[Federal Register Volume 87, Number 62 (Thursday, March 31, 2022)]
[Rules and Regulations]
[Pages 18627-18646]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-06609]


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SMALL BUSINESS ADMINISTRATION

13 CFR Part 121

RIN 3245-AG90


Small Business Size Standards: Transportation and Warehousing; 
Information; Finance and Insurance; Real Estate and Rental and Leasing

AGENCY: U.S. Small Business Administration.

ACTION: Final rule.

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

SUMMARY: The U.S. Small Business Administration (SBA) is increasing its 
receipts-based small business size definitions (commonly referred to as 
``size standards'') for North American Industry Classification System 
(NAICS) sectors related to Transportation and Warehousing, Information, 
Finance and Insurance, and Real Estate and Rental and Leasing. 
Specifically, SBA is increasing the size standards for 45 industries in 
those sectors, including 18 industries in NAICS Sector 48-49 
(Transportation and Warehousing), eight industries in NAICS Sector 51 
(Information), ten industries in NAICS Sector 52 (Finance and 
Insurance), and nine industries in NAICS Sector 53 (Real Estate and 
Rental and Leasing).

DATES: This rule is effective May 2, 2022.

FOR FURTHER INFORMATION CONTACT: Samuel Castilla, Economist, Office of 
Size Standards, (202) 205-6618 or [email protected].

SUPPLEMENTARY INFORMATION:

Discussion of Size Standards

    To determine eligibility for Federal small business assistance, SBA 
establishes small business size definitions (usually referred to as 
``size standards'') for private sector industries in the United States. 
SBA uses two primary measures of business size for size standards 
purposes: Average annual receipts and average number of employees. SBA 
uses financial assets for certain financial industries and refining 
capacity, in addition to employees, for the petroleum refining industry 
to measure business size. In addition, SBA's Small Business Investment 
Company (SBIC), Certified Development Company (CDC/504), and 7(a) Loan 
Programs use either the industry-based size standards or tangible net 
worth and net income-based alternative size standards to determine 
eligibility for those programs.
    In September 2010, Congress passed the Small Business Jobs Act of 
2010 (Pub. L. 111-240, 124 Stat. 2504, September 27, 2010) (``Jobs 
Act''), requiring SBA to review all size standards every five years and 
make necessary adjustments to reflect current industry and market 
conditions. In accordance with the Jobs Act, in early 2016, SBA 
completed the first five-year review of all size standards--except 
those for agricultural enterprises for which size standards were 
previously set by Congress--and made appropriate adjustments to size 
standards for a number of industries to reflect current industry and 
Federal market conditions. SBA also adjusts its monetary-based size 
standards for inflation at least once every five years. An interim 
final rule on SBA's latest inflation adjustment to size standards, 
effective August 19, 2019, was published in the Federal Register on 
July 18, 2019 (84 FR 34261). SBA also updates its size standards every 
five years to adopt the Office of Management and Budget's (OMB) 
quinquennial North American Industry Classification System (NAICS) 
revisions to its table of small business size standards. Effective 
October 1, 2017, SBA adopted the OMB's 2017 NAICS revisions to its size 
standards (82 FR 44886, September 27, 2017).\1\
---------------------------------------------------------------------------

    \1\ On December 21, 2021, the U. S. Office of Management and 
Budget (OMB) published its ``Notice of NAICS 2022 Final Decisions . 
. . '' (86 FR 72277), accepting the Economic Classification Policy 
Committee (ECPC) recommendations, as outlined in the July 2, 2021, 
Federal Register notice (86 FR 35350), for the 2022 revisions to the 
North American Industry Classification System (NAICS), . . . .'' In 
the near future, SBA will issue a proposed rule to adopt the OMB's 
NAICS 2022 revisions for its table of size standards. SBA 
anticipates updating its size standards with the NAICS 2022 
revisions, effective October 1, 2022.
---------------------------------------------------------------------------

    This final rule is one of a series of final rules that will revise 
size standards of industries grouped by various NAICS sectors. Rather 
than revise all size standards at one time, SBA is revising size 
standards by grouping industries within various NAICS sectors that use 
the same size measure (i.e., employees or receipts). In the prior 
review, SBA revised size standards mostly on a sector-by-sector basis. 
As part of the second five-year review of size standards, SBA reviewed 
all receipt-based size standards in NAICS Sectors 48-49, 51, 52, and 53 
to determine whether the existing size standards should be retained or 
revised based on the current industry and Federal market data. After 
its review, SBA published in the October 2, 2020, issue of the Federal 
Register (85 FR 62372) a proposed rule to increase the size standards 
for 18 industries in NAICS Sector 48-49 (Transportation and 
Warehousing), eight industries in NAICS Sector 51 (Information), ten 
industries in NAICS Sector 52 (Finance and Insurance), and nine 
industries in NAICS Sector 53 (Real Estate and Rental and Leasing). In 
this final rule, SBA is adopting the proposed size standards from the 
October 2020 proposed rule without change.
    In conjunction with the current comprehensive size standards 
review, SBA developed a revised ``Size Standards Methodology'' 
(Methodology) for developing, reviewing, and modifying size standards, 
when necessary. SBA's revised Methodology provides a detailed 
description of its analyses of various industry and program factors and 
data sources, and how the agency uses the results to establish and 
revise size standards. In the proposed rule itself, SBA detailed how it 
applied its revised Methodology to review and modify where necessary, 
the existing size standards for industries covered in this final rule. 
Prior to finalizing the revised Methodology, SBA issued a notification 
in the April 27, 2018, edition of the Federal Register (83 FR 18468) to 
solicit comments from the public and notify stakeholders of the 
proposed changes to the Methodology. SBA considered all public comments 
in finalizing the revised Methodology. For a summary of comments and 
SBA's responses, refer to the SBA's April 11, 2019, Federal Register 
notification (84 FR 14587) of the issuance of the final revised 
Methodology. SBA's Size Standards Methodology is available on its 
website at www.sba.gov/size.
    In evaluating an industry's size standard, SBA examines its 
characteristics (such as average firm size, startup costs, industry 
competition and distribution of firms by size) and the small business 
level and share of Federal contract dollars in that industry. SBA also 
examines the potential impact a size standard revision might have on 
its financial assistance programs, and whether a business concern under 
a revised size standard would be dominant in its industry. SBA analyzed 
the characteristics of each receipt-based industry in NAICS Sectors 48-
49, 51, 52, and 53, mostly using a special tabulation obtained from the 
U.S. Bureau of the Census from its 2012 Economic Census (the latest 
available). The 2012 special tabulation contains information for 
different levels of NAICS categories on average and median firm size in 
terms of both receipts and employment, total receipts generated by the 
four and eight largest

[[Page 18628]]

firms, the Herfindahl-Hirschman Index (HHI), the Gini coefficient, and 
size distributions of firms by various receipts and employment size 
groupings. To evaluate average asset size, SBA combines the sales to 
total assets ratios by industry, obtained from the Risk Management 
Association's (RMA) Annual eStatement Studies (http://www.rmahq.org/estatement-studies/) with the simple average receipts size by industry 
from the 2012 Economic Census tabulation to estimate the average assets 
size for each industry. SBA also evaluated the small business level and 
share of Federal contracts in each of the industries using data from 
the Federal Procurement Data System--Next Generation (FPDS-NG) for 
fiscal years 2016-2018. Table 4 of the proposed rule, Size Standards 
Supported by Each Factor for Each Industry (Receipts), shows the 
results of analyses of industry and Federal contracting factors for 
each industry and subindustry (exception) covered by the proposed rule. 
Of the 124 industries and two subindustries (exceptions) reviewed in 
the proposed rule, the results from analyses of the latest available 
data on the five primary factors from Table 4 of the proposed rule 
supported increasing size standards for 45 industries, decreasing size 
standards for 69 industries, and retaining size standards for nine 
industries and two subindustries. Additionally, SBA retained the size 
standard for NAICS 491110 (Postal Service) which the Economic Census 
does not cover. Table 1, Summary of Calculated Size Standards, 
summarizes the analytical results from the proposed rule by NAICS 
sector.

                                  Table 1--Summary of Calculated Size Standards
----------------------------------------------------------------------------------------------------------------
                                                  Number of size  Number of size  Number of size  Number of size
         NAICS sector              Sector name       standards       standards       standards       standards
                                                     reviewed        increased       decreased       unchanged
----------------------------------------------------------------------------------------------------------------
48-49.........................  Transportation                43              18              23               2
                                 and Warehousing.
51............................  Information.....              19               8               9               2
52............................  Finance and                   39            * 10              24               5
                                 Insurance *.
53............................  Real Estate and               25               9              13               3
                                 Rental and
                                 Leasing.
                                                 ---------------------------------------------------------------
    All Sectors...............  ................             126              45              69              12
----------------------------------------------------------------------------------------------------------------
* Includes five assets-based size industries.

    In the October 2020 proposed rule, SBA discussed the impacts of the 
COVID-19 pandemic on small businesses and greater society. Recognizing 
the wide-ranging economic impacts of the pandemic, SBA decided not to 
lower any size standards for which the analysis suggested lowering 
them. Instead, SBA proposed to maintain all size standards for 
industries in which the analytical results supported a decrease or no 
change to size standards and adopt all size standards for which the 
analytical results supported an increase to size standards. To evaluate 
the impact of the changes to size standards adopted in this final rule 
on the Federal contracting market and SBA's loan programs, SBA analyzed 
FPDS-NG data for fiscal years 2018-2020 and internal data on its 
guaranteed loan programs for fiscal years 2018-2020. The results of 
this analysis can be found in the Regulatory Impact Analysis section of 
this final rule.
    In the proposed rule, SBA sought comments on its proposal to 
increase size standards for 45 industries and retain the current size 
standards for the remaining 81 industries or subindustries in Sectors 
48-49, 51, 52, and 53. Specifically, SBA requested comments on whether 
the proposed revisions are appropriate for the industries covered by 
the proposed rule, whether the decision not to lower any size standards 
is justified by the COVID-19 pandemic, whether the equal weighting of 
individual factors to derive an industry size standard is appropriate, 
and whether the data sources used were appropriate or sufficient. SBA 
also sought comments on its proposal to maintain a common size standard 
for industries within Subsector 525 and assets-based size standards 
within NAICS Industry Groups 5221 and 5222. SBA also requested comments 
on its proposal to retain the size standard for the exception to NAICS 
488510 (Non-Vessel Owning Common Carriers and Household Good 
Forwarders) and NAICS 491110 (Postal Service).

Discussion of Comments

    SBA received a total of four comments to the proposed rule from a 
wide range of entities including an individual, a business, and two 
trade associations. Of the four comments received, one comment 
referenced all sectors covered by the proposed rule, one comment 
referenced NAICS 531210 (Offices of Real Estate Agents and Brokers), 
one comment referenced NAICS 522130 (Credit Unions), and one comment 
referenced Sector 23 (construction) which is not covered under this 
proposed rule. SBA did not evaluate the comment referencing Sector 23 
in this final rule, instead, SBA will evaluate that comment under the 
final rule covering the construction industry (see RIN 3245-AG90 on 
www.regulations.gov). The four comments to the proposed rule are 
available at www.regulations.gov (RIN 3245-AG90) and are summarized and 
discussed below.

Comments on Proposed Changes to All Sectors

    One commenter maintained that SBA's proposed changes to size 
standards would allow the entry of large businesses to the SBA's low-
interest loan and contracting programs reserved by Congress for small 
businesses. This commenter further argued that the proposed rule is 
contrary to the statutory mandate given to the SBA by Congress in this 
regard. Citing these reasons, the commenter asserted that the proposed 
rule should be withdrawn.
SBA Response
    In the proposed rule, SBA proposed to increase size standards for 
45 industries, including eighteen (18) industries in NAICS Sector 48-49 
(Transportation and Warehousing), eight (8) industries in NAICS Sector 
51 (Information), ten (10) industries in NAICS Sector 52 (Finance and 
Insurance), and nine (9) industries in NAICS Sector 53 (Real Estate and 
Rental and Leasing). With an expanded pool of small businesses, it is 
likely that Federal agencies would set aside more contracts for small 
businesses under the increases to size standards, thereby increasing 
opportunities for all small businesses, including the smaller small 
businesses. Also, the Administration's recent decision to increase the 
Government-wide Small Disadvantaged Business

[[Page 18629]]

(SDB) goal from the current 5% to 11% in fiscal year 2021 (increasing 
to 15% by fiscal year 2025) is likely to drive agencies to set aside 
more contracts to small businesses in coming years.
    SBA does not agree with the comment that the proposed rule is 
contrary to the Congressional mandate given to SBA and should not be 
issued. Pursuant to section 1344 of the Small Business Jobs Act of 2010 
(the Jobs Act) (Pub. Law 111-240), SBA is statutorily mandated to 
review every five years all size standards and make necessary 
adjustments to reflect current industry and Federal market conditions. 
The proposed rule was part of the second five-year review of size 
standards in accordance with the Jobs Act. SBA believes that proposed 
size standards revisions for industries being reviewed in this rule 
will make size standards more reflective of the current economic 
characteristics of businesses in those industries and the latest trends 
in the Federal marketplace. For the above reasons, SBA is adopting the 
proposed size standard without change.

Comments on Proposed Changes to NAICS 531210--Offices of Real Estate 
Agents and Brokers

    SBA received a comment from a small business concern specializing 
in providing lease brokerage and other transaction services to Federal 
agencies. This comment was in full support of the proposed increase to 
the size standard for NAICS 531210 (Offices of Real Estate Agents and 
Brokers) from $8 million to $13 million in average annual receipts. The 
commenter believed that such an increase is totally consistent with the 
Government's policy of providing maximum practicable opportunities to 
small businesses.
    The commenter argued that the proposed increase to the size 
standard for NAICS 531210 would ensure that small businesses would be 
able to retain access to the Federal small business assistance 
programs. It would also ensure that Federal agencies have a larger pool 
of small businesses from which to draw for their small business 
procurement programs, thereby increasing competition and lowering 
prices to the Government. Finally, the commenter believed that the 
proposed increase would make the size standard for NAICS 531210 more 
consistent with the growth of the industry in recent years.
SBA Response
    SBA agrees with the commenter that the proposed size standard will 
help to provide maximum practicable opportunities to small businesses 
in this industry while also expanding the pool of small businesses from 
which the Federal Government can draw from for their small business 
procurement programs. Given the expressed support for SBA's proposed 
increase to the size standard for NAICS 531210 and the absence of any 
significant adverse comments opposing the increase, SBA is adopting $13 
million in average annual receipts as the size standard for this NAICS 
code.

Comments on Proposed Changes to NAICS 522130--Credit Unions

    SBA received one comment, on behalf of the National Association of 
Federally Insured Credit Unions (NAFCU), supporting SBA's proposed 
increase to all size standards generally, and in particular the size 
standard for NAICS 522130 (Credit Unions) increasing from $600 million 
to $750 million in average assets. This comment is in support of SBA's 
proposed size standard increase. As the commenter maintained, although 
credit unions are not-for-profit entities and do not qualify for the 
SBA's lending programs, the proposed increases to size standards would 
provide credit unions that are SBA lenders with an opportunity to 
provide lending to more newly-qualified small businesses, thereby 
helping local communities to thrive, promote innovation, and provide 
jobs.
SBA Response
    SBA agrees with the commenter that the proposed changes to size 
standards will increase the number of businesses eligible to 
participate in SBA's financial assistance programs. SBA also agrees 
with the commenter that SBA's financial assistance programs can have 
wide-ranging positive impacts to individuals, businesses, and 
communities. Given the expressed support for SBA's proposed increase to 
the size standard for NAICS 522130 and the absence of any significant 
adverse comments opposing the increase, SBA is adopting, as proposed, 
750 million in average assets as the size standard for NAICS 522130.

Summary of Adopted Revisions to Size Standards

    Based on the evaluation of public comments it received on the 
proposed rule and on its analyses of industry and Federal contracting 
factors using the latest available data when the proposed rule was 
prepared, SBA is adopting the size standards, as proposed in the 
October 2020 proposed rule. Thus, SBA is increasing 45 size standards, 
including 18 in NAICS Sector 48-49, eight in NAICS Sector 51, ten in 
NAICS Sector 52, and nine in NAICS Sector 53. A summary of SBA's size 
standards revisions in this rule can be found below in Table 2, Summary 
of Size Standards Revisions in NAICS Sectors 48-49, 51, 52, and 53.

                                   Table 2--Summary of Size Standards Revisions in NAICS Sectors 48-49, 51, 52 and 53
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                NAICS U.S. industry       Current size standard ($        Calculated size standard ($        Adopted size standard ($
          NAICS code                   title                      million)                          million)                         million)
--------------------------------------------------------------------------------------------------------------------------------------------------------
481219.......................  Other Nonscheduled     16.5............................  22.0...........................  22.0
                                Air Transportation.
484110.......................  General Freight        30.0............................  9.0............................  30.0
                                Trucking, Local.
484121.......................  General Freight        30.0............................  22.0...........................  30.0
                                Trucking, Long-
                                Distance, Truckload.
484122.......................  General Freight        30.0............................  38.0...........................  38.0
                                Trucking, Long-
                                Distance, Less Than
                                Truckload.
484210.......................  Used Household and     30.0............................  21.0...........................  30.0
                                Office Goods Moving.
484220.......................  Specialized Freight    30.0............................  15.0...........................  30.0
                                (except Used Goods)
                                Trucking, Local.
484230.......................  Specialized Freight    30.0............................  22.0...........................  30.0
                                (except Used Goods)
                                Trucking, Long-
                                Distance.
485111.......................  Mixed Mode Transit     16.5............................  25.5...........................  25.5
                                Systems.
485112.......................  Commuter Rail Systems  16.5............................  41.5...........................  41.5
485113.......................  Bus and Other Motor    16.5............................  28.5...........................  28.5
                                Vehicle Transit
                                Systems.
485119.......................  Other Urban Transit    16.5............................  33.0...........................  33.0
                                Systems.

[[Page 18630]]

 
485210.......................  Interurban and Rural   16.5............................  28.0...........................  28.0
                                Bus Transportation.
485310.......................  Taxi Service.........  16.5............................  13.0...........................  16.5
485320.......................  Limousine Service....  16.5............................  12.5...........................  16.5
485410.......................  School and Employee    16.5............................  26.5...........................  26.5
                                Bus Transportation.
485510.......................  Charter Bus Industry.  16.5............................  13.0...........................  16.5
485991.......................  Special Needs          16.5............................  13.0...........................  16.5
                                Transportation.
485999.......................  All Other Transit and  16.5............................  16.0...........................  16.5
                                Ground Passenger
                                Transportation.
486210.......................  Pipeline               30.0............................  36.5...........................  36.5
                                Transportation of
                                Natural Gas.
486990.......................  All Other Pipeline     40.5............................  31.5...........................  40.5
                                Transportation.
487110.......................  Scenic and             8.0.............................  18.0...........................  18.0
                                Sightseeing
                                Transportation Land.
487210.......................  Scenic and             8.0.............................  12.5...........................  12.5
                                Sightseeing
                                TransportationWater.
487990.......................  Scenic and             8.0.............................  22.0...........................  22.0
                                Sightseeing
                                Transportation Other.
488111.......................  Air Traffic Control..  35.0............................  30.5...........................  35.0
488119.......................  Other Airport          35.0............................  25.5...........................  35.0
                                Operations.
488190.......................  Other Support          35.0............................  27.5...........................  35.0
                                Activities for Air
                                Transportation.
488210.......................  Support Activities     16.5............................  30.0...........................  30.0
                                for Rail
                                Transportation.
488310.......................  Port and Harbor        41.5............................  38.0...........................  41.5
                                Operations.
488320.......................  Marine Cargo Handling  41.5............................  39.0...........................  41.5
488330.......................  Navigational Services  41.5............................  26.5...........................  41.5
                                to Shipping.
488390.......................  Other Support          41.5............................  23.5...........................  41.5
                                Activities for Water
                                Transportation.
488410.......................  Motor Vehicle Towing.  8.0.............................  7.0............................  8.0
488490.......................  Other Support          8.0.............................  16.0...........................  16.0
                                Activities for Road
                                Transportation.
488510.......................  Freight                16.5............................  17.5...........................  17.5
                                Transportation
                                Arrangement.
488510 (Exception)...........  Non[dash]Vessel        30.0............................  30.0...........................  30.0
                                Owning Common
                                Carriers and
                                Household Goods
                                Forwarders.
488991.......................  Packing and Crating..  30.0............................  17.5...........................  30.0
488999.......................  All Other Support      8.0.............................  22.0...........................  22.0
                                Activities for
                                Transportation.
491110.......................  Postal Services......  8.0.............................  8.0............................  8.0
492210.......................  Local Messengers and   30.0............................  10.5...........................  30.0
                                Local Delivery.
493110.......................  General Warehousing    30.0............................  25.0...........................  30.0
                                and Storage.
493120.......................  Refrigerated           30.0............................  32.0...........................  32.0
                                Warehousing and
                                Storage.
493130.......................  Farm Product           30.0............................  13.5...........................  30.0
                                Warehousing and
                                Storage.
493190.......................  Other Warehousing and  30.0............................  32.0...........................  32.0
                                Storage.
511210.......................  Software Publishers..  41.5............................  40.0...........................  41.5
512110.......................  Motion Picture and     35.0............................  33.0...........................  35.0
                                Video Production.
512120.......................  Motion Picture and     34.5............................  26.0...........................  34.5
                                Video Distribution.
512131.......................  Motion Picture         41.5............................  39.5...........................  41.5
                                Theaters (except
                                Drive-Ins).
512132.......................  Drive-In Motion        8.0.............................  11.0...........................  11.0
                                Picture Theaters.
512191.......................  Teleproduction and     34.5............................  19.5...........................  34.5
                                Other Postproduction
                                Services.
512199.......................  Other Motion Picture   22.0............................  25.0...........................  25.0
                                and Video Industries.
512240.......................  Sound Recording        8.0.............................  9.5............................  9.5
                                Studios.
512290.......................  Other Sound Recording  12.0............................  20.0...........................  20.0
                                Industries.
515111.......................  Radio Networks.......  35.0............................  41.5...........................  41.5
515112.......................  Radio Stations.......  41.5............................  36.0...........................  41.5
515120.......................  Television             41.5............................  41.5...........................  41.5
                                Broadcasting.
515210.......................  Cable and Other        41.5............................  41.5...........................  41.5
                                Subscription
                                Programming.
517410.......................  Satellite              35.0............................  38.5...........................  38.5
                                Telecommunications.
517919.......................  All Other              35.0............................  33.0...........................  35.0
                                Telecommunications.
518210.......................  Data Processing,       35.0............................  33.0...........................  35.0
                                Hosting, and Related
                                Services.
519110.......................  News Syndicates......  30.0............................  32.0...........................  32.0
519120.......................  Libraries and          16.5............................  18.5...........................  18.5
                                Archives.
519190.......................  All Other Information  30.0............................  26.5...........................  30.0
                                Services.
522110.......................  Commercial Banking...  600 million in assets...........  750 million in assets..........  750 million in assets.
522120.......................  Savings Institutions.  600 million in assets...........  750 million in assets..........  750 million in assets.
522130.......................  Credit Unions........  600 million in assets...........  750 million in assets..........  750 million in assets.
522190.......................  Other Depository       600 million in assets...........  750 million in assets..........  750 million in assets.
                                Credit
                                Intermediation.
522210.......................  Credit Card Issuing..  600 million in assets...........  750 million in assets..........  750 million in assets.
522220.......................  Sales Financing......  41.5............................  38.0...........................  41.5
522291.......................  Consumer Lending.....  41.5............................  41.5...........................  41.5
522292.......................  Real Estate Credit...  41.5............................  40.0...........................  41.5
522293.......................  International Trade    41.5............................  31.0...........................  41.5
                                Financing.

[[Page 18631]]

 
522294.......................  Secondary Market       41.5............................  41.5...........................  41.5
                                Financing.
522298.......................  All Other              41.5............................  35.5...........................  41.5
                                Nondepository Credit
                                Intermediation.
522310.......................  Mortgage and           8.0.............................  13.0...........................  13.0
                                Nonmortgage Loan
                                Brokers.
522320.......................  Financial              41.5............................  39.5...........................  41.5
                                Transactions
                                Processing, Reserve,
                                and Clearinghouse
                                Activities.
522390.......................  Other Activities       22.0............................  25.0...........................  25.0
                                Related to Credit
                                Intermediation.
523110.......................  Investment Banking     41.5............................  41.0...........................  41.5
                                and Securities
                                Dealing.
523120.......................  Securities Brokerage.  41.5............................  37.0...........................  41.5
523130.......................  Commodity Contracts    41.5............................  32.5...........................  41.5
                                Dealing.
523140.......................  Commodity Contracts    41.5............................  26.5...........................  41.5
                                Brokerage.
523210.......................  Securities and         41.5............................  33.0...........................  41.5
                                Commodity Exchanges.
523910.......................  Miscellaneous          41.5............................  27.0...........................  41.5
                                Intermediation.
523920.......................  Portfolio Management.  41.5............................  35.5...........................  41.5
523930.......................  Investment Advice....  41.5............................  27.5...........................  41.5
523991.......................  Trust, Fiduciary, and  41.5............................  41.5...........................  41.5
                                Custody Activities.
523999.......................  Miscellaneous          41.5............................  41.5...........................  41.5
                                Financial Investment
                                Activities.
524113.......................  Direct Life Insurance  41.5............................  37.5...........................  41.5
                                Carriers.
524114.......................  Direct Health and      41.5............................  38.5...........................  41.5
                                Medical Insurance
                                Carriers.
524127.......................  Direct Title           41.5............................  41.5...........................  41.5
                                Insurance Carriers.
524128.......................  Other Direct           41.5............................  39.0...........................  41.5
                                Insurance (except
                                Life, Health, and
                                Medical) Carriers.
524130.......................  Reinsurance Carriers.  41.5............................  39.5...........................  41.5
524210.......................  Insurance Agencies     8.0.............................  13.0...........................  13.0
                                and Brokerages.
524291.......................  Claims Adjusting.....  22.0............................  18.0...........................  22.0
524292.......................  Third Party            35.0............................  40.0...........................  40.0
                                Administration of
                                Insurance and
                                Pension Funds.
524298.......................  All Other Insurance    16.5............................  27.0...........................  27.0
                                Related Activities.
525110.......................  Pension Funds........  35.0............................  32.5...........................  35.0
525120.......................  Health and Welfare     35.0............................  32.5...........................  35.0
                                Funds.
525190.......................  Other Insurance Funds  35.0............................  32.5...........................  35.0
525910.......................  Open-End Investment    35.0............................  31.5...........................  35.0
                                Funds.
525920.......................  Trusts, Estates, and   35.0............................  32.5...........................  35.0
                                Agency Accounts.
525990.......................  Other Financial        35.0............................  32.5...........................  35.0
                                Vehicles.
531110 *.....................  Lessors of             30.0............................  23.5...........................  30.0
                                Residential
                                Buildings and
                                Dwellings.
531120 *.....................  Lessors of             30.0............................  28.0...........................  30.0
                                Nonresidential
                                Buildings (except
                                Miniwarehouses).
531130 *.....................  Lessors of             30.0............................  20.5...........................  30.0
                                Miniwarehouses and
                                Self-Storage Units.
531190 *.....................  Lessors of Other Real  30.0............................  16.0...........................  30.0
                                Estate Property.
531210.......................  Offices of Real        8.0.............................  13.0...........................  13.0
                                Estate Agents and
                                Brokers.
531311.......................  Residential Property   8.0.............................  11.0...........................  11.0
                                Managers.
531312.......................  Nonresidential         8.0.............................  17.0...........................  17.0
                                Property Managers.
531320.......................  Offices of Real        8.0.............................  8.5............................  8.5
                                Estate Appraisers.
531390.......................  Other Activities       8.0.............................  17.0...........................  17.0
                                Related to Real
                                Estate.
532111.......................  Passenger Car Rental.  41.5............................  41.5...........................  41.5
532112.......................  Passenger Car Leasing  41.5............................  41.0...........................  41.5
532120.......................  Truck, Utility         41.5............................  41.5...........................  41.5
                                Trailer, and RV
                                (Recreational
                                Vehicle) Rental and
                                Leasing.
532210.......................  Consumer Electronics   41.5............................  40.5...........................  41.5
                                and Appliances
                                Rental.
532281.......................  Formal Wear and        22.0............................  12.5...........................  22.0
                                Costume Rental.
532282.......................  Video Tape and Disc    30.0............................  31.0...........................  31.0
                                Rental.
532283.......................  Home Health Equipment  35.0............................  36.0...........................  36.0
                                Rental.
532284.......................  Recreational Goods     8.0.............................  7.5............................  8.0
                                Rental.
532289.......................  All Other Consumer     8.0.............................  11.0...........................  11.0
                                Goods Rental.
532310.......................  General Rental         8.0.............................  7.5............................  8.0
                                Centers.
532411.......................  Commercial Air, Rail,  35.0............................  40.0...........................  40.0
                                and Water
                                Transportation
                                Equipment Rental and
                                Leasing.
532412.......................  Construction, Mining,  35.0............................  34.0...........................  35.0
                                and Forestry
                                Machinery and
                                Equipment Rental and
                                Leasing.
532420.......................  Office Machinery and   35.0............................  32.5...........................  35.0
                                Equipment Rental and
                                Leasing.
532490.......................  Other Commercial and   35.0............................  30.0...........................  35.0
                                Industrial Machinery
                                and Equipment Rental
                                and Leasing.

[[Page 18632]]

 
533110.......................  Lessors of             41.5............................  35.0...........................  41.5
                                Nonfinancial
                                Intangible Assets
                                (except Copyrighted
                                Works).
--------------------------------------------------------------------------------------------------------------------------------------------------------
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. See Footnote 9 to the SBA's Table of Size Standards.

    Table 3, Summary of Adopted Size Standards Revisions by Sector, 
below, summarizes the adopted changes to size standards by NAICS 
sector.

                                             Table 3--Summary of Adopted Size Standards Revisions by Sector
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                   Number of size    Number of size    Number of size    Number of size
                 NAICS sector                              Sector name                standards         standards         standards         standards
                                                                                      reviewed          increased         decreased        maintained
--------------------------------------------------------------------------------------------------------------------------------------------------------
48-49.........................................  Transportation and Warehousing..                43                18                 0                25
51............................................  Information.....................                19                 8                 0                11
52 *..........................................  Finance and Insurance...........                39                10                 0                29
53............................................  Real Estate and Rental and                      25                 9                 0                16
                                                 Leasing.
                                                                                 -----------------------------------------------------------------------
    All Sectors...............................  ................................               126                45                 0                81
--------------------------------------------------------------------------------------------------------------------------------------------------------

Evaluation of Dominance in Field of Operation

    SBA determined that for the industries evaluated under this final 
rule, no individual firm at or below the adopted size standards would 
be large enough to dominate its field of operation. At the size 
standard levels adopted in this final rule, the small business share of 
total industry receipts among those industries would be, on average, 
0.4%, varying from 0.005% to 4.8%. These market shares effectively 
preclude a firm at or below the adopted size standards from exerting 
control on any of the industries.

Alternatives Considered

    In response to the unprecedented economic impacts of the ongoing 
COVID-19 pandemic on small businesses and Government response, SBA is 
adopting increases to size standards where the data suggests increases 
are warranted, and retaining all current size standards where the data 
suggested lowering of size standards is appropriate. SBA is also 
retaining all current size standards where the data suggested no 
changes to the current size standards.
    Nonetheless, SBA considered two other alternatives. Alternative 
Option One was to adopt changes to size standards exactly as suggested 
by the analytical results. In other words, Alternative Option One would 
entail increasing size standards for 45 industries, decreasing them for 
69 industries, and retaining them at their current levels for 12 
industries. Alternative Option Two was to retain all current size 
standards.
    SBA did not adopt Alternative Option One because it would cause a 
substantial number of currently small businesses to lose their small 
business status and hence to lose their access to Federal small 
business assistance, especially small business set-aside contracts and 
SBA's financial assistance in some cases. Lowering size standards in 
the current environment would also run counter to various measures the 
Federal Government has implemented to help small businesses and the 
overall economy recover from the ongoing COVID-19 pandemic. Considering 
the impacts of the Great Recession and Government actions that followed 
to support small businesses and the overall economy, SBA also adopted a 
policy of not decreasing size standards during the first five-year 
review of size standards, even though the data supported decreases.
    Under Alternative Option Two, given the current COVID-19 pandemic, 
SBA considered retaining the current level of all size standards even 
though the analytical results suggested changing them. Under this 
option, as the current situation develops, SBA will be able to assess 
new data available on economic indicators, Federal procurement, and SBA 
loans before adopting changes to size standards. However, SBA is not 
adopting Alternative Option Two because the results discussed in the 
Regulatory Impact Analysis section, below, show that retaining all size 
standards at their current levels would cause otherwise qualified small 
businesses to forgo various small business benefits becoming available 
to them under the option of increasing 45 and retaining 81 size 
standards. Such benefits would include access to Federal contracts set 
aside for small businesses and capital through SBA's loan and SBIC 
programs, and exemptions from paperwork and other compliance 
requirements.

Compliance With Executive Orders 12866, the Congressional Review Act (5 
U.S.C. 801-808), the Regulatory Flexibility Act (5 U.S.C. 601-612), 
Executive Orders 13563, 12988, and 13132, and the Paperwork Reduction 
Act (44 U.S.C. Ch. 35)

Executive Order 12866

    The Office of Management and Budget (OMB) has determined that this 
final rule is a significant regulatory action for purposes of Executive 
Order 12866. Accordingly, in the next section SBA provides a Regulatory 
Impact Analysis of this final rule, including (1) A statement of the 
need for the regulatory action, (2) An examination of alternative 
approaches, and (3) An evaluation of the benefits and costs--both 
quantitative and qualitative--of the regulatory action and the 
alternatives considered.

[[Page 18633]]

Regulatory Impact Analysis

1. What is the need for this regulatory action?
    SBA's mission is to aid and assist small businesses through a 
variety of financial, procurement, business development and counseling, 
and disaster assistance programs. To determine the actual intended 
beneficiaries of these programs, SBA establishes numerical size 
standards by industry to identify businesses that are deemed small.
    Under the Small Business Act (Act) (15 U.S.C. 632(a)), SBA's 
Administrator is responsible for establishing small business size 
definitions (or ``size standards'') and ensuring that such definitions 
vary from industry to industry to reflect differences among various 
industries. The Jobs Act requires SBA to review every five years all 
size standards and make necessary adjustments to reflect current 
industry and Federal market conditions. This final rule is part of the 
second five-year review of size standards in accordance with the Jobs 
Act. The first five-year review of size standards was completed in 
early 2016. Such periodic reviews of size standards provide SBA with an 
opportunity to incorporate ongoing changes to industry structure and 
Federal market environment into size standards and to evaluate the 
impacts of prior revisions to size standards on small businesses. This 
also provides SBA with an opportunity to seek and incorporate public 
input to the size standards review and analysis. SBA believes that the 
size standards revisions adopted for industries being reviewed in this 
final rule will make size standards more reflective of the current 
economic characteristics of businesses in those industries and the 
latest trends in the Federal marketplace.
    The revisions to the existing size standards for 45 industries in 
NAICS Sectors 48-49, 51, 52, and 53 are consistent with SBA's statutory 
mandate to help small businesses grow and create jobs and to review and 
adjust size standards every five years. This regulatory action promotes 
the Administration's goals and objectives as well as meets the SBA's 
statutory responsibility. One of SBA's goals in support of promoting 
the Administration's objectives is to help small businesses succeed 
through fair and equitable access to capital and credit, Federal 
Government contracts and purchases, and management and technical 
assistance. Reviewing and modifying size standards, when appropriate, 
ensures that intended beneficiaries are able to access Federal small 
business programs that are designed to assist them to become 
competitive and create jobs.
2. What are the potential benefits and costs of this regulatory action?
    OMB directs agencies to establish an appropriate baseline to 
evaluate any benefits, costs, or transfer impacts of regulatory actions 
and alternative approaches considered. 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 promulgating 
modifications to an existing regulation (such as modifying the existing 
size standards), a baseline assuming no change to the regulation (i.e., 
making no changes to current size standards) generally provides an 
appropriate benchmark for evaluating benefits, costs, or transfer 
impacts of regulatory changes and their alternatives.
Changes to Size Standards
    Based on the results from the analyses of the latest industry and 
Federal contracting data, as well as consideration of the impact of 
size standards changes on small businesses and significant adverse 
impacts of the COVID-19 emergency on small firms and the overall 
economy, of the total of 126 industries in Sectors 48-49, 51, 52, and 
53 that have receipts-based size standards, SBA is adopting increases 
to size standards for 45 industries and maintaining current size 
standards for the remaining 81 industries.
The Baseline
    For purposes of this regulatory action, the baseline represents 
maintaining the ``status quo,'' i.e., making no changes to the current 
size standards. Using the number of small businesses and levels of 
small business benefits (such as set-aside contracts, SBA's loans, 
disaster assistance, etc.) they receive under the current size 
standards as a baseline, one can examine the potential benefits, costs, 
and transfer impacts of changes to size standards on small businesses 
and on the overall economy.
    Based on the 2012 Economic Census (the latest available when the 
proposed rule was prepared), of a total of about 700,544 firms in 
industries in Sectors 48-49, 51, 52 (except assets-based size 
standards), and 53 for which SBA evaluated their receipt-based size 
standards, 97.2% are considered small under the current size standards. 
That percentage varies from 95.8% in Sector 51 to 97.9% in Sector 53. 
Based on the data from Federal Deposit Insurance Corporation (FDIC) and 
National Credit Union Administration (NCUA), from a total of about 
5,415 depository institutions 77.3% are small and from a total of 5,492 
credit unions, 91.2% are small under the current asset-based size 
standards. Based on the data from FPDS-NG for fiscal years 2018-2020, 
about 11,939 unique firms in those industries with receipt-based size 
standards, received at least one Federal contract during that period, 
of which 73.5% were small under the current size standards. For these 
sectors, of $20.3 billion in total average annual contract dollars 
awarded to businesses during that period, 21.4% went to small 
businesses. From the total small business contract dollars awarded 
during the period considered, 43.8% were awarded through various set-
aside programs and 56.2% were awarded through non-set aside contracts. 
Based on the FDIC data, of a total of $18,034 billion in assets, 4.6% 
are owned by small depository institutions. With respect to Credit 
Unions, from a total of $1,471 billion in assets, 25.7% are owned by 
small credit unions.
    Based on the SBA's internal data on its loan programs for fiscal 
years 2018-2020, small businesses in those industries received, on an 
annual basis, a total of 6,570 7(a) and 504 loans in that period, 
totaling about $2.7 billion, of which 83% was issued through the 7(a) 
program and 17% was issued through the CDC/504 program. During fiscal 
years 2018-2020, small businesses in those industries also received 749 
loans through the SBA's Economic Injury Disaster Loan (EIDL) program, 
totaling about $19.2 million on an annual basis.\2\ Table 4, Baseline 
for All Industries, provides these baseline results by NAICS sector.
---------------------------------------------------------------------------

    \2\ The analysis of the disaster loan data excludes physical 
disaster loans that are available to anyone regardless of size, 
disaster loans issued to nonprofit entities, and EIDLs issued under 
the COVID-19 relief program. Effective January 1, 2022, SBA stopped 
accepting applications for new COVID EIDL loans or advances. Thus, 
the disaster loan analysis presented here pertains to the regular 
EIDL loans only.
     SBA estimates impacts of size standards changes on EIDL loans 
by calculating the ratio of businesses getting EIDL loans to total 
small businesses (based on the Economic Census data) and multiplying 
it by the number of impacted small firms. Due to data limitations, 
for FY 2019-20, some loans with both physical and EIDL loan 
components could not be broken into the physical and EIDL loan 
amounts. In such cases, SBA applied the ratio of EIDL amount to 
total (physical loan + EIDL) amount using FY 2016-18 data to the FY 
2019-20 data to obtain the amount attributable to the EIDL loans.
---------------------------------------------------------------------------

Increases to Size Standards
    As stated above, of 126 receipts-based size standards in NAICS 
Sectors 48-49, 51, 52, and 53 reviewed, based on the results from 
analyses of latest industry

[[Page 18634]]

and Federal market data, impacts of size standards changes on small 
businesses, and considerations of the impacts of the COVID-19 pandemic 
and public comments to the proposed rule, SBA is adopting increases to 
size standards for 45 industries and maintaining size standards for 79 
industries and two subindustries (exceptions). Below are descriptions 
of the benefits, costs, and transfer impacts of the increases to size 
standards adopted in this final rule.
    The results of regulatory impact analyses SBA provided in the 
October 2020 proposed rule were based on the FPDS-NG and SBA loan data 
for fiscal years 2016-2018. In this final rule, SBA is updating the 
impact analysis results by using the FPDS-NG and SBA loan data for 
fiscal years 2018-2020. Accordingly, there can be some differences 
between the proposed rule and this final rule with respect to impacts 
of size standards changes on Federal contracts and SBA loans.

                                      Table 4--Baseline for All Industries
----------------------------------------------------------------------------------------------------------------
                                  Sector 48-49       Sector 51       Sector 52       Sector 53         Total
----------------------------------------------------------------------------------------------------------------
Baseline All Industries                       43              19              39              25             126
 (current size standards).....
Total firms (2012 Economic               162,147          45,821         220,860         271,716         700,544
 Census)......................
Total small firms under                  156,173          43,915         214,790         265,977         680,855
 current size standards (2012
 Economic Census).............
Small firms as % of total                  96.3%           95.8%           97.3%           97.9%           97.2%
 firms........................
Total contract dollars ($                 $8,205          $8,103          $3,012            $986         $20,306
 million) (FPDS-NG FY2018-
 2020)........................
Total small business contract             $1,492          $1,926           $410.            $520          $4,348
 dollars under current
 standards ($ million) (FPDS-
 NG FY2020-2018)..............
Small business dollars as % of             18.2%           23.8%           13.6%           52.7%           21.4%
 total dollars (FPDS-NG FY2018-
 2020)........................
Total no. of unique firms                  3,378           5,119             500           3,351          11,939
 getting contracts (FPDS-NG
 FY2018-2020).................
Total no. of unique small                  2,558            3555             258           2,591           8,777
 firms getting small business
 contracts (FPDS-NG FY2018-
 2020)........................
Small business firms as % of               75.7%           69.4%           51.6%           77.3%           73.5%
 total firms..................
No. of 7(a) and 504/CDC loans              3,406             402           1,165           1,597           6,570
 (FY 2018-2020)...............
Amount of 7(a) and 504 loans                $933            $190            $547          $1,079          $2,749
 ($ million) (FY 2018-2020)...
No. of EIDL loans (FY 2018-                   87              19              45             598             749
 2020) *......................
Amount of EIDL loans ($                     $3.9            $0.5            $1.6           $13.2           $19.2
 million) (FY 2018-2020) *....
Total Number of Depository      ................  ..............           5,415
 Institutions (FDIC, SDI)
 (2018).......................
Number of Small Depository      ................  ..............           4,188  ..............  ..............
 Institutions (FDIC, SDI)
 (2018).......................
Small firms as % of total       ................  ..............           77.3%  ..............  ..............
 Depository Institutions
 (2018).......................
Total Assets of Depository      ................  ..............     $18,034,372  ..............  ..............
 Institutions ($ million)
 (FDIC, SDI) (2018)...........
Total Assets of Small           ................  ..............        $837,836  ..............  ..............
 Depository Institutions ($
 million) (FDIC, SDI) (2018)..
SB Assets as % of Total Assets  ................  ..............            4.6%  ..............  ..............
Total Number of Credit Unions   ................  ..............           5,492  ..............  ..............
 (NCUA) (2018)................
Number of small Credit Unions   ................  ..............           5,010  ..............  ..............
 (NCUA) (2018)................
Small firms as % of total       ................  ..............           91.2%  ..............  ..............
 Depository Institutions......
Total Assets of Credit Unions   ................  ..............      $1,470,839  ..............  ..............
 ($ million) (NCUA) (2018)....
Total Assets of Small Credit    ................  ..............        $377,619  ..............  ..............
 Unions ($ million) (NCUA)
 (2018).......................
SB Assets as % of Total Assets  ................  ..............           25.7%  ..............  ..............
 of Credit Unions.............
----------------------------------------------------------------------------------------------------------------
* Excludes COVID-19 related EIDL loans due to their temporary nature. Effective January 1, 2022, SBA stopped
  accepting applications for new COVID EIDL loans or advances.

Benefits of Increasing Size Standards
    The most significant benefit to businesses from increases to size 
standards is gaining eligibility for Federal small business assistance 
programs or retaining eligibility for a longer period. These include 
SBA's business loan programs, Economic Injury Disaster Loan (EIDL) 
program, and Federal procurement programs intended for small 
businesses. Federal procurement programs provide targeted, set-aside 
opportunities for small businesses under SBA's various business 
development and contracting programs. These include the 8(a)/Business 
Development (BD) Program, the Small Disadvantaged Businesses (SDB) 
Program, the Historically Underutilized Business Zones (HUBZone) 
Program, the Women-Owned Small Businesses (WOSB) Program, the 
Economically Disadvantaged Women-Owned Small Businesses (EDWOSB) 
Program, and the Service-Disabled Veteran-Owned Small Businesses 
(SDVOSB) Program.
    Besides set-aside contracting and financial assistance discussed 
above, small businesses also benefit through reduced fees, less 
paperwork, and fewer compliance requirements that are available to 
small businesses through the Federal Government programs. However, SBA 
has no data to estimate the number of small businesses receiving such 
benefits.
    Based on the 2012 Economic Census (latest available), SBA estimates 
that in 45 industries in NAICS Sectors 48-49, 51, 52, and 53 for which 
it is increasing size standards, about 1,790 firms not small under the 
current size standards, will become small under the adopted size 
standards increases and therefore become eligible for these programs. 
That represents about 0.6% of all firms classified as small under the 
current

[[Page 18635]]

size standards in industries for which SBA is adopting increases to 
size standards. When adopted, SBA's size standards would result in an 
increase to the small business share of total receipts in those 
industries from 29.9% to 32.7%. Table 5, Impacts of Increasing Size 
Standards, provides impacts of increasing 45 industries by NAICS 
sector.
    With more businesses qualifying as small under the adopted 
increases to size standards, Federal agencies will have a larger pool 
of small businesses from which to draw for their small business 
procurement programs. Growing small businesses that are close to 
exceeding the current size standards will be able to retain their small 
business status for a longer period under the higher size standards, 
thereby enabling them to continue to benefit from the small business 
programs.
    As shown in Table 5, based on the FPDS-NG data for fiscal years 
2018-2020, SBA estimates that about 53 firms that are active in Federal 
contracting in those industries would gain small business status under 
the adopted size standards. Based on the same data, SBA estimates that 
those newly-qualified small businesses under the increases to 45 size 
standards could receive Federal small business contracts totaling about 
$20 million annually. That represents a 2.3% increase to small business 
dollars from the baseline.
    Based on the FDIC data for fiscal year 2018, SBA estimates that 
about 200 depository institutions would gain small institution status 
under the adopted increases to asset-based size standards with an 
additional $132 billion or 15.8% increase in small depository 
institutions' assets. Also, based on the NCUA data for fiscal year 
2018, SBA estimates that about 85 credit unions would gain small 
business status under the adopted increases to size standards, with an 
additional $56 billion in assets or 14.9% increase for small credit 
unions (see Table 5).

                                  Table 5--Impacts of Increasing Size Standards
----------------------------------------------------------------------------------------------------------------
                                  Sector 48-49       Sector 51       Sector 52       Sector 53         Total
----------------------------------------------------------------------------------------------------------------
No. of industries with                        18               8              10               9              45
 increases to size standards..
Total current small businesses            27,255           5,368         135,774         150,404         318,800
 in industries with increases
 to size standards (2012
 Economic Census).............
Additional firms qualifying as               184              13             623             970           1,790
 small under standards (2012
 Economic Census).............
% of additional firms                       0.7%            0.2%            0.5%            0.6%            0.6%
 qualifying as small relative
 to current small businesses
 in industries with increases
 to size standards............
No. of current unique small                  419             267              93            1173           1,943
 firms getting small business
 contracts in industries with
 increases to size standards
 (FPDS-NG FY2018-2020) \1\....
Additional small business                     23               4               5              22              53
 firms getting small business
 status (FPDS-NG FY2018-2020)
 \1\..........................
% increase to small businesses              5.5%            1.5%            5.4%            1.9%            2.7%
 relative to current unique
 small firms getting small
 business contracts in
 industries with increases to
 size standards (FPDS-NG
 FY2018-2020).................
Total small business contract             $331.4          $132.1          $178.3          $245.6          $887.3
 dollars under current
 standards in industries with
 increases to size standards
 ($ million) (FPDS-NG FY2018-
 2020)........................
Estimated additional small                  $5.9            $2.1            $3.5            $8.7           $20.3
 business dollars available to
 newly-qualified small firms
 (using avg. dollars obligated
 to small businesses) ($
 million) (FPDS-NG FY 2018-
 2020) \2\....................
% increase to small business                1.8%            1.6%            2.0%            3.6%            2.3%
 dollars relative to total
 small business contract
 dollars under current
 standards in industries with
 increases to size standards..
Total no. of 7(a) and 504                    360              49             761             703           1,873
 loans to small business in
 industries with increases to
 size standards (FY 2018-2020)
Total 7(a) and 504 loan                   $150.6           $21.7          $301.5          $249.8          $723.6
 amounts to small businesses
 in industries with increases
 to size standards ($ million)
 (FY 2018-2020)...............
Estimated no. of 7(a) and 504                  4               1               4               5              14
 loans to newly-qualified
 small firms..................
Estimated 7(a) and 504 loan                 $2.5            $0.4            $1.6            $1.8            $6.3
 amounts to newly-qualified
 small firms ($ million)......
% increase to 7(a) and 504                  0.3%            0.2%            0.3%            0.2%            0.2%
 loan amount relative to the
 total amount of 7(a) and 504
 loans in industries with
 increases to size standards..
Total no. of EIDL loans to                    59               8               0              98             165
 small businesses in
 industries with increases to
 size standards (FY 2018-2020)
 \3\..........................
Total amount of EIDL loans to               $2.7            $0.2            $1.5            $4.3            $8.6
 small businesses in
 industries with increases to
 size standards ($ million)
 (FY 2018-2020) \3\...........
Estimated no. of EIDL loans to                 2               1               1               1               5
 newly-qualified small firms
 \3\..........................
Estimated EIDL loan amount to              $0.05           $0.02           $0.04           $0.04            $0.2
 newly-qualified small firms
 ($ million) \3\..............

[[Page 18636]]

 
% increase to EIDL loan amount              2.0%           12.5%            2.4%            1.0%            1.8%
 relative to the total amount
 of disaster loans in
 industries with increases to
 size standards \3\...........
Total current small businesses  ................  ..............           4,188  ..............  ..............
 in industries with increases
 to size standards (FDIC)
 (2018).......................
Additional firms qualifying as  ................  ..............             198  ..............  ..............
 small under adopted standards
 (FDIC).......................
% Increase small institutions   ................  ..............            4.7%  ..............  ..............
 with increases to size
 standards....................
Total Assets of Small           ................  ..............        $837,836  ..............  ..............
 Depository Institutions ($
 million) (FDIC, SDI) (2018)..
Estimated increase in total     ................  ..............        $132,440  ..............  ..............
 assets of Small Depository
 Institutions ($ million).....
% increase in total assets of   ................  ..............           15.8%  ..............  ..............
 small depository institutions
Number of small Credit Unions   ................  ..............           5,010  ..............  ..............
 (NCUA) (2018)................
Additional small Credit Unions  ................  ..............              84  ..............  ..............
 (NCUA).......................
% Increase small institutions   ................  ..............            1.7%  ..............  ..............
 with increases to size
 standards....................
Total Assets of Small Credit    ................  ..............        $377,619  ..............  ..............
 Unions ($ million) (NCUA)
 (2018).......................
Estimated increase in total     ................  ..............         $56,327  ..............  ..............
 assets of Small Credit Unions
 ($ million)..................
% increase in total assets of   ................  ..............           14.9%  ..............  ..............
 small Credit Unions..........
----------------------------------------------------------------------------------------------------------------
\1\ Total impact represents total unique number of firms impacted to avoid double counting as some firms are
  participating in more than one industry.
\2\ Additional dollars are calculated multiplying average small business dollars obligated per DUNS times change
  in number of firms. Numbers of firms are calculated using the SBA current size standard, not the contracting
  officer's size designation.
\3\ Excludes COVID-19 related EIDL loans due to their temporary nature. Effective January 1, 2022, SBA stopped
  accepting applications for new COVID EIDL loans or advances.

    The added competition from more businesses qualifying as small can 
result in lower prices to the Federal Government for procurements set 
aside or reserved for small businesses, but SBA cannot quantify this 
impact. Costs could be higher when 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 the availability of a larger pool of small 
businesses under the adopted increases to size standards, HUBZone firms 
might 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 as it is impossible to determine the 
number and value of unrestricted contracts to be otherwise awarded to 
HUBZone firms 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.
    Under SBA's 7(a) and 504 loan programs, based on the data for 
fiscal years 2018-2020, SBA estimates up to about 14 SBA 7(a) and 504 
loans totaling about $6.3 million could be made to these newly-
qualified small businesses in those industries under the adopted size 
standards. That represents a 0.2% increase to the loan amount compared 
to the group baseline (see Table 5).
    Newly-qualified small businesses will also benefit from the SBA's 
EIDL program. Because the benefits provided through this program are 
contingent on the occurrence and severity of a disaster in the future, 
SBA cannot make a meaningful estimate of this impact. However, based on 
the historical trends of the disaster loan program data, SBA estimates 
that, on an annual basis, the newly-defined small businesses under the 
increases to 45 size standards could receive 5 disaster loans (except 
physical disaster loans), totaling about $0.2 million. 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 Increasing Size Standards
    Aside from taking time to register in sam.gov to be eligible to 
participate in Federal contracting, and update the System for Award 
Management (SAM) profile annually, small businesses incur no direct 
costs to gain or retain their small business status as a result of 
increases to size standards. All businesses willing to do business with 
the Federal Government must register in SAM and update their SAM 
profiles annually, regardless of their size status. SBA believes that a 
vast majority of businesses that are willing to participate in Federal 
contracting are already registered in SAM and update their SAM profiles 
annually. This final rule does not establish the new size standards for 
the very first time; rather it intends to modify the existing size 
standards in accordance with a statutory requirement, the latest data, 
and other relevant factors.
    To the extent that the newly-qualified small businesses could 
become active in Federal procurement, the adopted increases to size 
standards, if adopted, may entail some additional administrative costs 
to the Government as a result of more businesses qualifying as small 
for Federal small business programs. For example, there will be more 
firms seeking SBA's loans, more firms eligible for enrollment in the 
Dynamic Small Business Search (DSBS) database or in certify.sba.gov, 
more firms seeking certification as 8(a)/BD or HUBZone firms or 
qualifying for small business, SDB, WOSB, EDWOSB, and SDVOSB status, 
and more firms applying for SBA's 8(a)/BD mentor-prot[eacute]g[eacute] 
program. With an expanded pool of small businesses, it is likely that

[[Page 18637]]

Federal agencies would set-aside more contracts for small businesses 
under the adopted increases to size standards. One may surmise that 
this might result in a higher number of small business size protests 
and additional processing costs to agencies. However, the SBA's 
historical data on the number of size protests processed shows that the 
number of size protests decreased following the increases to receipts-
based size standards as part of the first five-year review of size 
standards. Specifically, on an annual basis, the number of size 
protests fell from about 600 during fiscal years 2011-2013 (review of 
most receipts-based size standards was completed by the end of fiscal 
year 2013), as compared to about 500 during fiscal years 2018-2020 when 
size standard increases were in effect. That represents a 17% decline.
    Among those newly-defined small businesses seeking SBA's loans, 
there could be some additional costs associated with 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 these reasons, SBA believes 
that these added administrative costs will be minor because necessary 
mechanisms are already in place to handle these added requirements.
    Additionally, some Federal contracts may possibly have higher 
costs. With a greater number of businesses defined as small due to the 
adopted increases to size standards, Federal agencies may choose to set 
aside more contracts for competition among small businesses only 
instead of using a full and open competition. The movement of contracts 
from unrestricted competition to small business set-aside contracts 
might result in competition among fewer total bidders, although there 
will be more small businesses eligible to submit offers under the 
adopted size standards. However, the additional costs associated with 
fewer bidders are expected to be minor because, by law, procurements 
may be set aside for small businesses under the 8(a)/BD, SDB, HUBZone, 
WOSB, EDWOSB, or SDVOSB programs only if awards are expected to be made 
at fair and reasonable prices.
    Costs may also be higher when 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 the availability of a larger pool of small 
businesses under the adopted increases to size standards, HUBZone firms 
might receive fewer full and open contracts, thereby resulting in some 
cost savings to agencies. However, such cost savings are likely to be 
minimal as only a small fraction of unrestricted contracts are awarded 
to HUBZone businesses.
Transfer Impacts of Increasing Size Standards
    The increases to 45 size standards that are adopted in this final 
rule may result in some redistribution of Federal contracts between the 
newly-qualified small businesses and large businesses and between the 
newly-qualified small businesses and small businesses under the current 
standards. However, it would have no impact on the overall economic 
activity because total Federal contract dollars available for 
businesses to compete for will not change with changes to size 
standards. Although SBA cannot quantify with certainty the actual 
outcome of the gains and losses from the redistribution contracts among 
different groups of businesses, it can identify several probable 
impacts in qualitative terms. With the availability of a larger pool of 
small businesses under the adopted increases to size standards, some 
unrestricted Federal contracts that would otherwise be awarded to large 
businesses may be set-aside for small businesses. As a result, large 
businesses may lose some Federal contracting opportunities. Similarly, 
some small businesses under the current size standards may obtain fewer 
set-aside contracts due to the increased competition from larger 
businesses qualifying as small under the adopted increases to size 
standards. This impact may be offset by a greater number of 
procurements being set-aside for all small businesses. With larger 
businesses qualifying as small under the higher size standards, smaller 
small businesses could face some disadvantage in competing for set-
aside contracts against their larger counterparts. However, SBA cannot 
quantify these impacts.
3. What alternatives have been considered?
    Under OMB Circular A-4, SBA is required to consider regulatory 
alternatives to the adopted changes in this final rule. In this 
section, SBA describes and analyzes two such alternatives. Alternative 
Option One to the final rule, a more stringent alternative to the 
adopted change, would propose adopting size standards based solely on 
the analytical results. In other words, the size standards of 45 
industries for which the analytical results, as presented in Table 4 of 
the October 2020 proposed rule, suggest raising them would be raised. 
However, the size standards of 69 industries for which the analytical 
results suggest lowering them would be lowered. For the 12 remaining 
industries, size standards would be maintained at their current levels 
based on the results. Alternative Option Two would propose retaining 
size standards for all industries, given the uncertainty generated by 
the ongoing COVID-19 pandemic. Below, SBA discusses benefits, costs, 
and the net impacts of each option.
Alternative Option One: Adopting All Calculated Size Standards
    As discussed previously in the Alternatives Considered section of 
this final rule, Alternative Option One would cause a substantial 
number of currently small businesses to lose their small business 
status and hence to lose their access to Federal small business 
assistance, especially small business set-aside contracts and SBA's 
financial assistance in some cases. These consequences could be 
mitigated. For example, in response to the 2008 Financial Crisis and 
economic conditions that followed, SBA adopted a general policy in the 
first five-year comprehensive size standards review to not lower any 
size standard (except to exclude one or more dominant firms) even when 
the analytical results suggested the size standard should be lowered. 
Currently, because of the economic challenges presented by the COVID-19 
pandemic and the measures taken to protect public health, SBA has 
decided to adopt the same general policy of not lowering size standards 
in the ongoing second five-year comprehensive size standards review as 
well.
    The primary benefits of adopting Alternative Option One would 
include: (1) SBA's procurement, management, technical and financial 
assistance resources would be targeted to the most appropriate 
beneficiaries of such programs according to the analytical results; (2) 
Adopting the size standards based on the analytical results would also 
promote consistency and predictability in SBA's implementation of its 
authority to set or adjust size standards; and (3) Firms who would 
remain small would face less competition from larger small firms for 
the remaining set-aside opportunities. Specifically, SBA sought public 
comment on the impact of adopting the size standards based on the 
analytical results.
    As explained in the ``Size Standards Methodology'' white paper, in 
addition to adopting all results of the primary

[[Page 18638]]

analysis, SBA evaluates other relevant factors as needed such as the 
impact of the reductions or increases of size standards on the 
distribution of contracts awarded to small businesses, and may adopt 
different results with the intention of mitigating potential negative 
impacts.
    We have discussed already the benefits, costs, and transfer impacts 
of increasing 45 size standards. Below we discuss the benefits, costs, 
and transfer impacts of decreasing 69 size standards based on the 
analytical results.
Benefits of Decreasing Size Standards Under Alternative Option One
    The most significant benefit to businesses from decreases to size 
standards when SBA's analysis suggests such decreases is to ensure that 
size standards are more reflective of latest industry structure and 
Federal market trends and that Federal small business assistance is 
more effectively targeted to its intended beneficiaries. These include 
SBA's business loan programs, EIDL program, and Federal procurement 
programs intended for small businesses. Federal procurement programs 
provide targeted, set-aside opportunities for small businesses under 
SBA's business development programs, such as small business, SDB, 8(a)/
BD, HUBZone, WOSB, EDWOSB, and SDVOSB programs. The adoption of 
calculated size standards diminishes the risk of awarding contracts to 
firms that are not small anymore.
    Decreasing size standards may reduce the administrative costs of 
the Government, because the risk of awarding set-aside contracts to 
other than small businesses may diminish when the size standards 
reflect better the structure of the market. This may also diminish the 
risks of providing SBA's loans to firms that do not need them the most. 
This may provide a better chance for smaller small firms to grow and 
benefit from the opportunities available on the Federal marketplace, 
and strengthen the small business industrial base for the Federal 
Government.
Costs of Decreasing Size Standards Under Alternative Option One
    Table 6, Impacts of Decreasing Size Standards Under Alternative 
Option One, below, shows the various impacts of lowering size standards 
in 69 industries based solely on the analytical results. Based on the 
2012 Economic Census, about 5,500 (0.9%) firms would lose their small 
business status under Alternative Option One. Similarly, based on the 
FPDS-NG data for fiscal years 2018-2020, nearly 500 (5.0%) small 
businesses participating in Federal contracting would lose their small 
status and become ineligible to compete for set-aside contracts. With 
fewer businesses qualifying as small under the decreases to size 
standards, Federal agencies will have a smaller pool of small 
businesses from which to draw for their small business procurement 
programs. For example, during fiscal years 2018-2020, agencies awarded, 
on an annual basis, about $3,338 million in small business contracts in 
those 69 industries for which SBA considered decreasing size standards 
under Alternative Option One. Lowering size standards in 69 industries 
would reduce Federal contract dollars awarded to small businesses by 
$87 million or about 2.6% relative to the baseline level.

                   Table 6--Impacts of Decreasing Size Standards Under Alternative Option One
----------------------------------------------------------------------------------------------------------------
                                  Sector 48-49       Sector 51       Sector 52       Sector 53         Total
----------------------------------------------------------------------------------------------------------------
No. of industries for which                   23               9              24              13              69
 SBA considered decreasing
 size standards (2012 Economic
 Census)......................
Total current small businesses           133,032          39,030          76,036         114,495         510,777
 in industries for which SBA
 considered decreasing size
 standards (2012 Economic
 Census)......................
Estimated no. of firms losing              1,086              72             246             234           1,738
 small status for which SBA
 considered decreasing size
 standards (2012 Economic
 Census)......................
% of Firms losing small status             0.50%           0.19%           0.34%           0.21%           0.92%
 relative to current small
 businesses in industries for
 which SBA considered
 decreasing size standards....
No. of current unique small                2,188           3,200             131           1,339           6,744
 firms getting small business
 contracts in industries for
 which SBA considered
 decreasing size standards
 (FPDS-NG FY2018-2020) \1\....
Estimated number of small                    110              17               5              28             155
 business firms that would
 have lost small business
 status for Federal
 contracting in the decreases
 that SBA considered \1\......
% decrease to small business                5.0%            0.5%            0.0%            2.1%            2.3%
 firms relative to current
 unique small firms getting
 small business contracts in
 industries for which SBA
 considered decreasing size
 standards (FPDS-NG FY2018-
 2020)........................
Total small business contract             $1,157          $1,776            $145            $260          $3,338
 dollars under current size
 standards in industries for
 which SBA considered
 decreasing size standards ($
 million) (FPDS-NG FY2018-
 2020)........................
Estimated small business                   $64.7           $11.2            $4.0            $6.8           $86.6
 dollars not available to
 firms that would have lost
 business status (Using avg
 dollars obligated to SBs) ($
 million)\ 2\ (FPDS-NG FY 2018-
 2020)........................
% decrease to small business                5.6%            0.6%            0.0%            2.6%            2.6%
 dollars relative to total
 small business contract
 dollars under current size
 standards in industries for
 which SBA considered
 decreasing to size standards.
Total no. of 7(a) and 504                  3,046             346             372             846           4,610
 loans to small businesses in
 industries for which SBA
 considered decreasing size
 standards (FY 2018-2020).....

[[Page 18639]]

 
Total amount of 7(a) and 504                $782            $165            $232            $807          $1,986
 loans to small businesses in
 industries for which SBA
 considered decreasing size
 standards ($ million) (FY
 2018-2020)...................
Estimated no. of 7(a) and 504                  5               1               1               1               8
 loans not available to firms
 that would have lost small
 business status..............
Estimated 7(a) and 504 loan                 $1.6            $0.5            $0.6            $1.0            $3.6
 amounts not available to
 firms that would have small
 status ($ million)...........
% decrease to 7(a)and 504 loan              0.2%            0.3%            0.1%            0.1%            0.3%
 amounts relative to the total
 amount of 7(a) and 504 loans
 in industries for which SBA
 considered decreasing size
 standards....................
Total no. of EIDL loans to                   110              19              22             868           1,019
 small businesses in
 industries for which SBA
 considered decreasing size
 standards (FY 2018-2020) \3\.
Total amount of EIDL loans to               $4.6            $1.0            $0.8           $11.6           $18.0
 small businesses in
 industries for which SBA
 considered decreasing size
 standards ($ million) (FY
 2018-2020) \3\...............
Estimated no. of EIDL loans                    2               1               1               1               5
 not available to firms that
 would have lost small
 business status \3\..........
Estimated EIDL loan amount not             $0.08           $0.05           $0.04           $0.01           $0.18
 available to firms that would
 have lost small business
 status ($ million) \3\.......
% decrease to EIDL loan amount              2.0%           10.7%            2.4%            0.1%            1.4%
 relative to the baseline \3\.
----------------------------------------------------------------------------------------------------------------
\1\ Total impact represents total unique number of firms impacted to avoid double counting as some firms are
  participating in more than one industry.
\2\ Additional dollars are calculated multiplying average small business dollars obligated per DUNS times change
  in number of firms. Numbers of firms are calculated using the SBA current size standard, not the contracting
  officer's size designation.
\3\ Excludes COVID-19 related EIDL loans due to their temporary nature. Effective January 1, 2022, SBA stopped
  accepting applications for new COVID EIDL loans or advances.

    Because of the importance of these sectors for the Federal 
procurement, SBA may adopt mitigating measures to reduce the negative 
impact under the assumptions of Alternative Option One. SBA could adopt 
one or more of the following three actions: (1) Accept decreases in 
size standards as suggested by the analytical results, (2) Decrease 
size standards by a smaller amount than the calculated threshold, and 
(3) Retain the size standards at their current levels.
    Nevertheless, because Federal agencies are still required to meet 
the statutory small business contracting goal of 23%, actual impacts on 
the overall set-aside activity is likely to be smaller as agencies are 
likely to award more set-aside contracts to small businesses that 
continue to remain small under the reduced size standards.
    With fewer businesses qualifying as small, the decreased 
competition can also result in higher prices to the Government for 
procurements set-aside or reserved for small businesses, but SBA cannot 
quantify this impact. Lowering size standards may cause current small 
business contract or option holders to lose their small business 
status, thereby making those dollars unavailable to count toward the 
agencies' small business procurement goals. Additionally, impacted 
small businesses will be unable to compete for upcoming options as 
small businesses.
    As shown in Table 6, decreasing size standards would have a very 
minor impact on small businesses applying for SBA's 7(a) and 504 loans 
because a vast majority of such loans are issued to businesses that are 
far below the reduced size standards. For example, based on the loan 
data for fiscal years 2018-2020, SBA estimates that about 8 of SBA's 
7(a) and 504 loans with total amounts of $3.6 million could not be made 
to those small businesses that would lose eligibility under the reduced 
size standards. That represents about 0.3% decrease of the loan amounts 
compared to the baseline. However, the actual impact could be much less 
as businesses losing small business eligibility under the decreases to 
industry-based size standards could still qualify for SBA's loans under 
the tangible net worth and net income-based alternative size standard.
    Businesses losing small business status would also be impacted by 
way of access to loans through SBA's EIDL loan program. However, SBA 
expects such impact to be minimal as only a small number of businesses 
in those industries received such loans during fiscal years 2018-2020. 
For example, based on the disaster loan data for fiscal years 2018-
2020, SBA estimates that, under Alternative Option One, about 5 EIDL 
loans with total amounts of $0.2 million could not be made to those 
small businesses that would lose eligibility under the reduced size 
standards (before mitigation). That represents about 1.4% decrease of 
the loan amounts compared to the baseline. Because this program is 
contingent on the occurrence and severity of a disaster in the future, 
SBA cannot make a more meaningful estimate of this impact.
    Small businesses becoming other than small if size standards were 
decreased might lose benefits through reduced fees, less paperwork, and 
fewer compliance requirements that are available to small businesses 
through the Federal Government programs, but SBA has no data to 
quantify this impact. However, if agencies determine that SBA's size 
standards do not adequately serve such purposes, they can establish a 
different size standard with an approval from SBA if they are required 
to use SBA's size standards for their programs.
Transfer Impacts of Decreasing Size Standards Under Alternative Option 
One
    If the size standards were decreased under Alternative Option One, 
it may result in a redistribution of Federal contracts between small 
businesses losing their small business status and large businesses and 
between small businesses losing their small business status and small 
businesses remaining small under the reduced size standards. However, 
as under the adopted

[[Page 18640]]

increases to size standards, it would have no impact on the overall 
economic activity because the total Federal contract dollars available 
for businesses to compete for will stay the same. Although SBA cannot 
estimate with certainty the actual outcome of the gains and losses 
among different groups of businesses from contract redistribution 
resulting from decreases to size standards, it can identify several 
probable impacts. With a smaller pool of small businesses under the 
decreases to size standards, some set-aside Federal contracts to be 
otherwise awarded to small businesses may be competed on an 
unrestricted basis. As a result, large businesses may have more Federal 
contracting opportunities. However, because agencies are still required 
by law to award 23% of Federal dollars to small businesses, SBA expects 
the movement of set-aside contracts to unrestricted competition to be 
limited. For the same reason, small businesses under the reduced size 
standards are likely to obtain more set-aside contracts due to the 
reduced competition from fewer businesses qualifying as small under the 
decreases to size standards. With some larger small businesses losing 
small business status under the decreases to size standards, smaller 
small businesses would likely become more competitive in obtaining set-
aside contracts. However, SBA cannot quantify these impacts.
Net Impact of Alternative Option One
    To estimate the net impacts of Alternative Option One, SBA followed 
the same methodology used to evaluate the impacts of the increasing 
size standards (see Table 5). However, under Alternative Option One, 
SBA used the calculated size standards instead of the adopted ones to 
determine the impacts of changes to current thresholds. The impact of 
the increases of size standards were already shown in Table 5. Table 6 
and Table 7, Net Impacts of Size Standards Changes under Alternative 
Option One, below, present the impact of the decreases of size 
standards and the net impact of adopting the calculated results under 
Alternative Option One, respectively.
    Based on the 2012 Economic Census, SBA estimates that in 114 
industries in NAICS Sectors 48-49, 51, 52 and 53 for which the 
analytical results suggested to change size standards, about 50 firms 
(see Table 7), would become small under Alternative Option One. That 
represents about 0.01% of all firms classified as small under the 
current size standards in those industries. That is about 1,740 fewer 
firms qualifying as small under Alternative Option One, which 
represents a 97.0% reduction from about 1,790 firms that would qualify 
as small (see Table 5) under the proposal being adopted in this final 
rule (i.e., increasing 45 and retaining 81 size standards).

                   Table 7--Net Impacts of Size Standards Changes Under Alternative Option One
----------------------------------------------------------------------------------------------------------------
                                  Sector 48-49       Sector 51       Sector 52       Sector 53         Total
----------------------------------------------------------------------------------------------------------------
No. of industries with changes                41              17              34              22             114
 to size standards............
Total no. of small business              156,173        42,803.4         208,456         265,559         669,991
 under the current size
 standards (2012 Economic
 Census)......................
Additional firms qualifying as            -1,002             -60             377             736              52
 small under size standards
 (2012 Economic Census).......
% of additional firms                      -0.6%           -0.1%            0.2%            0.3%           0.01%
 qualifying as small relative
 to total current small
 businesses...................
No. of current unique small                2,538            3428             218           2,481           8,504
 firms getting small business
 contracts (FPDS-NG FY2018-
 2020) \1\....................
Additional small firms getting               -88             -14               0              -7            -109
 small business status (FPDS-
 NG FY2018-2020) \1\..........
% increase to small firms                  -3.5%           -0.4%            0.0%           -0.3%           -1.3%
 relative to current unique
 small firms getting small
 business contracts (FPDS-NG
 FY2018-2020).................
Total small business contract             $1,488          $1,908            $324            $505          $4,225
 dollars under current size
 standards ($ million) (FPDS-
 NG FY2018-2020)..............
Estimated small business                    -$59             -$9           -$0.5             -$2            -$66
 dollars available to newly-
 qualified small firms ($
 million) (FPDS-NG FY 2018-
 2020) \2\....................
% increase to dollars relative             -3.9%           -0.5%           -0.1%            0.4%           -1.6%
 to total small business
 contract dollars under
 current size standards.......
Total no. of 7(a) and 504                  3,406             402           1,165           1,597           6,570
 loans to small businesses (FY
 2018-2020)...................
Total amount of 7(a) and 504                $933            $190            $547          $1,079          $2,749
 loans to small businesses (FY
 2018-2020)...................
Estimated no. of additional                   -1               0               3               4               6
 7(a) and 504 loans to newly-
 qualified small firms........
Estimated additional 7(a) and               $0.9            $0.0            $1.0            $0.8            $2.6
 504 loan amount to newly-
 qualified small firms ($
 million).....................
% increase to 7(a)and 504 loan              0.1%            0.0%           0.18%           0.08%           0.08%
 amount relative to the total
 amount of 7(a) and 504 loans
 to small businesses..........
Total no. of EIDL loans to                    87              19              45             598             749
 small businesses (FY 2018-
 2020) \3\....................
Total amount of EIDL loans to               $3.9            $0.5            $1.6           $13.2           $19.2
 small businesses (FY 2018-
 2020) \3\....................
Estimated no. of additional                    0               0               0               0               0
 EIDL loans to newly-qualified
 small firms \3\..............
Estimated additional EIDL loan            -$0.02          -$0.03           $0.01           $0.03          -$0.03
 amount to newly-qualified
 small firms ($ million) \3\..
% increase to EIDL loan amount             -0.6%           -5.9%           -0.1%            0.2%           -0.1%
 relative to the total amount
 of EIDL loans to small
 businesses \3\...............

[[Page 18641]]

 
Total current small businesses  ................  ..............           4,188  ..............  ..............
 in industries with proposed
 increases to size standards
 (FDIC) (2018)................
Additional firms qualifying as  ................  ..............             198  ..............  ..............
 small under adopted standards
 (FDIC).......................
% increase small institutions   ................  ..............            4.7%  ..............  ..............
 with increases to size
 standards....................
Total Assets of Small           ................  ..............        $837,836  ..............  ..............
 Depository Institutions
 (FDIC, SDI) (2018)...........
Estimated increase in total     ................  ..............        $132,440  ..............  ..............
 assets of Small Depository
 Institutions.................
% increase in total assets of   ................  ..............           15.8%  ..............  ..............
 small depository institutions
Number of small Credit Unions   ................  ..............           5,010  ..............  ..............
 (NCUA) (2018)................
Additional small Credit Unions  ................  ..............              84  ..............  ..............
 (NCUA).......................
% increase small institutions   ................  ..............            1.7%  ..............  ..............
 with increases to size
 standards....................
Total Assets of Small Credit    ................  ..............        $377,619  ..............  ..............
 Unions (NCUA) (2018).........
Estimated increase in total     ................  ..............         $56,327  ..............  ..............
 assets of Small Credit Unions
% increase in total assets of   ................  ..............           14.9%  ..............  ..............
 small Credit Unions..........
----------------------------------------------------------------------------------------------------------------
\1\ Total impact represents total unique number of firms impacted to avoid double counting as some firms are
  participating in more than one industry.
\2\ Additional dollars are calculated multiplying average small business dollars obligated per DUNS times change
  in number of firms. Numbers of firms are calculated using the SBA current size standard, not the contracting
  officer's size designation.
\3\ Excludes COVID-19 related EIDL loans due to their temporary nature. Effective January 1, 2022, SBA stopped
  accepting applications for new COVID EIDL loans or advances.

    As shown in Table 7, based on the FPDS-NG data for fiscal years 
2018-2020, SBA estimates that, in aggregate, about 109 active firms in 
Federal contracting in those industries would lose small business 
status under Alternative Option One, most of them from Sector 48-49. 
This represents a decrease of about 1.3% of the total number of small 
businesses participating in Federal contracting under the current size 
standards. Based on the same data, SBA estimates that about $660 
million of Federal procurement dollars would not be available to firms 
losing their small status. That is a decrease of 1.6% from the 
baseline. A large portion of these losses is accounted for by Sector 
48-49.
    Based on the SBA's loan data for fiscal years 2018-2020, the total 
number of 7(a) and 504 loans will increase by six loans, while the 
total loan amount will increase by about $2.6 million. This is a 0.08% 
rise of the loan amounts relative to the baseline. Firms' participation 
under the SBA's EIDL loan program will be affected as well. Because the 
benefit provided through 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 the historical trends of the 
EIDL loan program data, SBA estimates that there will be no change to 
the total number of EIDL loans, while the total loan amount will be 
reduced by about $.03 million. This represents a 0.1% decrease of the 
loan amounts relative to the baseline. Table 7 provides these results 
by NAICS sector.
Alternative Option Two: Retaining All Current Size Standards
    Under this option, given the current COVID-19 pandemic, as 
discussed elsewhere, SBA considered retaining the current levels of all 
size standards even though the analytical results suggested changing 
them. Under this option, as the current situation develops, SBA will be 
able to assess new data available on economic indicators, federal 
procurement, and SBA loans as well. When compared to the baseline, 
there is a net impact of zero (i.e., zero benefit and zero cost) for 
retaining all size standards. However, this option would cause 
otherwise qualified small businesses to forgo various small business 
benefits (e.g., access to set-aside contracts and capital) that become 
available to them under the option of increasing 45 and retaining 81 
size standards adopted in this final rule. Moreover, retaining all size 
standards under this option would also be contrary to the SBA's 
statutory mandate to review and adjust, every five years, all size 
standards to reflect current industry and Federal market conditions. 
Retaining all size standards without required periodic adjustments 
would increasingly exclude otherwise eligible small firms from small 
business benefits.

Congressional Review Act

    Subtitle E of the Small Business Regulatory Enforcement Fairness 
Act of 1996 (codified at 5 U.S.C. 801-808), also known as the 
Congressional Review Act or CRA, generally provides that before a rule 
may take effect, the agency promulgating the rule must submit a rule 
report, which includes a copy of the rule, to each House of the 
Congress and to the Comptroller General of the United States. SBA will 
submit a report containing this rule and other required information to 
the U.S. Senate, the U.S. House of Representatives, and the Comptroller 
General of the United States. A major rule under the CRA cannot take 
effect until 60 days after it is published in the Federal Register. 
OMB's Office of Information and Regulatory Affairs has determined that 
this rule is not a ``major rule'' as defined by 5 U.S.C. 804(2).

Final Regulatory Flexibility Analysis

    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. This final rule may have a significant impact on a 
substantial number of small businesses in the industries covered by 
this final rule. As described above, this final rule may affect small 
businesses seeking Federal contracts, loans under SBA's 7(a), 504 and 
disaster loan programs,

[[Page 18642]]

and assistance under other Federal small business programs.
    Immediately below, SBA sets forth a final regulatory flexibility 
analysis (FRFA) of this final rule addressing the following questions: 
(1) What is the need for and objective of the rule? (2) What is SBA's 
description and estimate of the number of small businesses to which the 
rule will apply? (3) What are the projected reporting, record keeping, 
and other compliance requirements of the rule? (4) What are the 
relevant Federal rules that may duplicate, overlap, or conflict with 
the rule? (5) What alternatives will allow SBA to accomplish its 
regulatory objectives while minimizing the impact on small businesses?
1. What is the need for and objective of the rule?
    Changes in industry structure, technological changes, productivity 
growth, mergers and acquisitions, and updated industry definitions have 
changed the structure of many the industries covered by this final 
rule. Such changes can be enough to support revisions to current size 
standards for some industries. Based on the analysis of the latest data 
available, SBA believes that the size standards adopted in this final 
rule more appropriately reflect the size of businesses that need 
Federal assistance. The 2010 Jobs Act also requires SBA to review all 
size standards and make necessary adjustments to reflect market 
conditions.
2. What is SBA's description and estimate of the number of small 
businesses to which the rule will apply?
    Based on data from the 2012 Economic Census, SBA estimates that 
there are about 319,000 small firms covered by this rulemaking under 
industries with changes to size standards. Under this final rule, SBA 
estimates that an additional 1,790 businesses will be defined as small.
3. What are the projected reporting, record keeping and other 
compliance requirements of the rule?
    The size standard changes in this final rule impose no additional 
reporting or record keeping requirements on small businesses. However, 
qualifying for Federal procurement and a number of other programs 
requires that businesses register in SAM and self-certify that they are 
small at least once annually (FAR 52.204-13). For existing contracts, 
small business contractors are required to update their SAM 
registration as necessary, to ensure that they reflect the Contractor's 
current status (FAR 52.219-28). Businesses are also required to verify 
that their SAM registration is current, accurate, and complete with the 
submission of an offer for every new contract (FAR 52.204-7 and 52.204-
8).). Therefore, businesses opting to participate in those programs 
must comply with SAM requirements. Changes in small business size 
standards do not result in additional costs associated with SAM 
registration or certification. Changing size standards alters the 
access to SBA's programs that assist small businesses but does not 
impose a regulatory burden because they neither regulate nor control 
business behavior.
4. What are the relevant Federal Rules that 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 if they believe that SBA's 
size standards are not appropriate for their programs, with the 
approval of SBA's Administrator (13 CFR 121.903). The Regulatory 
Flexibility Act authorizes an agency to establish an alternative small 
business definition, 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 SBA 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 size measures, no practical alternative exists to the systems of 
numerical size standards.
    However, SBA considered two alternatives to increasing 45 and 
maintaining 81 size standards at their current levels. The first 
alternative SBA considered was adopting size standards based solely on 
the analytical results. In other words, the size standards of 45 
industries for which the analytical results suggest raising size 
standards would be raised. However, the size standards of 69 industries 
for which the analytical results suggest lowering them would be 
lowered. This would cause a significant number of small businesses to 
lose their small business status, particularly in Sector 48-49 (see 
Table 6). Under the second alternative, in view of the COVID-19 
pandemic, SBA considered retaining all size standards at the current 
levels, even though the analytical results may suggest increasing 45 
and decreasing 69 size standards. SBA believes retaining all size 
standards at their current levels would be more onerous for small 
businesses than the option of increasing 45 and retaining 35 size 
standards. Postponing the adoption of the higher calculated size 
standards would be detrimental for otherwise small businesses in terms 
of access to various small business benefits, including access to set-
aside contracts and capital through SBA contracting and financial 
programs, and exemptions from paperwork and other compliance 
requirements.

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 Regulatory Impact Analysis under Executive Order 
12866. Additionally, Executive Order 13563, section 6, calls for 
retrospective analyses of existing rules.
    The review of size standards in the industries covered by this 
final rule is consistent with section 6 of Executive Order 13563 and 
the 2010 Jobs Act, which requires SBA to review all size standards and 
make necessary adjustments to reflect market conditions. Specifically, 
the 2010 Jobs Act requires SBA to review at least one-third of all size 
standards during every 18-month period from the date of its enactment 
(September 27, 2010) and to review all size standards not less 
frequently than once every five years, thereafter. SBA had already 
launched a comprehensive review of size standards in 2007. In 
accordance with the Jobs Act, SBA completed the comprehensive review of 
the small business size standard for each industry, except those for 
agricultural enterprises previously set by Congress, and made 
appropriate adjustments to size standards for a

[[Page 18643]]

number of industries to reflect current Federal and industry market 
conditions. The first comprehensive review was completed in early 2016. 
Prior to 2007, the last time SBA conducted a comprehensive review of 
all size standards was during the late 1970s and early 1980s.
    SBA issued a white paper entitled ``Size Standards Methodology'' 
and published a notice in the April 11, 2019, edition of the Federal 
Register (84 FR 14587) to advise the public that the document is 
available for public review. The ``Size Standards Methodology'' white 
paper explains how SBA establishes, reviews, and modifies its receipts-
based and employee-based small business size standards. SBA considered 
all input, suggestions, recommendations, and relevant information 
obtained from industry groups, individual businesses, and Federal 
agencies in developing size standards for those industries covered by 
this final rule. SBA received a total of four comments to the proposed 
rule. In the Discussion of Comments section of this final rule, SBA 
summarizes and provides responses to the comments received on the 
proposed rule.

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. The action does not 
have retroactive or preemptive effect.

Executive Order 13132

    For purposes of Executive Order 13132, SBA has determined that this 
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 final rule has 
no federalism implications warranting preparation of a federalism 
assessment.

Paperwork Reduction Act

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

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 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), 636(a)(36), 662, and 
694a(9); Pub. L. 116-136, Section 1114.


0
2. In Sec.  121.201, amend the table ``Small Business Size Standards by 
NAICS Industry'' as follows:
0
a. Revise the entries for ``481219'', ``484122'', ``485111'' through 
``485113'', ``485119'', ``485210'', ``485410'', ``486210'', ``487110'', 
``487210'', ``487990'', ``488210'', ``488490'', ``488510'', ``488510 
(Exception)'', ``488999'', ``493120'', ``493190'', ``512132'', 
``512199'', ``512240'', ``512290'', ``515111'', ``517410'', ``519110'', 
``519120'', ``522110'', ``522120'', ``522130'', ``522190'', ``522210'', 
``522310'', ``522390'', ``524210'', ``524292'', ``524298'', ``531210'', 
``531311'', ``531312'', ``531320'', ``531390'', ``532282'', ``532283'', 
``532289'', and ``532411'', and
0
b. Revise footnote 10.
    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        in number of
                                                                        millions of dollars         employees
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
                                  Sectors 48-49--Transportation and Warehousing
                                        Subsector 481--Air Transportation
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
481219.................................  Other Nonscheduled Air      $22.0....................  ................
                                          Transportation.
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
                                       Subsector 484--Truck Transportation
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
484122.................................  General Freight Trucking,   38.0.....................  ................
                                          Long-Distance, Less Than
                                          Truckload.
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
                           Subsector 485--Transit and Ground Passenger Transportation
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
485111.................................  Mixed Mode Transit Systems  25.5.....................  ................
485112.................................  Commuter Rail Systems.....  41.5.....................  ................
485113.................................  Bus and Other Motor         28.5.....................  ................
                                          Vehicle Transit Systems.
485119.................................  Other Urban Transit         33.0.....................  ................
                                          Systems.
485210.................................  Interurban and Rural Bus    28.0.....................  ................
                                          Transportation.
 

[[Page 18644]]

 
                                                  * * * * * * *
485410.................................  School and Employee Bus     26.5.....................  ................
                                          Transportation.
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
                                     Subsector 486--Pipeline Transportation
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
486210.................................  Pipeline Transportation of  36.5.....................  ................
                                          Natural Gas.
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
                              Subsector 487--Scenic and Sightseeing Transportation
----------------------------------------------------------------------------------------------------------------
487110.................................  Scenic and Sightseeing      18.0.....................  ................
                                          Transportation, Land.
487210.................................  Scenic and Sightseeing      12.5.....................  ................
                                          Transportation, Water.
487990.................................  Scenic and Sightseeing      22.0.....................  ................
                                          Transportation, Other.
----------------------------------------------------------------------------------------------------------------
                              Subsector 488--Support Activities for Transportation
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
488210.................................  Support Activities for      30.0.....................  ................
                                          Rail Transportation.
 
                                                  * * * * * * *
488490.................................  Other Support Activities    16.0.....................  ................
                                          for Road Transportation.
488510.................................  Freight Transportation      \10\ 17.5................  ................
                                          Arrangement \10\.
488510 (Exception).....................  Non-Vessel Owning Common    30.0.....................  ................
                                          Carriers and Household
                                          Goods Forwarders.
 
                                                  * * * * * * *
488999.................................  All Other Support           22.0.....................  ................
                                          Activities for
                                          Transportation.
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
                                     Subsector 493--Warehousing and Storage
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
493120.................................  Refrigerated Warehousing    32.0.....................  ................
                                          and Storage.
 
                                                  * * * * * * *
493190.................................  Other Warehousing and       32.0.....................  ................
                                          Storage.
----------------------------------------------------------------------------------------------------------------
                                             Sector 51--Information
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
                          Subsector 512--Motion Picture and Sound Recording Industries
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
512132.................................  Drive-In Motion Picture     11.0.....................  ................
                                          Theaters.
 
                                                  * * * * * * *
512199.................................  Other Motion Picture and    25.0.....................  ................
                                          Video Industries.
 
                                                  * * * * * * *
512240.................................  Sound Recording Studios...  9.5......................  ................
 
                                                  * * * * * * *
512290.................................  Other Sound Recording       20.0.....................  ................
                                          Industries.
----------------------------------------------------------------------------------------------------------------
                                  Subsector 515--Broadcasting (except Internet)
----------------------------------------------------------------------------------------------------------------
515111.................................  Radio Networks............  41.5.....................  ................
 

[[Page 18645]]

 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
                                        Subsector 517--Telecommunications
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
517410.................................  Satellite                   38.5.....................  ................
                                          Telecommunications.
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
                                    Subsector 519--Other Information Services
----------------------------------------------------------------------------------------------------------------
519110.................................  News Syndicates...........  32.0.....................  ................
519120.................................  Libraries and Archives....  18.5.....................  ................
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
                                        Sector 52--Finance and Insurance
                           Subsector 522--Credit Intermediation and Related Activities
----------------------------------------------------------------------------------------------------------------
522110.................................  Commercial Banking \8\....  750 million in assets \8\  ................
522120.................................  Savings Institutions \8\..  750 million in assets \8\  ................
522130.................................  Credit Unions \8\.........  750 million in assets \8\  ................
522190.................................  Other Depository Credit     750 million in assets \8\  ................
                                          Intermediation \8\.
522210.................................  Credit Card Issuing \8\...  750 million in assets \8\  ................
 
                                                  * * * * * * *
522310.................................  Mortgage and Nonmortgage    13.0.....................  ................
                                          Loan Brokers.
 
                                                  * * * * * * *
522390.................................  Other Activities Related    25.0.....................  ................
                                          to Credit Intermediation.
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
                            Subsector 524--Insurance Carriers and Related Activities
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
524210.................................  Insurance Agencies and      13.0.....................  ................
                                          Brokerages.
 
                                                  * * * * * * *
524292.................................  Third Party Administration  40.0.....................  ................
                                          of Insurance and Pension
                                          Funds.
524298.................................  All Other Insurance         27.0.....................  ................
                                          Related Activities.
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
                                  Sector 53--Real Estate and Rental and Leasing
                                           Subsector 531--Real Estate
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
531210.................................  Offices of Real Estate      \10\ 13.0................  ................
                                          Agents and Brokers \10\.
531311.................................  Residential Property        11.0.....................  ................
                                          Managers.
531312.................................  Nonresidential Property     17.0.....................  ................
                                          Managers.
531320.................................  Offices of Real Estate      8.5......................  ................
                                          Appraisers.
531390.................................  Other Activities Related    17.0.....................  ................
                                          to Real Estate.
----------------------------------------------------------------------------------------------------------------
                                   Subsector 532--Rental and Leasing Services
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
532282.................................  Video Tape and Disc Rental  31.0.....................  ................
532283.................................  Home Health Equipment       36.0.....................  ................
                                          Rental.
 
                                                  * * * * * * *
532289.................................  All Other Consumer Goods    11.0.....................  ................
                                          Rental.

[[Page 18646]]

 
 
                                                  * * * * * * *
532411.................................  Commercial Air, Rail, and   40.0.....................  ................
                                          Water Transportation
                                          Equipment Rental and
                                          Leasing.
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
Footnotes
 * * * * * * *
\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.
 * * * * * * *
\10\ NAICS codes 488510 (excluding the exception), 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.
 * * * * * * *


Isabella Casillas Guzman,
Administrator.
[FR Doc. 2022-06609 Filed 3-30-22; 8:45 am]
BILLING CODE 8026-03-P