Defined as a small business concern that meets the following criteria:
1. One or more socially and economically disadvantaged individuals own 51 percent or more of the business (in the case of any publicly owned business, at least 51 percent of the stock).
2. Management and daily business operations are controlled by socially or economically disadvantaged individuals, including Black Americans, Hispanic Americans, Native Americans, Asian-Pacific Americans, Subcontinent-Asian Americans, and other minorities or any other individuals found to be disadvantaged pursuant to the Small Business Act.
Socially disadvantaged individuals are those who have been subjected to racial or ethnic prejudice or cultural bias because of their identity as a member of a group without regard to their individual qualities.
Economically disadvantaged individuals are those socially disadvantaged individuals whose ability to compete in the free enterprise system has been impaired due to diminished capital and credit opportunities as compared to others in the same business who are not socially disadvantaged.