{"data":{"id":"us/13-cfr-123.500","jurisdiction":"us","citation":"13 CFR 123.500","heading":"Definitions.","body":"The following terms have the same meaning wherever they are used in this subpart:\n(a) Essential employee is an individual (whether or not an owner of a small business) whose managerial or technical expertise is critical to the successful day-to-day operations of a small business.\n(b) Military reservist is a member of a reserve component of the Armed Forces ordered to active service.\n(c) Active service has the meaning given in 10 U.S.C. 101(d)(3):\n(1) Service on active duty; or\n(2) Full-time National Guard duty.\n(d) Principal owner is a person or entity which owns 20 percent or more of the small business.\n(e) Substantial economic injury means an economic harm to the small business such that it cannot:\n(1) Meet its obligations as they mature,\n(2) Pay its ordinary and necessary operating expenses, or\n(3) Market, produce or provide a product or service ordinarily marketed, produced or provided by the business. Loss of anticipated profits or a drop in sales is not considered substantial economic injury for this purpose.","path":["Title 13—Business Credit and Assistance","CHAPTER I—SMALL BUSINESS ADMINISTRATION","PART 123—DISASTER LOAN PROGRAM","Subpart F—Military Reservist Economic Injury Disaster Loans"],"source_url":"https://www.ecfr.gov/api/versioner/v1/full/2026-08-25/title-13.xml","current_through":"2026-08-25","vintage":"","retrieved_at":"2026-08-27T02:24:18Z","sha256":"3911f4c78350f8f409ff3293cb58d50ce5aadb92fb111f5bf44f33c3a3edbbbe","source_id":"us-cfr","stale":true,"prev":"us/13-cfr-123.304","next":"us/13-cfr-123.501"},"notice":"GroundRules: Original legal text. Not legal advice."}