Social and economic disadvantage.

(a) Non-presumptive disadvantage. Except as stated in § 26.63(c), all applicable owner(s) must demonstrate social and economic disadvantage (SED) affirmatively based on their own experiences and circumstances within American society, and without any presumptions based on race or sex. (1) To satisfy the SED requirement and ensure all determinations of disadvantage are not based in whole or in part on a presumption of disadvantage based on race or sex, an owner must provide the certifier with a Personal Narrative (PN) that establishes the existence of disadvantage by a preponderance of the evidence based on individualized proof regarding specific instances of economic hardship, social barriers, or denied opportunities that impeded the owner's progress or success in education, employment, or business, including obtaining financing on terms available to non-disadvantaged individuals with comparable qualifications. (2) The PN must identify at least one objective basis for the owner's disadvantaged status. The basis may be any identifiable status or condition. The PN must describe this objective distinguishing feature (ODF) in sufficient detail to justify the owner's conclusion that it prompted economic hardship, social barriers, or denied opportunities that the owner experienced. (3) The PN must state how and to what extent the impediments caused the owner economic harm, including a full description of the type and magnitude. (4) The owner must attach to the PN a current PNW statement and any other financial information he considers relevant. If a certifier has a reasonable basis to believe that an owner who submits a PNW statement that is below the current PNW cap is not economically disadvantaged, the certifier may determine that the individual is not economically disadvantaged in fact under paragraph (b) of this section. (b) Economically disadvantaged in fact. The certifier may conclude that a reasonable person would not consider the owner economically disadvantaged in fact (EDIF) compared to non-disadvantaged individuals with comparable qualifications. (1) Evidence to consider. There are no limitations or exclusions. The certifier may consider individual's assets, income, access to credit and capital. ( e.g., disproportionately expensive homes; premium luxury personal property; high-value stocks or retirement funds; unearned assets; substantial trust holdings). This includes avoiding the free use of, or ready access to, the benefits of such wealth. The certifier need only demonstrate “ballpark” values based on available evidence. Example 1 to paragraph ( b )(1): An owner of an engineering firm has, or enjoys the benefits of, excessively high income of $X; an exorbitant home worth approximately $Y; substantial interests in outside businesses Q, R, and S; four rental properties of aggregate value $Z; holds a high-value retirement account worth approximately $V. (2) [Reserved] [91 FR 60899, Sept. 25, 2026]