§ 123.500 - Definitions.

§ 123.500 Definitions.

Cross Reference

Link to an amendment published at 88 FR 24109, Apr. 19, 2023.

The following terms have the same meaning wherever they are used in this subpart:

(a) 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.

(b) Military reservist is a member of a reserve component of the Armed Forces ordered to active duty during a period of military conflictservice.

(3) A period of contingency operation, as defined

(c) Period of military conflict means:

(1) A period of war declared by the Congress,

(2) A period of national emergency declared by the Congress or by the President, or

Active service has the meaning given in 10 U.S.C. 101(

a)

d)(3):

(1) Service on active duty; or

(2) Full-time National Guard duty.

(d) Principal owner is a person or entity which owns 20 percent or more of the small business.

(e) Substantial economic injury means an economic harm to the small business such that it cannot:

(1) Meet its obligations as they mature,

(2) Pay its ordinary and necessary operating expenses, or

(3) 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.

[66 FR 38530, July 25, 2001, as amended at 88 FR 24109, Apr. 19, 2023]