Tenn. Comp. R. & Regs. 1680-08-01-.04
When reviewing DBE applications, the Contract Compliance Office determines first if the applicant qualifies as a DBE by deciding if the owners of the company are members of a group, who are presumed to be socially and economically disadvantaged. In addition, the socially and economically disadvantaged owners must own and control the company. The ownership and control of the disadvantaged person must be real, substantial, and continuing and shall go beyond the pro forma ownership of the firm as reflected in its ownership documents. The applicant company must show that the disadvantaged owners enjoy the customary incidents of ownership and that they share in the risks and profits commensurate with their ownership interests as demonstrated by an examination of the substance rather than form of arrangements.
Tenn. Comp. R. & Regs. 1680-08-01-.04
Authority: T.C.A. §§ 4-3-2303(2) and 54-1-124; 49 CFR Part 23; Public Acts of 1984, Chapter 737.