---
kind: "section"
citation: "34 C.F.R. § 21.21"
title: "34"
number: "21.21"
heading: "Determination of net worth and number of employees."
url: "https://uscodex.org/cfr/34/21.21"
---

# §21.21. Determination of net worth and number of employees.

- (a) The adjudicative officer shall determine an applicant's net worth and number of employees as of the date the adversary adjudication was initiated.
- (b) In determining eligibility, the adjudicative officer shall include the net worth and number of employees of the applicant and all of the affiliates of the applicant.
- (c) For the purposes of [paragraph (b)](#b) of this section, the adjudicative officer shall consider the following as an affiliate:
  - (1) Any individual, corporation, or other entity that directly or indirectly owns or controls a majority of the voting shares or other interest of the applicant;
  - (2) Any corporation or other entity of which the applicant directly or indirectly owns or controls a majority of the voting shares or other interest; and
  - (3) Any entity with a financial relationship to the applicant that, in the determination of the adjudicative officer, constitutes an affiliation for the purposes of [paragraph (b)](#b) of this section.
- (d) In determining the number of employees of an applicant and its affiliates, the adjudicative officer shall count part-time employees on a proportional basis.

## Notes

### Authority

Authority: 5 U.S.C. 504, unless otherwise noted.

### Source

Source: 58 FR 47192, Sept. 7, 1993, unless otherwise noted.