§  1.1504   Eligibility of applicants.

   (a) To be eligible for an award of attorney fees and other expenses
   under the EAJA, the applicant must be a party, as defined in 5 U.S.C.
   551(3), to the adversary adjudication for which it seeks an award. The
   applicant must show that it meets all conditions of eligibility set out
   in this paragraph and in paragraph (b) of this section.

   (b) The types of eligible applicants are as follows:

   (1) An individual with a net worth of not more than $2 million;

   (2) The sole owner of an unincorporated business who has a net worth of
   not more than $7 million, including both personal and business
   interests, and not more than 500 employees;

   (3) A charitable association as defined in section 501(c)(3) of the
   Internal Revenue Code (26 U.S.C. 501(c)(3)) with not more than 500
   employees;

   (4) A cooperative association as defined in section 15(a) of the
   Agricultural Marketing Act (12 U.S.C. 1141j(a)) with not more than 500
   employees;

   (5) Any other partnership, corporation, association, unit of local
   government, or organization with a net worth of not more than $7
   million and not more than 500 employees;

   (6) For purposes of § 1.1505(b), a small entity as defined in 5 U.S.C.
   601.

   (c) For the purpose of eligibility, the net worth and number of
   employees of an applicant shall be determined as of the date the
   proceeding was initiated.

   (d) An applicant who owns an unincorporated business will be considered
   as an "individual" rather than a "sole owner of an unincorporated
   business" if the issues on which the applicant prevails are related
   primarily to personal interests rather than to business interests.

   (e) The number of employees of an applicant include all persons who
   regularly perform services for remuneration for the applicant, under
   the applicant's direction and control. Part-time employees shall be
   included on a proportional basis.

   (f) The net worth and number of employees of the applicant and all of
   its affiliates shall be aggregated to determine eligibility. Any
   individual, corporation or other entity that directly or indirectly
   controls or owns a majority of the voting shares or other interest of
   the applicant, or any corporation or other entity of which the
   applicant directly or indirectly owns or controls a majority of the
   voting shares or other interest, will be considered an affiliate for
   purposes of this part, unless the Administrative Law Judge determines
   that such treatment would be unjust and contrary to the purposes of the
   EAJA in light of the actual relationship between the affiliated
   entities. In addition, the Administrative Law Judge may determine that
   financial relationships of the applicant other than those described in
   this paragraph constitute special circumstances that would make an
   award unjust.

   (g) An applicant that participates in a proceeding primarily on behalf
   of one or more other persons or entities that would be ineligible is
   not itself eligible for an award.

   [ 47 FR 3786 , Jan. 27, 1982, as amended at  52 FR 11653 , Apr. 10, 1987;
    61 FR 39898 , July 31, 1996]