Sec. 27.209  Designated entities; bidding credits; unjust enrichment.

    (a) Designated entities entitled to preferences in the WCS auction 
are small businesses and very small businesses as defined in 
Sec. 27.110(b). Designated entities will be eligible for bidding 
credits, as defined in paragraphs (b) and (c) of this section.
    (b) A winning bidder that qualifies as a small business may use a 
bidding credit of 25 percent to lower the cost of its winning bid.
    (c) A winning bidder that qualifies as a very small business may use 
a bidding credit of 35 percent to lower the cost of its winning bid.
    (d) Unjust Enrichment:
    (1) If a small business or very small business (as defined in 
Sec. 27.210(b)) 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 or a very small business, or seeks to make any other 
change in ownership that would result in the licensee losing eligibility 
as a small business or very small business, the small business or very 
small business must seek Commission approval and reimburse the U.S. 
Government for the amount of the bidding credit, plus interest based on 
the rate for ten year U.S. Treasury obligations applicable on the date 
the license is granted, as a condition of approval of the assignment or 
transfer of control.
    (2) If a very small business (as defined in Sec. 27.210(b)) 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 Commission 
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 based on the rate for ten 
year U.S. Treasury obligations applicable on the date the license is 
granted, as a condition of the approval of such assignment, transfer, or 
other ownership change.
    (3) The amount of payments made pursuant to paragraphs (d)(1) and 
(d)(2) of this section will be reduced over time as follows: A transfer 
in the first five 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 6 of the license term the payment will be 80 percent; in year 7 the 
payment will be 60 percent; in year 8 the payment will be 40 percent; 
and in year 9 the payment will be 20 percent. For a transfer occurring 
in year 10 and thereafter, there will be no assessment.