§123.500. Definitions.
13 C.F.R. § 123.500
The following terms have the same meaning wherever they are used in this subpart:
Essential employee— is an individual (whether or not an owner of a small business) whose managerial or technical expertise is critical to the successful day-to-day operations of a small business.
Military reservist— is a member of a reserve component of the Armed Forces ordered to active service.
Active service— has the meaning given in 10 U.S.C. 101(d)(3):
Service on active duty; or
Full-time National Guard duty.
Principal owner— is a person or entity which owns 20 percent or more of the small business.
Substantial economic injury means an economic harm to the small business such that it cannot:
Meet its obligations as they mature,
Pay its ordinary and necessary operating expenses, or
Market, produce or provide a product or service ordinarily marketed, produced or provided by the business. Loss of anticipated profits or a drop in sales is not considered substantial economic injury for this purpose.
Notes, amendments, and revision history
Amendments
[66 FR 38530, July 25, 2001, as amended at 88 FR 24109, Apr. 19, 2023]
Source
Source: 66 FR 38530, July 25, 2001, unless otherwise noted.
Authority
Authority: 15 U.S.C. 632, 634(b)(6), 636(b), 636(d), 657n, 9009, and U.S. Const. art. VI, cl. 10.
Source
Source: 61 FR 3304, Jan. 31, 1996, unless otherwise noted.
Amendments
[66 FR 38530, July 25, 2001, as amended at 88 FR 24109, Apr. 19, 2023]