Sec. 22.217  Bidding credits for small businesses.

    (a) A winning bidder that qualifies as a small business or a 
consortium of small businesses as defined in Sec. 22.223(b)(1)(i) may 
use a bidding credit of 15 percent to lower the cost of its winning bid. 
A winning bidder that qualifies as a small business or a consortium of 
small businesses as defined in Sec. 22.223(b)(1)(ii) may use a bidding 
credit of ten percent to lower the cost of its winning bid.
    (b) Unjust Enrichment:
    (1) If a small business that utilizes a bidding credit under this 
section seeks to transfer control or assign an authorization to an 
entity that is not a small business under Sec. 22.223(b)(1), or seeks to 
make any other change in ownership that would result in the licensee 
losing eligibility as a small business, the small business must seek FCC 
approval and reimburse the U.S. government for the amount of the bidding 
credit (plus interest at the rate imposed for installment financing at 
the time the license was awarded), as a condition of approval of such 
assignment, transfer, or other ownership change.
    (2) If a small business that utilizes a bidding credit under this 
section seeks to transfer control or assign an authorization to a small 
business meeting the eligibility standards for a lower bidding credit, 
or seeks to make any other change in ownership that would result in the 
licensee qualifying for a lower bidding credit under this section, the 
licensee must seek FCC approval and reimburse the U.S. government for 
the difference between the amount of the bidding credit obtained by the 
licensee and the bidding credit for which the assignee, transferee, or 
licensee is eligible under this section (plus interest at the rate 
imposed for installment financing at the time the license was awarded), 
as a condition of the approval of such assignment, transfer, or other 
ownership change.
    (3) The amount of payments made pursuant to paragraphs (b)(1) and 
(b)(2) of this section will be reduced over time as follows: A transfer 
in the first two years of the license term will result in a forfeiture 
of 100 percent of the value of the bidding credit (or the difference 
between the bidding credit obtained by the original licensee and the 
bidding credit for which the post-transfer licensee is eligible); in 
year 3 of the license term the payment will be 75 percent; in year 4 the 
payment will be 50 percent; and in year 5 the payment will be 25 
percent, after which there will be no assessment.