive service or in the
meaning given that term under section 3 of the Small Senior Executive Service and a career appointee
Business Act (15 U.S.C. 632).’’ and shall be responsible to the Administrator
for the formulation and execution of the policies
and programs under sections 636(j) and 637(a) of
§ 633. Small Business Administration this title which provide assistance to minority
small business concerns. The Deputy Adminis-
(a) Creation; principal, branch, and regional of- trator shall be Acting Administrator of the Ad-
fices ministration during the absence or disability of
the Administrator or in the event of a vacancy
In order to carry out the policies of this chap- in the office of the Administrator. One such As-
ter there is created an agency under the name sociate Administrator shall be the Associate Ad-
‘‘Small Business Administration’’ (herein re- ministrator for International Trade, who shall
ferred to as the Administration), which Admin- be the head of the Office of International Trade
istration shall be under the general direction established under section 649 of this title. One
and supervision of the President and shall not be such Associate Administrator shall be the Chief
affiliated with or be within any other agency or Hearing Officer, who shall administer the Office
department of the Federal Government. The of Hearings and Appeals established under sec-
principal office of the Administration shall be tion 634(i) of this title.
located in the District of Columbia. The Admin- (2) The Administrator also shall be responsible
istration may establish such branch and re- for—
gional offices in other places in the United (A) establishing and maintaining an external
States as may be determined by the Adminis- small business economic data base for the pur-
trator of the Administration. As used in this pose of providing the Congress and the Admin-
chapter, the term ‘‘United States’’ includes the istration information on the economic condi-
several States, the Territories and possessions tion and the expansion or contraction of the
of the United States, the Commonwealth of small business sector. To that end, the Admin-
Puerto Rico, the Trust Territory of the Pacific istrator shall publish on a regular basis na-
Islands, and the District of Columbia. tional small business economic indices and, to
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