# 13 CFR § 121.105: How does SBA define “business concern or concern”?

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/ecfr-13-121.105

## Section

- **Citation:** 13 CFR § 121.105
- **Heading:** How does SBA define “business concern or concern”?
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** September 22, 2026
- **Source:** Publisher's official text
- **Location:** Title 13—Business Credit and Assistance > CHAPTER I—SMALL BUSINESS ADMINISTRATION > PART 121—SMALL BUSINESS SIZE REGULATIONS > Subpart A—Size Eligibility Provisions and Standards > Provisions of General Applicability

## Text

(a)(1) Except for small agricultural cooperatives, a business concern eligible for assistance from SBA as a small business is a business entity organized for profit, with a place of business located in the United States, and which operates primarily within the United States or which makes a significant contribution to the U.S. economy through payment of taxes or use of American products, materials or labor.
(2) A small agricultural cooperative is an association (corporate or otherwise) acting pursuant to the provisions of the Agricultural Marketing Act (12 U.S.C.A. 1141j) whose size does not exceed the size standard established by SBA for other similar agricultural small business concerns. A small agricultural cooperative's member shareholders are not considered to be affiliates of the cooperative by virtue of their membership in the cooperative. However, a business concern or cooperative that does not qualify as small under this part may not be a member of a small agricultural cooperative.
(b) A business concern may be in the legal form of an individual proprietorship, partnership, limited liability company, corporation, joint venture, association, trust or cooperative, except that where the form is a joint venture there can be no more than 49 percent participation by foreign business entities in the joint venture.
(c) A firm will not be treated as a separate business concern if a substantial portion of its assets and/or liabilities are the same as those of a predecessor entity. In such a case, the annual receipts and employees of the predecessor will be taken into account in determining size.
[61 FR 3286, Jan. 31, 1996, as amended at 70 FR 51248, Aug. 30, 2005]

## Nearby sections

- [13 CFR § 121.101 § 121.101 What are SBA size standards?](https://www.frixlaw.com/law-library/statutes/ecfr-13-121.101.md)
- [13 CFR § 121.102 § 121.102 How does SBA establish size standards?](https://www.frixlaw.com/law-library/statutes/ecfr-13-121.102.md)
- [13 CFR § 121.103 § 121.103 How does SBA determine affiliation?](https://www.frixlaw.com/law-library/statutes/ecfr-13-121.103.md)
- [13 CFR § 121.104 § 121.104 How does SBA calculate annual receipts?](https://www.frixlaw.com/law-library/statutes/ecfr-13-121.104.md)
- [13 CFR § 121.105 § 121.105 How does SBA define “business concern or concern”?](https://www.frixlaw.com/law-library/statutes/ecfr-13-121.105.md)
- [13 CFR § 121.106 § 121.106 How does SBA calculate number of employees?](https://www.frixlaw.com/law-library/statutes/ecfr-13-121.106.md)
- [13 CFR § 121.107 § 121.107 How does SBA determine a concern's “primary industry”?](https://www.frixlaw.com/law-library/statutes/ecfr-13-121.107.md)
- [13 CFR § 121.108 § 121.108 What are the penalties for misrepresentation of size status?](https://www.frixlaw.com/law-library/statutes/ecfr-13-121.108.md)
- [13 CFR § 121.109 § 121.109 What is a small business status advisory opinion?](https://www.frixlaw.com/law-library/statutes/ecfr-13-121.109.md)
- [13 CFR § 121.110 § 121.110 What must a concern do in order to be identified as a small business concern in any Federal procurement databases?](https://www.frixlaw.com/law-library/statutes/ecfr-13-121.110.md)
- [13 CFR § 121.201 § 121.201 What size standards has SBA identified by North American Industry Classification System codes?](https://www.frixlaw.com/law-library/statutes/ecfr-13-121.201.md)
- [13 CFR § 121.301 § 121.301 What size standards and affiliation principles are applicable to financial assistance programs?](https://www.frixlaw.com/law-library/statutes/ecfr-13-121.301.md)
- [13 CFR § 121.302 § 121.302 When does SBA determine the size status of an applicant?](https://www.frixlaw.com/law-library/statutes/ecfr-13-121.302.md)
- [13 CFR § 121.303 § 121.303 What size procedures are used by SBA before it makes a formal size determination?](https://www.frixlaw.com/law-library/statutes/ecfr-13-121.303.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/ecfr-13-121.105. Check the current official text before relying on it. Not legal advice.