§ 123.500. Definitions.
185 words·~1 min read·
/us/cfr/t13/s§ 123.500·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
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 service.
(c)Active service has the meaning given in 10 U.S.C. 101(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. \[66 FR 38530, July 25, 2001, as amended at 88 FR 24109, Apr. 19, 2023\]
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