An individual who is not a member of one of these groups may nonetheless gain admission into the Section 8(a) program by establishing by a preponderance of the evidence 4 that he or she is socially disadvantaged under criteria set forth in 13 C.F.R. § 124.103(c). In the context of the Section 8(a) program, “control” requires that “both that disadvantaged persons have the power to control the company and that such persons actually exercise their authority to control the company.” Gov’t Compl. ¶ 26; see also 13 C.F.R. § 124.106. Although a non-disadvantaged individual may be involved in the management of a company that participates in the Section 8(a) program, that individual may not, inter alia, exercise actual control of the company or receive compensation that exceeds that of the socially or economically disadvantaged person who controls the company. See 13 C.F.R. § 124.106(e). Further, non-disadvantaged individuals who “transfer majority stock ownership or control of the firm to an immediate family member within two years prior to the application and remain involved in the firm as a stockholder, officer, director, or key employee of the firm” are subject to a rebuttable presumption that they actually control the firm. Id. § 124.106(f).

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