Sec. 101.1107  Bidding credits for small businesses and entities with 
          average gross revenues of not more than $75 million.

    (a) A winning bidder that qualifies as a small business pursuant to 
Sec. 101.1112 may use a bidding credit of 25 percent to lower the cost 
of its winning bid.
    (b) A winning bidder that has average gross revenues for the 
preceding three years of more than $40 million but not more than $75 
million pursuant to Sec. 101.1112 may use a bidding credit of 15 percent 
to lower the cost of its winning bid.
    (c) The bidding credits referenced in paragraphs (a) and (b) of this 
section are not cumulative.
    (d) Unjust enrichment. (1) A licensee that utilizes a bidding 
credit, and that during the initial license term seeks to assign or 
transfer control of a license to an entity that does not meet the 
eligibility criteria for a bidding credit, will be required to 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 Commission approval of the assignment or 
transfer. If, within the initial term of the license, a licensee that 
utilizes a bidding credit seeks to assign or transfer control of a 
license to an entity that is eligible for a lower bidding credit, the 
difference between the bidding credit obtained by the assigning party 
and the bidding credit for which the acquiring party would qualify, plus 
interest at the rate imposed for installment financing at the time the 
license was awarded, must be paid to the U.S. government as a condition 
of Commission approval of the assignment or transfer. If, within the 
initial license term, a licensee that utilizes a bidding credit seeks to 
make any ownership change that would result in the licensee losing 
eligibility for a bidding credit (or qualifying for a lower bidding 
credit), the amount of the bidding credit (or the difference between the 
bidding credit originally obtained and the bidding credit for which the 
restructured licensee would qualify), plus interest at the rate imposed 
for installment financing at the time the license was awarded, must be 
paid to the U.S. government as a condition of Commission approval of the 
ownership change.
    (2) The amount of payments made pursuant to paragraph (d)(1) of this 
section will be reduced over time as follows:
    (i) 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, in the case of small businesses transferring to businesses having 
average gross revenues of more than $40 million but not more than $75 
million, 100 percent of the difference between the bidding credit 
received by the former and the bidding credit for which the latter is 
eligible);
    (ii) In year three of the license term the payment will be 75 
percent;
    (iii) In year four the payment will be 50 percent; and
    (iv) In year five the payment will be 25 percent, after which there 
will be no required payment.

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