Sec. 26.210  Provisions for small businesses.

    (a) Bidding credits. A winning bidder that qualifies as a small 
business or a consortium of small businesses may use a bidding credit of 
ten percent to lower the cost of its winning bid.
    (b) Installment payments. A winning bidder that qualifies as a small 
business may pay its winning bid amount (less upfront payments) in 
installments over the ten year term of the license, with interest 
charges to be fixed at the time of licensing at a rate equal to the rate 
for ten year U.S. Treasury obligations plus 2.5 percent. Installment 
payments are due quarterly on the anniversary of the day the license is 
granted. Failure to make timely installment payments may result in 
revocation of the license. Small businesses are permitted to make 
interest-only installment payments during the first two years of the 
license.
    (c) Down payments. A winning bidder that qualifies as a small 
business is permitted to make a down payment equal to 5 percent of the 
winning bid due five days after the auction closes with the remaining 5 
percent down payment dues five days after Public Notice that the license 
is ready for grant.
    (d) Unjust enrichment. If a licensee that utilizes a bidding credit 
under this section seeks to assign or transfer control of its license to 
an entity not meeting the eligibility standards for bidding credits or 
seeks to make any other change in ownership that would result in the 
licensee no longer qualifying for bidding credits under this section, 
the licensee must seek Commission approval and reimburse the 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 the approval of such assignment, transfer or other 
ownership change. The amount of the payment would be reduced over time 
so that a transfer in the first two years of the license would result in 
a payment of 100 percent of the value of the bidding credit; in year 
three of the license term the payment would be 75 percent; in year four 
the payment would be 50 percent and in year five the payment would be 25 
percent, after which there would be no payment. Transfer of control or 
assignment of station license is also subject to provisions of 
Sec. 1.2111 of this chapter.

    Subpart F--Application, Licensing, and Processing Rules for GWCS