PART 1400—DETERMINATION OF GROUP ELIGIBILITY FOR MBDA ASSISTANCE Authority: 15 U.S.C. 1512, E.O. 11625, 3 CFR 616 (1971-75), 36 FR 19967 (1971); and E.O. 12432, 3 CFR 198 (1983), 48 FR 32551 (1983). Source: 49 FR 42698, Oct. 24, 1984, unless otherwise noted. § 1400.1 Purpose and scope. (a) The purpose of this part is to set forth regulations for determination of group eligibility for MBDA assistance. (b) In order to be eligible to receive assistance from MBDA funded organizations, a concern must be a minority business enterprise as defined in 15 U.S.C. 9501(9). The purpose of this regulation is to provide guidance to groups not previously designated as eligible for assistance who believe they are entitled to formal designation as “socially or economically disadvantaged.” Upon adequate showing by representatives of the group that the group is, as a whole, socially or economically disadvantaged, the group will be so designated and its members will be eligible for MBDA assistance. Designation under this regulation will not establish eligibility for any other Federal or Federally funded program. [49 FR 42698, Oct. 24, 1984, as amended at 89 FR 101467, Dec. 16, 2024] § 1400.2 Definitions. For the purpose of this part: (a) Minority business enterprise is defined in 15 U.S.C. 9501(9). (b) Socially disadvantaged persons means those persons who have been subjected to cultural, racial or ethnic prejudice because of their identity as members of a group without regard to their individual qualities. (c) Economically disadvantaged persons means those persons whose ability to compete in the free enterprise system has been impaired due to diminished capital and credit opportunities because of their identity as members of a group without regard to their individual qualities, as compared to others in the same line of business and competitive market area. (d) Person means a citizen of the United States or an alien lawfully admitted for permanent residence. [49 FR 42698, Oct. 24, 1984, as amended at 89 FR 101467, Dec. 16, 2024] § 1400.3 Request for determination. A group wishing to apply for designation as socially or economically disadvantaged under this part shall submit a written application to the Director of the Minority Business Development Agency, United States Department of Commerce, Washington, DC, 20230, containing the following information: (a) Statement of request: (b) Description of applicants: (c) Summary of the applicant's submission: (d) Presentation of argument: Note 1 to paragraph ( d Applicants should support their claim of social or economic disadvantage with the criteria described under 1400.4 “Evidence of Social or Economic Disadvantage” (e) Conclusion: (Approved by the Office of Management and Budget under control number 0640-0011) [49 FR 42698, Oct. 24, 1984, as amended at 89 FR 101467, Dec. 16, 2024] § 1400.4 Evidence of social or economic disadvantage. (a) The representatives of the group requesting formal designation should establish social or economic disadvantage by a preponderance of the evidence. Social or economic disadvantage must be chronic, long standing, and substantial, not fleeting or insignificant. In determining whether a group has made an adequate showing that it has suffered chronic racial or ethnic prejudice or cultural bias for the purposes of this regulation, a determination will be made as to whether this group has suffered the effects of discriminatory practices over which its members have no control. Applicants must demonstrate that such social or economic conditions have produced impediments in the business world for members of the group which are not common to all business people in the same or similar business and market place. (b) Evidence which will be considered in determining whether groups are socially or economically disadvantaged includes but is not limited to: (1) Statistical profile outlining the national income level and standard of living enjoyed by members of the group in comparison to the income level and standard of living enjoyed by individuals not considered to be members of socially or economically disadvantaged groups. (2) Evidence of employment discrimination suffered by members of the group in comparison to employment opportunities available to individuals not considered to be members of socially or economically disadvantaged groups. (3) Evidence of educational discrimination in comparison to educational opportunities available to individuals not considered to be members of socially or economically disadvantaged groups. (4) Evidence of denial of access to organizations, groups, or professional societies, whether in business or in school, based solely upon racial and/or ethnic considerations. (5) Kinds of businesses and business opportunities available to group members in comparison to the kinds of businesses and business opportunities available to individuals not considered to be members of socially or economically disadvantaged groups. (6) Availability of capital to group members in comparison to the availability of capital to individuals not considered to be members of socially or economically disadvantaged groups. (7) Availability of technical and managerial resources to group members in comparison to the technical and managerial resources available to individuals not considered to be members of socially or economically disadvantaged groups. (8) Any other evidence of denial of opportunity or access to those things which would enable the individual to participate more successfully in the American economic system, available to individuals not considered to be members of social or economically disadvantaged groups. § 1400.5 Decision. (a) Procedure. Federal Register (b) Decision. Federal Register. (c) Appeal. § 1400.6 Construction. Nothing in this regulation shall be construed as subjecting any functions vested in, or assigned pursuant to law to any Federal department or agency or head thereof to the authority of any other agency or office exclusively, or as abrogating or restricting such functions in any manner.