StacksVerified U.S. regulatory reference

13 CFR §123.500

Verified against eCFR.gov as of June 20, 2026View official text on eCFR.gov ↗
The following terms have the same meaning wherever they are used in this subpart:
  1. (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.
  2. (b)Military reservist is a member of a reserve component of the Armed Forces ordered to active service.
  3. (c)Active service has the meaning given in 10 U.S.C. 101(d)(3):
    1. (1)Service on active duty; or
    2. (2)Full-time National Guard duty.
  4. (d)Principal owner is a person or entity which owns 20 percent or more of the small business.
  5. (e)Substantial economic injury means an economic harm to the small business such that it cannot:
    1. (1)Meet its obligations as they mature,
    2. (2)Pay its ordinary and necessary operating expenses, or
    3. (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.