Entity-Owned (EO) is defined as a business structure in which a person, group of people, or “parent” business entity owns a separate business organization. Such legal entities come in various forms to suit the financial and business needs of their owners. Entity structures vary based on liability, transferability, cost, taxation, and simplicity, and they can be arranged as sole proprietor, limited liability company (LLC), partnership, or corporation. Entity-Owned firmsBusinesses are applicant businesses that are owned by a Controlling Entity (the corporation at the top of the business structure) from one of the five (5) approved organization types:

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When an applicant business wants to claim an EO certification, the firm businesses must prove that its' Controlling Entity holds at least 51% ownership of the subsidiary business applying for SBA certification. This means the subsidiary business will need to prove (through EO documentation and verification) that its' Controlling Entity holds 51% ownership all the way down through each level of the layered organizational structure, and each layer and its' contributors meets the necessary requirements for certification.

Since defining ownership and requirements can be a complex chain of documentation for applicants businesses to navigate, MySBA Certifications launched the Controlling Entity Dashboard - a digital profile meant to store all holding company data, no matter how many layers of separation exist in the organizational structure. This controlling entity profile will allow the applicant business to identify its controlling entity within the MySBA Certifications system (or establish the entity in the system, if needed), and then assign a POC from that controlling entity to provide documentation and verification of the entity's majority ownership of the business applying for certification. The profile will also allow the POC to manage notifications from all EO applicant firmsbusinesses, update their subsidiary matrix, and keep contributor information up-to-date.

Users

In the MySBA Certifications application process, the EO process will be initiated by the applicant business. From there, Controlling Entities can establish themselves as an approved Controlling Entity, manage subsidiaries and contributors, and view their application progress. Below is a high-level view of the roles of each user in the MySBA Certifications EO application process:

• Entity-Owned Applicant BusinessBusinesses:

  • Request EO connection with an existing Controlling Entity

    • Note: Applicant firms businesses can complete and submit an application before their connection request is approved. Rejected EO applications Applications with rejected EO connection requests will be pushed back to the applicant business and they the applicant business will have to request connection with another Controlling Entity or restart their application as a non-EO applicant business.

  • Initiate a New Controlling Entity Request form

    • Note: This is the only way a new Controlling Entity can be established in MySBA Certifications. EO applicant firms businesses may proceed with the application process but will not be able to submit their application until the Controlling Entity has been approved. If their Controlling Entity Request form has been denied, the EO applicant business must request connection with another firm Controlling Entity or restart their application as a non-EO applicant business.

• Controlling Entities:

  • Complete the Controlling Entity Request Onboarding FormApplication

  • Create and manage the subsidiary structure of your Controlling Entity

    Note: Controlling Entities can only create new holding firms. Businesses aligned to the holding firms can only be created and connected through the MySBA Certifications application process. However, Controlling Entities may realign these firms to different holding firms once aligned to your matrix.

    the Controlling Entity

  • Create and manage Controlling Entity contributors

  • View and oversee all applicant business notifications in the MySBA Certifications process

  • Manage connection requests from applicant businesses

What’s to come in the handbook

In this handbook, you can expect in-depth guides on how to:

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For more information on the Entity-Owned process for applicant businesses in the MySBA Certifications applications process, please visit the Initiating Processes guide in Business Guides section of the Knowledge Base.