Wash. Admin. Code § 326-20-047 - Proof of economic disadvantage
Evidence of individual social disadvantage must include the following elements:
(1) Submission of
narrative and financial information.
(a) Each
individual claiming economic disadvantage must describe the conditions, which
are the basis for the claim in a narrative statement, and must submit personal
financial information.
(b) When
married, an individual claiming economic disadvantage also must submit separate
financial information for his or her spouse, unless the individual and the
spouse are legally separated.
(2) Factors to be considered. In considering
diminished capital and credit opportunities, the office will examine factors
relating to the personal financial condition of any individual claiming
disadvantaged status, including personal income for the past two years
(including bonuses and the value of company stock given in lieu of cash),
personal net worth, and the fair market value of all assets, whether encumbered
or not. The office will also consider the financial condition of the applicant
compared to the financial profiles of small businesses in the same primary
industry classification, or, if not available, in similar lines of business,
which are not owned and controlled by socially and economically disadvantaged
individuals in evaluating the individual's access to credit and capital. The
financial profiles that the office will compare include total assets, net
sales, pretax profit, sales/working capital ratio, and net worth.
(3) Transfers within two years.
(a) Except as set forth in (b) of this
subsection, the office will attribute to an individual claiming disadvantaged
status any assets which that individual has transferred to an immediate family
member, or to a trust, a beneficiary of which is an immediate family member,
for less than fair market value, within two years prior to a concern's
application for participation in the program, unless the individual claiming
disadvantaged status can demonstrate that the transfer is to or on behalf of an
immediate family member for that individual's education, medical expenses, or
some other form of essential support.
(b) The office will not attribute to an
individual claiming disadvantaged status any assets transferred by that
individual to an immediate family member that are consistent with the customary
recognition of special occasions, such as birthdays, graduations,
anniversaries, and retirements.
(c)
In determining an individual's access to capital and credit, the office may
consider any assets that the individual transferred within such two-year period
described by (a) of this subsection that are not considered in evaluating the
individual's assets and net worth (e.g., transfers to charities).
Notes
Statutory Authority: RCW 39.19.030 and 39.19.120. 04-08-093, § 326-20-047, filed 4/6/04, effective 5/7/04.
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