(a) Eligibility for small business provisions—

(1) Definitions—

(i) Small business. A small business is an entity that, together with its affiliates, its controlling interests, and the affiliates of its controlling interests, has average gross revenues not exceeding $55 million for the preceding five (5) years.

(ii) Very small business. A very small business is an entity that, together with its affiliates, its controlling interests, and the affiliates of its controlling interests, has average gross revenues not exceeding $20 million for the preceding five (5) years.

(2) Bidding credits. A winning bidder that qualifies as a small business, as defined in this section, or a consortium of such small businesses as provided in §1.2110(c)(6) of this chapter, may use a bidding credit of 15 percent, subject to the cap specified in §1.2110(f)(2)(ii) of this chapter. A winning bidder that qualifies as a very small business, as defined in this section, or a consortium of such very small businesses as provided in §1.2110(c)(6) of this chapter, may use a bidding credit of 25 percent, subject to the cap specified in §1.2110(f)(2)(ii) of this chapter.

(b) Eligibility for rural service provider bidding credit. A rural service provider, as defined in §1.2110(f)(4)(i) of this chapter, that has not claimed a small business bidding credit may use the bidding credit of 15 percent specified in §1.2110(f)(4) of this chapter.