### Question
Can you define what covered entity means?


### Answer
**Covered entity** is defined as the following in *15 U.S.C. § 9561*:

> a private nonprofit organization that—


(1) is described in paragraph (3), (4), (5), or (6) of section 501(c) of title 26 and exempt from tax under section 501(a) of such title

#### Citation:
  - *15 U.S.C. § 9561*
  - Heading: **CHAPTER 120-MINORITY BUSINESS DEVELOPMENT > SUBCHAPTER IV-MINORITY BUSINESS DEVELOPMENT GRANTS**

