Must qualify as a Small Business Concern (SBC) with 500 employees or less and legally established in the U.S. A Small Business Concern (SBC) must satisfy the following conditions on the date of award for both Phase I and Phase II funding agreements: (1) is organized for profit, with a place of business located in the United States, which operates primarily within the United States or which makes a significant contribution to the United States economy through payment of taxes or use of American products, materials or labor; (2) is in the legal form of an individual proprietorship, partnership, limited liability company, corporation, joint venture, association, trust or cooperative, except that if the concern is a joint venture, each entity to the venture must meet the requirements set forth in paragraph (3) below; (3) is more than 50 percent directly owned and controlled by one or more individuals (who are citizens or permanent resident aliens of the United States), other small business concerns (each of which is more than 50% directly owned and controlled by individuals who are citizens or permanent resident aliens of the United States), or any combination of these; and (4) has, including its affiliates, not more than 500 employees. (For explanation of affiliate see www.sba.gov/size(link is external)).