[Federal Register Volume 84, Number 138 (Thursday, July 18, 2019)]
[Rules and Regulations]
[Pages 34261-34281]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-14980]



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  Federal Register / Vol. 84, No. 138 / Thursday, July 18, 2019 / Rules 
and Regulations  

[[Page 34261]]



SMALL BUSINESS ADMINISTRATION

13 CFR Part 121

RIN 3245-AH17


Small Business Size Standards: Adjustment of Monetary-Based Size 
Standards for Inflation

AGENCY: U.S. Small Business Administration.

ACTION: Interim final rule with request for comments.

-----------------------------------------------------------------------

SUMMARY: The U.S. Small Business Administration (SBA or Agency) is 
adjusting the monetary-based industry size standards (i.e., receipts- 
and assets-based) for inflation that has occurred since the last 
adjustment in 2014. These size standards will be reviewed again as part 
of the ongoing second 5-year review of size standards, as mandated by 
the Small Business Jobs Act of 2010 (Jobs Act). Also adjusted for 
inflation are receipts-based size standards that apply to sales or 
leases of Government property and stockpile purchases.

DATES: Effective Date: This rule is effective August 19, 2019.
    Comment Date: Comments must be received on or before September 16, 
2019.

ADDRESSES: You may submit comments, identified by RIN 3245-AH17, by any 
of the following methods: (1) Federal eRulemaking Portal: https://www.regulations.gov, following the specific instructions for submitting 
comments; or (2) Mail/Hand Delivery/Courier: U.S. Small Business 
Administration, Khem R. Sharma, Ph.D., Chief, Office of Size Standards, 
409 Third Street SW, Mail Code 6530, Washington, DC 20416.
    SBA will post all comments to this interim final rule on https://www.regulations.gov. If you wish to submit confidential business 
information (CBI) as defined in the User Notice at https://www.regulations.gov, you must submit such information to the U.S. Small 
Business Administration, Khem R. Sharma, Ph.D., Chief, Office of Size 
Standards, 409 Third Street SW, Mail Code 6530, Washington, DC 20416, 
or send an email to [email protected]. Highlight the information 
that you consider to be CBI and explain why you believe SBA should hold 
this information as confidential. SBA will review your information and 
determine whether it will make the information public.

FOR FURTHER INFORMATION CONTACT: Jorge Laboy-Bruno, Ph.D., Office of 
Size Standards, (202) 205-6618 or [email protected].

SUPPLEMENTARY INFORMATION: As explained in the SBA's ``Size Standards 
Methodology'' white paper available at https://www.sba.gov/size and at 
https://www.regulations.gov (Docket ID: SBA-2018-0004), SBA reviews 
small business size standards and makes necessary adjustments to them 
for two reasons: (i) Changes in industry structure and Federal market 
conditions and (ii) inflation. Prior to the 2014 inflation adjustment, 
SBA reviewed all monetary-based industry size standards with respect to 
industry structure and Federal market conditions as part of the first 
5-year review of size standards required by section 1344 of the Small 
Business Jobs Act of 2010 (Jobs Act) (Pub. L. 111-240, 124 Stat. 2504 
(September 27, 2010)). In this rule, SBA is adjusting its monetary-
based industry size standards for inflation that has occurred since the 
last inflation adjustment, which was published in June 2014 (79 FR 
33647 (June 12, 2014)). These include receipts-based size standards for 
518 industries and 9 subindustries (i.e., ``exceptions'' in the SBA 
Table of Size Standards), as well as assets-based size standards for 5 
industries. As part of the ongoing second 5-year review of size 
standards required by the Jobs Act, SBA will review these size 
standards again in the near future to determine whether further 
adjustments are needed based on industry and Federal market conditions. 
Additionally, SBA is adjusting 2 program-specific receipts-based size 
standards, namely, (1) sales or leases of Government property and (2) 
stockpile purchases. However, as explained elsewhere in this rule, SBA 
is not adjusting either (1) the tangible net worth and net income-based 
alternative size standard established under the Jobs Act for its 7(a) 
and 504 Loan Programs; or (2) the tangible net worth and net income-
based alternative size standard established for the Small Business 
Investment Company (SBIC) Program.
    SBA is required to assess the impact of inflation on its monetary-
based size standards at least once every 5 years (see SBA Interim Final 
Rule: Small Business Size Standards: Inflation Adjustment to Monetary 
Based Size Standards (67 FR 3041 (January 23, 2002)) and 13 CFR 
121.102(c)). Although the provision does not mandate that SBA actually 
adjust size standards for inflation every 5 years, it does provide 
assurances to the public that the Agency is monitoring inflation to 
determine whether or not to adjust size standards within a reasonable 
period of time since its last inflation adjustment.
    Previous inflation adjustments to size standards were in SBA's 
Interim Final Rule: Small Business Size Standards: Inflation Adjustment 
to Monetary Based Size Standards ((79 FR 33647 (June 12, 2014)) (SBA 
Final Rule at 81 FR 3949 (January 25, 2016) finalized the 2014 IFR 
without change); in SBA Final Rule: Small Business Size Standards: 
Inflation Adjustment to Size Standards, Business Loan Program, and 
Disaster Assistance Loan Program (73 FR 41237 (July 18, 2008)); SBA 
Interim Final Rule: Small Business Size Standards, Inflation Adjustment 
to Size Standards; Business Loan Program; Disaster Assistance Loan 
Program (70 FR 72577 (December 6, 2005)); SBA Final Rule: Small 
Business Size Standards: Inflation Adjustment to Size Standards (67 FR 
65285 (October 24, 2002)); SBA Interim Final Rule: Small Business Size 
Standards; Inflation Adjustment to Size Standards (67 FR 3041 (January 
23, 2002)); SBA Final Rule: Small Business Size Standards; Inflation 
Adjustment to Size Standards (59 FR 16513 (April 7, 1994)); SBA Final 
Rule: Small Business Size Standards; Revision (49 FR 5024 (February 9, 
1984)); and SBA Final Rule: Small Business Size Standards Regulation 
(40 FR 32824 (August 5, 1975)).
    A number of businesses may have lost small business eligibility for 
Federal assistance under SBA's monetary-based industry size standards 
simply because of inflation-led revenue growth that has occurred since 
the 2014 adjustment. This rule aims to reinstate those firms'

[[Page 34262]]

small business eligibility for Federal assistance.
    As mentioned above, the adjustment for inflation in this rule 
applies to all monetary-based industry size standards, including the 
$750,000 receipts-based size standard for agricultural industries, 
which was previously set by statute. However, section 1831 of the 
National Defense Authorization Act for Fiscal Year 2017 (NDAA 2017) 
(Pub. L. 114-328, 130 Stat. 2000, December 23, 2016) directed SBA to 
establish size standards for all agricultural enterprises in the same 
manner as for other industries and to include them in the 5-year 
rolling review procedures established under section 1344(a) of the Jobs 
Act.
    The inflation adjustments in this rule are separate from revisions 
to size standards made during the 5-year rolling reviews of size 
standards, as mandated by the Jobs Act. SBA's 5-year size standards 
rolling reviews primarily focus on industry structure (i.e., average 
firm size, startup costs and entry barriers, industry concentration, 
and distribution of firms by business size) and Federal contracting 
trends (i.e., small business share of Federal contract dollars relative 
to small business share of total industry's receipts) for industries 
with significant contracting activities.
    Rather than reviewing all size standards at one time, for the 5-
year rolling reviews, SBA reviews size standards on a Sector-by-Sector 
basis over a period. The objective of the rolling review is to review 
all size standards and make necessary adjustments to reflect current 
industry structure and Federal market conditions. By including 
inflation as an additional factor in the analysis, it would mean 
applying different inflation rates to different sectors at different 
times. For example, the applicable inflation would be lower for sectors 
reviewed earlier in the cycle and higher for those reviewed later in 
the cycle, resulting in inconsistent size standards across sectors and 
industries. To avoid this, SBA has decided to evaluate all monetary 
industry-based size standards for inflation separate from the 5-year 
rolling review.
    Updating size standards based on inflation--in addition to updating 
size standards based on the latest industry and Federal contracting 
data under the 5-year rolling review--not only satisfies the Jobs Act's 
mandate that SBA review all size standards, but also is consistent with 
Executive Order 13563 on improving regulation and regulatory review. 
This also fulfills the SBA's regulatory requirement to review size 
standards for inflation every 5 years.

SBA's Inflation Adjustment Methodology

    For this interim final rule, SBA has used the inflation adjustment 
methodology it described in its ``Size Standards Methodology'' white 
paper, which is available at https://www.sba.gov/size. SBA applied the 
same methodology in its previous inflation adjustments, including the 
latest adjustment in 2014. This methodology can be described in terms 
of the following steps:
    1. Selecting an inflation measure.
    2. Selecting the base and end periods.
    3. Calculating the inflation rate.
    4. Adjusting the monetary based size standards.

1. Selecting an Inflation Measure

    SBA establishes small business size standards to determine the 
eligibility of businesses for a wide variety of SBA's and other Federal 
programs. Many businesses participating in those programs are engaged 
in multiple industries and are producing a wide range of goods and 
services. Therefore, it is important that the Agency use a broad 
measure of inflation to adjust its size standards. SBA's preferred 
measure of inflation has consistently been the chain-type price index 
for the U.S. Gross Domestic Product (GDP price index), published by the 
U.S. Department of Commerce, Bureau of Economic Analysis (BEA) on a 
quarterly basis as part of its National Income and Product Accounts 
(NIPA) and available at https://www.bea.gov/iTable.
    In its 2014 interim final rule (79 FR 33647 (June 12, 2014)), 
besides the GDP price index, SBA reviewed several alternative inflation 
measures published by the Federal Government (including the consumer 
price index, the personal consumption expenditures price index, the 
producer price index, and the employment cost index) for their 
appropriateness to use for adjusting SBA's size standards. Among all 
these indexes, SBA determined that the GDP price index is the most 
comprehensive measure of movements in the general price level in the 
economy and thus the most appropriate measure of inflation for 
adjusting SBA's size standards. Thus, as in the previous inflation 
adjustments, SBA has decided to use the GDP price index to adjust 
monetary-based size standards for the current inflation adjustment.

2. Selecting the Base and End Periods

    For this inflation adjustment (excluding the $750,000 agricultural 
size standard adjustment), SBA selected the first quarter of 2014 as 
the base period because it was the end period for the 2014 adjustment. 
SBA selected the fourth quarter of 2018 as the end period because it 
was the latest quarter for which GDP price indexes were available when 
that rule was developed.
    The current $750,000 size standard for agricultural industries was 
established by Congress in December of 2000 (Pub. L. 106-554, 114 Stat. 
2763, Dec. 21, 2000) and was not included in previous inflation 
adjustments. However, section 1831 of the NDAA 2017 directed SBA to 
review and adjust size standards for all agricultural enterprises in 
the same manner as for other industries. Thus, in this rule, SBA is 
also adjusting the $750,000 size standard for agricultural industries 
by using the first quarter of 2001 as the base period and the fourth 
quarter of 2018 as the end period.

3. Calculating the Rate of Inflation

    The GDP price index for the base period (excluding the $750,000 
agricultural size standard) was 102.551 and the GDP price index for the 
end period was 111.134. Accordingly, inflation increased 8.37 percent 
from the first quarter of 2014 to the fourth quarter of 2018 (((111.134 
/ 102.551) - 1) x 100 percent = 8.37 percent).
    The GDP price index for the agricultural base period was 79.232 and 
the GDP price index for the agricultural end period was 111.134. 
Accordingly, inflation increased 40.26 percent from the first quarter 
of 2001 to the fourth quarter of 2018 (((111.134 / 79.232) - 1) x 100 
percent = 40.26 percent).

4. Making Adjustments to Size Standards

    Adjustment to receipts-based industry size standards: All receipts-
based size standards (excluding the $750,000 agricultural size 
standard) were adjusted by multiplying their current levels by 1.0837 
and rounding the results to the nearest $500,000.
    Adjustment to the agricultural size standard: SBA multiplied the 
current size standard of $750,000 for 46 agricultural industries by 
1.4026 to obtain a non-rounded size standard of $1.05 million. Rounding 
to the nearest $500,000 results in an adjusted size standard of $1.0 
million for all 46 agricultural industries.
    Adjustment to the assets-based size standard: Currently, 5 
industries in North American Industry Classification System (NAICS) 
Sector 52, Finance and Insurance, have the size standard of $550 
million in average assets. Following the inflation adjustment 
methodology described above, the assets-based size standard was 
adjusted

[[Page 34263]]

by multiplying the current value of $550 million by 1.0837. The result 
was $596 million, which SBA rounded to $600 million.
    Table 1, ``Inflation Adjustment to Monetary-based Size Standards,'' 
summarizes the results of the inflation adjustment for 16 different 
receipts-based size standards levels, ranging from $0.75 million to 
$38.5 million, as well as one assets-based size standard of $550 
million. The first column of Table 1 shows the current monetary-based 
industry size standards; the second column shows their inflation-
adjusted values before rounding; the third column shows their 
inflation-adjusted values after rounding; and the fourth column shows 
the count of industries and subindustries (or ``exceptions'') that are 
associated with each of the receipts- and assets-based size standards 
levels. The results lead to adjustment to 532 size standards, including 
523 industries and 9 subindustries or ``exceptions.''

                         Table 1--Inflation Adjustment to Monetary-Based Size Standards
----------------------------------------------------------------------------------------------------------------
                                                           Size standards     Size standards
                                                            adjusted for       adjusted for        Number of
   Current monetary-based size standards ($ million)     inflation, before   inflation, after  industries (incl.
                                                            rounding ($        rounding ($        exceptions)
                                                              million)           million)
(1)                                                                    (2)                (3)                (4)
----------------------------------------------------------------------------------------------------------------
$ 0.75.................................................              $1.05               $1.0                 46
5.5....................................................                6.0                6.0                  4
7.5....................................................                8.1                8.0                126
11.0...................................................               11.9               12.0                 39
15.0...................................................               16.3               16.5                 95
18.0...................................................               19.5               19.5                  1
19.0...................................................               20.6               20.5                  2
20.5...................................................               22.2               22.0                 39
25.0...................................................               27.1               27.0                  1
27.5...................................................               29.8               30.0                 55
29.5...................................................               32.0               32.0                  3
32.0...................................................               34.7               34.5                  2
32.5...................................................               35.2               35.0                 39
36.5...................................................               39.6               39.5                 11
37.5...................................................               40.6               40.5                  1
38.5...................................................               41.7               41.5                 63
550....................................................                596                600                  5
    Total Industries (including subindustries or         .................  .................                532
     ``exceptions'')...................................
----------------------------------------------------------------------------------------------------------------

    Adjustment to program-based size standards: Most SBA and other 
Federal programs apply SBA's industry-based size standards. SBA has 
also established a few size standards on a program basis rather than on 
an industry basis. Some of these size standards are also adjusted for 
inflation in the same manner as the receipts-based and assets-based 
industry size standards. Table 2, ``Inflation Adjustment to Program-
based Receipts Size Standards,'' shows the program-based size standards 
and their corresponding inflation-adjusted values. The size standard 
for ``smaller enterprises'' under the Small Business Investment Company 
(SBIC) program is set by regulation (see 13 CFR 107.710(a)) and, 
therefore, not adjusted. SBA is also electing not to adjust the SBIC 
program's tangible net worth and net income-based alternate size 
standard in 13 CFR 121.301(c). SBA adjusted the tangible net worth and 
net income alternate size standard for the SBIC program for inflation 
in 2014 (79 FR 33647 (June 12, 2014)). SBA has determined that the 
current SBIC alternative size standard levels are enough to accomplish 
its program objectives and that no further increase is necessary at 
this time.

                     Table 2--Inflation Adjustment to Program-Based Receipts Size Standards
----------------------------------------------------------------------------------------------------------------
                                                                            Size standard in millions of dollars
                                                                           -------------------------------------
                  Program                             CFR citation                                 Inflation-
                                                                               Current size      adjusted size
                                                                                 standard           standard
----------------------------------------------------------------------------------------------------------------
Sales or leases of Government property.....  13 CFR 121.502(a)(2).........               $7.5               $8.0
Stockpile purchases........................  13 CFR 121.512...............               62.5               67.5
----------------------------------------------------------------------------------------------------------------

Special Considerations

    Size Standard for Leasing of Building Space to the Federal 
Government by Owners--Footnote 9: The size standard found in Footnote 9 
to 13 CFR 121.201 (Leasing of Building Space to the Federal Government 
by Owners) was also adjusted for inflation. The current size standard 
of $38.5 million was multiplied by 1.0837 to obtain an adjusted size 
standard of $41.5 million after rounding. As explained more fully in 
the prior Inflation Adjustment (79 FR 33647), this size standard 
exception applies to all 4 industries in NAICS Group 5311, Lessors of 
Real Estate.
    Alternative Size Standard for 7(a) and 504 Loan Programs: Effective 
September 27, 2010, Congress established through the Jobs Act a new 
temporary alternative size standard of tangible net worth of not more 
than $15 million and net income of not more than $5 million for SBA's 
7(a) and 504 Loan Programs. On September 29, 2010, SBA issued 
Information Notice 5000-1175 (available at https://www.sba.gov/sites/

[[Page 34264]]

default/files/files/bank_5000-1175_0.pdf) advising lenders and the 
public that, effective September 27, 2010, the new statutory 
alternative size standard will apply for its 7(a) and 504 Loan 
Programs, thereby replacing the existing alternative size standard of 
$8.5 million in tangible net worth and $3 million in net income, then 
set forth in 13 CFR 121.301(b)(2). The Jobs Act also provided that the 
new temporary alternative size standard would remain in effect for the 
7(a) and 504 Loan Programs until the SBA's Administrator establishes a 
different size standard through rulemaking. For this reason, in this 
rule, SBA is not adjusting the new alternative size standard for its 
7(a) and 504 Loan programs for inflation. SBA will issue a different 
rule to establish a permanent alternative size standard for those 
programs.

Justification for Updating Size Standards for Inflation as an Interim 
Final Rule

    In general, to revise or update size standards, SBA publishes a 
proposed rule for public comment before issuing a final rule, in 
accordance with the Administrative Procedure Act (APA), 5 U.S.C. 553, 
and SBA regulations, 13 CFR 101.108. The APA provides an exception to 
this standard rulemaking process, however, in situations where an 
agency finds good cause to adopt a rule without prior public 
participation. (See 5 U.S.C. 553(b)(3)(B)). The good cause requirement 
is satisfied when prior public participation is impracticable, 
unnecessary, or contrary to the public interest. Under those 
conditions, an agency may publish an interim final rule without first 
soliciting public comment. In applying the good cause exception to the 
standard rulemaking process, Congress recognized that special 
circumstances might arise justifying issuance of a rule without prior 
public participation.
    As stated above, the last time SBA made inflation adjustments to 
size standards was 2014. A number of businesses may have lost small 
business eligibility for Federal assistance under SBA's monetary-based 
size standards simply as a result of the inflation that has occurred 
since that time. This rule is necessary to make those businesses 
eligible for Federal assistance. Any delay in the adoption of 
inflation-adjusted size standards could cause significant harm to those 
businesses and others that are about to exceed current size standards 
simply due to inflation-driven revenue growth. Immediate implementation 
of this rule would enable more businesses to qualify under SBA's 
monetary-based size standards, which would enable them to apply for 
Federal small business assistance and thereby create jobs.
    The standard notice and comment rulemaking could delay the 
implementation of this rule by at least 8 to 12 months. Such a delay 
would be contrary to the public interest as it would delay the 
eligibility of those businesses for Federal small business assistance, 
perhaps forcing some of them to cease operations before a final rule 
could be promulgated under the standard rulemaking process. 
Furthermore, the inflation adjustment will become outdated by the time 
the final rule is published under notice and comment rulemaking.
    For the above reasons, SBA finds that good cause exists to publish 
this rule as an interim final rule. SBA's rationale for preparing this 
action as an interim final rule and giving it immediate effect is 
consistent with the Agency's statutory obligation to protect the 
interests of small businesses, thereby enabling them to maintain 
competitiveness and strengthen the overall economy. Small Business Act, 
15 U.S.C. 631(a). SBA had also implemented inflation adjustments to 
size standards through an interim final rule in 2002, 2005, and 2014 
without any controversies.
    By publishing this rule as an interim final rule, SBA is not 
excluding public participation in the rulemaking process. SBA is 
soliciting comments from interested parties on this interim final rule 
on a number of issues, including SBA's methodology for inflation 
adjustment and alternative measures of inflation. SBA will evaluate all 
comments and revise, if necessary, this rule, and publish a final rule 
at a later date.

Request for Comments

    SBA seeks comments on this rule, specifically on the following 
issues:
    1. SBA welcomes comments from interested parties on SBA's size 
standards methodology for inflation adjustment to its size standards. 
Specifically, SBA seeks comment on whether the GDP price index is an 
appropriate measure of inflation for adjusting size standards. The 
Agency invites suggestions, along with supporting data and analysis, if 
a different measure of inflation would be more appropriate.
    2. SBA also invites comments on whether it should adjust employee-
based industry size standards for labor productivity growth and 
technological advancements, similar to adjusting monetary-based 
industry size standards for inflation.
    3. SBA also invites comments on any other aspects of this 
rulemaking, including the changes to program-based and assets-based 
size standards.

Compliance With Executive Orders 12866, 13563, 12988, 13132, and 13771, 
the Paperwork Reduction Act (44 U.S.C., Ch. 35), and the Regulatory 
Flexibility Act (5 U.S.C. 601-612) Executive Order 12866

    The Office of Management and Budget (OMB) has determined that this 
interim final rule is not a ``significant regulatory action'' for 
purposes of Executive Order (E.O.) 12866. However, in order to help 
explain the need for this rule and its potential benefits and costs, 
SBA is providing below a Cost/Benefit Analysis of the rule. This is 
also not a ``major rule'' under the Congressional Review Act (5 U.S.C. 
800).

Cost/Benefit Analysis

1. Is there a need for the regulatory action?

    SBA's statutory mission is to aid and assist small businesses 
through a variety of financial, procurement, business development, and 
advocacy programs. To assist the intended beneficiaries of these 
programs effectively, SBA must establish distinct definitions of which 
businesses are deemed small businesses. The Small Business Act (15 
U.S.C. 632(a)) (Act) delegates to the SBA Administrator the 
responsibility for establishing small business definitions. The Act 
also requires that small business definitions vary from industry to 
industry to reflect industry differences. The supplementary information 
to this interim final rule explains how SBA adjusts size standards for 
inflation. SBA is required to assess the impact of inflation on its 
monetary-based size standards at least once every 5 years (67 FR 3041 
(January 23, 2002) and 13 CFR 121.102(c)). Many businesses may have 
lost small business eligibility for Federal assistance under SBA's 
monetary-based size standards simply because of inflation that has 
occurred since the last inflation adjustment to size standards in 2014. 
This interim final rule aims to make those businesses eligible again 
for Federal assistance.

2. What are the potential benefits and costs of this regulatory action?

    The most significant benefit of this interim final rule is to 
enable businesses that have exceeded size standards simply due to 
inflation-driven revenue growth to regain eligibility for Federal small 
business assistance programs. This will also help businesses about to

[[Page 34265]]

exceed their size standards to retain small business eligibility for 
Federal programs for a longer period. These programs include SBA's 
financial assistance programs, economic injury disaster loans, and 
Federal procurement programs intended for small businesses. Federal 
procurement programs provide targeted opportunities for small 
businesses under SBA's business development programs, such as 8(a), 
Small Disadvantaged Businesses (SDB), small businesses located in 
Historically Underutilized Business Zones (HUBZone), women-owned small 
businesses (WOSB), economically disadvantaged women-owned small 
businesses (EDWOSB), and service-disabled veteran-owned small 
businesses (SDVOSB). Federal agencies may also use SBA's size standards 
for a variety of other regulatory and program purposes. These programs 
assist small businesses to become more knowledgeable, stable, and 
competitive.
    Besides small business contracting opportunities and financial 
assistance, small businesses also benefit from reduced fees, less 
paperwork, and fewer compliance requirements that are available to 
small businesses through Federal agencies that use SBA's monetary-based 
size standards.

The Baseline

    OMB directs agencies to establish an appropriate baseline to 
evaluate the benefits, costs, and/or transfer impacts of regulatory 
actions, as well as discuss the alternative approaches considered, if 
any. The baseline should represent the agency's best assessment of what 
the world would look like absent the regulatory action. For a new 
regulatory action modifying an existing regulation (such as adjusting 
the existing size standards for inflation), a baseline assuming no 
change to the regulation (i.e., maintaining the status quo) generally 
provides an appropriate benchmark for evaluating benefits, costs, or 
transfer impacts of proposed regulatory changes and their alternatives.
    Based on the 2012 Economic Census (https://www2.census.gov/econ2012/EC/) special tabulations (the latest available and compiled 
from a special tabulation provided by the U.S. Census Bureau), 2012 
County Business Patterns Reports (https://www.census.gov/programs-surveys/cbp.html) (for industries not covered by the Economic Census), 
and 2012 Agricultural Census (https://www.nass.usda.gov/) tabulations 
(for agricultural industries), of a total of about 7.2 million firms in 
all industries with receipts-based size standards, 96.2 percent are 
considered small and 3.8 percent are considered other than small under 
the current size standards. Similarly, based on the fourth quarter of 
2018 data from the Federal Deposit Insurance Corporation (FDIC), 
available at https://www5.fdic.gov/sdi/download_large_list_outside.asp, 
and the National Credit Union Administration (NCUA), available at 
https://www.ncua.gov/analysis/credit-union-corporate-call-report-data/quarterly-data, of about 13,600 total firms subject to the assets-based 
size standards, 83 percent were considered small.
    Based on the data from the Federal Procurement Data System--Next 
Generation (FPDS-NG) for fiscal years 2015-2017, available at https://www.fpds.gov, on average, about 88,700 unique firms in industries 
subject to monetary-based size standards received at least one Federal 
contract during that period. Of those 88,700 firms, 83 percent were 
small. Businesses subject to monetary-based standards received $182 
billion in annual average Federal contract dollars during that period, 
of which $63.7 billion or about 35 percent went to small businesses. Of 
total dollars awarded to small businesses subject to monetary-based 
size standards, $45 billion, or 71 percent, was awarded through various 
small business set-aside programs and the other 29 percent was awarded 
through non-set aside contracts.
    Based on the SBA's internal data on its loan programs, small 
businesses subject to monetary-based size standards received, on an 
annual basis, a total of nearly 58,600 7(a) and 504 loans for fiscal 
years 2016-2018, totaling $24.5 billion, of which 85 percent was issued 
through the 7(a) program and 15 percent was issued through the 504/CDC 
program. During fiscal year 2018, small businesses in those industries 
also received about 11,350 loans through the SBA's Economic Injury 
Disaster Loan (EIDL) program, totaling about $1.0 billion on an annual 
basis. Table 3, ``Impact Analysis Inflation Adjustment to Monetary-
based Size Standards,'' provides these baseline results.

                 Table 3--Impact Analysis Inflation Adjustment to Monetary-Based Size Standards
----------------------------------------------------------------------------------------------------------------
                                                                 Current       After inflation
                          Factor                               (baseline)        adjustment      Percent change
----------------------------------------------------------------------------------------------------------------
Total firms subject to monetary-based size standard                     7.18              7.18               0.0
 (million)--2012 Economic Census..........................
Total small firms subject to monetary-based standard                    6.91              7.00               1.3
 (million)--2012 Economic Census..........................
Total small firms as % of total firms--2012 Economic                    96.2              97.4               1.2
 Census...................................................
Total small firms share (%) of industry receipts for                    29.0              29.7               0.7
 receipt-based size standards.............................
Total small firms share (%) of industry assets for assets-               5.6               6.0               0.4
 based size standards.....................................
Average total number of unique firms with monetary-based              88,700            88,700               0.0
 size standards getting Federal contracts--FPDS-NG (2015-
 2017)....................................................
Average total number of unique small firms with monetary-             73,825            74,706               1.2
 based size standards getting Federal contracts--FPDS-NG
 (2015-2017)..............................................
Unique small firms as % with monetary-based size standards              83.2              84.2               1.2
 getting Federal contracts................................
Average total contract dollars awarded to business                    $182.1            $182.1               0.0
 concerns, subject to monetary-based standards ($
 billion)--FPDS-NG (2015-2017)............................
Average total small business contract dollars awarded to               $63.7             $64.4               1.1
 businesses subject to monetary-based size standard ($
 billion)--FPDS-NG (2015-2017)............................
Small business dollars as % of total dollars awarded to                 34.9              35.3               1.1
 firms subject to monetary-based standards................
Annual average number of 7(a) and 504 loans to businesses             58,569            58,685               0.2
 subject to monetary-based standards (2015-2018)..........
Annual average amount of 7(a) and 504 loans awarded issued             $24.5             $24.6               0.2
 to firms subject to monetary-based standard ($ billion)
 (2015-2018)..............................................

[[Page 34266]]

 
Number of EIDL loans to businesses subject to monetary-               11,345            11,376               0.3
 based size standards (2018)..............................
Amount of EIDL loans ($ million)..........................            $1,011            $1,014               0.3
----------------------------------------------------------------------------------------------------------------

Benefits

    The most significant benefits to businesses from the adjustment of 
size standards for include: (1) Some businesses that are above the 
current size standards may gain small business status under the higher, 
inflation-adjusted size standards, thereby enabling them to participate 
in Federal small business assistance programs; (2) growing small 
businesses that are close to exceeding the current size standards will 
be able to retain their small business status under the higher size 
standards, thereby enabling them to continue their participation in the 
programs; and (3) Federal agencies will have a larger pool of small 
businesses from which to draw for their small business procurement 
programs.
    SBA estimates that this inflation adjustment will enable 
approximately 89,730 firms in industries and subindustries with 
receipts-based size standards and about 161 firms in industries with 
assets-based size standards that are currently above SBA's size 
standards to gain small business status and become eligible for these 
programs. This represents a total of 89,891 additional firms that would 
qualify as small business under the inflation-adjusted size standards. 
This will increase the small business share of total receipts in 
industries and subindustries with receipts-based size standards from 
29.0 percent to 29.7 percent, and the small business share of total 
assets in industries with assets-based size standards from 5.7 percent 
to 6.0 percent.
    Based on FPDS-NG data from fiscal years 2015-2017, SBA estimates 
that firms gaining small business status under the inflation-adjusted 
size standards could receive between $700 million and $750 million in 
additional small business Federal contract dollars. This represents an 
increase of about 1.2 percent over the baseline. The added competition 
for many of these procurements could also result in lower prices to the 
Government for procurements reserved for small businesses, but SBA 
cannot quantify this benefit. Additionally, by allowing businesses 
above the size threshold to regain small business status and advanced 
small businesses close to size standards to prolong their small status 
for a longer period, this interim final rule could also expand the pool 
of qualified small firms for agencies to draw upon to meet their small 
business procurement requirements.
    Based on the fiscal years 2016-2018 SBA loan data, SBA estimates 
about 115-120 additional loans totaling between $60 million and $65 
million could be made to these newly defined small businesses under 
SBA's 7(a) and 504 Loan Programs under the adjusted size standards. 
Higher inflation-adjusted size standards will likely result in more 
small business guaranteed loans to businesses in these industries, but 
it is impractical to try to estimate the exact number and total amount 
of loans. There are two reasons for this: (1) Under the Jobs Act, SBA 
can now guarantee substantially larger loans than in the past; and (2) 
as described above, the Jobs Act established an alternative size 
standard ($15 million in tangible net worth and $5 million in net 
income after income taxes) for business concerns that do not meet the 
size standards for their industry. Therefore, SBA finds it difficult to 
quantify the actual impact of these inflation-adjusted size standards 
on its 7(a) and 504 Loan Programs.
    Newly defined small businesses will also benefit from SBA's 
Economic Injury Disaster Loan (EIDL) Program. Since this program is 
contingent on the occurrence and severity of a disaster in the future, 
SBA cannot make a meaningful estimate of this impact. However, based on 
historical trends, SBA estimates that the EIDL Program could issue 
about 30 loans per year (a total of about $3 million dollars) to 
businesses qualifying as small under the inflation-adjusted size 
standards.
    Additionally, the newly defined small businesses would also benefit 
through reduced fees, less paperwork, and fewer compliance requirements 
that are available to small businesses through the Federal Government, 
but SBA has no data to quantify this impact.

Costs

    To the extent that those 89,891 additional small firms could become 
active in Federal procurement programs, the adjusted size standards in 
this final interim rule may entail some additional administrative costs 
to the government as a result of the increase in the number of 
businesses eligible for Federal small business programs. For example, 
there will be more firms seeking SBA's guaranteed loans; more firms 
eligible for enrollment in the Dynamic Small Business Search (DSBS) 
database or at https://certify.sba.gov; more firms seeking 
certification as 8(a) or HUBZone firms; more firms qualifying for small 
business, WOSB, EDWOSB, SDVOSB, and SDB status; and more firms applying 
for SBA's 8(a)/BD and All Small Mentor-Prot[eacute]g[eacute] programs.
    With an expanded pool of businesses eligible for small business 
assistance under higher size standards due to this inflation 
adjustment, it is likely that Federal agencies would set aside more 
contracts for small businesses. One may surmise that this might result 
in a higher number of small business size protests and additional 
processing costs to agencies. However, SBA's historical data on size 
protests shows that the number of size protests actually decreased 
after an increase in the number businesses qualifying as small as a 
result of size standards revisions as part of the first 5-year review 
of size standards completed in early 2016. Specifically, on an annual 
basis, the number of size protests dropped from about 600 during fiscal 
years 2011-2013 (review of most receipts-based size standards was 
completed by the end of FY 2013) to about 500 during fiscal years 2014-
2016. Similarly, among those newly defined small businesses seeking 
SBA's loans, there could be some additional costs associated with 
compliance and verification of their small business status. However, 
small business lenders have an option of using the tangible net worth 
and net income-based alternative size standard instead of using the 
industry-based size standards to establish eligibility for SBA's loans. 
For all these reasons, SBA believes that these added administrative 
costs will be minor because necessary mechanisms are already in place 
to handle these added requirements.
    Among those newly defined small businesses seeking SBA's 
assistance, there could be some additional costs

[[Page 34267]]

associated with compliance and verification of small business status 
and protests of small business status. However, SBA believes that these 
added administrative costs will be minimal because mechanisms are 
already in place to handle these requirements.
    In some cases, Federal Government contracts may have higher costs. 
With a greater number of businesses defined as small, Federal agencies 
may choose to set aside more contracts for competition among small 
businesses only rather than using full and open competition. The 
movement from unrestricted to small business set-aside contracting 
might result in competition among fewer total bidders, although there 
will be more small businesses eligible to submit offers. However, the 
additional costs associated with fewer bidders are expected to be minor 
since, by law, procurements may be set aside for small businesses or 
reserved for the 8(a), HUBZone, WOSB, EDWOSB, or SDVOSB Programs only 
if awards are expected to be made at fair and reasonable prices.
    In addition, there may be higher costs when more full and open 
contracts are awarded to HUBZone businesses that receive price 
evaluation preferences. However, with agencies likely setting aside 
more contracts for small businesses in response to a larger pool of 
small businesses under inflation-adjusted higher size standards, 
HUBZone firms may receive more set-aside contracts and fewer full and 
open contracts, thereby resulting in some cost savings to agencies. SBA 
cannot estimate such costs savings because it is impossible to 
determine the number and value of unrestricted contracts to be 
otherwise awarded to HUBZone firms that will be awarded as set-asides. 
However, such cost savings are likely to be relatively small, as only a 
small fraction of full and open contracts are awarded to HUBZone 
businesses.

Transfer Impacts

    The size standards adjustments in this interim final rule may have 
some distributional effects among large and small businesses. Although 
SBA cannot estimate with certainty the actual outcome of the gains and 
losses among small and large businesses, it can identify several 
probable impacts. With an expanded pool of small businesses available 
under the higher inflation-adjusted size standards, there may be a 
transfer of some Federal contracts to small businesses from large 
businesses. Large businesses may have fewer Federal contract 
opportunities as Federal agencies decide to set aside more contracts 
for small businesses.
    Similarly, some businesses defined as small under the current size 
standards may obtain fewer Federal contracts due to the increased 
competition from more businesses defined as small under the higher 
inflation-adjusted size standards. This transfer may be offset by a 
greater number of Federal procurements set aside for all small 
businesses. The number of newly defined and expanding small businesses 
that are willing and able to sell to the Federal Government will limit 
the potential transfer of contracts from large and currently defined 
small businesses. SBA cannot estimate the potential distributional 
impacts of these transfers with any degree of precision.
    The adjustment for inflation to monetary-based industry and 
program-specific size standards is consistent with SBA's statutory 
mandate to assist small business. This regulatory action promotes the 
Administration's objectives. One of SBA's goals in support of the 
Administration's objectives is to help individual small businesses 
succeed through fair and equitable access to capital and credit, 
Government contracts, and management and technical assistance. 
Reviewing and modifying size standards when appropriate, including 
periodic inflation adjustments, ensures that intended beneficiaries 
have access to small business programs designed to assist them.

Executive Order 13563

    Executive Order 13563 emphasizes the importance of quantifying both 
costs and benefits, reducing costs, harmonizing rules, and promoting 
flexibility. A description of the need for this regulatory action and 
benefits and costs associated with this action, including possible 
distributional impacts that relate to Executive Order 13563, is 
included above in the Cost/Benefit Analysis under Executive Order 
12866. Additionally, by reviewing and adjusting size standards for 
inflation, SBA is complying with section 6 of Executive Order 13563, 
which calls for retrospective analyses of existing rules.
    During its March 26, 2019 and April 23, 2019 meetings, SBA updated 
the Small Business Procurement Advisory Council (SBPAC) on its upcoming 
size standards rules, including this inflation adjustment rule. On 
April 18, 2019, SBA also presented a similar update to the small 
business audience at the 2019 Annual Government Procurement Conference.
    Additionally, SBA issued a revised ``Size Standards Methodology'' 
white paper and published a notification in the April 27, 2018 issue of 
the Federal Register (83 FR 18468) to advise the public that the 
document was available for public review and comments. The ``Size 
Standards Methodology'' white paper explains how SBA establishes, 
reviews, and modifies its receipts-based and employee-based small 
business size standards. The white paper also describes how SBA adjusts 
size standards for inflation and updates its table of size standards 
when OMB revises the NAICS codes every 5 years. On April 11, 2019, SBA 
published a Federal Register notification (84 FR 14587) advising the 
public that the Agency had issued a revised final ``Size Standards 
Methodology'' white paper.

Executive Order 12988

    This action meets applicable standards set forth in sections 3(a) 
and 3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize 
litigation, eliminate ambiguity, and reduce burden. This rule does not 
have retroactive or preemptive effect.

Executive Order 13132

    For purposes of Executive Order 13132, SBA has determined that this 
interim final rule will not have substantial, direct effects on the 
States, on the relationship between the National government and the 
States, or on the distribution of power and responsibilities among the 
various levels of government. Therefore, SBA has determined that this 
interim final rule has no federalism implications warranting 
preparation of a federalism assessment.

Executive Order 13771

    This rule is not expected to be an Executive Order 13771 regulatory 
action because this rule is not significant under Executive Order 
12866.

Paperwork Reduction Act

    For the purposes of the Paperwork Reduction Act, 44 U.S.C. Ch. 35, 
SBA has determined that this interim final rule will not impose any new 
reporting or recordkeeping requirements.

Regulatory Flexibility Act

    According to the Regulatory Flexibility Act (RFA), 5 U.S.C. 601-
612, when an agency issues a rulemaking, it must prepare a regulatory 
flexibility analysis to address the impact of the rule on small 
entities.

Initial Regulatory Flexibility Analysis

    Under the Regulatory Flexibility Act (RFA), this interim final rule 
may have a significant impact on a substantial number of small 
businesses in the industries and subindustries with

[[Page 34268]]

monetary-based size standards. As described above, this rule may affect 
small businesses in those industries seeking Federal contracts, loans 
under SBA's 7(a), 504, and Economic Injury Disaster Loan Programs, and 
assistance under other Federal small business programs.
    Immediately below, SBA sets forth an initial regulatory flexibility 
analysis (IRFA) for this interim final rule to address the following 
questions: (1) What is the need for and objective of the rule?; (2) 
What are SBA's description and estimate for the number of small 
businesses to which the rule will apply?; (3) What are the projected 
reporting, recordkeeping, and other compliance requirements of the 
rule?; (4) What are the relevant Federal rules that may duplicate, 
overlap, or conflict with the rule?; and (5) What alternatives will 
allow the Agency to accomplish its regulatory objectives while 
minimizing the impact on small businesses?

1. What is the need for and objective of the rule?

    As discussed above, this revision to monetary-based size standards 
to account for inflation will more appropriately define small 
businesses. This interim final rule merely restores small business 
eligibility in real terms to businesses that have grown above the 
existing size standard due to inflation-led revenue growth rather than 
due to increased business activity.
    Section 3(a) of the Small Business Act (15 U.S.C. 632(a)) gives SBA 
the authority to establish and change size standards. Within its 
administrative discretion, SBA implemented a policy in its regulations 
to review the effect of inflation on size standards at least once every 
5 years (13 CFR 121.102(c)) and make any changes as appropriate. A 
review of the latest data indicates that inflation has increased a 
sufficient amount since the 2014 adjustment, enough to warrant another 
inflation adjustment to the current monetary-based size standards. As 
discussed above, adjusting size standards for inflation is also 
consistent with SBA's statutory requirement to review all size 
standards and make necessary adjustments to reflect current market 
conditions every 5 years.

2. What are SBA's description and estimate for the number of small 
businesses to which the rule will apply?

    As discussed above, based on the 2012 Economic Census tabulations, 
SBA estimates that about 89,730 additional firms will become small 
because of this adjustment to the receipts-based size standards of 518 
industries and 8 subindustries. That represents 1.3 percent of the 
total number of firms that are small under current monetary-based size 
standards. This will result in an increase in the small business share 
of total industry receipts in those industries and subindustries from 
29.0 percent under the current size standards to 29.7 percent under the 
inflation-adjusted size standards. Due to the adjustment of assets-
based size standards in 5 industries, about 160 additional firms will 
gain small business status in those industries. This will increase the 
small business share of total assets in those industries from 5.7 
percent to 6.0 percent. The size standards adopted in this interim 
final rule will enable businesses that have exceeded the size standards 
for their industries to regain small business status. It will also help 
currently small businesses retain their small business status for a 
longer period. Many firms may have lost their eligibility and find it 
difficult to compete at current size standards with companies that are 
significantly larger than they are. SBA believes the competitive impact 
will be positive for existing small businesses and for those that 
exceed the size standards but are on the very low end of those that are 
not small. They might otherwise be called or referred to as mid-sized 
businesses, although SBA only defines what is small; entities that are 
not small are ``other than small.''

3. What are the projected reporting, recordkeeping, and other 
compliance requirements of the rule?

    The inflation adjustment to size standards imposes no additional 
reporting or recordkeeping requirements on small businesses. However, 
qualifying for Federal procurement and several other programs requires 
that businesses register in the System for Award Management (SAM) 
database and certify in SAM that they are small annually. Therefore, 
newly eligible small businesses opting to participate in those programs 
must comply with SAM requirements. Businesses whose status changes in 
SAM from other than small to small must update their SAM profiles and 
complete the ``representations and certifications'' section of SAM. 
However, there are no costs associated with SAM registration or 
certification. Changing size standards alters access to SBA's programs 
but it does not impose a regulatory burden because it neither regulates 
nor controls business behavior.

4. What are the relevant Federal rules which may duplicate, overlap, or 
conflict with the rule?

    Under section 3(a)(2)(C) of the Small Business Act, 15 U.S.C. 
632(a)(2)(c), Federal agencies must use SBA's size standards to define 
a small business, unless specifically authorized by statute to do 
otherwise. In 1995, SBA published in the Federal Register a list of 
statutory and regulatory size standards that identified the application 
of SBA's size standards as well as other size standards used by Federal 
agencies (60 FR 57988 (November 24, 1995)). SBA is not aware of any 
Federal rule that would duplicate or conflict with establishing size 
standards.
    However, the Small Business Act and SBA's regulations allow Federal 
agencies to develop different size standards with the approval of SBA's 
Administrator if they believe that SBA's size standards are not 
appropriate for their programs (13 CFR 121.903). The Regulatory 
Flexibility Act authorizes an Agency to establish an alternative small 
business definition for Regulatory Flexibility Analysis purposes, after 
consultation with the Office of Advocacy of the U.S. Small Business 
Administration (5 U.S.C. 601(3)).

5. What alternatives will allow the Agency to accomplish its regulatory 
objectives while minimizing the impact on small entities?

    By law, SBA is required to develop numerical size standards for 
establishing eligibility for Federal small business assistance 
programs. Other than varying size standards by industry and changing 
the measures SBA uses to calculate business size (i.e., number of 
employees vs. annual receipts), no practical alternative exists to the 
system of numerical size standards.
    SBA's only other consideration was whether not to adjust current 
size standards for the inflation. However, SBA believes that the 8.37 
percent inflation increase that has occurred since the previous 
inflation adjustment in June 2014 (and the 40.26 percent inflation 
increase that has occurred since 2000, when the current $750,000 
agricultural size standard was established by statute) sufficiently 
affects the real value of size standards to warrant applying an 
increase at this time.

List of Subjects in 13 CFR Part 121

    Administrative practice and procedure, Government procurement, 
Government property, Grant programs--business, Individuals with 
disabilities, Loan programs--business, Reporting

[[Page 34269]]

and recordkeeping requirements, Small businesses.
    For the reasons set forth in the preamble, SBA amends 13 CFR part 
121 as follows:

PART 121--SMALL BUSINESS SIZE REGULATIONS

0
1. The authority citation for part 121 continues to read as follows:

    Authority:  15 U.S.C. 632, 634(b)(6), 662, and 694a(9).


0
2. In Sec.  121.201, amend the table ``Small Business Size Standards by 
NAICS Industry'' as follows:
0
a. Revise Subsectors 111 and 112, entries ``113110'' and ``113210'', 
Subsectors 114 and 115, entries ``213112'' through ``213115'', 
``221310'', ``221320'', and ``221330'', Subsectors 236 through 238, 
entries ``441120'', ``441210'', ``441222'', ``441228'', ``441310'', and 
``441320'', Subsectors 442 through 448 and 451 through 453, entries 
``454110'', ``454210'', ``454390'', and ``481219'', Subsectors 484 and 
485, entries ``486210'' and ``486990'', Subsectors 487, 488, and 491, 
entry ``492210'', Subsector 493, entries ``511210'', ``512110'', 
``512120'', ``512131'', ``512132'', ``512191'', ``512199'', ``512240'', 
and ``512290'', Subsector 515, entries ``517410'' and ``517919'', 
Subsector 518, entries ``519110'', ``519120'', and ``519190'', 
Subsectors 522 and 523, entries ``524113'', ``524114'', ``524127'', 
``524128'', ``524130'', ``524210'', ``524291'', ``524292'', and 
``524298'', Subsectors 525 and 531 through 533, entries ``541110'', 
``541191'', ``541199'', ``541211'', ``541213'', ``541214'', ``541219'', 
``541310'', ``541320'', ``541330'', ``541330 first, second and third 
sub-entry'', ``541340'', ``541350'', ``541360'', ``541370'', 
``541380'', ``541410'', ``541420'', ``541430'', ``541490'', ``541511'' 
through ``541513'', ``541519'', ``541519 sub-entry'', ``541611'', 
``541612'' through ``541614'', ``541618'', ``541620'', ``541690'', 
``541720'', ``541810'', ``541820'', ``541830'', ``541840'', ``541850'', 
``541860'', ``541870'', ``541890'', ``541910'', ``541921'', ``541922'', 
``541930'', ``541940'', and ``541990'', Subsectors 551, 561, 562, 611, 
621 through 624, 711 through 713, 721, 722, and 811 through 813.
0
b. Revise footnote 9.
    The revisions read as follows:


Sec.  121.201   What size standards has SBA identified by North 
American Industry Classification System codes?

* * * * *

                                 Small Business Size Standards by NAICS Industry
----------------------------------------------------------------------------------------------------------------
                                                                                                 Size standards
            NAICS codes               NAICS U.S. industry title    Size standards in millions     in number of
                                                                           of dollars               employees
----------------------------------------------------------------------------------------------------------------
                              Sector 11--Agriculture, Forestry, Fishing and Hunting
                                         Subsector 111--Crop Production
----------------------------------------------------------------------------------------------------------------
111110............................  Soybean Farming.............  $1.0........................  ................
111120............................  Oilseed (except Soybean)      $1.0........................  ................
                                     Farming.
111130............................  Dry Pea and Bean Farming....  $1.0........................  ................
111140............................  Wheat Farming...............  $1.0........................  ................
111150............................  Corn Farming................  $1.0........................  ................
111160............................  Rice Farming................  $1.0........................  ................
111191............................  Oilseed and Grain             $1.0........................  ................
                                     Combination Farming.
111199............................  All Other Grain Farming.....  $1.0........................  ................
111211............................  Potato Farming..............  $1.0........................  ................
111219............................  Other Vegetable (except       $1.0........................  ................
                                     Potato) and Melon Farming.
111310............................  Orange Groves...............  $1.0........................  ................
111320............................  Citrus (except Orange)        $1.0........................  ................
                                     Groves.
111331............................  Apple Orchards..............  $1.0........................  ................
111332............................  Grape Vineyards.............  $1.0........................  ................
111333............................  Strawberry Farming..........  $1.0........................  ................
111334............................  Berry (except Strawberry)     $1.0........................  ................
                                     Farming.
111335............................  Tree Nut Farming............  $1.0........................  ................
111336............................  Fruit and Tree Nut            $1.0........................  ................
                                     Combination Farming.
111339............................  Other Noncitrus Fruit         $1.0........................  ................
                                     Farming.
111411............................  Mushroom Production.........  $1.0........................  ................
111419............................  Other Food Crops Grown Under  $1.0........................  ................
                                     Cover.
111421............................  Nursery and Tree Production.  $1.0........................  ................
111422............................  Floriculture Production.....  $1.0........................  ................
111910............................  Tobacco Farming.............  $1.0........................  ................
111920............................  Cotton Farming..............  $1.0........................  ................
111930............................  Sugarcane Farming...........  $1.0........................  ................
111940............................  Hay Farming.................  $1.0........................  ................
111991............................  Sugar Beet Farming..........  $1.0........................  ................
111992............................  Peanut Farming..............  $1.0........................  ................
111998............................  All Other Miscellaneous Crop  $1.0........................  ................
                                     Farming.
----------------------------------------------------------------------------------------------------------------
                                Subsector 112--Animal Production and Aquaculture
----------------------------------------------------------------------------------------------------------------
112111............................  Beef Cattle Ranching and      $1.0........................  ................
                                     Farming.
112112............................  Cattle Feedlots.............  $8.0........................  ................
112120............................  Dairy Cattle and Milk         $1.0........................  ................
                                     Production.
112210............................  Hog and Pig Farming.........  $1.0........................  ................
112310............................  Chicken Egg Production......  $16.5.......................  ................
112320............................  Broilers and Other Meat Type  $1.0........................  ................
                                     Chicken Production.
112330............................  Turkey Production...........  $1.0........................  ................
112340............................  Poultry Hatcheries..........  $1.0........................  ................

[[Page 34270]]

 
112390............................  Other Poultry Production....  $1.0........................  ................
112410............................  Sheep Farming...............  $1.0........................  ................
112420............................  Goat Farming................  $1.0........................  ................
112511............................  Finfish Farming and Fish      $1.0........................  ................
                                     Hatcheries.
112512............................  Shellfish Farming...........  $1.0........................  ................
112519............................  Other Aquaculture...........  $1.0........................  ................
112910............................  Apiculture..................  $1.0........................  ................
112920............................  Horse and Other Equine        $1.0........................  ................
                                     Production.
112930............................  Fur-Bearing Animal and        $1.0........................  ................
                                     Rabbit Production.
112990............................  All Other Animal Production.  $1.0........................  ................
----------------------------------------------------------------------------------------------------------------
                                       Subsector 113--Forestry and Logging
----------------------------------------------------------------------------------------------------------------
113110............................  Timber Tract Operations.....  $12.0.......................  ................
113210............................  Forest Nurseries and          $12.0.......................  ................
                                     Gathering of Forest
                                     Products.
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
                                  Subsector 114--Fishing, Hunting and Trapping
----------------------------------------------------------------------------------------------------------------
114111............................  Finfish Fishing.............  $22.0.......................  ................
114112............................  Shellfish Fishing...........  $6.0........................  ................
114119............................  Other Marine Fishing........  $8.0........................  ................
114210............................  Hunting and Trapping........  $6.0........................  ................
----------------------------------------------------------------------------------------------------------------
                         Subsector 115--Support Activities for Agriculture and Forestry
----------------------------------------------------------------------------------------------------------------
115111............................  Cotton Ginning..............  $12.0.......................  ................
115112............................  Soil Preparation, Planting,   $8.0........................  ................
                                     and Cultivating.
115113............................  Crop Harvesting, Primarily    $8.0........................  ................
                                     by Machine.
115114............................  Postharvest Crop Activities   $30.0.......................  ................
                                     (except Cotton Ginning).
115115............................  Farm Labor Contractors and    $16.5.......................  ................
                                     Crew Leaders.
115116............................  Farm Management Services....  $8.0........................  ................
115210............................  Support Activities for        $8.0........................  ................
                                     Animal Production.
115310............................  Support Activities for        $8.0........................  ................
                                     Forestry.
115310 (Exception 1)..............  Forest Fire Suppression \17\  $20.5 \17\..................  ................
115310 (Exception 2)..............  Fuels Management Services     $20.5 \17\..................  ................
                                     \17\.
----------------------------------------------------------------------------------------------------------------
                            Sector 21--Mining, Quarrying, and Oil and Gas Extraction
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
                                  Subsector 213--Support Activities for Mining
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
213112............................  Support Activities for Oil    $41.5.......................  ................
                                     and Gas Operations.
213113............................  Support Activities for Coal   $22.0.......................  ................
                                     Mining.
213114............................  Support Activities for Metal  $22.0.......................  ................
                                     Mining.
213115............................  Support Activities for        $8.0........................  ................
                                     Nonmetallic Minerals
                                     (except Fuels).
----------------------------------------------------------------------------------------------------------------
                                              Sector 22--Utilities
                                            Subsector 221--Utilities
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
221310............................  Water Supply and Irrigation   $30.0.......................  ................
                                     Systems.
221320............................  Sewage Treatment Facilities.  $22.0.......................  ................
221330............................  Steam and                     $16.5.......................  ................
                                     Air[dash]Conditioning
                                     Supply.
----------------------------------------------------------------------------------------------------------------
                                             Sector 23--Construction
                                    Subsector 236--Construction of Buildings
----------------------------------------------------------------------------------------------------------------
236115............................  New Single-family Housing     $39.5.......................  ................
                                     Construction (Except For-
                                     Sale Builders).
236116............................  New Multifamily Housing       $39.5.......................  ................
                                     Construction (except For-
                                     Sale Builders).
236117............................  New Housing For-Sale          $39.5.......................  ................
                                     Builders.
236118............................  Residential Remodelers......  $39.5.......................  ................
236210............................  Industrial Building           $39.5.......................  ................
                                     Construction.
236220............................  Commercial and Institutional  $39.5.......................  ................
                                     Building Construction.
----------------------------------------------------------------------------------------------------------------

[[Page 34271]]

 
                             Subsector 237--Heavy and Civil Engineering Construction
----------------------------------------------------------------------------------------------------------------
237110............................  Water and Sewer Line and      $39.5.......................  ................
                                     Related Structures
                                     Construction.
237120............................  Oil and Gas Pipeline and      $39.5.......................  ................
                                     Related Structures
                                     Construction.
237130............................  Power and Communication Line  $39.5.......................  ................
                                     and Related Structures
                                     Construction.
237210............................  Land Subdivision............  $30.0.......................  ................
237310............................  Highway, Street, and Bridge   $39.5.......................  ................
                                     Construction.
237990............................  Other Heavy and Civil         $39.5.......................  ................
                                     Engineering Construction.
237900 (Exception)................  Dredging and Surface Cleanup  $30.0 \2\...................  ................
                                     Activities \2\.
----------------------------------------------------------------------------------------------------------------
                                   Subsector 238--Specialty Trade Contractors
----------------------------------------------------------------------------------------------------------------
238110............................  Poured Concrete Foundation    $16.5.......................  ................
                                     and Structure Contractors.
238120............................  Structural Steel and Precast  $16.5.......................  ................
                                     Concrete Contractors.
238130............................  Framing Contractors.........  $16.5.......................  ................
238140............................  Masonry Contractors.........  $16.5.......................  ................
238150............................  Glass and Glazing             $16.5.......................  ................
                                     Contractors.
238160............................  Roofing Contractors.........  $16.5.......................  ................
238170............................  Siding Contractors..........  $16.5.......................  ................
238190............................  Other Foundation, Structure,  $16.5.......................  ................
                                     and Building Exterior
                                     Contractors.
238210............................  Electrical Contractors and    $16.5.......................  ................
                                     Other Wiring Installation
                                     Contractors.
238220............................  Plumbing, Heating, and        $16.5.......................  ................
                                     Air[dash]Conditioning
                                     Contractors.
238290............................  Other Building Equipment      $16.5.......................  ................
                                     Contractors.
238310............................  Drywall and Insulation        $16.5.......................  ................
                                     Contractors.
238320............................  Painting and Wall Covering    $16.5.......................  ................
                                     Contractors.
238330............................  Flooring Contractors........  $16.5.......................  ................
238340............................  Tile and Terrazzo             $16.5.......................  ................
                                     Contractors.
238350............................  Finish Carpentry Contractors  $16.5.......................  ................
238390............................  Other Building Finishing      $16.5.......................  ................
                                     Contractors.
238910............................  Site Preparation Contractors  $16.5.......................  ................
238990............................  All Other Specialty Trade     $16.5.......................  ................
                                     Contractors.
238990 (Exception)................  Building and Property         $16.5 \13\..................  ................
                                     Specialty Trade Services
                                     \13\.
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
                                           Sector 44-45--Retail Trade
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
                                 Subsector 441--Motor Vehicle and Parts Dealers
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
441120............................  Used Car Dealers............  $27.0.......................  ................
441210............................  Recreational Vehicle Dealers  $35.0.......................  ................
441222............................  Boat Dealers................  $35.0.......................  ................
441228............................  Motorcycle, ATV, and All      $35.0.......................  ................
                                     Other Motor Vehicle Dealers.
441310............................  Automotive Parts and          $16.5.......................  ................
                                     Accessories Stores.
441320............................  Tire Dealers................  $16.5.......................  ................
----------------------------------------------------------------------------------------------------------------
                              Subsector 442--Furniture and Home Furnishings Stores
----------------------------------------------------------------------------------------------------------------
442110............................  Furniture Stores............  $22.0.......................  ................
442210............................  Floor Covering Stores.......  $8.0........................  ................
442291............................  Window Treatment Stores.....  $8.0........................  ................
442299............................  All Other Home Furnishings    $22.0.......................  ................
                                     Stores.
----------------------------------------------------------------------------------------------------------------
                                 Subsector 443--Electronics and Appliance Stores
----------------------------------------------------------------------------------------------------------------
443141............................  Household Appliance Stores..  $12.0.......................  ................
443142............................  Electronics Stores..........  $35.0.......................  ................
----------------------------------------------------------------------------------------------------------------
                   Subsector 444--Building Material and Garden Equipment and Supplies Dealers
----------------------------------------------------------------------------------------------------------------
444110............................  Home Centers................  $41.5.......................  ................
444120............................  Paint and Wallpaper Stores..  $30.0.......................  ................
444130............................  Hardware Stores.............  $8.0........................  ................
444190............................  Other Building Material       $22.0.......................  ................
                                     Dealers.
444210............................  Outdoor Power Equipment       $8.0........................  ................
                                     Stores.
444220............................  Nursery and Garden Centers..  $12.0.......................  ................
----------------------------------------------------------------------------------------------------------------

[[Page 34272]]

 
                                     Subsector 445--Food and Beverage Stores
----------------------------------------------------------------------------------------------------------------
445110............................  Supermarkets and Other        $35.0.......................  ................
                                     Grocery (except
                                     Convenience) Stores.
445120............................  Convenience Stores..........  $32.0.......................  ................
445210............................  Meat Markets................  $8.0........................  ................
445220............................  Fish and Seafood Markets....  $8.0........................  ................
445230............................  Fruit and Vegetable Markets.  $8.0........................  ................
445291............................  Baked Goods Stores..........  $8.0........................  ................
445292............................  Confectionery and Nut Stores  $8.0........................  ................
445299............................  All Other Specialty Food      $8.0........................  ................
                                     Stores.
445310............................  Beer, Wine and Liquor Stores  $8.0........................  ................
----------------------------------------------------------------------------------------------------------------
                                 Subsector 446--Health and Personal Care Stores
----------------------------------------------------------------------------------------------------------------
446110............................  Pharmacies and Drug Stores..  $30.0.......................  ................
446120............................  Cosmetics, Beauty Supplies    $30.0.......................  ................
                                     and Perfume Stores.
446130............................  Optical Goods Stores........  $22.0.......................  ................
446191............................  Food (Health) Supplement      $16.5.......................  ................
                                     Stores.
446199............................  All Other Health and          $8.0........................  ................
                                     Personal Care Stores.
----------------------------------------------------------------------------------------------------------------
                                        Subsector 447--Gasoline Stations
----------------------------------------------------------------------------------------------------------------
447110............................  Gasoline Stations with        $32.0.......................  ................
                                     Convenience Stores.
447190............................  Other Gasoline Stations.....  $16.5.......................  ................
----------------------------------------------------------------------------------------------------------------
                             Subsector 448--Clothing and Clothing Accessories Stores
----------------------------------------------------------------------------------------------------------------
448110............................  Men's Clothing Stores.......  $12.0.......................  ................
448120............................  Women's Clothing Stores.....  $30.0.......................  ................
448130............................  Children's and Infants'       $35.0.......................  ................
                                     Clothing Stores.
448140............................  Family Clothing Stores......  $41.5.......................  ................
448150............................  Clothing Accessories Stores.  $16.5.......................  ................
448190............................  Other Clothing Stores.......  $22.0.......................  ................
448210............................  Shoe Stores.................  $30.0.......................  ................
448310............................  Jewelry Stores..............  $16.5.......................  ................
448320............................  Luggage and Leather Goods     $30.0.......................  ................
                                     Stores.
----------------------------------------------------------------------------------------------------------------
                           Subsector 451--Sporting Good, Hobby, Book and Music Stores
----------------------------------------------------------------------------------------------------------------
451110............................  Sporting Goods Stores.......  $16.5.......................  ................
451120............................  Hobby, Toy and Game Stores..  $30.0.......................  ................
451130............................  Sewing, Needlework and Piece  $30.0.......................  ................
                                     Goods Stores.
451140............................  Musical Instrument and        $12.0.......................  ................
                                     Supplies Stores.
451211............................  Book Stores.................  $30.0.......................  ................
451212............................  News Dealers and Newsstands.  $8.0........................  ................
----------------------------------------------------------------------------------------------------------------
                                    Subsector 452--General Merchandise Stores
----------------------------------------------------------------------------------------------------------------
452210............................  Department Stores...........  $35.0.......................  ................
452311............................  Warehouse Clubs and           $32.0.......................  ................
                                     Superstores.
452319............................  All Other General             $35.0.......................  ................
                                     Merchandise Stores.
----------------------------------------------------------------------------------------------------------------
                                  Subsector 453--Miscellaneous Store Retailers
----------------------------------------------------------------------------------------------------------------
453110............................  Florists....................  $8.0........................  ................
453210............................  Office Supplies and           $35.0.......................  ................
                                     Stationery Stores.
453220............................  Gift, Novelty and Souvenir    $8.0........................  ................
                                     Stores.
453310............................  Used Merchandise Stores.....  $8.0........................  ................
453910............................  Pet and Pet Supplies Stores.  $22.0.......................  ................
453920............................  Art Dealers.................  $8.0........................  ................
453930............................  Manufactured (Mobile) Home    $16.5.......................  ................
                                     Dealers.
453991............................  Tobacco Stores..............  $8.0........................  ................
453998............................  All Other Miscellaneous       $8.0........................  ................
                                     Store Retailers (except
                                     Tobacco Stores).
----------------------------------------------------------------------------------------------------------------
                                        Subsector 454--Nonstore Retailers
----------------------------------------------------------------------------------------------------------------
454110............................  Electronic Shopping and Mail- $41.5.......................  ................
                                     Order Houses.
454210............................  Vending Machine Operators...  $12.0.......................  ................
----------------------------------------------------------------------------------------------------------------
 

[[Page 34273]]

 
                                                  * * * * * * *
454390............................  Other Direct Selling          $8.0........................  ................
                                     Establishments.
----------------------------------------------------------------------------------------------------------------
                                  Sector 48-49--Transportation and Warehousing
                                        Subsector 481--Air Transportation
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
481219............................  Other Nonscheduled Air        $16.5.......................  ................
                                     Transportation.
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
                                       Subsector 484--Truck Transportation
----------------------------------------------------------------------------------------------------------------
484110............................  General Freight Trucking,     $30.0.......................  ................
                                     Local.
484121............................  General Freight Trucking,     $30.0.......................  ................
                                     Long[dash]Distance,
                                     Truckload.
484122............................  General Freight Trucking,     $30.0.......................  ................
                                     Long[dash]Distance, Less
                                     Than Truckload.
484210............................  Used Household and Office     $30.0.......................  ................
                                     Goods Moving.
484220............................  Specialized Freight (except   $30.0.......................  ................
                                     Used Goods) Trucking, Local.
484230............................  Specialized Freight (except   $30.0.......................  ................
                                     Used Goods) Trucking,
                                     Long[dash]Distance.
----------------------------------------------------------------------------------------------------------------
                           Subsector 485--Transit and Ground Passenger Transportation
----------------------------------------------------------------------------------------------------------------
485111............................  Mixed Mode Transit Systems..  $16.5.......................  ................
485112............................  Commuter Rail Systems.......  $16.5.......................  ................
485113............................  Bus and Other Motor Vehicle   $16.5.......................  ................
                                     Transit Systems.
485119............................  Other Urban Transit Systems.  $16.5.......................  ................
485210............................  Interurban and Rural Bus      $16.5.......................  ................
                                     Transportation.
485310............................  Taxi Service................  $16.5.......................  ................
485320............................  Limousine Service...........  $16.5.......................  ................
485410............................  School and Employee Bus       $16.5.......................  ................
                                     Transportation.
485510............................  Charter Bus Industry........  $16.5.......................  ................
485991............................  Special Needs Transportation  $16.5.......................  ................
485999............................  All Other Transit and Ground  $16.5.......................  ................
                                     Passenger Transportation.
----------------------------------------------------------------------------------------------------------------
                                     Subsector 486--Pipeline Transportation
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
486210............................  Pipeline Transportation of    $30.0.......................  ................
                                     Natural Gas.
 
                                                  * * * * * * *
486990............................  All Other Pipeline            $40.5.......................  ................
                                     Transportation.
----------------------------------------------------------------------------------------------------------------
                              Subsector 487--Scenic and Sightseeing Transportation
----------------------------------------------------------------------------------------------------------------
487110............................  Scenic and Sightseeing        $8.0........................  ................
                                     Transportation, Land.
487210............................  Scenic and Sightseeing        $8.0........................  ................
                                     Transportation, Water.
487990............................  Scenic and Sightseeing        $8.0........................  ................
                                     Transportation, Other.
----------------------------------------------------------------------------------------------------------------
                              Subsector 488--Support Activities for Transportation
----------------------------------------------------------------------------------------------------------------
488111............................  Air Traffic Control.........  $35.0.......................  ................
488119............................  Other Airport Operations....  $35.0.......................  ................
488190............................  Other Support Activities for  $35.0.......................  ................
                                     Air Transportation.
488210............................  Support Activities for Rail   $16.5.......................  ................
                                     Transportation.
488310............................  Port and Harbor Operations..  $41.5.......................  ................
488320............................  Marine Cargo Handling.......  $41.5.......................  ................
488330............................  Navigational Services to      $41.5.......................  ................
                                     Shipping.
488390............................  Other Support Activities for  $41.5.......................  ................
                                     Water Transportation.
488410............................  Motor Vehicle Towing........  $8.0........................  ................
488490............................  Other Support Activities for  $8.0........................  ................
                                     Road Transportation.
488510............................  Freight Transportation        $16.5 \10\..................  ................
                                     Arrangement \10\.
488510 (Exception)................  Non[dash]Vessel Owning        $30.0.......................  ................
                                     Common Carriers and
                                     Household Goods Forwarders.
488991............................  Packing and Crating.........  $30.0.......................  ................
488999............................  All Other Support Activities  $8.0........................  ................
                                     for Transportation.
----------------------------------------------------------------------------------------------------------------
                                          Subsector 491--Postal Service
----------------------------------------------------------------------------------------------------------------
491110............................  Postal Service..............  $8.0........................  ................
----------------------------------------------------------------------------------------------------------------

[[Page 34274]]

 
                                     Subsector 492--Couriers and Messengers
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
492210............................  Local Messengers and Local    $30.0.......................  ................
                                     Delivery.
----------------------------------------------------------------------------------------------------------------
                                     Subsector 493--Warehousing and Storage
----------------------------------------------------------------------------------------------------------------
493110............................  General Warehousing and       $30.0.......................  ................
                                     Storage.
493120............................  Refrigerated Warehousing and  $30.0.......................  ................
                                     Storage.
493130............................  Farm Product Warehousing and  $30.0.......................  ................
                                     Storage.
493190............................  Other Warehousing and         $30.0.......................  ................
                                     Storage.
----------------------------------------------------------------------------------------------------------------
                                             Sector 51--Information
                             Subsector 511--Publishing Industries (except Internet)
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
511210............................  Software Publishers \20\....  $41.5 \20\..................  ................
----------------------------------------------------------------------------------------------------------------
                          Subsector 512--Motion Picture and Sound Recording Industries
----------------------------------------------------------------------------------------------------------------
512110............................  Motion Picture and Video      $35.0.......................  ................
                                     Production.
512120............................  Motion Picture and Video      $34.5.......................  ................
                                     Distribution.
512131............................  Motion Picture Theaters       $41.5.......................  ................
                                     (except Drive[dash]Ins).
512132............................  Drive[dash]In Motion Picture  $8.0........................  ................
                                     Theaters.
512191............................  Teleproduction and Other      $34.5.......................  ................
                                     Postproduction Services.
512199............................  Other Motion Picture and      $22.0.......................  ................
                                     Video Industries.
 
                                                  * * * * * * *
512240............................  Sound Recording Studios.....  $8.0........................  ................
 
                                                  * * * * * * *
512290............................  Other Sound Recording         $12.0.......................  ................
                                     Industries.
----------------------------------------------------------------------------------------------------------------
                                  Subsector 515--Broadcasting (except Internet)
----------------------------------------------------------------------------------------------------------------
515111............................  Radio Networks..............  $35.0.......................  ................
515112............................  Radio Stations..............  $41.5.......................  ................
515120............................  Television Broadcasting.....  $41.5.......................  ................
515210............................  Cable and Other Subscription  $41.5.......................  ................
                                     Programming.
----------------------------------------------------------------------------------------------------------------
                                        Subsector 517--Telecommunications
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
517410............................  Satellite Telecommunications  $35.0.......................  ................
 
                                                  * * * * * * *
517919............................  All Other Telecommunications  $35.0.......................  ................
----------------------------------------------------------------------------------------------------------------
                          Subsector 518--Data Processing, Hosting, and Related Services
----------------------------------------------------------------------------------------------------------------
518210............................  Data Processing, Hosting,     $35.0.......................  ................
                                     and Related Services.
----------------------------------------------------------------------------------------------------------------
                                    Subsector 519--Other Information Services
----------------------------------------------------------------------------------------------------------------
519110............................  News Syndicates.............  $30.0.......................  ................
519120............................  Libraries and Archives......  $16.5.......................  ................
 
                                                  * * * * * * *
519190............................  All Other Information         $30.0.......................  ................
                                     Services.
----------------------------------------------------------------------------------------------------------------
                                        Sector 52--Finance and Insurance
                           Subsector 522--Credit Intermediation and Related Activities
----------------------------------------------------------------------------------------------------------------
522110............................  Commercial Banking \8\......  $600 million in assets \8\..  ................
522120............................  Savings Institutions \8\....  $600 million in assets \8\..  ................

[[Page 34275]]

 
522130............................  Credit Unions \8\...........  $600 million in assets \8\..  ................
522190............................  Other Depository Credit       $600 million in assets \8\..  ................
                                     Intermediation \8\.
522210............................  Credit Card Issuing \8\.....  $600 million in assets \8\..  ................
522220............................  Sales Financing.............  $41.5.......................  ................
522291............................  Consumer Lending............  $41.5.......................  ................
522292............................  Real Estate Credit..........  $41.5.......................  ................
522293............................  International Trade           $41.5.......................  ................
                                     Financing.
522294............................  Secondary Market Financing..  $41.5.......................  ................
522298............................  All Other Nondepository       $41.5.......................  ................
                                     Credit Intermediation.
522310............................  Mortgage and Nonmortgage      $8.0........................  ................
                                     Loan Brokers.
522320............................  Financial Transactions        $41.5.......................  ................
                                     Processing, Reserve, and
                                     Clearinghouse Activities.
522390............................  Other Activities Related to   $22.0.......................  ................
                                     Credit Intermediation.
----------------------------------------------------------------------------------------------------------------
     Subsector 523--Securities, Commodity Contracts, and Other Financial Investments and Related Activities
----------------------------------------------------------------------------------------------------------------
523110............................  Investment Banking and        $41.5.......................  ................
                                     Securities Dealing.
523120............................  Securities Brokerage........  $41.5.......................  ................
523130............................  Commodity Contracts Dealing.  $41.5.......................  ................
523140............................  Commodity Contracts           $41.5.......................  ................
                                     Brokerage.
523210............................  Securities and Commodity      $41.5.......................  ................
                                     Exchanges.
523910............................  Miscellaneous Intermediation  $41.5.......................  ................
523920............................  Portfolio Management........  $41.5.......................  ................
523930............................  Investment Advice...........  $41.5.......................  ................
523991............................  Trust, Fiduciary and Custody  $41.5.......................  ................
                                     Activities.
523999............................  Miscellaneous Financial       $41.5.......................  ................
                                     Investment Activities.
----------------------------------------------------------------------------------------------------------------
                            Subsector 524--Insurance Carriers and Related Activities
----------------------------------------------------------------------------------------------------------------
524113............................  Direct Life Insurance         $41.5.......................  ................
                                     Carriers.
524114............................  Direct Health and Medical     $41.5.......................  ................
                                     Insurance Carriers.
 
                                                  * * * * * * *
524127............................  Direct Title Insurance        $41.5.......................  ................
                                     Carriers.
524128............................  Other Direct Insurance        $41.5.......................  ................
                                     (except Life, Health and
                                     Medical) Carriers.
524130............................  Reinsurance Carriers........  $41.5.......................  ................
524210............................  Insurance Agencies and        $ 8.0.......................  ................
                                     Brokerages.
524291............................  Claims Adjusting............  $22.0.......................  ................
524292............................  Third Party Administration    $35.0.......................  ................
                                     of Insurance and Pension
                                     Funds.
524298............................  All Other Insurance Related   $16.5.......................  ................
                                     Activities.
----------------------------------------------------------------------------------------------------------------
                            Subsector 525--Funds, Trusts and Other Financial Vehicles
----------------------------------------------------------------------------------------------------------------
525110............................  Pension Funds...............  $35.0.......................  ................
525120............................  Health and Welfare Funds....  $35.0.......................  ................
525190............................  Other Insurance Funds.......  $35.0.......................  ................
525910............................  Open[dash]End Investment      $35.0.......................  ................
                                     Funds.
525920............................  Trusts, Estates, and Agency   $35.0.......................  ................
                                     Accounts.
525990............................  Other Financial Vehicles....  $35.0.......................  ................
----------------------------------------------------------------------------------------------------------------
                                  Sector 53--Real Estate and Rental and Leasing
                                           Subsector 531--Real Estate
----------------------------------------------------------------------------------------------------------------
531110............................  Lessors of Residential        $30.0 \9\...................  ................
                                     Buildings and Dwellings \9\.
531120............................  Lessors of Nonresidential     $30.0 \9\...................  ................
                                     Buildings (except
                                     Miniwarehouses) \ 9\.
531130............................  Lessors of Miniwarehouses     $30.0 \9\...................  ................
                                     and Self-Storage Units \9\.
531190............................  Lessors of Other Real Estate  $30.0 \9\...................  ................
                                     Property \9\.
531210............................  Offices of Real Estate        $8.0 \10\...................  ................
                                     Agents and Brokers \10\.
531311............................  Residential Property          $8.0........................  ................
                                     Managers.
531312............................  Nonresidential Property       $8.0........................  ................
                                     Managers.
531320............................  Offices of Real Estate        $8.0........................  ................
                                     Appraisers.
531390............................  Other Activities Related to   $8.0........................  ................
                                     Real Estate.
----------------------------------------------------------------------------------------------------------------
                                   Subsector 532--Rental and Leasing Services
----------------------------------------------------------------------------------------------------------------
532111............................  Passenger Car Rental........  $41.5.......................  ................
532112............................  Passenger Car Leasing.......  $41.5.......................  ................
532120............................  Truck, Utility Trailer, and   $41.5.......................  ................
                                     RV (Recreational Vehicle)
                                     Rental and Leasing.
532210............................  Consumer Electronics and      $41.5.......................  ................
                                     Appliances Rental.

[[Page 34276]]

 
532281............................  Formal Wear and Costume       $22.0.......................  ................
                                     Rental.
532282............................  Video Tape and Disc Rental..  $30.0.......................  ................
532283............................  Home Health Equipment Rental  $35.0.......................  ................
532284............................  Recreational Goods Rental...  $8.0........................  ................
532289............................  All Other Consumer Goods      $8.0........................  ................
                                     Rental.
532310............................  General Rental Centers......  $8.0........................  ................
532411............................  Commercial Air, Rail, and     $35.0.......................  ................
                                     Water Transportation
                                     Equipment Rental and
                                     Leasing.
532412............................  Construction, Mining and      $35.0.......................  ................
                                     Forestry Machinery and
                                     Equipment Rental and
                                     Leasing.
532420............................  Office Machinery and          $35.0.......................  ................
                                     Equipment Rental and
                                     Leasing.
532490............................  Other Commercial and          $35.0.......................  ................
                                     Industrial Machinery and
                                     Equipment Rental and
                                     Leasing.
----------------------------------------------------------------------------------------------------------------
               Subsector 533--Lessors of Nonfinancial Intangible Assets (except Copyrighted Works)
----------------------------------------------------------------------------------------------------------------
533110............................  Lessors of Nonfinancial       $41.5.......................  ................
                                     Intangible Assets (except
                                     Copyrighted Works).
----------------------------------------------------------------------------------------------------------------
                           Sector 54--Professional, Scientific and Technical Services
                         Subsector 541--Professional, Scientific and Technical Services
----------------------------------------------------------------------------------------------------------------
541110............................  Offices of Lawyers..........  $12.0.......................  ................
541191............................  Title Abstract and            $12.0.......................  ................
                                     Settlement Offices.
541199............................  All Other Legal Services....  $12.0.......................  ................
541211............................  Offices of Certified Public   $22.0.......................  ................
                                     Accountants.
541213............................  Tax Preparation Services....  $22.0.......................  ................
541214............................  Payroll Services............  $22.0.......................  ................
541219............................  Other Accounting Services...  $22.0.......................  ................
541310............................  Architectural Services......  $8.0........................  ................
541320............................  Landscape Architectural       $8.0........................  ................
                                     Services.
541330............................  Engineering Services........  $16.5.......................  ................
541330 (Exception 1)..............  Military and Aerospace        $41.5.......................  ................
                                     Equipment and Military
                                     Weapons.
541330 (Exception 2)..............  Contracts and Subcontracts    $41.5.......................  ................
                                     for Engineering Services
                                     Awarded Under the National
                                     Energy Policy Act of 1992.
541330 (Exception 3)..............  Marine Engineering and Naval  $41.5.......................  ................
                                     Architecture.
541340............................  Drafting Services...........  $8.0........................  ................
541350............................  Building Inspection Services  $8.0........................  ................
541360............................  Geophysical Surveying and     $16.5.......................  ................
                                     Mapping Services.
541370............................  Surveying and Mapping         $16.5.......................  ................
                                     (except Geophysical)
                                     Services.
541380............................  Testing Laboratories........  $16.5.......................  ................
541410............................  Interior Design Services....  $8.0........................  ................
541420............................  Industrial Design Services..  $8.0........................  ................
541430............................  Graphic Design Services.....  $8.0........................  ................
541490............................  Other Specialized Design      $8.0........................  ................
                                     Services.
541511............................  Custom Computer Programming   $30.0.......................  ................
                                     Services.
541512............................  Computer Systems Design       $30.0.......................  ................
                                     Services.
541513............................  Computer Facilities           $30.0.......................  ................
                                     Management Services.
541519............................  Other Computer Related        $30.0.......................  ................
                                     Services.
541519 (Exception)................  Information Technology Value  ............................          150 \18\
                                     Added Resellers \18\.
541611............................  Administrative Management     $16.5.......................  ................
                                     and General Management
                                     Consulting Services.
541612............................  Human Resources Consulting    $16.5.......................  ................
                                     Services.
541613............................  Marketing Consulting          $16.5.......................  ................
                                     Services.
541614............................  Process, Physical             $16.5.......................  ................
                                     Distribution and Logistics
                                     Consulting Services.
541618............................  Other Management Consulting   $16.5.......................  ................
                                     Services.
541620............................  Environmental Consulting      $16.5.......................  ................
                                     Services.
541690............................  Other Scientific and          $16.5.......................  ................
                                     Technical Consulting
                                     Services.
 
                                                  * * * * * * *
541720............................  Research and Development in   $22.0.......................  ................
                                     the Social Sciences and
                                     Humanities.
541810............................  Advertising Agencies \10\...  $16.5 \10\..................  ................
541820............................  Public Relations Agencies...  $16.5.......................  ................
541830............................  Media Buying Agencies.......  $16.5.......................  ................
541840............................  Media Representatives.......  $16.5.......................  ................
541850............................  Outdoor Advertising.........  $16.5.......................  ................
541860............................  Direct Mail Advertising.....  $16.5.......................  ................
541870............................  Advertising Material          $16.5.......................  ................
                                     Distribution Services.
541890............................  Other Services Related to     $16.5.......................  ................
                                     Advertising.
541910............................  Marketing Research and        $16.5.......................  ................
                                     Public Opinion Polling.
541921............................  Photography Studios,          $8.0........................  ................
                                     Portrait.
541922............................  Commercial Photography......  $8.0........................  ................
541930............................  Translation and               $8.0........................  ................
                                     Interpretation Services.
541940............................  Veterinary Services.........  $8.0........................  ................
541990............................  All Other Professional,       $16.5.......................  ................
                                     Scientific and Technical
                                     Services.
----------------------------------------------------------------------------------------------------------------

[[Page 34277]]

 
                               Sector 55--Management of Companies and Enterprises
                             Subsector 551--Management of Companies and Enterprises
----------------------------------------------------------------------------------------------------------------
551111............................  Offices of Bank Holding       $22.0.......................  ................
                                     Companies.
551112............................  Offices of Other Holding      $22.0.......................  ................
                                     Companies.
----------------------------------------------------------------------------------------------------------------
                Sector 56--Administrative and Support, Waste Management and Remediation Services
                               Subsector 561--Administrative and Support Services
----------------------------------------------------------------------------------------------------------------
561110............................  Office Administrative         $8.0........................  ................
                                     Services.
561210............................  Facilities Support Services   $41.5 \12\..................  ................
                                     \12\.
561311............................  Employment Placement          $30.0.......................  ................
                                     Agencies.
561312............................  Executive Search Services...  $30.0.......................  ................
561320............................  Temporary Help Services.....  $30.0.......................  ................
561330............................  Professional Employer         $30.0.......................  ................
                                     Organizations.
561410............................  Document Preparation          $16.5.......................  ................
                                     Services.
561421............................  Telephone Answering Services  $16.5.......................  ................
561422............................  Telemarketing Bureaus and     $16.5.......................  ................
                                     Other Contact Centers.
561431............................  Private Mail Centers........  $16.5.......................  ................
561439............................  Other Business Service        $16.5.......................  ................
                                     Centers (including Copy
                                     Shops).
561440............................  Collection Agencies.........  $16.5.......................  ................
561450............................  Credit Bureaus..............  $16.5.......................  ................
561491............................  Repossession Services.......  $16.5.......................  ................
561492............................  Court Reporting and           $16.5.......................  ................
                                     Stenotype Services.
561499............................  All Other Business Support    $16.5.......................  ................
                                     Services.
561510............................  Travel Agencies \10\........  $22.0 \10\..................  ................
561520............................  Tour Operators \10\.........  $22.0 \10\..................  ................
561591............................  Convention and Visitors       $22.0.......................  ................
                                     Bureaus.
561599............................  All Other Travel Arrangement  $22.0.......................  ................
                                     and Reservation Services.
561611............................  Investigation Services......  $22.0.......................  ................
561612............................  Security Guards and Patrol    $22.0.......................  ................
                                     Services.
561613............................  Armored Car Services........  $22.0.......................  ................
561621............................  Security Systems Services     $22.0.......................  ................
                                     (except Locksmiths).
561622............................  Locksmiths..................  $22.0.......................  ................
561710............................  Exterminating and Pest        $12.0.......................  ................
                                     Control Services.
561720............................  Janitorial Services.........  $19.5.......................  ................
561730............................  Landscaping Services........  $8.0........................  ................
561740............................  Carpet and Upholstery         $6.0........................  ................
                                     Cleaning Services.
561790............................  Other Services to Buildings   $8.0........................  ................
                                     and Dwellings.
561910............................  Packaging and Labeling        $12.0.......................  ................
                                     Services.
561920............................  Convention and Trade Show     $12.0 \10\..................  ................
                                     Organizers \10\.
561990............................  All Other Support Services..  $12.0.......................  ................
----------------------------------------------------------------------------------------------------------------
                            Subsector 562--Waste Management and Remediation Services
----------------------------------------------------------------------------------------------------------------
562111............................  Solid Waste Collection......  $41.5.......................  ................
562112............................  Hazardous Waste Collection..  $41.5.......................  ................
562119............................  Other Waste Collection......  $41.5.......................  ................
562211............................  Hazardous Waste Treatment     $41.5.......................  ................
                                     and Disposal.
562212............................  Solid Waste Landfill........  $41.5.......................  ................
562213............................  Solid Waste Combustors and    $41.5.......................  ................
                                     Incinerators.
562219............................  Other Nonhazardous Waste      $41.5.......................  ................
                                     Treatment and Disposal.
562910............................  Remediation Services........  $22.0.......................  ................
562910 (Exception)................  Environmental Remediation     ............................          750 \14\
                                     Services \14\.
562920............................  Materials Recovery            $22.0.......................  ................
                                     Facilities.
562991............................  Septic Tank and Related       $8.0........................  ................
                                     Services.
562998............................  All Other Miscellaneous       $8.0........................  ................
                                     Waste Management Services.
----------------------------------------------------------------------------------------------------------------
                                         Sector 61--Educational Services
                                       Subsector 611--Educational Services
----------------------------------------------------------------------------------------------------------------
611110............................  Elementary and Secondary      $12.0.......................  ................
                                     Schools.
611210............................  Junior Colleges.............  $22.0.......................  ................
611310............................  Colleges, Universities and    $30.0.......................  ................
                                     Professional Schools.
611410............................  Business and Secretarial      $8.0........................  ................
                                     Schools.
611420............................  Computer Training...........  $12.0.......................  ................
611430............................  Professional and Management   $12.0.......................  ................
                                     Development Training.
611511............................  Cosmetology and Barber        $8.0........................  ................
                                     Schools.
611512............................  Flight Training.............  $30.0.......................  ................
611513............................  Apprenticeship Training.....  $8.0........................  ................
611519............................  Other Technical and Trade     $16.5.......................  ................
                                     Schools.

[[Page 34278]]

 
611519 (Exception)................  Job Corps Centers \16\......  $41.5 \16\..................  ................
611610............................  Fine Arts Schools...........  $8.0........................  ................
611620............................  Sports and Recreation         $8.0........................  ................
                                     Instruction.
611630............................  Language Schools............  $12.0.......................  ................
611691............................  Exam Preparation and          $8.0........................  ................
                                     Tutoring.
611692............................  Automobile Driving Schools..  $8.0........................  ................
611699............................  All Other Miscellaneous       $12.0.......................  ................
                                     Schools and Instruction.
611710............................  Educational Support Services  $16.5.......................  ................
----------------------------------------------------------------------------------------------------------------
                                  Sector 62--Health Care and Social Assistance
                                 Subsector 621--Ambulatory Health Care Services
----------------------------------------------------------------------------------------------------------------
621111............................  Offices of Physicians         $12.0.......................  ................
                                     (except Mental Health
                                     Specialists).
621112............................  Offices of Physicians,        $12.0.......................  ................
                                     Mental Health Specialists.
621210............................  Offices of Dentists.........  $8.0........................  ................
621310............................  Offices of Chiropractors....  $8.0........................  ................
621320............................  Offices of Optometrists.....  $8.0........................  ................
621330............................  Offices of Mental Health      $8.0........................  ................
                                     Practitioners (except
                                     Physicians).
621340............................  Offices of Physical,          $8.0........................  ................
                                     Occupational and Speech
                                     Therapists and Audiologists.
621391............................  Offices of Podiatrists......  $8.0........................  ................
621399............................  Offices of All Other          $8.0........................  ................
                                     Miscellaneous Health
                                     Practitioners.
621410............................  Family Planning Centers.....  $12.0.......................  ................
621420............................  Outpatient Mental Health and  $16.5.......................  ................
                                     Substance Abuse Centers.
621491............................  HMO Medical Centers.........  $35.0.......................  ................
621492............................  Kidney Dialysis Centers.....  $41.5.......................  ................
621493............................  Freestanding Ambulatory       $16.5.......................  ................
                                     Surgical and Emergency
                                     Centers.
621498............................  All Other Outpatient Care     $22.0.......................  ................
                                     Centers.
621511............................  Medical Laboratories........  $35.0.......................  ................
621512............................  Diagnostic Imaging Centers..  $16.5.......................  ................
621610............................  Home Health Care Services...  $16.5.......................  ................
621910............................  Ambulance Services..........  $16.5.......................  ................
621991............................  Blood and Organ Banks.......  $35.0.......................  ................
621999............................  All Other Miscellaneous       $16.5.......................  ................
                                     Ambulatory Health Care
                                     Services.
----------------------------------------------------------------------------------------------------------------
                                            Subsector 622--Hospitals
----------------------------------------------------------------------------------------------------------------
622110............................  General Medical and Surgical  $41.5.......................  ................
                                     Hospitals.
622210............................  Psychiatric and Substance     $41.5.......................  ................
                                     Abuse Hospitals.
622310............................  Specialty (except             $41.5.......................  ................
                                     Psychiatric and Substance
                                     Abuse) Hospitals.
----------------------------------------------------------------------------------------------------------------
                             Subsector 623--Nursing and Residential Care Facilities
----------------------------------------------------------------------------------------------------------------
623110............................  Nursing Care Facilities       $30.0.......................  ................
                                     (Skilled Nursing
                                     Facilities).
623210............................  Residential Intellectual and  $16.5.......................  ................
                                     Developmental Disability
                                     Facilities.
623220............................  Residential Mental Health     $16.5.......................  ................
                                     and Substance Abuse
                                     Facilities.
623311............................  Continuing Care Retirement    $30.0.......................  ................
                                     Communities.
623312............................  Assisted Living Facilities    $12.0.......................  ................
                                     for the Elderly.
623990............................  Other Residential Care        $12.0.......................  ................
                                     Facilities.
----------------------------------------------------------------------------------------------------------------
                                        Subsector 624--Social Assistance
----------------------------------------------------------------------------------------------------------------
624110............................  Child and Youth Services....  $12.0.......................  ................
624120............................  Services for the Elderly and  $12.0.......................  ................
                                     Persons with Disabilities.
624190............................  Other Individual and Family   $12.0.......................  ................
                                     Services.
624210............................  Community Food Services.....  $12.0.......................  ................
624221............................  Temporary Shelters..........  $12.0.......................  ................
624229............................  Other Community Housing       $16.5.......................  ................
                                     Services.
624230............................  Emergency and Other Relief    $35.0.......................  ................
                                     Services.
624310............................  Vocational Rehabilitation     $12.0.......................  ................
                                     Services.
624410............................  Child Day Care Services.....  $8.0........................  ................
----------------------------------------------------------------------------------------------------------------
                                  Sector 71--Arts, Entertainment and Recreation
                     Subsector 711--Performing Arts, Spectator Sports and Related Industries
----------------------------------------------------------------------------------------------------------------
711110............................  Theater Companies and Dinner  $22.0.......................  ................
                                     Theaters.
711120............................  Dance Companies.............  $12.0.......................  ................
711130............................  Musical Groups and Artists..  $12.0.......................  ................
711190............................  Other Performing Arts         $30.0.......................  ................
                                     Companies.
711211............................  Sports Teams and Clubs......  $41.5.......................  ................
711212............................  Racetracks..................  $41.5.......................  ................
711219............................  Other Spectator Sports......  $12.0.......................  ................

[[Page 34279]]

 
711310............................  Promoters of Performing       $35.0.......................  ................
                                     Arts, Sports and Similar
                                     Events with Facilities.
711320............................  Promoters of Performing       $16.5.......................  ................
                                     Arts, Sports and Similar
                                     Events without Facilities.
711410............................  Agents and Managers for       $12.0.......................  ................
                                     Artists, Athletes,
                                     Entertainers and Other
                                     Public Figures.
711510............................  Independent Artists,          $8.0........................  ................
                                     Writers, and Performers.
----------------------------------------------------------------------------------------------------------------
                        Subsector 712--Museums, Historical Sites and Similar Institutions
----------------------------------------------------------------------------------------------------------------
712110............................  Museums.....................  $30.0.......................  ................
712120............................  Historical Sites............  $8.0........................  ................
712130............................  Zoos and Botanical Gardens..  $30.0.......................  ................
712190............................  Nature Parks and Other        $8.0........................  ................
                                     Similar Institutions.
----------------------------------------------------------------------------------------------------------------
                          Subsector 713--Amusement, Gambling and Recreation Industries
----------------------------------------------------------------------------------------------------------------
713110............................  Amusement and Theme Parks...  $41.5.......................  ................
713120............................  Amusement Arcades...........  $8.0........................  ................
713210............................  Casinos (except Casino        $30.0.......................  ................
                                     Hotels).
713290............................  Other Gambling Industries...  $35.0.......................  ................
713910............................  Golf Courses and Country      $16.5.......................  ................
                                     Clubs.
713920............................  Skiing Facilities...........  $30.0.......................  ................
713930............................  Marinas.....................  $8.0........................  ................
713940............................  Fitness and Recreational      $8.0........................  ................
                                     Sports Centers.
713950............................  Bowling Centers.............  $8.0........................  ................
713990............................  All Other Amusement and       $8.0........................  ................
                                     Recreation Industries.
----------------------------------------------------------------------------------------------------------------
                                   Sector 72--Accommodation and Food Services
                                          Subsector 721--Accommodation
----------------------------------------------------------------------------------------------------------------
721110............................  Hotels (except Casino         $35.0.......................  ................
                                     Hotels) and Motels.
721120............................  Casino Hotels...............  $35.0.......................  ................
721191............................  Bed[dash]and[dash]Breakfast   $8.0........................  ................
                                     Inns.
721199............................  All Other Traveler            $8.0........................  ................
                                     Accommodation.
721211............................  RV (Recreational Vehicle)     $8.0........................  ................
                                     Parks and Campgrounds.
721214............................  Recreational and Vacation     $8.0........................  ................
                                     Camps (except Campgrounds).
721310............................  Rooming and Boarding Houses,  $8.0........................  ................
                                     Dormitories, and Workers'
                                     Camps.
----------------------------------------------------------------------------------------------------------------
                                Subsector 722--Food Services and Drinking Places
----------------------------------------------------------------------------------------------------------------
722310............................  Food Service Contractors....  $41.5.......................  ................
722320............................  Caterers....................  $8.0........................  ................
722330............................  Mobile Food Services........  $8.0........................  ................
722410............................  Drinking Places (Alcoholic    $8.0........................  ................
                                     Beverages).
722511............................  Full-Service Restaurants....  $8.0........................  ................
722513............................  Limited-Service Restaurants.  $12.0.......................  ................
722514............................  Cafeterias, Grill Buffets,    $30.0.......................  ................
                                     and Buffets.
722515............................  Snack and Nonalcoholic        $8.0........................  ................
                                     Beverage Bars.
----------------------------------------------------------------------------------------------------------------
                            Sector 81--Other Services (Except Public Administration)
                                      Subsector 811--Repair and Maintenance
----------------------------------------------------------------------------------------------------------------
811111............................  General Automotive Repair...  $8.0........................  ................
811112............................  Automotive Exhaust System     $8.0........................  ................
                                     Repair.
811113............................  Automotive Transmission       $8.0........................  ................
                                     Repair.
811118............................  Other Automotive Mechanical   $8.0........................  ................
                                     and Electrical Repair and
                                     Maintenance.
811121............................  Automotive Body, Paint and    $8.0........................  ................
                                     Interior Repair and
                                     Maintenance.
811122............................  Automotive Glass Replacement  $12.0.......................  ................
                                     Shops.
811191............................  Automotive Oil Change and     $8.0........................  ................
                                     Lubrication Shops.
811192............................  Car Washes..................  $8.0........................  ................
811198............................  All Other Automotive Repair   $8.0........................  ................
                                     and Maintenance.
811211............................  Consumer Electronics Repair   $8.0........................  ................
                                     and Maintenance.
811212............................  Computer and Office Machine   $30.0.......................  ................
                                     Repair and Maintenance.
811213............................  Communication Equipment       $12.0.......................  ................
                                     Repair and Maintenance.
811219............................  Other Electronic and          $22.0.......................  ................
                                     Precision Equipment Repair
                                     and Maintenance.
811310............................  Commercial and Industrial     $8.0........................  ................
                                     Machinery and Equipment
                                     (except Automotive and
                                     Electronic) Repair and
                                     Maintenance.
811411............................  Home and Garden Equipment     $8.0........................  ................
                                     Repair and Maintenance.
811412............................  Appliance Repair and          $16.5.......................  ................
                                     Maintenance.
811420............................  Reupholstery and Furniture    $8.0........................  ................
                                     Repair.
811430............................  Footwear and Leather Goods    $8.0........................  ................
                                     Repair.
811490............................  Other Personal and Household  $8.0........................  ................
                                     Goods Repair and
                                     Maintenance.
----------------------------------------------------------------------------------------------------------------

[[Page 34280]]

 
                                  Subsector 812--Personal and Laundry Services
----------------------------------------------------------------------------------------------------------------
812111............................  Barber Shops................  $8.0........................  ................
812112............................  Beauty Salons...............  $8.0........................  ................
812113............................  Nail Salons.................  $8.0........................  ................
812191............................  Diet and Weight Reducing      $22.0.......................  ................
                                     Centers.
812199............................  Other Personal Care Services  $8.0........................  ................
812210............................  Funeral Homes and Funeral     $8.0........................  ................
                                     Services.
812220............................  Cemeteries and Crematories..  $22.0.......................  ................
812310............................  Coin[dash]Operated Laundries  $8.0........................  ................
                                     and Drycleaners.
812320............................  Drycleaning and Laundry       $6.0........................  ................
                                     Services (except
                                     Coin[dash]Operated).
812331............................  Linen Supply................  $35.0.......................  ................
812332............................  Industrial Launderers.......  $41.5.......................  ................
812910............................  Pet Care (except Veterinary)  $8.0........................  ................
                                     Services.
812921............................  Photofinishing Laboratories   $22.0.......................  ................
                                     (except One[dash]Hour).
812922............................  One[dash]Hour Photofinishing  $16.5.......................  ................
812930............................  Parking Lots and Garages....  $41.5.......................  ................
812990............................  All Other Personal Services.  $8.0........................  ................
----------------------------------------------------------------------------------------------------------------
              Subsector 813--Religious, Grantmaking, Civic, Professional and Similar Organizations
----------------------------------------------------------------------------------------------------------------
813110............................  Religious Organizations.....  $8.0........................  ................
813211............................  Grantmaking Foundations.....  $35.0.......................  ................
813212............................  Voluntary Health              $30.0.......................  ................
                                     Organizations.
813219............................  Other Grantmaking and Giving  $41.5.......................  ................
                                     Services.
813311............................  Human Rights Organizations..  $30.0.......................  ................
813312............................  Environment, Conservation     $16.5.......................  ................
                                     and Wildlife Organizations.
813319............................  Other Social Advocacy         $8.0........................  ................
                                     Organizations.
813410............................  Civic and Social              $8.0........................  ................
                                     Organizations.
813910............................  Business Associations.......  $8.0........................  ................
813920............................  Professional Organizations..  $16.5.......................  ................
813930............................  Labor Unions and Similar      $8.0........................  ................
                                     Labor Organizations.
813940............................  Political Organizations.....  $8.0........................  ................
813990............................  Other Similar Organizations   $8.0........................  ................
                                     (except Business,
                                     Professional, Labor, and
                                     Political Organizations).
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------

Footnotes

* * * * *
    2. NAICS code 237990--Dredging: To be considered small for 
purposes of Government procurement, a firm must perform at least 40 
percent of the volume dredged with its own equipment or equipment 
owned by another small dredging concern.
* * * * *
    8. NAICS Codes 522110, 522120, 522130, 522190, and 522210--A 
financial institution's assets are determined by averaging the 
assets reported on its four quarterly financial statements for the 
preceding year. ``Assets'' for the purposes of this size standard 
means the assets defined according to the Federal Financial 
Institutions Examination Council 041 call report form for NAICS 
codes 522110, 522120, 522190, and 522210 and the National Credit 
Union Administration 5300 call report form for NAICS code 522130.
    9. NAICS codes 531110, 531120, 531130, and 531190--Leasing of 
Building Space to the Federal Government by Owners: For Government 
procurement, a size standard of $41.5 million in gross receipts 
applies to the owners of building space leased to the Federal 
Government. The standard does not apply to an agent.
    10. NAICS codes 488510 (part) 531210, 541810, 561510, 561520, 
and 561920--As measured by total revenues, but excluding funds 
received in trust for an unaffiliated third party, such as bookings 
or sales subject to commissions. The commissions received are 
included as revenues.
* * * * *
    12. NAICS code 561210--Facilities Support Services:
    (a) If one or more activities of Facilities Support Services as 
defined in paragraph (b) (below in this footnote) can be identified 
with a specific industry and that industry accounts for 50 percent 
or more of the value of an entire procurement, then the proper 
classification of the procurement is that of the specific industry, 
not Facilities Support Services.
    (b) ``Facilities Support Services'' requires the performance of 
three or more separate activities in the areas of services or 
specialty trade contractors industries. If services are performed, 
these service activities must each be in a separate NAICS industry. 
If the procurement requires the use of specialty trade contractors 
(plumbing, painting, plastering, carpentry, etc.), all such 
specialty trade contractors activities are considered a single 
activity and classified as ``Building and Property Specialty Trade 
Services.'' Since ``Building and Property Specialty Trade Services'' 
is only one activity, two additional activities of separate NAICS 
industries are required for a procurement to be classified as 
``Facilities Support Services.''
    13. NAICS code 238990--Building and Property Specialty Trade 
Services: If a procurement requires the use of multiple specialty 
trade contractors (i.e., plumbing, painting, plastering, carpentry, 
etc.), and no specialty trade accounts for 50 percent or more of the 
value of the procurement, all such specialty trade contractors 
activities are considered a single activity and classified as 
Building and Property Specialty Trade Services.
    14. NAICS 562910--Environmental Remediation Services:
    (a) For SBA assistance as a small business concern in the 
industry of Environmental Remediation Services, other than for 
Government procurement, a concern must be engaged primarily in 
furnishing a range of services for the remediation of a contaminated 
environment to an acceptable condition including, but not limited 
to, preliminary assessment, site inspection, testing, remedial 
investigation, feasibility studies, remedial design, containment, 
remedial action, removal of contaminated

[[Page 34281]]

materials, storage of contaminated materials and security and site 
closeouts. If one of such activities accounts for 50 percent or more 
of a concern's total revenues, employees, or other related factors, 
the concern's primary industry is that of the particular industry 
and not the Environmental Remediation Services Industry.
    (b) For purposes of classifying a Government procurement as 
Environmental Remediation Services, the general purpose of the 
procurement must be to restore or directly support the restoration 
of a contaminated environment (such as, preliminary assessment, site 
inspection, testing, remedial investigation, feasibility studies, 
remedial design, remediation services, containment, removal of 
contaminated materials, storage of contaminated materials or 
security and site closeouts), although the general purpose of the 
procurement need not necessarily include remedial actions. Also, the 
procurement must be composed of activities in three or more separate 
industries with separate NAICS codes or, in some instances (e.g., 
engineering), smaller sub-components of NAICS codes with separate, 
distinct size standards. These activities may include, but are not 
limited to, separate activities in industries such as: Heavy 
Construction; Specialty Trade Contractors; Engineering Services; 
Architectural Services; Management Consulting Services; Hazardous 
and Other Waste Collection; Remediation Services, Testing 
Laboratories; and Research and Development in the Physical, 
Engineering and Life Sciences. If any activity in the procurement 
can be identified with a separate NAICS code, or component of a code 
with a separate distinct size standard, and that industry accounts 
for 50 percent or more of the value of the entire procurement, then 
the proper size standard is the one for that particular industry, 
and not the Environmental Remediation Service size standard.
* * * * *
    16. NAICS code 611519--Job Corps Centers. For classifying a 
Federal procurement, the purpose of the solicitation must be for the 
management and operation of a U.S. Department of Labor Job Corps 
Center. The activities involved include admissions activities, life 
skills training, educational activities, comprehensive career 
preparation activities, career development activities, career 
transition activities, as well as the management and support 
functions and services needed to operate and maintain the facility. 
For SBA assistance as a small business concern, other than for 
Federal Government procurements, a concern must be primarily engaged 
in providing the services to operate and maintain Federal Job Corps 
Centers.
    17. NAICS code 115310 (Support Activities for Forestry)--Forest 
Fire Suppression and Fuels Management Services are two components of 
Support Activities for Forestry. Forest Fire Suppression includes 
establishments which provide services to fight forest fires. These 
firms usually have fire-fighting crews and equipment. Fuels 
Management Services firms provide services to clear land of 
hazardous materials that would fuel forest fires. The treatments 
used by these firms may include prescribed fire, mechanical removal, 
establishing fuel breaks, thinning, pruning, and piling.
    18. NAICS code 541519--An Information Technology Value Added 
Reseller (ITVAR) provides a total solution to information technology 
acquisitions by providing multi-vendor hardware and software along 
with significant value added services. Significant value added 
services consist of, but are not limited to, configuration 
consulting and design, systems integration, installation of multi-
vendor computer equipment, customization of hardware or software, 
training, product technical support, maintenance, and end user 
support. For purposes of Government procurement, an information 
technology procurement classified under this exception and 150-
employee size standard must consist of at least 15% and not more 
than 50% of value added services, as measured by the total contract 
price. In addition, the offeror must comply with the manufacturing 
performance requirements, or comply with the non-manufacturer rule 
by supplying the products of small business concerns, unless SBA has 
issued a class or contract specific waiver of the non-manufacturer 
rule. If the contract consists of less than 15% of value added 
services, then it must be classified under a NAICS manufacturing 
industry. If the contract consists of more than 50% of value added 
services, then it must be classified under the NAICS industry that 
best describes the predominate service of the procurement.
* * * * *
    20. NAICS code 511210--For purposes of Government procurement, 
the purchase of software subject to potential waiver of the 
nonmanufacturer rule pursuant to Sec.  121.1203(d) should be 
classified under this NAICS code.
0
3. Amend Sec.  121.502 by revising paragraph (a)(2) to read as follows:


Sec.  121.502   What size standards are applicable to programs for 
sales and leases of Government property?

    (a) * * *
    (2) A concern not primarily engaged in manufacturing is small for 
sales or leases of Government property if it has annual receipts not 
exceeding $8 million.
* * * * *

0
4. Amend Sec.  121.512 by revising paragraph (b) to read as follows:


Sec.  121.512   What is the size standard for stockpile purchases?

* * * * *
    (b) Its annual receipts, together with its affiliates, do not 
exceed $67.5 million.

Christopher M. Pilkerton,
Acting Administrator.
[FR Doc. 2019-14980 Filed 7-17-19; 8:45 am]
 BILLING CODE 8025-01-P