A Section 3 Business concern is a business concern under HUD Regulations that meets the following requirements:
The Section 3 program requires that recipients of certain HUD financial assistance, to the greatest extent possible, provide job training, employment, and contract opportunities for low or very-low income residents in connection with projects and activities in their neighborhoods. Section 3 requirements are outlined in HUD’s 24 CFR 135.
A Section 3 resident is:
Low income or Very low-income persons are defined as families whose incomes do not respectively exceed 80%, 50%, or 30% of the median income (varies by household size) for the area.
Definitions of low, very low, and extremely low income families can be found here.