Are there restrictions placed on nondisadvantaged individuals in terms of their relationships with disadvantaged individuals and/or applicant firm?
Yes. Nondisadvantaged individuals may be involved in the ownership and management of an applicant firm, as stockholders, limited liability members, partners, directors, and/or officers. However, no such nondisadvantaged individual or immediate family member may 1. Exercise actual control or have the power to control the applicant firm; 2. Be a former employer or principal of a former employer of any disadvantaged owner of the applicant firm; and 3. Receive compensation from the applicant in any form as directors, officers, or employees, including dividends that exceed the compensation to be received by the highest officer. The highest ranking officer may elect to take a lower salary than a nondisadvantaged individual only upon demonstrating that it helps the applicant firm. If one or more of these situations exist, the nondisadvantaged individual will be found to control the firm. Additionally, nondisadvantaged individuals or entities having an equity interest in an applicant firm and
Related Questions
- Are there restrictions placed on nondisadvantaged individuals in terms of their relationships with disadvantaged individuals and/or applicant firm?
- What percentage of ownership in the applicant firm must be owned by socially and economically disadvantaged individuals?
- Are there any 8(a) ownership restrictions placed on nondisadvantaged individuals or firms?
