[Federal Register Volume 87, Number 221 (Thursday, November 17, 2022)]
[Rules and Regulations]
[Pages 69118-69154]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-24595]
[[Page 69117]]
Vol. 87
Thursday,
No. 221
November 17, 2022
Part III
Small Business Administration
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13 CFR Parts 121, 124, and 127
Small Business Size Standards: Adjustment of Monetary-Based Size
Standards, Disadvantage Thresholds, and 8(a) Eligibility Thresholds for
Inflation; Final Rule
Federal Register / Vol. 87, No. 221 / Thursday, November 17, 2022 /
Rules and Regulations
[[Page 69118]]
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SMALL BUSINESS ADMINISTRATION
13 CFR Parts 121, 124, and 127
RIN 3245-AH93
Small Business Size Standards: Adjustment of Monetary-Based Size
Standards, Disadvantage Thresholds, and 8(a) Eligibility Thresholds for
Inflation
AGENCY: U.S. Small Business Administration.
ACTION: Final rule and interim final rule with request for comments.
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SUMMARY: This rulemaking finalizes, without change, the U.S. Small
Business Administration's (SBA or Agency) 2019 interim final rule (RIN
3245-AH17) that adjusted monetary-based industry size standards (i.e.,
receipts- and assets-based) for inflation that occurred since 2014.
This rulemaking also includes three interim final actions. First, SBA
adds an additional 13.65 percent inflation increase to the monetary
small business size standards, which have been recently adjusted as
part of the second five-year review of size standards pursuant to the
Small Business Jobs Act of 2010 (Jobs Act). This concurrent additional
adjustment accounts for the inflation that has occurred since 2019 that
has not been adequately addressed by the Agency's previous adjustments
to its small business size standards under the Jobs Act. Second, this
rulemaking adjusts three program-specific monetary size standards to
account for inflation: the size standards for sales or leases of
government property, the size standards for stockpile purchases, and
alternative size standard based on tangible net worth and net income
for the Small Business Investment Company (SBIC) program. Third, SBA
adjusts for inflation the economic disadvantage thresholds applicable
to the 8(a) Business Development and Economically Disadvantaged Women-
Owned Small Business (EDWOSB) programs, and the dollar limit for
combined total 8(a) contracts.
DATES:
Effective date: This rule is effective on December 19, 2022.
Comment date: Comments on the interim final provisions of this rule
must be received on or before January 17, 2023.
FOR FURTHER INFORMATION CONTACT: Khem Sharma, Ph.D., Chief, Office of
Size Standards, (202) 205-6618 or [email protected]. This phone
number can also be reached by individuals who are deaf or hard of
hearing, or who have speech disabilities, through the Federal
Communications Commission's TTY-Based Telecommunications Relay Service
teletype service at 711.
SUPPLEMENTARY INFORMATION:
I. Background
As explained in the SBA's ``Size Standards Methodology'' white
paper available at https://www.sba.gov/size, SBA reviews small business
size standards and makes necessary adjustments to them for three
reasons: (i) changes in industry structure and Federal market
conditions, (ii) inflation, and (iii) revision to the North American
Industry Classification System (NAICS). In 2019, SBA published an
interim final rule (IFR) adjusting for inflation all monetary-based
industry size standards (84 FR 34261; July 18, 2019) (``July 2019
IFR''). Certain provisions of this rulemaking finalize, without change,
the SBA's July 2019 IFR that adjusted monetary-based industry and
certain program-specific size standards (i.e., receipts- and assets-
based) for inflation that occurred since the previous inflation
adjustment in 2014 (79 FR 33647; June 12, 2014).
After the inflation adjustment in the July 2019 IFR, SBA completed
the second five-year rolling review of all monetary-based industry size
standards, as required by section 1344 of the Jobs Act (Pub. L. 111-
240, 124 Stat. 2504 (September 27, 2010)). The second five-year review
of size standards coincided with the ongoing COVID-19 pandemic. In
response to the pandemic and its impact on small businesses as well as
the overall economy, SBA adopted the same policy it adopted in the
first five-year review of size standards (completed in 2016) of only
increasing size standards when the evaluation of the industry structure
and Federal market conditions warranted an increase, and to maintain
the current size standards for the industries where the analytical
results suggested a reduction in size standard, or a retention of the
applicable size standards at their current levels.
SBA is required to assess the impact of inflation on its monetary-
based size standards at least once every five years (67 FR 3041;
January 23, 2002) and 13 CFR 121.102(c)). In this rule, SBA is
assessing the impact of the current general price increases on size
standards before the normal five-year review for inflation is due,
which would be 2024. Because of the important policy objective of
maintaining the value of size standards in inflation-adjusted terms,
this rulemaking contains interim final provisions further adjusting the
size standards adopted in the recently completed second five-year
comprehensive size standards review by an additional 13.65 percent, as
discussed below.
The interim final provisions of this regulatory action provide
assurances to the public that the Agency is monitoring inflation to
determine whether to adjust size standards within a reasonable period
since its last inflation adjustment and comprehensive size standards
review as mandated by the Jobs Act. The inflation adjustments in this
rule are separate from revisions to size standards made during the
second five-year rolling reviews of size standards under the Jobs Act.
The SBA's five-year size standards rolling reviews under the Jobs Act
primarily focus on industry structure (i.e., average firm size, startup
costs and entry barriers, industry concentration, and distribution of
firms by business size) and Federal contracting trends (i.e., small
business share of Federal contract dollars relative to small business
share of total industry's receipts) for industries with significant
contracting activities. In other words, SBA does not account for
inflation as a factor in the five-year reviews of size standards under
the Jobs Act. The 13.65 percent additional increase ensures that the
recently reviewed monetary size standards under the Jobs Act are up-to-
date for accurately determining small business status, and restores the
eligibility of businesses that may have lost their small business
status due solely to price level increases rather than from increases
in business activity. Given the current developments in the U.S.
economy, SBA will continue to monitor the inflation and other economic
indicators and their impacts on size standards.
The monetary-based small business size standards adjusted for
inflation in this rule include receipts-based size standards for 496
industries and nine subindustries (i.e., ``exceptions'' in the SBA
Table of Size Standards), as well as assets-based size standards for
four industries.
Additionally, the interim final provisions of this rulemaking
adjust three program-specific receipts-based size standards. These
include the size standards for sales or leases of government property,
the size standards for stockpile purchases, and the alternative size
standard based on tangible net worth and net income for the Small
Business Investment Company (SBIC) program.
Besides adjustment of industry and program-based monetary based
size standards described above, the interim final provisions of this
rule also adjust
[[Page 69119]]
other monetary thresholds primarily used in the 8(a) Business
Development program (8(a) BD) and the Economically Disadvantaged Women-
Owned Small Business (EDWOSB) program to determine eligibility of
applicants and current participants as economically disadvantaged
business concerns. These monetary thresholds have not previously been
adjusted for inflation. This adjustment will permit small businesses to
retain eligibility as economically disadvantaged business concerns for
the 8(a) BD program and the EDWOSB, despite an increase in inflation.
Several businesses may have lost small business eligibility for Federal
assistance under SBA's monetary-based industry size standards or under
these SBA programs, simply because of inflation-led revenue growth that
has occurred since the recently finalized second five-year
comprehensive review of size standards. This rule aims to reinstate
those firms' small business eligibility for Federal assistance.
Updating size standards based on inflation--in addition to updating
size standards based on the latest industry and Federal contracting
data under the five-year rolling review--not only satisfies the Jobs
Act's mandate that SBA review all size standards every five years, but
also is consistent with Executive Order 13563 on improving regulation
and regulatory review. This also fulfills the SBA's regulatory
requirement to review size standards for inflation at least one time
every five years.
II. SBA's Inflation Adjustment Methodology
Adjustment to Industry Size Standards \1\
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\1\ On September 29, 2022, SBA published a final rule to adopt
the Office of Management and Budget (OMB) North American Industry
Classification System revision for 2022, identified as NAICS 2022,
for its size standards, effective October 1, 2022 (87 FR 59240). The
OMB NAICS 2022 revision created 111 new industries with employee-
and monetary-based size standards by reclassifying, combining, or
splitting 156 NAICS 2017 industries or their parts. The NAICS 2022
revision created 71 new industries with monetary-based size
standards involving 93 NAICS 2017 unique industries and their parts.
SBA's size standards for those 71 new industries resulted in an
increase in size standards for 12 industries and 27 parts of two
industries under NAICS 2017, decrease in size standards for 53 parts
of two industries, change in one size standard from average annual
receipts to employees, and no change in size standards for 77
industries and 6 parts of 3 industries. In this rule, SBA is using
NAICS 2022 as the basis of industry definitions for adjusting
monetary-based industry size standards for inflation.
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For the additional inflation adjustment of monetary size standards
in this interim final rule, SBA has used the inflation adjustment
methodology it describes in its ``Size Standards Methodology'' white
paper, available at www.sba.gov/size. SBA applied the same methodology
in its previous inflation adjustments, including the latest inflation
adjustment in 2019. This methodology can be described in terms of the
following steps:
1. Selecting an inflation measure.
2. Selecting the base and end periods.
3. Calculating the inflation rate.
4. Adjusting the monetary based size standards.
1. Selecting an Inflation Measure
SBA establishes small business size standards to determine the
eligibility of businesses for a wide variety of SBA's and other Federal
programs. Many businesses participating in those programs are engaged
in multiple industries and are producing a wide range of goods and
services. Therefore, it is important that the Agency use a broad
measure of inflation to adjust its size standards. SBA's preferred
measure of inflation has consistently been the chain-type price index
for the U.S. Gross Domestic Product (GDP price index), published by the
U.S. Department of Commerce, Bureau of Economic Analysis (BEA) on a
quarterly basis as part of its National Income and Product Accounts
(NIPA), available at www.bea.gov.\2\
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\2\ As part of the 2014 inflation adjustment (79 FR 33647 (June
12, 2014)), SBA reviewed various measures of inflation published by
the Federal Government, including the GDP price index, consumer
price index (CPI), producer price index (PPI), personal consumption
expenditures (PCE) price index, and unit labor cost. Based on that
review, SBA determined that the GDP price index is the most
appropriate measure of inflation for purposes of adjusting size
standards for inflation. Historically, SBA has used the GDP price
index for adjusting size standards for inflation.
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2. Selecting the Base and End Periods
For this inflation adjustment, SBA selected the fourth quarter of
2018 as the base period because it was the end period for the 2019
inflation adjustment. SBA selected the second quarter of 2022 as the
end period because it was the latest quarter for which GDP price index
data were available when this rule was developed.
3. Calculating the Rate of Inflation
The GDP price index for the base period (i.e., 4th quarter of 2018)
was 111.191 and, according to the BEA GDP advance estimate released on
July 28, 2022 (the latest available when this rule was prepared), the
GDP price index for the end period (i.e., 2nd quarter of 2022) was
126.367. Accordingly, inflation increased 13.65 percent from the fourth
quarter of 2018 to the first quarter of 2022 (((126.367 / 111.191) - 1)
x 100 percent = 13.65 percent).
Making Adjustments to Size Standards
Adjustment to receipts-based industry size standards: All receipts-
based size standards were adjusted by multiplying their current levels
by 1.1365 and rounding the results to the nearest $500,000 (except for
the agricultural industries for which the results were rounded to the
nearest $250,000).
Table 1, Receipts-Based Size Standards Adjusted for Inflation
(NAICS 2022), shows all receipts-based size standards by six-digit
NAICS 2022 industries. The third column shows the size standards
adopted based on the second five-year rolling review under the Jobs
Act, and the fourth column shows the unrounded size standards based on
the additional 13.65 percent inflation adjustment. Calculated values
for NAICS codes under Subsectors 111 (Crop Production) and 112 (Animal
Production and Aquaculture), except NAICS 112112 (Cattle Feedlots) and
112310 (Chicken Egg Production), were rounded to the nearest $250,000.
The rest of the industries (including NAICS 112112 and 112310) were
rounded to the nearest $500,000. The rounded inflation-adjusted size
standards are shown in the fifth column.
Table 1--Receipts-Based Size Standards Adjusted for Inflation
[NAICS 2022]
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Inflation- Inflation-
Current size adjusted size adjusted size
NAICS 2022 code NAICS 2022 industry title standards ($ standards standards
million) (unrounded) ($ (rounded) ($
million) million)
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111110............................. Soybean Farming............ 2.0 2.27 2.25
[[Page 69120]]
111120............................. Oilseed (except Soybean) 2.0 2.27 2.25
Farming.
111130............................. Dry Pea and Bean Farming... 2.5 2.84 2.75
111140............................. Wheat Farming.............. 2.0 2.27 2.25
111150............................. Corn Farming............... 2.25 2.56 2.5
111160............................. Rice Farming............... 2.25 2.56 2.5
111191............................. Oilseed and Grain 2.0 2.27 2.25
Combination Farming.
111199............................. All Other Grain Farming.... 2.0 2.27 2.25
111211............................. Potato Farming............. 3.75 4.26 4.25
111219............................. Other Vegetable (except 3.25 3.69 3.75
Potato) and Melon Farming.
111310............................. Orange Groves.............. 3.5 3.98 4.0
111320............................. Citrus (except Orange) 3.75 4.26 4.25
Groves.
111331............................. Apple Orchards............. 4.0 4.55 4.5
111332............................. Grape Vineyards............ 3.5 3.98 4.0
111333............................. Strawberry Farming......... 4.75 5.40 5.5
111334............................. Berry (except Strawberry) 3.25 3.69 3.75
Farming.
111335............................. Tree Nut Farming........... 3.25 3.69 3.75
111336............................. Fruit and Tree Nut 4.5 5.11 5.0
Combination Farming.
111339............................. Other Noncitrus Fruit 3.0 3.41 3.5
Farming.
111411............................. Mushroom Production........ 4.0 4.55 4.5
111419............................. Other Food Crops Grown 4.0 4.55 4.5
Under Cover.
111421............................. Nursery and Tree Production 2.75 3.13 3.25
111422............................. Floriculture Production.... 3.25 3.69 3.75
111910............................. Tobacco Farming............ 2.25 2.56 2.5
111920............................. Cotton Farming............. 2.75 3.13 3.25
111930............................. Sugarcane Farming.......... 4.5 5.11 5.0
111940............................. Hay Farming................ 2.25 2.56 2.5
111991............................. Sugar Beet Farming......... 2.25 2.56 2.5
111992............................. Peanut Farming............. 2.25 2.56 2.5
111998............................. All Other Miscellaneous 2.25 2.56 2.5
Crop Farming.
112111............................. Beef Cattle Ranching and 2.25 2.56 2.5
Farming.
112112............................. Cattle Feedlots............ 19.5 22.16 22.0
112120............................. Dairy Cattle and Milk 3.25 3.69 3.75
Production.
112210............................. Hog and Pig Farming........ 3.5 3.98 4.0
112310............................. Chicken Egg Production..... 16.5 18.75 19.0
112320............................. Broilers and Other Meat 3.0 3.41 3.5
Type Chicken Production.
112330............................. Turkey Production.......... 3.25 3.69 3.75
112340............................. Poultry Hatcheries......... 3.5 3.98 4.0
112390............................. Other Poultry Production... 3.25 3.69 3.75
112410............................. Sheep Farming.............. 3.0 3.41 3.5
112420............................. Goat Farming............... 2.25 2.56 2.5
112511............................. Finfish Farming and Fish 3.25 3.69 3.75
Hatcheries.
112512............................. Shellfish Farming.......... 3.25 3.69 3.75
112519............................. Other Aquaculture.......... 3.25 3.69 3.75
112910............................. Apiculture................. 2.75 3.13 3.25
112920............................. Horses and Other Equine 2.5 2.84 2.75
Production.
112930............................. Fur-Bearing Animal and 3.25 3.69 3.75
Rabbit Production.
112990............................. All Other Animal Production 2.5 2.84 2.75
113110............................. Timber Tract Operations.... 16.5 18.75 19.0
113210............................. Forest Nurseries and 18.0 20.46 20.5
Gathering of Forest
Products.
114111............................. Finfish Fishing............ 22.0 25.0 25.0
114112............................. Shellfish Fishing.......... 12.5 14.21 14.0
114119............................. Other Marine Fishing....... 10.0 11.36 11.5
114210............................. Hunting and Trapping....... 7.5 8.52 8.5
115111............................. Cotton Ginning............. 14.0 15.91 16.0
115112............................. Soil Preparation, Planting, 8.5 9.66 9.5
and Cultivating.
115113............................. Crop Harvesting, Primarily 12.0 13.64 13.5
by Machine.
115114............................. Postharvest Crop Activities 30.0 34.09 34.0
(except Cotton Ginning).
115115............................. Farm Labor Contractors and 16.5 18.75 19.0
Crew Leaders.
115116............................. Farm Management Services... 13.5 15.34 15.5
115210............................. Support Activities for 9.5 10.80 11.0
Animal Production.
115310............................. Support Activities for 10.0 11.36 11.5
Forestry.
115310 (Exception 1)............... Forest Fire Suppression.... 30.0 34.09 34.0
115310 (Exception 2)............... Fuels Management Services.. 30.0 34.09 34.0
213112............................. Support Activities for Oil 41.5 47.16 47.0
and Gas Operations.
213113............................. Support Activities for Coal 24.0 27.28 27.5
Mining.
213114............................. Support Activities for 36.0 40.91 41.0
Metal Mining.
213115............................. Support Activities for 18.0 20.46 20.5
Nonmetallic Minerals
(except Fuels).
[[Page 69121]]
221310............................. Water Supply and Irrigation 36.0 40.91 41.0
Systems.
221320............................. Sewage Treatment Facilities 31.0 35.23 35.0
221330............................. Steam and Air-Conditioning 26.5 30.12 30.0
Supply.
236115............................. New Single-family Housing 39.5 44.89 45.0
Construction (Except For-
Sale Builders).
236116............................. New Multifamily Housing 39.5 44.89 45.0
Construction (except For-
Sale Builders).
236117............................. New Housing For-Sale 39.5 44.89 45.0
Builders.
236118............................. Residential Remodelers..... 39.5 44.89 45.0
236210............................. Industrial Building 39.5 44.89 45.0
Construction.
236220............................. Commercial and 39.5 44.89 45.0
Institutional Building
Construction.
237110............................. Water and Sewer Line and 39.5 44.89 45.0
Related Structures
Construction.
237120............................. Oil and Gas Pipeline and 39.5 44.89 45.0
Related Structures
Construction.
237130............................. Power and Communication 39.5 44.89 45.0
Line and Related
Structures Construction.
237210............................. Land Subdivision........... 30.0 34.09 34.0
237310............................. Highway, Street, and Bridge 39.5 44.89 45.0
Construction.
237990............................. Other Heavy and Civil 39.5 44.89 45.0
Engineering Construction.
237990 (Exception)................. Dredging and Surface 32.5 36.94 37.0
Cleanup Activities.
238110............................. Poured Concrete Foundation 16.5 18.75 19.0
and Structure Contractors.
238120............................. Structural Steel and 16.5 18.75 19.0
Precast Concrete
Contractors.
238130............................. Framing Contractors........ 16.5 18.75 19.0
238140............................. Masonry Contractors........ 16.5 18.75 19.0
238150............................. Glass and Glazing 16.5 18.75 19.0
Contractors.
238160............................. Roofing Contractors........ 16.5 18.75 19.0
238170............................. Siding Contractors......... 16.5 18.75 19.0
238190............................. Other Foundation, 16.5 18.75 19.0
Structure, and Building
Exterior Contractors.
238210............................. Electrical Contractors and 16.5 18.75 19.0
Other Wiring Installation
Contractors.
238220............................. Plumbing, Heating, and Air 16.5 18.75 19.0
Conditioning Contractors.
238290............................. Other Building Equipment 19.5 22.16 22.0
Contractors.
238310............................. Drywall and Insulation 16.5 18.75 19.0
Contractors.
238320............................. Painting and Wall Covering 16.5 18.75 19.0
Contractors.
238330............................. Flooring Contractors....... 16.5 18.75 19.0
238340............................. Tile and Terrazzo 16.5 18.75 19.0
Contractors.
238350............................. Finish Carpentry 16.5 18.75 19.0
Contractors.
238390............................. Other Building Finishing 16.5 18.75 19.0
Contractors.
238910............................. Site Preparation 16.5 18.75 19.0
Contractors.
238990............................. All Other Specialty Trade 16.5 18.75 19.0
Contractors.
238990 (Exception)................. Building and Property 16.5 18.75 19.0
Specialty Trade Services.
441120............................. Used Car Dealers........... 27.0 30.69 30.5
441210............................. Recreational Vehicle 35.0 39.78 40.0
Dealers.
441222............................. Boat Dealers............... 35.0 39.78 40.0
441227............................. Motorcycle, ATV, and All 35.0 39.78 40.0
Other Motor Vehicle
Dealers.
441330............................. Automotive Parts and 25.0 28.41 28.5
Accessories Retailers.
441340............................. Tire Dealers............... 22.5 25.57 25.5
444110............................. Home Centers............... 41.5 47.16 47.0
444120............................. Paint and Wallpaper 30.0 34.09 34.0
Retailers.
444140............................. Hardware Retailers......... 14.5 16.48 16.5
444180............................. Other Building Material 22.0 25.0 25.0
Dealers.
444230............................. Outdoor Power Equipment 8.5 9.66 9.5
Retailers.
444240............................. Nursery, Garden Center, and 19.0 21.59 21.5
Farm Supply Retailers.
445110............................. Supermarkets and Other 35.0 39.78 40.0
Grocery Retailers (except
Convenience Retailers).
445131............................. Convenience Retailers...... 32.0 36.37 36.5
445132............................. Vending Machine Operators.. 18.5 21.02 21.0
445230............................. Fruit and Vegetable 8.0 9.09 9.0
Retailers.
445240............................. Meat Retailers............. 8.0 9.09 9.0
445250............................. Fish and Seafood Retailers. 8.0 9.09 9.0
445291............................. Baked Goods Retailers...... 14.0 15.91 16.0
445292............................. Confectionery and Nut 17.0 19.32 19.5
Retailers.
445298............................. All Other Specialty Food 9.0 10.23 10.0
Retailers.
445320............................. Beer, Wine, and Liquor 9.0 10.23 10.0
Retailers.
449110............................. Furniture Retailers........ 22.0 25.0 25.0
449121............................. Floor Covering Retailers... 8.0 9.09 9.0
449122............................. Window Treatment Retailers. 10.0 11.36 11.5
[[Page 69122]]
449129............................. All Other Home Furnishings 29.5 33.53 33.5
Retailers.
449210............................. Electronics and Appliance 35.0 39.78 40.0
Retailers.
455110............................. Department Stores.......... 35.0 39.78 40.0
455211............................. Warehouse Clubs and 41.5 47.16 47.0
Supercenters.
455219............................. All Other General 35.0 39.78 40.0
Merchandise Retailers.
456110............................. Pharmacies and Drug 33.0 37.50 37.5
Retailers.
456120............................. Cosmetics, Beauty Supplies, 30.0 34.09 34.0
and Perfume Retailers.
456130............................. Optical Goods Retailers.... 26.0 29.55 29.5
456191............................. Food (Health) Supplement 20.0 22.73 22.5
Retailers.
456199............................. All Other Health and 8.5 9.66 9.5
Personal Care Retailers.
457110............................. Gasoline Stations with 32.0 36.37 36.5
Convenience Stores.
457120............................. Other Gasoline Stations.... 29.5 33.53 33.5
458110............................. Clothing and Clothing 41.5 47.16 47.0
Accessories Retailers.
458210............................. Shoe Retailers............. 30.0 34.09 34.0
458310............................. Jewelry Retailers.......... 18.0 20.46 20.5
458320............................. Luggage and Leather Goods 33.5 38.07 38.0
Retailers.
459110............................. Sporting Goods Retailers... 23.5 26.71 26.5
459120............................. Hobby, Toy, and Game 31.0 35.23 35.0
Retailers.
459130............................. Sewing, Needlework, and 30.0 34.09 34.0
Piece Goods Retailers.
459140............................. Musical Instrument and 20.0 22.73 22.5
Supplies Retailers.
459210............................. Book Retailers and News 31.5 35.80 36.0
Dealers.
459310............................. Florists................... 8.0 9.09 9.0
459410............................. Office Supplies and 35.0 39.78 40.0
Stationery Retailers.
459420............................. Gift, Novelty, and Souvenir 12.0 13.64 13.5
Retailers.
459510............................. Used Merchandise Retailers. 12.5 14.21 14.0
459910............................. Pet and Pet Supplies 28.0 31.82 32.0
Retailers.
459920............................. Art Dealers................ 14.5 16.48 16.5
459930............................. Manufactured (Mobile) Home 16.5 18.75 19.0
Dealers.
459991............................. Tobacco, Electronic 10.0 11.36 11.5
Cigarette, and Other
Smoking Supplies Retailers.
459999............................. All Other Miscellaneous 10.0 11.36 11.5
Retailers.
481219............................. Other Nonscheduled Air 22.0 25.0 25.0
Transportation.
484110............................. General Freight Trucking, 30.0 34.09 34.0
Local.
484121............................. General Freight Trucking, 30.0 34.09 34.0
Long Distance, Truckload.
484122............................. General Freight Trucking, 38.0 43.19 43.0
Long Distance, Less Than
Truckload.
484210............................. Used Household and Office 30.0 34.09 34.0
Goods Moving.
484220............................. Specialized Freight (except 30.0 34.09 34.0
Used Goods) Trucking,
Local.
484230............................. Specialized Freight (except 30.0 34.09 34.0
Used Goods) Trucking, Long
Distance.
485111............................. Mixed Mode Transit Systems. 25.5 28.98 29.0
485112............................. Commuter Rail Systems...... 41.5 47.16 47.0
485113............................. Bus and Other Motor Vehicle 28.5 32.39 32.5
Transit Systems.
485119............................. Other Urban Transit Systems 33.0 37.50 37.5
485210............................. Interurban and Rural Bus 28.0 31.82 32.0
Transportation.
485310............................. Taxi and Ridesharing 16.5 18.75 19.0
Services.
485320............................. Limousine Service.......... 16.5 18.75 19.0
485410............................. School and Employee Bus 26.5 30.12 30.0
Transportation.
485510............................. Charter Bus Industry....... 16.5 18.75 19.0
485991............................. Special Needs 16.5 18.75 19.0
Transportation.
485999............................. All Other Transit and 16.5 18.75 19.0
Ground Passenger
Transportation.
486210............................. Pipeline Transportation of 36.5 41.48 41.5
Natural Gas.
486990............................. All Other Pipeline 40.5 46.03 46.0
Transportation.
487110............................. Scenic and Sightseeing 18.0 20.46 20.5
Transportation, Land.
487210............................. Scenic and Sightseeing 12.5 14.21 14.0
Transportation, Water.
487990............................. Scenic and Sightseeing 22.0 25.0 25.0
Transportation, Other.
488111............................. Air Traffic Control........ 35.0 39.78 40.0
488119............................. Other Airport Operations... 35.0 39.78 40.0
488190............................. Other Support Activities 35.0 39.78 40.0
for Air Transportation.
488210............................. Support Activities for Rail 30.0 34.09 34.0
Transportation.
488310............................. Port and Harbor Operations. 41.5 47.16 47.0
488320............................. Marine Cargo Handling...... 41.5 47.16 47.0
488330............................. Navigational Services to 41.5 47.16 47.0
Shipping.
488390............................. Other Support Activities 41.5 47.16 47.0
for Water Transportation.
488410............................. Motor Vehicle Towing....... 8.0 9.09 9.0
488490............................. Other Support Activities 16.0 18.18 18.0
for Road Transportation.
488510............................. Freight Transportation 17.5 19.89 20.0
Arrangement.
[[Page 69123]]
488510 (Exception)................. Non Vessel Owning Common 30.0 34.09 34.0
Carriers and Household
Goods Forwarders.
488991............................. Packing and Crating........ 30.0 34.09 34.0
488999............................. All Other Support 22.0 25.0 25.0
Activities for
Transportation.
491110............................. Postal Service............. 8.0 9.09 9.0
492210............................. Local Messengers and Local 30.0 34.09 34.0
Delivery.
493110............................. General Warehousing and 30.0 34.09 34.0
Storage.
493120............................. Refrigerated Warehousing 32.0 36.37 36.5
and Storage.
493130............................. Farm Product Warehousing 30.0 34.09 34.0
and Storage.
493190............................. Other Warehousing and 32.0 36.37 36.5
Storage.
512110............................. Motion Picture and Video 35.0 39.78 40.0
Production.
512120............................. Motion Picture and Video 34.5 39.21 39.0
Distribution.
512131............................. Motion Picture Theaters 41.5 47.16 47.0
(except Drive Ins).
512132............................. Drive In Motion Picture 11.0 12.50 12.5
Theaters.
512191............................. Teleproduction and Other 34.5 39.21 39.0
Postproduction Services.
512199............................. Other Motion Picture and 25.0 28.41 28.5
Video Industries.
512240............................. Sound Recording Studios.... 9.5 10.80 11.0
512290............................. Other Sound Recording 20.0 22.73 22.5
Industries.
513210............................. Software Publishers........ 41.5 47.16 47.0
516110............................. Radio Broadcasting Stations 41.5 47.16 47.0
516120............................. Television Broadcasting 41.5 47.16 47.0
Stations.
516210............................. Media Streaming 41.5 47.16 47.0
Distribution Services,
Social Networks, and Other
Media Networks and Content
Providers.
517410............................. Satellite 38.5 43.75 44.0
Telecommunications.
517810............................. All Other 35.0 39.78 40.0
Telecommunications.
518210............................. Computing Infrastructure 35.0 39.78 40.0
Providers, Data
Processing, Web Hosting,
and Related Services.
519210............................. Libraries and Archives..... 18.5 21.02 21.0
522220............................. Sales Financing............ 41.5 47.16 47.0
522291............................. Consumer Lending........... 41.5 47.16 47.0
522292............................. Real Estate Credit......... 41.5 47.16 47.0
522299............................. International, Secondary 41.5 47.16 47.0
Market, and All Other
Nondepository Credit
Intermediation.
522310............................. Mortgage and Nonmortgage 13.0 14.77 15.0
Loan Brokers.
522320............................. Financial Transactions 41.5 47.16 47.0
Processing, Reserve, and
Clearinghouse Activities.
522390............................. Other Activities Related to 25.0 28.41 28.5
Credit Intermediation.
523150............................. Investment Banking and 41.5 47.16 47.0
Securities Intermediation.
523160............................. Commodity Contracts 41.5 47.16 47.0
Intermediation.
523210............................. Securities and Commodity 41.5 47.16 47.0
Exchanges.
523910............................. Miscellaneous 41.5 47.16 47.0
Intermediation.
523940............................. Portfolio Management and 41.5 47.16 47.0
Investment Advice.
523991............................. Trust, Fiduciary and 41.5 47.16 47.0
Custody Activities.
523999............................. Miscellaneous Financial 41.5 47.16 47.0
Investment Activities.
524113............................. Direct Life Insurance 41.5 47.16 47.0
Carriers.
524114............................. Direct Health and Medical 41.5 47.16 47.0
Insurance Carriers.
524127............................. Direct Title Insurance 41.5 47.16 47.0
Carriers.
524128............................. Other Direct Insurance 41.5 47.16 47.0
(except Life, Health and
Medical) Carriers.
524130............................. Reinsurance Carriers....... 41.5 47.16 47.0
524210............................. Insurance Agencies and 13.0 14.77 15.0
Brokerages.
524291............................. Claims Adjusting........... 22.0 25.0 25.0
524292............................. Pharmacy Benefit Management 40.0 45.46 45.5
and Other Third Party
Administration of
Insurance and Pension
Funds.
524298............................. All Other Insurance Related 27.0 30.69 30.5
Activities.
525110............................. Pension Funds.............. 35.0 39.78 40.0
525120............................. Health and Welfare Funds... 35.0 39.78 40.0
525190............................. Other Insurance Funds...... 35.0 39.78 40.0
525910............................. Open End Investment Funds.. 35.0 39.78 40.0
525920............................. Trusts, Estates, and Agency 35.0 39.78 40.0
Accounts.
525990............................. Other Financial Vehicles... 35.0 39.78 40.0
531110............................. Lessors of Residential 30.0 34.09 34.0
Buildings and Dwellings.
531120............................. Lessors of Nonresidential 30.0 34.09 34.0
Buildings (except
Miniwarehouses).
531130............................. Lessors of Miniwarehouses 30.0 34.09 34.0
and Self Storage Units.
531190............................. Lessors of Other Real 30.0 34.09 34.0
Estate Property.
531210............................. Offices of Real Estate 13.0 14.77 15.0
Agents and Brokers.
[[Page 69124]]
531311............................. Residential Property 11.0 12.50 12.5
Managers.
531312............................. Nonresidential Property 17.0 19.32 19.5
Managers.
531320............................. Offices of Real Estate 8.5 9.66 9.5
Appraisers.
531390............................. Other Activities Related to 17.0 19.32 19.5
Real Estate.
532111............................. Passenger Car Rental....... 41.5 47.16 47.0
532112............................. Passenger Car Leasing...... 41.5 47.16 47.0
532120............................. Truck, Utility Trailer, and 41.5 47.16 47.0
RV (Recreational Vehicle)
Rental and Leasing.
532210............................. Consumer Electronics and 41.5 47.16 47.0
Appliances Rental.
532281............................. Formal Wear and Costume 22.0 25.0 25.0
Rental.
532282............................. Video Tape and Disc Rental. 31.0 35.23 35.0
532283............................. Home Health Equipment 36.0 40.91 41.0
Rental.
532284............................. Recreational Goods Rental.. 8.0 9.09 9.0
532289............................. All Other Consumer Goods 11.0 12.50 12.5
Rental.
532310............................. General Rental Centers..... 8.0 9.09 9.0
532411............................. Commercial Air, Rail, and 40.0 45.46 45.5
Water Transportation
Equipment Rental and
Leasing.
532412............................. Construction, Mining and 35.0 39.78 40.0
Forestry Machinery and
Equipment Rental and
Leasing.
532420............................. Office Machinery and 35.0 39.78 40.0
Equipment Rental and
Leasing.
532490............................. Other Commercial and 35.0 39.78 40.0
Industrial Machinery and
Equipment Rental and
Leasing.
533110............................. Lessors of Nonfinancial 41.5 47.16 47.0
Intangible Assets (except
Copyrighted Works).
541110............................. Offices of Lawyers......... 13.5 15.34 15.5
541191............................. Title Abstract and 17.0 19.32 19.5
Settlement Offices.
541199............................. All Other Legal Services... 18.0 20.46 20.5
541211............................. Offices of Certified Public 23.5 26.71 26.5
Accountants.
541213............................. Tax Preparation Services... 22.0 25.0 25.0
541214............................. Payroll Services........... 34.5 39.21 39.0
541219............................. Other Accounting Services.. 22.0 25.0 25.0
541310............................. Architectural Services..... 11.0 12.50 12.5
541320............................. Landscape Architectural 8.0 9.09 9.0
Services.
541330............................. Engineering Services....... 22.5 25.57 25.5
541330 (Exception 1)............... Military and Aerospace 41.5 47.16 47.0
Equipment and Military
Weapons.
541330 (Exception 2)............... Contracts and Subcontracts 41.5 47.16 47.0
for Engineering Services
Awarded Under the National
Energy Policy Act of 1992.
541330 (Exception 3)............... Marine Engineering and 41.5 47.16 47.0
Naval Architecture.
541340............................. Drafting Services.......... 8.0 9.09 9.0
541350............................. Building Inspection 10.0 11.36 11.5
Services.
541360............................. Geophysical Surveying and 25.0 28.41 28.5
Mapping Services.
541370............................. Surveying and Mapping 16.5 18.75 19.0
(except Geophysical)
Services.
541380............................. Testing Laboratories and 16.5 18.75 19.0
Services.
541410............................. Interior Design Services... 8.0 9.09 9.0
541420............................. Industrial Design Services. 15.0 17.05 17.0
541430............................. Graphic Design Services.... 8.0 9.09 9.0
541490............................. Other Specialized Design 12.0 13.64 13.5
Services.
541511............................. Custom Computer Programming 30.0 34.09 34.0
Services.
541512............................. Computer Systems Design 30.0 34.09 34.0
Services.
541513............................. Computer Facilities 32.5 36.94 37.0
Management Services.
541519............................. Other Computer Related 30.0 34.09 34.0
Services.
541611............................. Administrative Management 21.5 24.43 24.5
and General Management
Consulting Services.
541612............................. Human Resources Consulting 25.5 28.98 29.0
Services.
541613............................. Marketing Consulting 16.5 18.75 19.0
Services.
541614............................. Process, Physical 17.5 19.89 20.0
Distribution and Logistics
Consulting Services.
541618............................. Other Management Consulting 16.5 18.75 19.0
Services.
541620............................. Environmental Consulting 16.5 18.75 19.0
Services.
541690............................. Other Scientific and 16.5 18.75 19.0
Technical Consulting
Services.
541720............................. Research and Development in 24.5 27.84 28.0
the Social Sciences and
Humanities.
541810............................. Advertising Agencies....... 22.5 25.57 25.5
541820............................. Public Relations Agencies.. 16.5 18.75 19.0
541830............................. Media Buying Agencies...... 28.5 32.39 32.5
541840............................. Media Representatives...... 18.5 21.02 21.0
541850............................. Indoor and Outdoor Display 30.5 34.66 34.5
Advertising.
[[Page 69125]]
541860............................. Direct Mail Advertising.... 19.5 22.16 22.0
541870............................. Advertising Material 25.0 28.41 28.5
Distribution Services.
541890............................. Other Services Related to 16.5 18.75 19.0
Advertising.
541910............................. Marketing Research and 20.0 22.73 22.5
Public Opinion Polling.
541921............................. Photography Studios, 14.0 15.91 16.0
Portrait.
541922............................. Commercial Photography..... 8.0 9.09 9.0
541930............................. Translation and 20.0 22.73 22.5
Interpretation Services.
541940............................. Veterinary Services........ 9.0 10.23 10.0
541990............................. All Other Professional, 17.0 19.32 19.5
Scientific and Technical
Services.
551111............................. Offices of Bank Holding 34.0 38.64 38.5
Companies.
551112............................. Offices of Other Holding 40.0 45.46 45.5
Companies.
561110............................. Office Administrative 11.0 12.50 12.5
Services.
561210............................. Facilities Support Services 41.5 47.16 47.0
561311............................. Employment Placement 30.0 34.09 34.0
Agencies.
561312............................. Executive Search Services.. 30.0 34.09 34.0
561320............................. Temporary Help Services.... 30.0 34.09 34.0
561330............................. Professional Employer 36.5 41.48 41.5
Organizations.
561410............................. Document Preparation 16.5 18.75 19.0
Services.
561421............................. Telephone Answering 16.5 18.75 19.0
Services.
561422............................. Telemarketing Bureaus and 22.5 25.57 25.5
Other contact Centers.
561431............................. Private Mail Centers....... 16.5 18.75 19.0
561439............................. Other Business Service 23.5 26.71 26.5
Centers (including Copy
Shops).
561440............................. Collection Agencies........ 17.0 19.32 19.5
561450............................. Credit Bureaus............. 36.0 40.91 41.0
561491............................. Repossession Services...... 16.5 18.75 19.0
561492............................. Court Reporting and 16.5 18.75 19.0
Stenotype Services.
561499............................. All Other Business Support 19.0 21.59 21.5
Services.
561510............................. Travel Agencies............ 22.0 25.0 25.0
561520............................. Tour Operators............. 22.0 25.0 25.0
561591............................. Convention and Visitors 22.0 25.0 25.0
Bureaus.
561599............................. All Other Travel 28.5 32.39 32.5
Arrangement and
Reservation Services.
561611............................. Investigation and Personal 22.0 25.0 25.0
Background Check Services.
561612............................. Security Guards and Patrol 25.5 28.98 29.0
Services.
561613............................. Armored Car Services....... 38.0 43.19 43.0
561621............................. Security Systems Services 22.0 25.0 25.0
(except Locksmiths).
561622............................. Locksmiths................. 22.0 25.0 25.0
561710............................. Exterminating and Pest 15.5 17.62 17.5
Control Services.
561720............................. Janitorial Services........ 19.5 22.16 22.0
561730............................. Landscaping Services....... 8.5 9.66 9.5
561740............................. Carpet and Upholstery 7.5 8.52 8.5
Cleaning Services.
561790............................. Other Services to Buildings 8.0 9.09 9.0
and Dwellings.
561910............................. Packaging and Labeling 17.0 19.32 19.5
Services.
561920............................. Convention and Trade Show 17.5 19.89 20.0
Organizers.
561990............................. All Other Support Services. 14.5 16.48 16.5
562111............................. Solid Waste Collection..... 41.5 47.16 47.0
562112............................. Hazardous Waste Collection. 41.5 47.16 47.0
562119............................. Other Waste Collection..... 41.5 47.16 47.0
562211............................. Hazardous Waste Treatment 41.5 47.16 47.0
and Disposal.
562212............................. Solid Waste Landfill....... 41.5 47.16 47.0
562213............................. Solid Waste Combustors and 41.5 47.16 47.0
Incinerators.
562219............................. Other Nonhazardous Waste 41.5 47.16 47.0
Treatment and Disposal.
562910............................. Remediation Services....... 22.0 25.0 25.0
562920............................. Materials Recovery 22.0 25.0 25.0
Facilities.
562991............................. Septic Tank and Related 8.0 9.09 9.0
Services.
562998............................. All Other Miscellaneous 14.5 16.48 16.5
Waste Management Services.
611110............................. Elementary and Secondary 17.5 19.89 20.0
Schools.
611210............................. Junior Colleges............ 28.5 32.39 32.5
611310............................. Colleges, Universities and 30.5 34.66 34.5
Professional Schools.
611410............................. Business and Secretarial 18.0 20.46 20.5
Schools.
611420............................. Computer Training.......... 14.0 15.91 16.0
611430............................. Professional and Management 13.0 14.77 15.0
Development Training.
611511............................. Cosmetology and Barber 11.5 13.07 13.0
Schools.
611512............................. Flight Training............ 30.0 34.09 34.0
611513............................. Apprenticeship Training.... 10.0 11.36 11.5
611519............................. Other Technical and Trade 18.5 21.02 21.0
Schools.
611519 (Exception)................. Job Corps Centers.......... 41.5 47.16 47.0
611610............................. Fine Arts Schools.......... 8.0 9.09 9.0
[[Page 69126]]
611620............................. Sports and Recreation 8.0 9.09 9.0
Instruction.
611630............................. Language Schools........... 18.0 20.46 20.5
611691............................. Exam Preparation and 11.0 12.50 12.5
Tutoring.
611692............................. Automobile Driving Schools. 9.0 10.23 10.0
611699............................. All Other Miscellaneous 14.5 16.48 16.5
Schools and Instruction.
611710............................. Educational Support 21.0 23.87 24.0
Services.
621111............................. Offices of Physicians 14.0 15.91 16.0
(except Mental Health
Specialists).
621112............................. Offices of Physicians, 12.0 13.64 13.5
Mental Health Specialists.
621210............................. Offices of Dentists........ 8.0 9.09 9.0
621310............................. Offices of Chiropractors... 8.0 9.09 9.0
621320............................. Offices of Optometrists.... 8.0 9.09 9.0
621330............................. Offices of Mental Health 8.0 9.09 9.0
Practitioners (except
Physicians).
621340............................. Offices of Physical, 11.0 12.50 12.5
Occupational and Speech
Therapists and
Audiologists.
621391............................. Offices of Podiatrists..... 8.0 9.09 9.0
621399............................. Offices of All Other 9.0 10.23 10.0
Miscellaneous Health
Practitioners.
621410............................. Family Planning Centers.... 16.5 18.75 19.0
621420............................. Outpatient Mental Health 16.5 18.75 19.0
and Substance Abuse
Centers.
621491............................. HMO Medical Centers........ 39.0 44.32 44.5
621492............................. Kidney Dialysis Centers.... 41.5 47.16 47.0
621493............................. Freestanding Ambulatory 16.5 18.75 19.0
Surgical and Emergency
Centers.
621498............................. All Other Outpatient Care 22.5 25.57 25.5
Centers.
621511............................. Medical Laboratories....... 36.5 41.48 41.5
621512............................. Diagnostic Imaging Centers. 16.5 18.75 19.0
621610............................. Home Health Care Services.. 16.5 18.75 19.0
621910............................. Ambulance Services......... 20.0 22.73 22.5
621991............................. Blood and Organ Banks...... 35.0 39.78 40.0
621999............................. All Other Miscellaneous 18.0 20.46 20.5
Ambulatory Health Care
Services.
622110............................. General Medical and 41.5 47.16 47.0
Surgical Hospitals.
622210............................. Psychiatric and Substance 41.5 47.16 47.0
Abuse Hospitals.
622310............................. Specialty (except 41.5 47.16 47.0
Psychiatric and Substance
Abuse) Hospitals.
623110............................. Nursing Care Facilities 30.0 34.09 34.0
(Skilled Nursing
Facilities).
623210............................. Residential Intellectual 16.5 18.75 19.0
and Developmental
Disability Facilities.
623220............................. Residential Mental Health 16.5 18.75 19.0
and Substance Abuse
Facilities.
623311............................. Continuing Care Retirement 30.0 34.09 34.0
Communities.
623312............................. Assisted Living Facilities 20.5 23.30 23.5
for the Elderly.
623990............................. Other Residential Care 14.0 15.91 16.0
Facilities.
624110............................. Child and Youth Services... 13.5 15.34 15.5
624120............................. Services for the Elderly 13.0 14.77 15.0
and Persons with
Disabilities.
624190............................. Other Individual and Family 14.0 15.91 16.0
Services.
624210............................. Community Food Services.... 17.0 19.32 19.5
624221............................. Temporary Shelters......... 12.0 13.64 13.5
624229............................. Other Community Housing 16.5 18.75 19.0
Services.
624230............................. Emergency and Other Relief 36.5 41.48 41.5
Services.
624310............................. Vocational Rehabilitation 13.0 14.77 15.0
Services.
624410............................. Child Care Services........ 8.5 9.66 9.5
711110............................. Theater Companies and 22.0 25.0 25.0
Dinner Theaters.
711120............................. Dance Companies............ 16.0 18.18 18.0
711130............................. Musical Groups and Artists. 13.0 14.77 15.0
711190............................. Other Performing Arts 30.0 34.09 34.0
Companies.
711211............................. Sports Teams and Clubs..... 41.5 47.16 47.0
711212............................. Race Tracks................ 41.5 47.16 47.0
711219............................. Other Spectator Sports..... 14.5 16.48 16.5
711310............................. Promoters of Performing 35.0 39.78 40.0
Arts, Sports and Similar
Events with Facilities.
711320............................. Promoters of Performing 19.5 22.16 22.0
Arts, Sports and Similar
Events without Facilities.
711410............................. Agents and Managers for 15.5 17.62 17.5
Artists, Athletes,
Entertainers and Other
Public Figures.
711510............................. Independent Artists, 8.0 9.09 9.0
Writers, and Performers.
712110............................. Museums.................... 30.0 34.09 34.0
712120............................. Historical Sites........... 11.5 13.07 13.0
712130............................. Zoos and Botanical Gardens. 30.0 34.09 34.0
712190............................. Nature Parks and Other 17.0 19.32 19.5
Similar Institutions.
713110............................. Amusement and Theme Parks.. 41.5 47.16 47.0
[[Page 69127]]
713120............................. Amusement Arcades.......... 8.0 9.09 9.0
713210............................. Casinos (except Casino 30.0 34.09 34.0
Hotels).
713290............................. Other Gambling Industries.. 35.0 39.78 40.0
713910............................. Golf Courses and Country 16.5 18.75 19.0
Clubs.
713920............................. Skiing Facilities.......... 31.0 35.23 35.0
713930............................. Marinas.................... 9.5 10.80 11.0
713940............................. Fitness and Recreational 15.5 17.62 17.5
Sports Centers.
713950............................. Bowling Centers............ 11.0 12.50 12.5
713990............................. All Other Amusement and 8.0 9.09 9.0
Recreation Industries.
721110............................. Hotels (except Casino 35.0 39.78 40.0
Hotels) and Motels.
721120............................. Casino Hotels.............. 35.0 39.78 40.0
721191............................. Bed and Breakfast Inns..... 8.0 9.09 9.0
721199............................. All Other Traveler 8.0 9.09 9.0
Accommodation.
721211............................. RV (Recreational Vehicle) 9.0 10.23 10.0
Parks and Campgrounds.
721214............................. Recreational and Vacation 8.0 9.09 9.0
Camps (except Campgrounds).
721310............................. Rooming and Boarding 12.5 14.21 14.0
Houses, Dormitories, and
Workers' Camps.
722310............................. Food Service Contractors... 41.5 47.16 47.0
722320............................. Caterers................... 8.0 9.09 9.0
722330............................. Mobile Food Services....... 8.0 9.09 9.0
722410............................. Drinking Places (Alcoholic 8.0 9.09 9.0
Beverages).
722511............................. Full-Service Restaurants... 10.0 11.36 11.5
722513............................. Limited-Service Restaurants 12.0 13.64 13.5
722514............................. Cafeterias, Grill Buffets, 30.0 34.09 34.0
and Buffets.
722515............................. Snack and Nonalcoholic 20.0 22.73 22.5
Beverage Bars.
811111............................. General Automotive Repair.. 8.0 9.09 9.0
811114............................. Specialized Automotive 8.0 9.09 9.0
Repair.
811121............................. Automotive Body, Paint and 8.0 9.09 9.0
Interior Repair and
Maintenance.
811122............................. Automotive Glass 15.5 17.62 17.5
Replacement Shops.
811191............................. Automotive Oil Change and 9.5 10.80 11.0
Lubrication Shops.
811192............................. Car Washes................. 8.0 9.09 9.0
811198............................. All Other Automotive Repair 9.0 10.23 10.0
and Maintenance.
811210............................. Electronic and Precision 30.0 34.09 34.0
Equipment Repair and
Maintenance.
811310............................. Commercial and Industrial 11.0 12.50 12.5
Machinery and Equipment
(except Automotive and
Electronic) Repair and
Maintenance.
811411............................. Home and Garden Equipment 8.0 9.09 9.0
Repair and Maintenance.
811412............................. Appliance Repair and 16.5 18.75 19.0
Maintenance.
811420............................. Reupholstery and Furniture 8.0 9.09 9.0
Repair.
811430............................. Footwear and Leather Goods 8.0 9.09 9.0
Repair.
811490............................. Other Personal and 8.0 9.09 9.0
Household Goods Repair and
Maintenance.
812111............................. Barber Shops............... 8.5 9.66 9.5
812112............................. Beauty Salons.............. 8.5 9.66 9.5
812113............................. Nail Salons................ 8.0 9.09 9.0
812191............................. Diet and Weight Reducing 24.0 27.28 27.5
Centers.
812199............................. Other Personal Care 8.0 9.09 9.0
Services.
812210............................. Funeral Homes and Funeral 11.0 12.50 12.5
Services.
812220............................. Cemeteries and Crematories. 22.0 25.0 25.0
812310............................. Coin Operated Laundries and 11.5 13.07 13.0
Drycleaners.
812320............................. Drycleaning and Laundry 7.0 7.96 8.0
Services (except Coin
Operated).
812331............................. Linen Supply............... 35.0 39.78 40.0
812332............................. Industrial Launderers...... 41.5 47.16 47.0
812910............................. Pet Care (except 8.0 9.09 9.0
Veterinary) Services.
812921............................. Photofinishing Laboratories 26.0 29.55 29.5
(except One Hour).
812922............................. One Hour Photofinishing.... 16.5 18.75 19.0
812930............................. Parking Lots and Garages... 41.5 47.16 47.0
812990............................. All Other Personal Services 13.0 14.77 15.0
813110............................. Religious Organizations.... 11.5 13.07 13.0
813211............................. Grantmaking Foundations.... 35.0 39.78 40.0
813212............................. Voluntary Health 30.0 34.09 34.0
Organizations.
813219............................. Other Grantmaking and 41.5 47.16 47.0
Giving Services.
813311............................. Human Rights Organizations. 30.0 34.09 34.0
813312............................. Environment, Conservation 17.0 19.32 19.5
and Wildlife Organizations.
813319............................. Other Social Advocacy 16.0 18.18 18.0
Organizations.
813410............................. Civic and Social 8.5 9.66 9.5
Organizations.
[[Page 69128]]
813910............................. Business Associations...... 13.5 15.34 15.5
813920............................. Professional Organizations. 20.5 23.30 23.5
813930............................. Labor Unions and Similar 14.5 16.48 16.5
Labor Organizations.
813940............................. Political Organizations.... 12.5 14.21 14.0
813990............................. Other Similar Organizations 12.0 13.64 13.5
(except Business,
Professional, Labor, and
Political Organizations).
----------------------------------------------------------------------------------------------------------------
Adjustment to the assets-based size standards:
Currently, five industries in NAICS Sector 52, Finance and
Insurance, have the size standard of $750 million in average assets.
Following the inflation adjustment methodology described above, the
assets-based size standard was adjusted by multiplying the current
value of $750 million by 1.1365. The result was $852.4 million, which
SBA rounded to $850 million. Table 2, Inflation Adjustment to Assets-
Based Size Standards, shows the four industries with assets-based
standards.
Table 2--Inflation Adjustments to Assets-Based Size Standards
----------------------------------------------------------------------------------------------------------------
Inflation- Inflation-
Current assets- adjusted adjusted
based size assets-based assets-based
NAICS 2022 code NAICS 2022 industry title standard ($ size standard size standard
million) (unrounded) (rounded) ($
($ million million)
----------------------------------------------------------------------------------------------------------------
522110............................. Commercial Banking......... $750.0 $852.4 $850.0
522130............................. Credit Unions.............. 750.0 852.4 850.0
522180............................. Savings Institution and 750.0 852.4 850.0
Other Depository Credit
Intermediation.
522210............................. Credit Card Issuing........ 750.0 852.4 850.0
----------------------------------------------------------------------------------------------------------------
Adjustment to Program-Based Size Standards
Most SBA and other Federal programs apply size standards
established for industries, as defined by the NAICS. SBA has also
established a few size standards on a program basis rather than on an
industry basis. These include the size standards for sales or leases of
government property, the size standards for stockpile purchases, and
the alternative size standard based on tangible net worth and net
income for the Small Business Investment Company (SBIC) program. Size
standards for sales or leases of government property and stockpile
purchases were adjusted for inflation in the same manner as the
industry-based monetary size standards. These results are presented in
Table 3, Inflation Adjustment to Program-Based Size Standards, which
shows the program-based size standards and their corresponding
inflation-adjusted values. The alternative size standard for the SBIC
program was not adjusted in the 2019 inflation adjustment but it was
adjusted in the 2014 inflation adjustment. Thus, the base period for
adjusting the SBIC alternative size standard is the fourth quarter of
2013, the end period for the 2014 inflation adjustment of that size
standard. The end period is the second quarter of 2022. As shown in
Table 3, the inflation between the base period and end period for the
adjustment of SBIC alternative size standard is 23.22 percent. Thus,
following the inflation adjustment methodology described above, the
SBIC alternative size standard was adjusted by multiplying the current
tangible net worth value of $19.5 million and net income value of $6.5
million by 1.2063. The results were $24.029 million in tangible net
worth and $8.010 million in net income, which were rounded to $24
million and $8 million, respectively. These results are shown in Table
3, below. The size standard for ``smaller enterprises'' under the SBIC
program is set by statute (see 13 CFR 107.710(a)) and, therefore, it is
not adjusted.
Table 3--Inflation Adjustment to Program-Based Size Standards
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Threshold name and value (CFR citation) Base period and GDP price index End period and GDP price index
------------------------------------------------------------------------------------------------------------------------------------------------- Adjusted Adjusted
GDP price GDP price Inflation (%) threshold threshold
Name Value Base period index End period index (not rounded) (rounded) \1\
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Sales or leases of government property $8,000,000 Fourth quarter of 2018.... 111.191 Second Quarter of 2022.... 126.367 13.65 $9,091,886 $9,000,000
(13 CFR 121.502).
Stockpile purchases (13 CFR 121.512).... $67,500,000 Fourth quarter of 2018.... 111.191 Second Quarter of 2022.... 126.367 13.65 $76,712,796 $76,500,000
SBIC alternative size threshold:
[[Page 69129]]
Net worth (13 CFR 121.301(c))........... $19,500,000 Fourth quarter of 2013.... 102.550 Second quarter of 2022.... 126.367 23.22 $24,028,830 $24,000,000
Net income (13 CFR 121.301(c)).......... $6,500,000 Fourth quarter of 2013.... 102.550 Second quarter of 2022.... 126.367 23.22 $8,009,610 $8,000,000
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ If value < 1,000,000, then it was rounded to the nearest 50,000.
If value >= 1,000,000, then it was rounded to the nearest 500,000.
Special Considerations
Size Standard for Leasing of Building Space to the Federal
Government by Owners--Footnote 9: The size standard found in Footnote 9
to 13 CFR 121.201 (Leasing of Building Space to the Federal Government
by Owners) was also adjusted for inflation. The current size standard
of $41.5 million was multiplied by 1.1365 to obtain an adjusted size
standard of $47 million after rounding. This size standard exception
applies to all four industries in NAICS Industry Group 5311, Lessors of
Real Estate.
Alternative Size Standard for 7(a) and 504 Loan Programs: Effective
September 27, 2010, the Jobs Act established a new temporary
alternative size standard of tangible net worth of not more than $15
million and net income of not more than $5 million for SBA's 7(a) and
504 Loan Programs. On September 29, 2010, SBA issued Notice 5000-1175
advising lenders and the public that, effective September 27, 2010, the
new statutory alternative size standard will apply for its 7(a) and 504
Loan Programs, thereby replacing the existing alternative size standard
set forth in 13 CFR 121.301(b)(2). The Jobs Act also provided that the
new temporary alternative size standard would remain in effect for the
7(a) and CDC/504 Loan Programs until the SBA's Administrator has
established a different size standard through rulemaking. For this
reason, in this rule, SBA is not adjusting the new alternative size
standard for its 7(a) and 504 Loan programs for inflation. SBA will
issue a different rule to establish a permanent alternative size
standard for those programs.
Adjustment of Certain Procurement Thresholds for Inflation
Besides adjustment of industry-based and certain program-based
monetary based size standards described above, in this rule, SBA is
also adjusting certain monetary thresholds in its regulations that are
otherwise not adjusted for inflation under FAR 1.109. These thresholds
primarily are those used in the 8(a) Business Development (8(a) BD) and
economically disadvantaged women-owned small business (EDWOSB) programs
to determine economic disadvantage. Others are used to maintain
eligibility for the 8(a) BD program. This action will permit small
businesses to retain eligibility as economically disadvantaged and
eligible for the 8(a) BD program and the EDWOSB program, despite an
increase in inflation.
Economic Disadvantage for 8(a) Business Development
Net worth: Under the current regulations, the net worth of an
individual claiming economic disadvantage must be less than $750,000
(13 CFR 124.104(c)(2)). This was implemented in 2020 (85 FR 27650 (May
11, 2020)), when SBA adopted a common definition for an economically
disadvantaged individual under the 8(a) BD program as well as under the
EDWOSB program. Inflation, as measured by change in the GDP price
index, since then has increased 11.86 percent. These results are
presented in Table 4, Inflation Adjustments of Certain Procurement
Thresholds, below. The adjustment of $750,000 by that amount would
translate to $838,942, rounded to $850,000.
Aggregate Gross Income (AGI): Currently, SBA presumes that an
individual is not economically disadvantaged if his or her adjusted
gross income (AGI) averaged over the three preceding years exceeds
$350,000 (13 CFR 124.104(c)(3)(i)). This was implemented in 2020 (85 FR
27650 (May 11, 2020)). Inflation, as measured by change in the GDP
price index, since then has increased 11.86 percent (see Table 4
below). The adjustment of $350,000 by that amount would translate to
$391,506, which is rounded to $400,000.
Total assets: Currently, an individual is generally not considered
economically disadvantaged if the fair market value of all his or her
assets (including his or her primary residence and the value of the
applicant/Participant firm) exceeds $6,000,000 (13 CFR 124.104(c)(4)).
This was implemented in 2020 (85 FR 27650 (May 11, 2020)). Inflation,
as measured by change in the GDP price index, since then has increased
11.86 percent (see Table 4 below). The adjustment of $6,000,000 by that
amount would translate to $6,711,534, which is rounded to $6,500,000.
Economic Disadvantage Thresholds for EDWOSB Program
Net worth: In order to be considered economically disadvantaged,
the woman's personal net worth must be less than $750,000, excluding
her ownership interest in the concern and her equity interest in her
primary personal residence (13 CFR 127.203(b)(1)). SBA implemented this
threshold in 2020, when the final rule implementing the WOSB and EDWOSB
certification program was published (85 FR 27650 (May 11, 2020)).
Inflation, as measured by change in the GDP price index, since then has
increased 11.86 percent. Adjusting $750,000 with that amount translates
to $850,000 (rounded). These results are provided in Table 4, below.
Income: When considering a woman's personal income, if the adjusted
gross yearly income averaged over the three years preceding the
certification exceeds $350,000, SBA will presume that she is not
economically disadvantaged (13 CFR 127.203(c)(3)(i)). This threshold
was implemented in 2020 (85 FR 27650 (May 11, 2020)). Inflation, as
measured by change in the GDP price index, since then has increased
11.86 percent. Adjusting $350,000 with that amount translates to
$400,000 (rounded). These results are shown in Table 4, below.
Total Assets: A woman will generally not be considered economically
disadvantaged if the fair market value of all her assets (including her
primary residence and the value of the business concern) exceeds
$6,000,000 (13 CFR 127.203(c)(4)). This threshold was implemented in
2020 (85 FR 27650 (May 11, 2020)). Inflation, as measured by change in
the GDP price index, since then has increased 11.86 percent. Adjusting
$6,000,000 with that amount translates to $6,500,000 (rounded). These
results are shown in Table 4.
[[Page 69130]]
Dollar Limits for Total 8(a) Contracts
8(a) BD participants (other than one owned by an Indian Tribe, ANC,
NHO, or CDC) may not receive sole source 8(a) contract awards where the
participant has received a combined total of competitive and sole
source 8(a) contracts in excess of $100,000,000 during its
participation in the 8(a) BD program (13 CFR 124.519). This threshold
was implemented in 1998 (63 FR 35739 (June 30, 1998)). This has never
been adjusted for inflation. Inflation, as measured by change in the
GDP price index, since then has increased 68.33 percent (see table
below). Adjusting $100,000,000 with that amount translated to
$168,500,000 (rounded). These results are provided in Table 4, below.
Table 4--Inflation Adjustments of Certain Procurement Thresholds
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Threshold name and value (CFR citation) Base period and GDP price index End period and GDP price index Adjusted
--------------------------------------------------- Federal Register ---------------------------------------------------------------------------- Inflation Adjusted threshold
citation (date) GDP price GDP price (%) threshold (rounded)
Name Value Base period index End period index (not rounded) \1\
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
8(a) Business Development Economic
Disadvantage Thresholds:
Net worth (13 CFR 124.104(c)(2)). $750,000 85 FR 27650 (May 11, Second quarter of 2020.. 112.97 Second quarter of 2022.. 126.367 11.86 $838,942 $850,000
2020).
Income (AGI) (13 CFR 350,000 85 FR 27650 (May 11, Second quarter of 2020.. 112.97 Second quarter of 2022.. 126.367 11.86 391,506 400,000
124.104(c)(3)). 2020).
Total assets (13 CFR 6,000,000 85 FR 27650 (May 11, Second quarter of 2020.. 112.97 Second quarter of 2022.. 126.367 11.86 6,711,534 6,500,000
124.104(c)(4)). 2020).
EDWOSB Thresholds:
Net worth (13 (CFR 127.203(b)(1)) 750,000 85 FR 27650 (May 11, Second quarter of 2020.. 112.97 Second quarter of 2022.. 126.367 11.86 838,942 850,000
2020).
Income (13 (CFR 127.203(c)(3) 350,000 85 FR 27650 (May 11, Second quarter of 2020.. 112.97 Second quarter of 2022.. 126.367 11.86 391,506 400,000
(i)). 2020).
Total assets (13 CFR 6,000,000 85 FR 27650 (May 11, Second quarter of 2020.. 112.97 Second quarter of 2022.. 126.367 11.86 6,711,534 6,500,000
127.203(c)(4)). 2020).
Dollar Limits for Sole Source 100,000,000 63 FR 35739 (Jun. 30, Second Quarter 1998..... 75.07 Second quarter of 2022.. 126.367 68.33 168,332,223 168,500,000
8(a) (13 CFR 124.519). 1998).
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ If value <1,000,000, then it is rounded to the nearest 50,000.
If value >=1,000,000, then it is rounded to the nearest 500,000.
III. Summary and Discussion of Public Comments on the July 18, 2019,
IFR
As discussed above, in this rule, SBA is finalizing the changes to
size standards contained in the July 2019 IFR. As such, SBA's adoption
of the changes contained in the July 2019 IFR do not supersede the
changes recently adopted by SBA as part of the second five-year review
of size standards under the Jobs Act, nor do they supersede the
adoption of size standards contained in this IFR which adjust SBA's
monetary-based size standards for inflation that has occurred since the
issuance of the July 2019 IFR. The instant rulemaking comprises a
concurrent interim final rule further adjusting its current monetary-
based size standards by 13.65 percent for additional inflation that has
occurred since issuing the July 2019 IFR.
This final rulemaking finalizes, without change, SBA's July 2019
IFR that adjusted monetary-based industry size standards for inflation
that occurred since 2014. The July 2019 IFR requested comments from the
public on SBA's methodology of using the GDP price index for adjusting
size standards and suggestions for alternative measures of inflation,
on whether SBA should adjust employee-based size standards for labor
productivity growth and technical changes similar to adjusting
monetary-based size standards for inflation, and on changes to program-
specific size standards. Below is a discussion of those comments and
SBA's responses.
SBA received 11 comments on the July 2019 IFR, of which seven
supported SBA's inflation-adjusted changes to size standards, two
opposed the changes, and two discussed issues outside the scope of the
IFR or did not state a clear position. All comments are available at
the Federal Rulemaking Portal, www.regulations.gov, and are summarized
and discussed by topic below.
Comment on the Effective Date of the July 2019 IFR
One commenter argued that the August 19, 2019, effective date
adopted in the July 2019 IFR, which would fall in the middle of the
fourth quarter of fiscal year 2019, would negatively impact procurement
actions and recommended postponing the effective date until October 1,
2019, to minimize the disruptions. The commenter added that the
procurement actions about to be issued based on market research
conducted under the old size standards will also be impacted. Finally,
the commenter contended that contractors would overwhelm the System for
Award Management (SAM) system as they attempt to update their status in
order to bid on previously unavailable actions, which will degrade the
ability of the contracting officers to review the small business status
of bidders in SAM before making an award.
SBA Response
SBA disagrees with the commenter that the effective date of the IFR
will negatively impact procurement actions. SBA believes that the
effective date for the IFR, which is 30 days from the date of
publication in the Federal Register, provides businesses and
contracting professionals adequate time to adjust to the changes
contained in the rule without causing significant disruptions to the
procurement process. SBA has a long history of effectuating size
standards on dates other than the beginning of a new fiscal year with
few comments opposing the effective dates
[[Page 69131]]
proposed by SBA. This history includes numerous inflation adjustments
to size standards as far back as February 1984 where the effective
dates for the adopted changes do not fall on the start of a new fiscal
year (49 FR 5025 (February 9, 1984)).\3\ Typically, as is the case with
the July 2019 IFR, SBA's changes to size standards become effective 30
days after publication of the corresponding final or interim final
rule.
---------------------------------------------------------------------------
\3\ See also SBA's Interim Final Rule: Small Business Size
Standards; Inflation Adjustment to Monetary Based Size Standards
((79 FR 33647 (June 12, 2014)) (SBA Final Rule (81 FR 3949 (January
25, 2016))); SBA Final Rule: Small Business Size Standards;
Inflation Adjustment to Size Standards (73 FR 41237 (July 18,
2008)); SBA Interim Final Rule: Small Business Size Standards;
Inflation Adjustment to Size Standards; Business Loan Program;
Disaster Assistance Loan Program (70 FR 72577 (December 6, 2005));
SBA Final Rule: Small Business Size Standards; Inflation Adjustment
to Size Standards (67 FR 65285 (October 24, 2002)); SBA Interim
Final Rule: Small Business Size Standards; Inflation Adjustment to
Size Standards (67 FR 3041 (January 23, 2002)); SBA Final Rule:
Small Business Size Standards; Inflation Adjustment to Size
Standards (59 FR 616513 (April 7, 1994))
---------------------------------------------------------------------------
Moreover, the procedures for incorporating SBA's changes to size
standards into ongoing procurement actions are codified under small
business size regulations and are generally well-understood by
contracting officers. When contracting officers plan their
procurements, they explore the possibility of setting aside their
solicitations for small business programs based upon the number of
small businesses, at that time, able to submit an acceptable proposal
or bid. However, in accordance with 48 CFR 19.102(c), it is the
contracting officer's decision whether to amend a solicitation to
incorporate the new size standards if SBA amends the size standard and
it becomes effective before the due date for receipt of initial offers.
In the nearly three years since SBA published the interim final rule
with the August 2019 effective date, SBA has not received comments that
the timing of the size standards changes has caused significant
disruptions to contracting activity or a substantial increase in the
number of firms accessing SAM to update their size status, thereby
curtailing the ability of contracting officers to use SAM. Thus, SBA
believes that its August 19, 2019, effective date is appropriate and
therefore, SBA is not adopting the changes suggested by the commenter.
Comments on the Impacts of Increased Labor Costs
Two commenters petitioned SBA to give more consideration to the
impact of increased labor costs when determining the level of inflation
for a given industry, either by using a different measure of inflation
which better reflects increases to labor costs or by reviewing factors
other than inflation that may capture the impact of increased labor
costs more directly. One commenter, expressing overall support for the
rule, believed that the majority of firms serving the Federal
Government would welcome the adjustment of size standards to reflect
the impacts of inflation but questioned whether the inflation measure
applied to the rule accurately reflects the day-to-day realities of
business conditions. The commenter recommended either using a different
inflation measure or blending many existing measures to come up with an
inflation factor which accurately reflects the actual changes in the
labor costs, which according to the commenter, have increased by 12
percent to 15 percent over the last five years. Another commenter
maintained that SBA should consider the availability of personnel with
top secret clearances in certain NAICS codes that provide services to
the Federal Government that require high-level clearances for
administrative, professional and management personnel. The commenter
added that salaries and benefits of these personnel are increasing at a
rate much greater than inflation and this factor should be considered
in addition to inflation when evaluating size standards for those NAICS
codes.
SBA Response
SBA establishes small business size standards to determine
eligibility of businesses for a wide variety of SBA's and other Federal
programs. The majority of businesses participating in those programs
are engaged in multiple industries producing a wide range of goods and
services. Therefore, it is important that SBA use a broad measure of
inflation to adjust its size standards. SBA's preferred measure of
inflation has consistently been the chain-type price index for the U.S.
Gross Domestic Product (GDP price index), published by the Bureau of
Economic Analysis (BEA) within the U.S. Department of Commerce on a
quarterly basis as part of its National Income and Product Accounts
(NIPA).
In the July 2019 IFR as well as the 2014 IFR (79 FR 33647 (June 12,
2014)), besides the GDP price index, SBA reviewed several alternative
inflation measures published by the Federal Government (including the
consumer price index, the personal consumption expenditures price
index, the producer price index, and the employment cost index) for
their appropriateness to use for adjusting SBA's size standards. Among
all these indexes, SBA determined that the GDP price index is the most
comprehensive measure to capture movements in the general price level
in the economy and consequently the most appropriate measure of
inflation for adjusting SBA's size standards. Thus, as in the previous
inflation adjustments, SBA decided to use the GDP price index to adjust
monetary-based size standards for the July 2019 inflation adjustment.
Comments on SBA's Chosen Measure of Inflation
One commenter maintained that inflation adjustment should be
considered if the results of the calculations result in revenue
thresholds that show trends in the industry prices after removing the
effect of general inflation. The commenter stated that GDP price index
is a proven measure of inflation, but SBA should continue to review
whether this is the correct measure to use in today's economy, possibly
even more frequently than five-year intervals. The commenter noted that
SBA should always verify results to ensure that there are no biases or
improper use of algorithms in determining inflation adjustment and that
SBA should approve the proposal as it is beneficial to small business
entities.
SBA Response
SBA agrees with the commenter that it is necessary for SBA to
continually assess whether its selected measure of inflation is the
most appropriate measure for adjusting its size standards. As described
in SBA's response to the previous comment, SBA establishes small
business size standards to determine eligibility of businesses for a
wide variety of SBA's and other Federal programs where the majority of
businesses participating in those programs are engaged in multiple
industries producing a wide range of goods and services. Therefore, SBA
uses the GDP price index to adjust its size standards because it is an
appropriately broad measure of inflation that reflects the
characteristics of the firms to which it pertains.
Moreover, SBA agrees with the commenter that SBA should continually
assess the timing of its adjustments to size standards and consider
adjustments even more frequently than five-year intervals based on the
prevailing economic situation conditions. Accordingly, SBA is issuing
this IFR to adjust monetary-based size standards for
[[Page 69132]]
inflation that has occurred since the July 2019 IFR.
As stated above, in the July 2019 IFR as well as the 2014 IFR (79
FR 33647 (June 12, 2014)), besides the GDP price index, SBA reviewed
several alternative inflation measures published by the Federal
Government (including the consumer price index, the personal
consumption expenditures price index, the producer price index, and the
employment cost index) for their appropriateness to use for adjusting
SBA's size standards. Among all these indexes, SBA determined that the
GDP price index is the most comprehensive measure to capture movements
in the general price level in the economy and consequently the most
appropriate measure of inflation for adjusting SBA's size standards.
Thus, as in the previous inflation adjustments, SBA decided to use the
GDP price index to adjust monetary-based size standards for the August
2019 inflation adjustment.
Comments on the Size Standard for NAICS 562910 (Remediation Services)
SBA received one comment from a Service-Disabled Veteran Owned
Small Business (SDVOSB) concern, operating under NAICS 562910
(Remediation Services). The commenter petitioned SBA to make certain
changes to footnote 14 to the SBA's Table of Size Standards, applicable
to the Environmental Remediation Services (ERS) exception to NAICS
562910 (Remediation Services), to make it easier for small firms to
compete under the ERS exception's 750-employee size standard. The
commenter expressed that, in an effort to work with larger businesses,
contracting officers may be overusing the ERS exception, classifying
procurements under the 750-employee size standard applicable to the
exception rather than the $22 million size standard applicable to the
general NAICS 562910, even when it may be more appropriate for
contracting officers to classify a given solicitation under the general
NAICS. Thus, the commenter petitioned SBA to revise footnote 14 by
making the requirements more restrictive so that contracting officers
have less discretion to forgo classifying solicitations under the
general NAICS 562910 in favor of using the exception.
SBA Response
SBA's regulations require contracting officers to designate the
proper NAICS code for a solicitation based on the principal purpose of
the product or service being acquired (13 CFR 121.402(b)). SBA's
regulations at 13 CFR 121.1101 allow affected parties to appeal with
the SBA's Office of Hearings and Appeals (OHA) a NAICS code designation
made by a contracting officer. SBA encourages impacted firms to follow
the procedures outlined in SBA's regulations when they believe that a
contracting officer has categorized a solicitation under an improper
NAICS code. Moreover, in this final rule, SBA is finalizing the changes
to the July 2019 IFR which adjusted SBA's monetary-based size standards
for inflation. Thus, SBA considers changes to industry definitions as
outside the scope of this rule.
Comments on the Size Standard for NAICS 541330 (Engineering Services)
SBA received a comment from an engineering firm supporting the
SBA's adjustment of its size standards for inflation, specifically an
increase in the size standard for Engineering Services to $16.5
million. The commenter maintained that the transition from ``small'' to
``other than small'' status requires significant investments in IT
processes and equipment, and business capabilities to be able to
compete with much larger firms. The commenter added that adjusting size
standards for inflation allows firms necessary time to implement such
processes and build capabilities before exceeding the size standard.
SBA received another comment that favored the inflationary adjustments
to the size standards but expressed concerns that the general inflation
measure that SBA applied does not sufficiently capture the recent
business trends and Government buying patterns in NAICS Industry 541330
(Engineering Services) and NAICS Industry Group 5415 (Computer Systems
Design and Related Services). The commenter maintained that the growing
complexity of services in NAICS 5415, recent bundling of these services
by the Federal Government, and use of these NAICS codes for new
cybersecurity services are not adequately captured by the adjustment
for inflation alone. The commenter recommended conducting a full review
of IT/computer/cybersecurity industry and contracts that have been
awarded under this industry to ensure that size standards are
appropriate. The commenter believed that more appropriate size
standards for industries under NAICS 5415 should be in the $50 million
range. Another area of concern the commenter expressed related to
increasing complexity of engineering services provided to military
under general NAICS 541330 and each of the three exceptions and to the
number of small businesses needed to maintain the healthy defense
industrial base. The commenter recommended conducting a thorough review
of NAICS 541330 and how this NAICS code is being used by the Government
to purchase engineering services to establish a more appropriate size
standard, which could be two or three times more than the current size
standard.
SBA Response
SBA agrees with the comment that the adjustments to size standards
for inflation will help small businesses by expanding access to SBA
programs, thereby allowing small firms within Engineering Services to
continue building capabilities and experience before exceeding the size
standard. SBA believes that adjusting size standards for inflation is
an important tool in ensuring that small businesses can successfully
compete for Federal contracting opportunities.
SBA does not agree with comments suggesting that SBA should choose
different inflation measures for select industries or use industry-
specific methodologies to evaluate size standards for changes due to
inflation. As explained previously in this final rule, SBA establishes
small business size standards to determine eligibility of businesses
for a wide variety of SBA's and other Federal programs. The majority of
businesses participating in those programs are engaged in multiple
industries producing a wide range of goods and services. Therefore, it
is important that SBA use a broad, comprehensive measure of inflation
to adjust its size standards.
Moreover, SBA does not agree with comments that SBA should conduct
a full review of NAICS 541330, or the IT/computer/cybersecurity
industry using industry specific factors as part of this regulatory
action. In this final rule, SBA is finalizing the changes to the July
2019 IFR, which adjusted SBA's monetary-based size standards for
inflation. Thus, SBA considers the evaluation of size standards for
specific industries based on industry-specific factors other than
inflation as outside the scope of this rule. SBA considers industry-
specific characteristics and other non-inflation related factors as
part of review of size standards under the Jobs Act.
As discussed earlier in this rule, SBA recently published a series
of five final rules, after an appropriate notice and comment period,
evaluating all monetary-based size standards (receipts-based and
assets-based) and employee-based size standards under Wholesale Trade
and Retail Trade as part of SBA's second five-year size standards
review
[[Page 69133]]
as mandated by the Jobs Act.\4\ Revisions to monetary-based size
standards in those five final rules were in addition to inflationary
adjustments to size standards adopted in the July 2019 IFR.
---------------------------------------------------------------------------
\4\ See Small Business Size Standards: Agriculture, Forestry,
Fishing and Hunting; Mining, Quarrying, and Oil and Gas Extraction;
Utilities; Construction (87 FR 18607; March 31, 2022), Small
Business Size Standards: Transportation and Warehousing;
Information; Finance and Insurance; Real Estate and Rental and
Leasing (87 FR 18627; March 31, 2022), Small Business Size
Standards: Professional, Scientific and Technical Services;
Management of Companies and Enterprises; Administrative and Support
and Waste Management and Remediation Services (87 FR 18665; March
31, 2022), Small Business Size Standards: Education Services; Health
Care and Social Assistance; Arts, Entertainment and Recreation;
Accommodation and Food Services; Other Services (87 FR 18646; March
31, 2022), and Small Business Size Standards: Wholesale Trade and
Retail Trade (87 FR 35869; June 14, 2022).
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SBA believes that its five-year comprehensive review of size
standards under the Jobs Act is the most appropriate regulatory venue
to evaluate and address industry specific economic characteristics and
recent Federal contracting trends that may support a size standard
different from SBA's current size standard. As part of its review of
size standards, SBA must ensure that small business definitions vary
from industry to industry to reflect industry differences as required
by the Small Business Act (15 U.S.C. 632(a)) (Act). To that end, as
part of the comprehensive review of size standards, SBA evaluates
characteristics of industry structure at the six-digit NAICS level,
such as average firm size, startup costs and entry barriers, industry
concentration, and distribution of firms by business size. SBA also
evaluates Federal contracting trends (i.e., small business share of
Federal contract dollars relative to small business share of total
industry's receipts) for industries with significant contracting
activities (i.e., industries averaging $20 million or more in Federal
contracts annually). Based on its analysis of the above industry and
Federal contracting factors, and after considering all comments
submitted to SBA during the proposed rule stage, on March 31, 2022, SBA
adopted an increase to the size standard for NAICS 541330 from $16.5
million to $22.5 million (87 FR 18665 (March 31, 2022)). Similarly,
using the same methodology, as part of the second five-year
comprehensive review of size standards, SBA evaluated the size
standards for all industries with a receipt-based size standard in the
IT/computer/cybersecurity industries. Thus, while SBA is not including
a comprehensive review of industry factors in this final rule, SBA
believes that it has satisfied the petitions of commenters to consider
industry-specific factors for NAICS 541330 and the IT/computer/
cybersecurity industries (i.e., industries within NAICS Industry Group
5415) as part of the second five-year review of size standards under
the Jobs Act.
Other Comments
Other comments to SBA's July 2019 IFR mostly expressed broad
support for SBA's changes to size standards. One comment supporting
SBA's action stated that adjusting size standards for inflation will
make the size standards more accurate and beneficial to all
stakeholders. The commenter added that adjusting size standards for
inflation will enable SBA to assist all small businesses by allowing
them to qualify for SBA's loans and other benefits which will spur
economic growth, increase tax revenues, and promote job growth. Another
commenter supported the SBA's decision to adjust monetary-based size
standards for inflation because it will help small businesses continue
to receive government contracting assistance. The commenter added that
this is particularly helpful for businesses in industries that require
high levels of capital investments as it will provide small businesses
with more time to pursue and win Federal opportunities to support such
investments. The commenter stated that this will also increase the
availability of qualified small businesses for the Federal agencies to
choose from to meet their small business contracting needs. One
commenter supported the regulation but expressed reservations about
whether the regulatory change will be implemented equally across all
states or localities. The commenter also thought that allowing more
businesses to qualify as small is a good idea, but argued that the
intent is more taxation rather than helping small businesses. SBA also
received a comment that opposed the rule on the grounds that it is
capricious and based on opinion. The commenter petitioned SBA to not
implement the rule, but did not provide sufficient reasoning or
evidence for why SBA should rescind the changes contained in the IFR.
SBA Response
SBA agrees with commenters supporting the rule that there are a
myriad of benefits of adopting the changes to size standards adopted in
the July 2019 IFR. The most significant benefits were described in the
regulatory impact analysis section of the July 2019 IFR. The primary
benefits include: (1) Some businesses that are above the current size
standards may gain small business status under the higher, inflation-
adjusted size standards, thereby enabling them to participate in
Federal small business assistance programs; (2) Growing small
businesses that are close to exceeding the current size standards will
be able to retain their small business status under the higher size
standards, thereby enabling them to continue their participation in the
programs; and (3) Federal agencies will have a larger pool of small
businesses from which to draw for their small business procurement
programs.
SBA estimated that the changes adopted in the July 2019 IFR enabled
approximately 89,730 firms in industries and subindustries with
receipts-based size standards and about 160 firms in industries with
assets-based size standards, above SBA's size standards at the time, to
gain small business status and become eligible for SBA programs,
resulting in between $700 million and $750 million in additional small
business Federal contract dollars. SBA disagrees with the comment
suggesting that the primary purpose of SBA's inflation adjustment to
size standards is to expand the Federal Government's tax base. SBA also
disagrees with the notion that SBA's inflation adjustments to size
standards are arbitrary and capricious. As explained in the July 2019
IFR, SBA is required to assess the impact of inflation on its monetary-
based size standards at least once every five years (see SBA Interim
Final Rule: Small Business Size Standards: Inflation Adjustment to
Monetary Based Size Standards (67 FR 3041; January 23, 2002) and 13 CFR
121.102(c)). Although the provision does not mandate that SBA actually
adjust size standards for inflation every five years, it does provide
assurances to the public that the Agency is monitoring inflation to
determine whether or not to adjust size standards within a reasonable
period of time since its last inflation adjustment. Thus, SBA believes
that the changes to size standards adopted in the July 2019 IFR are
reasonable and satisfy the requirements of 13 CFR 121.102(c).
Conclusion
With due consideration of all public comments as discussed above,
SBA is adopting the increases in all industry-specific monetary size
standards for inflation, as published in the July 2019 IFR. SBA is also
adopting the increases in two program specific size standards, namely
the Sales of Government Property from $62.5 million to $67.5
[[Page 69134]]
million, and Stockpile Purchases from $7.5 million to $8 million, which
are being further increased through the present interim final rule to
$76.5 million and $9 million, respectively. SBA is also adopting the
increase to the size standard found in Footnote 9 to 13 CFR 121.201
(Leasing of Building Space to the Federal Government by Owners) from
$38.5 million to $41.5 million, which is being further increased to $47
million in this interim final rule. This size standard exception
applies to all four industries in NAICS Industry Group 5311, Lessors of
Real Estate.
Accordingly, SBA is issuing this final rule to adopt, without
change, the interim final rule published on July 18, 2019 (84 FR
34261). SBA's adoption of the changes contained in the 2019 IFR are
procedural and do not supersede the changes recently adopted by SBA as
part of the second five-year review of size standards under the Jobs
Act, nor do they supersede the adoption of size standards contained in
this IFR which adjust SBA's monetary-based size standards for inflation
that has occurred since the issuance of the July 2019 IFR.
IV. Justification for Updating Size Standards for Inflation as an
Interim Final Rule
In general, to revise or update size standards, SBA publishes a
proposed rule for public comment before issuing a final rule, in
accordance with the Administrative Procedure Act (APA), 5 U.S.C. 553,
and SBA regulations, 13 CFR 101.108. The APA provides an exception to
this standard rulemaking process, however, in situations where an
agency finds good cause to adopt a rule without prior public
participation. (See 5 U.S.C. 553(b)(3)(B)). The good cause requirement
is satisfied when prior public participation is impracticable,
unnecessary, or contrary to the public interest. Under those
conditions, an agency may publish an interim final rule without first
soliciting public comment. In applying the good cause exception to the
standard rulemaking process, Congress recognized that special
circumstances might arise justifying issuance of a rule without prior
public participation.
As stated above, the last time SBA made inflation adjustments to
size standards was 2019. Since then, inflation, as measured by the GDP
price index, has increased 13.65 percent,\5\ which has caused size
standards to decrease in real terms thereby causing businesses to lose
their small business status. Inflation is running at the highest level
since the early 1980s. For example, according to the U.S. Bureau of
Labor Statistics, the Consumer Price Index for All Urban Consumers
(CPI-U), before seasonal adjustment, increased 8.3 percent over the
last 12 months ending in August 2022.\6\ Similarly, the Producer Price
Index (PPI) for final demand, on a seasonally unadjusted basis,
increased 8.7 percent for the 12 months ending in August 2022.\7\
According to the GDP second estimate from the Bureau of Economic
Analysis, the GDP price index increased 7.5 percent in the second
quarter of 2022 from the second quarter of 2021.\8\ Similarly, the
price index for personal consumption expenditures (PCE) increased 6.5
percent in the second quarter of 2022 from the second quarter of 2021.
---------------------------------------------------------------------------
\5\ For comparison, when SBA implemented the July 2019 IFR
inflation adjustment, the GDP price index had increased 8.37 percent
over the previous five-year period.
\6\ https://www.bls.gov/news.release/cpi.nr0.htm, September 13,
2022.
\7\ https://www.bls.gov/news.release/ppi.nr0.htm, September 14,
2022.
\8\ https://www.bea.gov/news/2022/gross-domestic-product-second-estimate-and-corporate-profits-preliminary-second-quarter, August
25, 2022.
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Therefore, this rule is necessary to make those businesses eligible
for Federal assistance immediately. A number of businesses may have
lost small business eligibility for Federal assistance under SBA's
monetary-based size standards simply as a result of the inflation that
has occurred since the previous inflation adjustment in 2019. Any delay
in the adoption of inflation-adjusted size standards could cause
significant harm to those businesses and others that are about to
exceed current size standards simply due to inflation-driven revenue
growth. Immediate implementation of this rule would enable more
businesses to qualify under SBA's monetary-based size standards, which
would enable them to apply for Federal small business assistance and
thereby create jobs.
The standard notice and comment rulemaking could delay the
implementation of this rule by at least 8 months to 12 months. Such a
delay would be contrary to the public interest as it would delay the
eligibility of those businesses for Federal small business assistance,
perhaps forcing some of them to cease operations before a final rule
could be promulgated under the standard rulemaking process.
Furthermore, the inflation adjustment will become outdated by the time
the final rule is published under notice and comment rulemaking.
For the above reasons, SBA finds that good cause exists to publish
this rule as an interim final rule. SBA's rationale for preparing this
action as an interim final rule and giving it immediate effect is
consistent with the Agency's statutory obligation to protect the
interests of small businesses, thereby enabling them to maintain
competitiveness and strengthen the overall economy. Small Business Act,
15 U.S.C. 631(a). SBA had also implemented inflation adjustments to
size standards through an interim final rule in 2002 (67 FR 3041), 2005
(70 FR 72577), and 2014 (79 FR 33647) without any controversies.
By publishing these adjustments as interim final, SBA is not
excluding public participation in the rulemaking process. SBA is
soliciting comments from interested parties on the interim final
provisions of this rulemaking and on a number of issues, including
SBA's methodology for inflation adjustment and alternative measures of
inflation. SBA will evaluate all comments and revise, if necessary,
this rule, and publish a final rule at a later date.
Request for Comments
SBA seeks comments on this rule, specifically on the following
issues:
1. SBA welcomes comments from interested parties on SBA's size
standards methodology for inflation adjustment to its size standards.
Specifically, SBA seeks comment on whether the GDP price index is an
appropriate measure of inflation for adjusting size standards. The
Agency invites suggestions, along with supporting data and analysis, if
a different measure of inflation would be more appropriate.
2. SBA also invites comments on whether it should adjust employee-
based industry size standards for labor productivity growth and
technological advancements, similar to adjusting monetary-based
industry size standards for inflation.
3. SBA also invites comments on any other aspects of this
rulemaking, including the changes to program-based and assets-based
size standards, and economic disadvantage thresholds in its regulations
that apply to 8(a) BD and EDWOSB programs.
V. Compliance With Executive Order 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 the
interim final provisions of this rule are not a ``significant
regulatory action'' for
[[Page 69135]]
purposes of Executive Order 12866. OMB previously determined that the
July 2019 IFR was also not a ``significant regulatory action'' for
purposes of Executive Order 12866, and maintains that the final rule
provisions are also ``not significant''. However, in order to help
explain the need for this rule and its potential benefits and costs,
SBA has provided below a Cost Benefit Analysis of this rule.
Cost Benefit Analysis
1. What is the need for the regulatory action?
SBA's statutory mission is to aid and assist small businesses
through a variety of financial, procurement, business development, and
advocacy programs. To assist the intended beneficiaries of these
programs effectively, SBA must establish distinct definitions of which
businesses are deemed small businesses. The Small Business Act (15
U.S.C. 632(a)) (Act) delegates to the SBA Administrator the
responsibility for establishing small business definitions. The Act
also requires that small business definitions vary from industry to
industry to reflect industry differences. SBA is required to assess the
impact of inflation on its monetary-based size standards at least once
every five years (67 FR 3041 (January 23, 2002) and 13 CFR 121.102(c)).
Inflation, as measured by the change in GDP price index, has increased
13.65 percent from the previous inflation adjustment of size standards
in 2019.\9\ Inflation has caused monetary based size standards to
decrease in real terms, thereby forcing businesses to lose small
business status and eligibility for Federal assistance.
---------------------------------------------------------------------------
\9\ As stated in the SBA's Inflation Adjustment Methodology
section above, the GDP price index for the base period (i.e., 4th
quarter of 2018) was 111.191 and the GDP price index for the end
period (i.e., 2nd quarter of 2022) was 126.367. Accordingly,
inflation increased 131.65 percent from the fourth quarter of 2018
to the first quarter of 2022 (((126.367123.705 / 111.191)-1) x 100
percent = 13.65 percent).
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In addition, SBA intends to adjust economic disadvantage thresholds
in its regulations that are otherwise not adjusted for inflation under
FAR 1.109. These thresholds primarily are those used in the 8(a)
Business Development and economically disadvantaged women-owned small
business (EDWOSB) programs to determine economic disadvantage. This
action will permit small businesses to retain eligibility as
economically disadvantaged and eligible for the 8(a) BD and EDWOSB
programs, despite an increase in inflation.
2. What are the potential benefits and costs of this regulatory
action?
The size standards adopted by SBA in this rulemaking would enable
businesses that have exceeded industry size standards or their economic
disadvantage thresholds simply due to inflation-driven revenue growth
to regain or maintain eligibility for Federal small business assistance
programs. The changes would also help businesses about to exceed their
size standards or to exceed their economic disadvantage thresholds to
retain small business eligibility for Federal programs for a longer
period. These programs 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 opportunities for small businesses under SBA's contracting and
business development programs, such as 8(a) Business Development (8(a)
BD) program, small businesses located in Historically Underutilized
Business Zones (HUBZone) program, women-owned small businesses (WOSB)
program, economically disadvantaged women-owned small businesses
(EDWOSB) program, and service-disabled veteran-owned small businesses
(SDVOSB) program. Federal agencies may also use SBA's size standards
for a variety of other regulatory and program purposes. These programs
assist small businesses to become more knowledgeable, stable, and
competitive.
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 2017 Economic Census data and the 2022 NAICS adopted
by SBA, of a total of 7,460,728 firms in the 505 impacted industries
with receipts-based size standards, 98.1 percent are considered small
under the current, recently adopted receipts-based size standards based
on the second five-year review of size standards under the Jobs Act and
the adoption of the 2022 NAICS structure.
Similarly, based on the data from Federal Procurement Data System--
Next Generation (FPDS-NG) for fiscal years 2018-2020, 76,323 unique
firms in 441 industries received at least one Federal contract during
that period, of which 81.9 percent were found to be small under the
current and recently adopted receipts-based size standards based on the
second five-year review of size standards under the Jobs Act.\10\ Of
about $231.4 billion in total average annual contract dollars awarded
to businesses in the impacted industries with receipt-based size
standards during that period, 34.3 percent went to small
businesses.\11\ Of about $79.4 billion in total small business contract
dollars awarded in those industries during that period, 72.9 percent
were awarded through various set-aside programs and 27.1 percent were
awarded through non-set aside contracts. Table 5, Baseline of
Industries with Receipts-Based Size Standards Adjusted for Inflation,
provides these baseline results.
---------------------------------------------------------------------------
\10\ This analysis excludes 64 industries with receipts-based
size standards under NAICS Sector 44-45 (Retail Trade) that does not
apply for Federal contracting.
\11\ The analysis includes only firms that can be small under
the SBA criteria.
Table 5--Baseline of Industries With Receipts-Based Size Standards
Adjusted for Inflation
------------------------------------------------------------------------
Impact variable Value
------------------------------------------------------------------------
Number of industries impacted by adjustment to receipts- 505
based size standards...................................
Total firms in impacted industries (2017 Economic 7,460,728
Census)................................................
Total small firms in impacted industries under current 7,319,914
receipts-based size standards (2017 Economic Census)...
Small firms as % of total firms (2017 Economic Census).. 98.1
Total contract dollars ($ million) (FPDS-NG--fiscal $231,427
years 2018-2020) to impacted industries................
Total small business contract dollars under current size $79,380
standards ($ million) (FPDS-NG--fiscal years 2018-2020)
Small business dollars as % of total dollars (FPDS-NG 34.3
fiscal years 2018-2020)................................
Total number of unique firms getting contracts in 76,157
impacted industries (FPDS-NG fiscal years 2018-2020))..
[[Page 69136]]
Total number of unique small firms getting small 62,539
business contracts (FPDS-NG fiscal years 2018-2020))...
Small business firms as % of total firms (FPDS-NG fiscal 81.9
years 2018-2020).......................................
Annual no. of 7(a) and CDC/504 loans (fiscal years 2018- 50,092
2020)..................................................
Amount of 7(a) and CDC/504 loans ($ million) (fiscal $23,909
years 2018-2020).......................................
Annual no. of EIDL loans (fiscal years 2018-2020) \1\... 4,550
Amount of EIDL loans ($ million) (fiscal years 2018- $166
2020) \1\..............................................
------------------------------------------------------------------------
\1\ 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.
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 50,092 7(a) and Certified Development Company
(CDC)/504 loans in that period, totaling about $23.9 billion, of which
82.7 percent was issued through the 7(a) loan guarantee program and
17.3 percent was issued through the CDC/504 program. During fiscal
years 2018-2020, small businesses in those industries also received
4,550 loans through the SBA's EIDL program, totaling about $166 million
on an annual basis.\12\
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\12\ 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 2017 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, SBA's additional inflation adjustment to receipts-
based size standards have resulted in an increase to the size standards
for 505 industries and subindustries. Below are descriptions of the
benefits, costs, and transfer impacts of the adopted size standards
contained in this IFR.
Benefits of Increases to Size Standards
The benefits of adopting the inflation-adjusted size standards will
accrue to three groups in the following ways: (1) Some businesses that
are currently above their current size standards may gain small
business status, thereby becoming eligible to participate in Federal
small business assistance programs, including SBA's 7(a) loan program,
CDC/504 loan program, EIDL program, Surety Bond Guarantee program, and
Federal procurement and business development programs intended for
small businesses; (2) Growing small businesses that are close to
exceeding the current size standards for their receipts-based
industries may retain their small business status for a longer period,
and can continue participating in the above programs; and (3) Federal
Government agencies will have a larger pool of small businesses from
which to draw to fulfill their small business procurement requirements.
The most significant benefit to businesses from increases to size
standards is gaining or extending eligibility for Federal small
business assistance programs. As stated above, these include SBA's 7(a)
loan program, CDC/504 loan program, EIDL program, Surety Bond Guarantee
program, and Federal procurement business development programs intended
for small businesses. Federal procurement and business development
programs provide targeted, set-aside opportunities for small
businesses. These include the 8(a) BD program, HUBZone program, the
WOSB program, EDWOSB program, and SDVOSB program.
In industries with the receipts-based size standards, based on the
2017 Economic Census data, SBA estimates that 17,713 additional
businesses would gain small business status under the inflation-
adjusted size standards. That represents about 0.2 percent of the total
number of small businesses in the affected industries under the current
size standards. This would result in an increase to the small business
share of total receipts in those 505 industries/subindustries from 29.0
percent to 30.0 percent. Table 6, Impacts of Receipts-Based Size
Standards Adjusted for Inflation, provides impacts of increasing size
standards for the 505 industries/subindustries with receipts-based size
standards.
Table 6--Impacts of Receipts-Based Size Standards Adjusted for Inflation
------------------------------------------------------------------------
Impact variable Value
------------------------------------------------------------------------
Number of industries with increases to receipts-based 485
size standards.........................................
Total current small businesses in industries with 73,19,914
increases to receipts-based size standards (2017
Economic Census).......................................
Additional firms qualifying as small under inflation- 17,713
adjusted receipts-based size standards (2017 Economic
Census)................................................
of additional firms qualifying as small relative to 0.24
current small businesses in industries with increases
to size standards (2017 Economic Census)...............
Number of current unique small firms getting small 62,539
business contracts in industries with increases to size
standards (FPDS-NG fiscal years 2018-2020) \1\.........
Additional small business firms getting small business 586
status (FPDS-NG fiscal years 2018-2020) \1\............
increase to small businesses relative to current unique 0.94
small firms getting small business contracts in
industries with increases to size standards (FPDS-NG
fiscal years 2018-2020)................................
Total small business contract dollars under current $79,380
standards in industries with increases to size
standards ($ million) (FPDS-NG fiscal years 2018-2020).
Estimated additional small business dollars available to $1,313
newly-qualified small firms (using avg. dollars
obligated to small businesses) ($ million) (FPDS-NG
fiscal years 2018-2020) \2\............................
increase to small business dollars relative to total 1.65
small business contract dollars under current standards
in industries with increases to size standards.........
[[Page 69137]]
Estimated number of 7(a) and CDC/504 loans to newly- 7
qualified small firms..................................
Estimated 7(a) and CDC/504 loan amounts to newly- $4.08
qualified small firms ($ million)......................
increase to 7(a) and CDC/504 loan amount relative to 0.02
the total amount of 7(a) and CDC/504 loans in
industries with increases to size standards............
Estimated number of EIDL loans to newly qualified small 1
firms \3\..............................................
Estimated EIDL loan amount to newly qualified small 0.002
firms ($ million) \3\..................................
increase to EIDL loan amount relative to the total 0.001
amount of disaster loans in industries with increases
to size standards \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.
As shown in Table 6, based on the FPDS-NG data for fiscal years
2018-2020, SBA estimates that 586 firms that are currently active in
Federal contracting in those industries would gain small business
status under the higher inflation-adjusted receipts-based size
standards. Based on the same data, SBA estimates that those newly-
qualified small businesses under the higher inflation-adjusted size
standards could receive Federal small business contracts totaling about
$1.3 billion annually. That represents a 1.65 percent increase to
Federal small business dollars from the baseline. Additionally, due to
the adjustment of assets-based size standards in four industries, SBA
estimates that about 170 additional firms will gain small business
status in those industries, increasing the small business share of
total assets in those industries from 5.4 percent to 5.9 percent.
The added competition from more businesses qualifying as small can
result in lower prices to certain Federal Government procurements set
aside or reserved for small businesses, but SBA cannot quantify this
impact precisely. Costs could 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 higher 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 CDC/504 loan programs, with more businesses
qualifying as small under the higher size standards, SBA will be able
to guarantee more loans to small businesses. However, SBA expects the
impact on loans to be minimal since applicants to SBA's financial
assistance programs are typically much smaller than the industry size
standard and most businesses that currently participate in the program
would continue to remain eligible for assistance even after this rule
is adopted. Moreover, SBA does not anticipate that the increases to
size standards will have a significant impact on the distribution of
firms receiving loans by size of firm. Since SBA's size standards
changes primarily impact firms at the higher margin of size standards,
SBA estimates the impact on its financial assistance programs by
estimating the number of loans and the amount of loans to firms larger
than ten percent below their size thresholds. SBA believes that
expanding access to SBA's financial assistance programs will help all
small businesses to adapt to changes in business environment, recover
from disasters more quickly, and grow successfully, while having no
impact on the ability of smaller small firms to access financial
services from SBA.
Based on its internal data for fiscal years 2018-2020 and the
amount of loans to firms larger than ten percent below their size
thresholds, SBA estimates that about seven additional 7(a) and CDC/504
loans, totaling approximately $4.1 million, could be made to the newly-
defined small businesses under the higher inflation-adjusted size
standards. That represents a 0.02 percent increase to the loan amount
compared to the baseline (see Table 6). The actual impact might be even
smaller as the newly-qualified firms under the higher inflation-
adjusted size standards could have qualified anyway under the tangible
net worth and net income based alternative size standard that applies
to the SBA's 7(a) and CDC/504 programs.
Newly-defined small businesses will also benefit from SBA's EIDL
program, which, like SBA's 7(a) and CDC/504 loan program, typically
provides loans to businesses that are much smaller than the industry
size standard. Since this program is contingent on the occurrence and
severity of a disaster, SBA cannot make a precise estimate of the
future EIDL benefit. However, based on its internal disaster loan
program data for fiscal years 2018-2020 and the amount of loans to
firms greater than ten percent below their size thresholds, SBA
estimates that, on an annual basis, one additional EIDL loan, totaling
approximately $2,000 could be made to the newly-defined small
businesses under the higher inflation-adjusted size standards.
Additionally, the newly-defined small businesses under the higher
inflation-adjusted size standards would also benefit 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.
Benefits of Increases to Disadvantage Thresholds, 8(a) Eligibility
Thresholds, and Dollar Thresholds for 8(a) Sole Source Contracts for
Inflation
The increases in the economic disadvantage (ED) eligibility
thresholds through inflation adjustment support gaining eligibility of
the new applicants which would otherwise be not approved and
maintaining eligibility of the existing participants in the 8(a) BD and
EDWOSB programs. The new applicants affected by inflation impacting the
value of their net worth (NW), adjusted gross income (AGI) and total
assets (TA) will be approved into these programs. The
[[Page 69138]]
changes would also help current SBA ED participants who are about to
exceed their NW, AGI, or TA thresholds to retain ED eligibility for
Federal programs for a longer period.
Internal data on applicants to the 8(a) BD program from fiscal
years 2019 to 2021 shows that since the ED thresholds were increased
for new applicants in mid-2020 (see Table 7, Increases in ED Thresholds
Adopted on July 15, 2020), the number of approvals increased by 3.2
percent, and the number of denials for economic-disadvantage reasons
decreased by 36.8 percent. Same data also shows that since 2019, the
applicants' average NW increased by 50 percent, the average AGI by
about 20 percent, and the average total assets by 40 percent. The
inflation adjustment to the ED thresholds will permit to mitigate the
impact of the current high inflation rate on the new applicants to the
SBA ED programs, maintaining their eligibility opportunities. Also, the
inflation adjustment of the ED thresholds will help to preserve the
real value of the current thresholds, and the positive impact that the
changes pursued by SBA since 2020 have had on these programs. In this
sense, inflation adjustment of the ED thresholds complements the
inflation adjustment of the monetary-based size standards proposed in
this IFR.
Table 7--Increases ED Thresholds Adopted on July 15, 2020
----------------------------------------------------------------------------------------------------------------
Previous Current Percentage
ED thresholds thresholds thresholds change (%)
----------------------------------------------------------------------------------------------------------------
Net worth (W)................................................... $250,000 $750,000 200
Aggregated gross income (AGI)................................... 250,000 350,000 40
Total assets (TA)............................................... 4,000,000 6,000,000 50
----------------------------------------------------------------------------------------------------------------
The number of 8(a) firms totaling more than $100 million in total
cumulative dollar obligations (i.e., total of sole source and
competitive 8(a) awards) has been consistently increasing from less
than ten firms during 2011-2012 to about 130-140 firms during 2020-
2021. Of these 130-140 firms exceeding the $100 million threshold,
about 87-90 firms totaled between $100 million and $168.5 million in
cumulative contract awards and would become eligible for sole source
8(a) contracts again.
Costs of Increases to Size Standards and Economic Disadvantage and 8(a)
Sole Source Thresholds
Aside from taking time to register in the System for Award
Management (SAM) to be eligible to participate in Federal contracting
and update the SAM profile annually, small businesses incur no direct
costs to gain or retain their small business status under the inflation
adjusted 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. It is important to point out that most business entities that
are already registered in SAM will not be required to update their SAM
profiles. However, it will be incumbent on registrants to review, and
update as necessary, their profiles to ensure that they have the
correct NAICS codes. SAM requires that registered companies review and
update their profiles annually, and therefore, businesses will need to
pay particular attention to the changes to determine if they might
affect them. They will also have to verify, and update, if necessary,
their Representations and Certifications in SAM. More importantly, this
rule does not establish the new size standards for the very first time;
rather it intends to modify the existing size standards by adjusting
them for the inflation that has occurred since the last inflation
adjustment in 2019.
To the extent that the newly-defined small firms under the higher
inflation-adjusted size standards could become active in Federal
procurement programs, this may entail some additional administrative
costs to the Federal Government because of more businesses qualifying
for Federal small business programs. For example, there will be more
firms seeking SBA's loans, more firms eligible for enrollment in the
SBA's Dynamic Small Business Search (DSBS) database or in
certify.sba.gov, more firms seeking certifications as 8(a) BD or
HUBZone firms, or qualifying for WOSB, EDWOSB, and SDVOSB status, and
more firms applying for SBA's 8(a) BD mentor-prot[eacute]g[eacute]
program. SBA expects the costs of additional applicants to the SBA
programs as a result of changes to size standards in this final rule to
be minimal because necessary administrative mechanisms for processing
additional applications are already in place.
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
inflation adjustment, Federal agencies may choose to set aside more
contracts for competition among small businesses only instead of using
a full and open competition. 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
size protests shows that the number of size protests actually decreased
after an increase in number businesses qualifying as small as a result
of size standards revisions as part of the first five-year review of
size standards. Specifically, on an annual basis, the number of size
protests dropped from about 600 during fiscal years 2011-2013 (review
of most receipts-based size standards was completed by the end of FY
2013) to about 500 during fiscal years 2018-2020. That represents a 17
percent decline.
Moreover, 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 proposed size standards. However,
any additional costs associated with fewer bidders are expected to be
minor since, by law, procurements may be set aside for small
[[Page 69139]]
businesses under the 8(a)/BD, 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 higher inflation-adjusted 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.
An increase in the number of new applicants to the SBA economic
disadvantage programs and an increase in the number of participants
eligible for 8(a) sole source awards has similar costs for the programs
and for the new applicants and current participants, as discussed in
the previous paragraphs. The increase in the number of participants in
the programs will not affect the SBA costs of providing services to
these business concerns, because the administrative structure is
already in place.
For the above reasons, SBA estimates that these added
administrative costs associated with this rule will be de minimis
because necessary mechanisms are already in place to handle these added
requirements.
Transfer Impacts of Increases to Size Standards
The inflation-adjusted size standards adopted in this 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 size
standards. However, it would have no impact on the overall economic
activity since total Federal contract dollars available for businesses
to compete for will not change with changes to size standards. While
SBA cannot quantify with certainty the actual outcome of the gains and
losses from the redistribution of 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 higher inflation-adjusted 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 inflation-adjusted size standards. This
impact may be offset by a greater number of procurements being set
aside for small businesses because of more businesses qualifying as
small under the inflation-adjusted size standards. With larger
businesses qualifying as small under the higher inflation-adjusted 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.
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
the final rule provisions and interim rule provisions are not a ``major
rule'' as defined by 5 U.S.C. 804(2).
Regulatory Flexibility Act
According to the Regulatory Flexibility Act (RFA), 5 U.S.C. 601-
612, when an agency issues a rulemaking, it must prepare a regulatory
flexibility analysis to address the impact of the rule on small
entities. Accordingly, below, the Agency provides final regulatory
flexibility analysis of the final rule provisions and initial
regulatory flexibility analysis of the interim provisions of this
rulemaking.
Regulatory Flexibility Analysis--Final Regulatory Flexibility Analysis
Under the Regulatory Flexibility Act (RFA), the final rule
provisions of this rulemaking may have a significant impact on a
substantial number of small businesses in the industries and
subindustries with monetary-based size standards. As described in the
July 2019 IFR, the final rule provisions of this rulemaking may affect
small businesses in those industries seeking Federal contracts, loans
under SBA's 7(a), 504 and EIDL programs, and assistance under other
Federal small business programs.
SBA prepared an initial regulatory flexibility analysis (IRFA) for
the July 2019 IFR. A copy of the IRFA can be found at 84 FR 34267 (July
18, 2019). Immediately below, SBA sets forth a final regulatory
flexibility analysis (FRFA) of the final provisions of this rulemaking
addressing the following questions: (1) What are the need for and
objective of the rule?; (2) What are significant issues raised by the
public comments in response to the initial regulatory flexibility
analysis, assessment of the agency of such issues, and any changes made
in the proposed rule as a result of such comments?; (3) What's the
agency's response to any comments filed by the Chief Counsel for
Advocacy of the Small Business Administration in response to the
proposed rule and description of any change made to the proposed rule
in the final rule as a result of the comments?; (4) What are SBA's
description and estimate of the number of small businesses to which the
rule will apply?; (5) What are the projected reporting, record keeping,
and other compliance requirements of the rule?; (6) What are the
relevant Federal Government rules that may duplicate, overlap, or
conflict with the rule?; and (7) What alternatives will allow the
Agency to accomplish its regulatory objectives while minimizing the
impact on small businesses?
1. What are the need for and objective of the rule?
As discussed in the supplemental information above, the revision to
the monetary-based size standards for inflation more appropriately
defines small businesses. The Final rule provisions of this rulemaking
finalizes SBA's July 2019 IFR that adjusted monetary-based industry
size standards for inflation that occurred since the previous inflation
adjustment in 2014. The inflation adjustment of size standards for
inflation restores small business eligibility in real terms to
businesses that have grown above the existing size standard due to
inflation-led revenue growth rather than due to increased business
activity.
Section 3(a) of the Small Business Act (15 U.S.C. 632(a)) gives SBA
the authority to establish and change size standards. Within its
administrative discretion, SBA implemented a policy in its regulations
to review the effect of inflation on size standards at least once every
five years (13 CFR 121.102(c)) and
[[Page 69140]]
make any changes as appropriate. A review of the latest data indicated
that inflation has increased a sufficient amount since the 2014
inflation adjustment to warrant another inflation adjustment to the
monetary-based size standards. Adjusting size standards for inflation
is also consistent with a statutory requirement under the Jobs Act to
review all size standards and make necessary adjustments to reflect
current market conditions every five years.
2. What are significant issues raised by the public comments in
response to the initial regulatory flexibility analysis, assessment of
the agency of such issues, and any changes made in the proposed rule as
a result of such comments?
SBA did not receive any public comments to the initial regulatory
flexibility analysis it provided in the July 2019 IFR.
3. What's the agency's response to any comments filed by the Chief
Counsel for Advocacy of the Small Business Administration in response
to the proposed rule and description of any change made to the proposed
rule in the final rule as a result of the comments?
SBA did not receive any comments from the Chief Counsel for
Advocacy of the Small Business Administration in response to the July
2019 IFR.
4. What are SBA's description and estimate of the number of small
businesses to which the rule will apply?
As discussed in the July 2019 IFR, based on the 2012 Economic
Census tabulations, about 89,730 additional firms became small because
of this adjustment to the receipts-based size standards of 518
industries and eight subindustries. That represented 1.3 percent of the
total number of firms that were small under the monetary-based size
standards prior to inflation adjustment. This resulted in an increase
in the small business share of total industry receipts in those
industries and subindustries from 29.0 percent under the current size
standards to 29.7 percent under the inflation-adjusted size standards.
Due to the adjustment of assets-based size standards in five
industries, about 160 additional firms gained small business status in
those industries. That increased the small business share of total
assets in those industries from 5.7 percent to 6.0 percent. The size
standards adopted in the final provisions of this rulemaking would
enable businesses that have exceeded the size standards for their
industries to regain small business status. It would also help
currently small businesses retain their small business status for a
longer period.
5. What are the projected reporting, record keeping and other
compliance requirements of the rule?
The inflation adjustment to size standards imposes 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 the System of Award Management
(SAM) database and certify in SAM 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,
any newly eligible small businesses opting to participate in those
programs would have had to comply with SAM requirements. However, SBA
estimates that there are no additional costs associated with SAM
registration or certification. While changing size standards alters the
access to SBA's programs that assist small businesses, it does not
impose a regulatory burden because such actions on the part of SBA
neither regulate nor control business behavior.
6. What are the relevant Federal rules, which may duplicate,
overlap, or conflict with the rule?
Under section 3(a)(2)(C) of the Small Business Act, 15 U.S.C.
632(a)(2)(c), Federal agencies must use SBA's size standards to define
a small business, unless specifically authorized by statute to do
otherwise. In 1995, SBA published in the Federal Register a list of
statutory and regulatory size standards that identified the application
of SBA's size standards as well as other size standards used by Federal
agencies (60 FR 57988; November 24, 1995). SBA is not aware of any
Federal rule that would duplicate or conflict with establishing size
standards.
However, the Small Business Act and SBA's regulations allow Federal
agencies to develop different size standards 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 for Regulatory Flexibility Analysis purposes, after
consultation with the Office of Advocacy of the U.S. Small Business
Administration (5 U.S.C. 601(3)).
7. What alternatives will allow the Agency to accomplish its
regulatory objectives while minimizing the impact on small entities?
By law, SBA is required to develop numerical size standards for
establishing eligibility for Federal small business assistance
programs. Other than varying size standards by industry and changing
the size measures, no practical alternative exists to the systems of
numerical size standards.
SBA's only other consideration was whether to adopt the size
standards presented in the July 2019 IFR with no further increase for
the inflation. However, SBA believes that the 8.37 percent inflation
that has occurred since the previous inflation adjustment in 2014 (and
the 40.26 percent inflation increase that has occurred since 2000, when
the current $750,000 agricultural size standard was established by
statute) sufficiently affected the real value of the size standards to
warrant applying an increase at that time.
Regulatory Flexibility Analysis--Initial Regulatory Flexibility
Analysis
Under the Regulatory Flexibility Act (RFA), the interim provisions
of this rulemaking may have a significant impact on a substantial
number of small businesses in the industries and subindustries with
monetary-based size standards. As described above, this rule may affect
small businesses in those industries seeking Federal contracts, loans
under SBA's 7(a), 504 and EIDL programs, and assistance under other
Federal small business programs.
Immediately below, SBA sets forth an initial regulatory flexibility
analysis (IRFA) of the interim final provisions this rulemaking
addressing the following questions: (1) What are the need for and
objective of the rule?; (2) What are 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 Government
rules that may duplicate, overlap, or conflict with the rule?; and (5)
What alternatives will allow the Agency to accomplish its regulatory
objectives while minimizing the impact on small businesses?
1. What are the need for and objective of the rule?
As discussed in the supplemental information above, the revision to
the monetary-based size standards for inflation more appropriately
defines small businesses. This rule finalizes SBA's 2019 interim final
rule that adjusted monetary-based industry size
[[Page 69141]]
standards as a procedural step, and adds a 13.65 percent increase over
the adopted monetary small business size standards in addition to the
adjustments made as part of the second five-year review of size
standards under the Jobs Act.
Section 3(a) of the Small Business Act (15 U.S.C. 632(a)) gives SBA
the authority to establish and change size standards. Within its
administrative discretion, SBA implemented a policy in its regulations
to review the effect of inflation on size standards at least once every
five years (13 CFR 121.102(c)) and make any changes as appropriate. A
review of the latest data indicated that inflation has increased a
sufficient amount since the 2019 adjustment to warrant another
inflation adjustment to the monetary-based size standards. Adjusting
size standards for inflation is also consistent with a statutory
requirement under the Jobs Act to review all size standards and make
necessary adjustments to reflect current market conditions every five
(5) years.
Additionally, for the first time, SBA is adjusting for inflation
the economic disadvantage thresholds for the 8(a) Business development
and the Economic Disadvantage Women Owned Business programs that are
not covered under FAR 1.109. This action supports the economic policy
SBA adopted on July 15, 2020, to increase the monetary value of these
economic thresholds, maintaining their value.
2. What are SBA's description and estimate of the number of small
businesses to which the rule will apply?
Based on the 2017 Economic Census tabulations, SBA estimates that
about 17,713 additional firms would become small because of adjustment
to receipts-based size standards of 494 industries and nine
subindustries (or ``exceptions''). That represents about 0.2 percent of
total firms that were small under the baseline for all monetary based
size standards. SBA estimated that the changes resulted in an increase
in the small business share of total industry receipts in those
industries and subindustries from 29.0 percent to 30.0 percent. Due to
the adjustment of assets-based size standards in five industries, SBA
estimates that about 170 additional firms will gain small business
status in those industries, increasing the small business share of
total assets in those industries from 5.4 percent to 5.9 percent. The
size standards adopted in this rule would enable businesses that have
exceeded the size standards for their industries to regain small
business status. It would also help small businesses to retain their
small business status for a longer period.
The increases in the economic disadvantage (ED) eligibility
thresholds through inflation adjustment support gaining eligibility of
the new applicants which would otherwise be not approved and
maintaining eligibility of the existing participants in the 8(a) BD and
EDWOSB programs. However, there is lack of the necessary data to
estimate the actual number of 8(a) BD and EDWOSB firms impacted by the
adjustments to the ED thresholds. As a result of adjusting the 8(a)
sole source threshold, about 87-90 firms totaling between $100 million
and $168.5 million in cumulative contract awards would become eligible
for sole source 8(a) contracts again.
3. What are the projected reporting, record keeping and other
compliance requirements of the rule?
The inflation adjustment to size standards imposes 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 the System of Award Management
(SAM) database and certify in SAM 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,
any newly eligible small businesses opting to participate in those
programs would have had to comply with SAM requirements. However, SBA
estimates that there are no additional costs associated with SAM
registration or certification. While changing size standards alters the
access to SBA's programs that assist small businesses, it does not
impose a regulatory burden because such actions on the part of SBA
neither regulate nor control business behavior.
4. What are the relevant Federal rules, which may duplicate,
overlap, or conflict with the rule?
Under section 3(a)(2)(C) of the Small Business Act, 15 U.S.C.
632(a)(2)(c), Federal agencies must use SBA's size standards to define
a small business, unless specifically authorized by statute to do
otherwise. In 1995, SBA published in the Federal Register a list of
statutory and regulatory size standards that identified the application
of SBA's size standards as well as other size standards used by Federal
agencies (60 FR 57988 (November 24, 1995)). SBA is not aware of any
Federal rule that would duplicate or conflict with establishing size
standards.
However, the Small Business Act and SBA's regulations allow Federal
agencies to develop different size standards 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 for Regulatory Flexibility Analysis purposes, after
consultation with the Office of Advocacy of the U.S. Small Business
Administration (5 U.S.C. 601(3)).
5. What alternatives will allow the Agency to accomplish its
regulatory objectives while minimizing the impact on small entities?
By law, SBA is required to develop numerical size standards for
establishing eligibility for Federal small business assistance
programs. Other than varying size standards by industry and changing
the size measures, no practical alternative exists to the systems of
numerical size standards.
SBA's only other consideration was whether to adopt the size
standards presented in the interim final rule with no further increase
for the inflation. However, SBA believes that the 13.65 percent
inflation that has occurred since the previous inflation adjustment in
July 2019 sufficiently affects the real value of the size standards to
warrant applying an increase at this time. Similarly, SBA considers
that the higher inflation can adversely impact the intention of
increasing the ED thresholds adopted by the 8(a) BD and the EDWOSB
programs on July 15, 2020.
Executive Order 13563
E.O. 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
Benefit-Cost Analysis under Executive Order 12866 and in the July 2019
IFR which adopted the adjustment to size standards effective August 18,
2019. Additionally, section 6 of E.O. 13563 calls for retrospective
analyses of existing rules.
Additionally, SBA issued a revised ``Size Standards Methodology''
white paper and published a notice in the April 27, 2018, issue of the
Federal Register (83 FR 18468) to advise the
[[Page 69142]]
public that the document is available for public review and comments.
The ``Size Standards Methodology'' white paper explains how SBA
establishes, reviews, and modifies its receipts-based and employee-
based small business size standards. The white paper also describes how
SBA adjusts size standards for inflation and updates its table of size
standards to NAICS revisions. On April 11, 2019, SBA published a
Federal Register notification (84 FR 14587) advising the public that
the Agency had issued a revised final ``Size Standards Methodology''
white paper.
Executive Order 12988
This action meets applicable standards set forth in sections 3(a)
and 3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize
litigation, eliminate ambiguity, and reduce burden. This rule does not
have retroactive or preemptive effect.
Executive Order 13132
For purposes of Executive Order 13132, SBA has determined that the
final provisions and the interim final provisions of this rulemaking
will not have substantial, direct effects on the States, on the
relationship between the National Government and the States, or on the
distribution of power and responsibilities among the various levels of
government. Therefore, SBA has determined that this interim final rule
has no federalism implications warranting preparation of a federalism
assessment.
Paperwork Reduction Act
For the purpose of the Paperwork Reduction Act, 44 U.S.C. Ch. 35,
SBA has determined that this rulemaking will not impose any new
reporting or record keeping requirements.
List of Subjects
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.
13 CFR Part 124
Administrative practice and procedure, Government procurement,
Government property, Small businesses.
13 CFR Part 127
Government contracts, Reporting and recordkeeping requirements,
Small businesses.
0
For the reasons set forth in the preamble, SBA adopts as final the
interim rule published July 18, 2019, at 84 FR 34261, and amends 13 CFR
parts 121, 124, and 127.
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); 15 U.S.C. 9012.
0
2. In Sec. 121.201, amend the table ``Small Business Size Standards by
NAICS Industry'' by revising:
0
a. Subsectors 111 and 112;
0
b. Under subsector 113, the entries for ``113110'' and ``113210'';
0
c. Subsectors 114 and 115;
0
d. Under Subsection 213, the entries for ``213112'' through ``213115'';
0
e. Under subsector 221, the entries for ``221310'', ``221320'', and
``221330'';
0
f. Subsectors 236 through 238;
0
g. Under subsector 441, the entries for ``441120'', ``441210'',
``441222'', ``441227'', ``441330'', and ``441340'';
0
h. Subsectors 444, 445, 449, 455, and 456;
0
i. Under subsector 457, the entries for ``457110'' and ``457120'';
0
j. Subsectors 458 and 459;
0
k. Under subsector 481, the entry for ``481219'';
0
l. Subsectors 484 and 485;
0
m. Under subsector 486, the entries for ``486210'' and ``486990'';
0
n. Subsectors 487, 488, and 491;
0
o. Under subsector 492, the entry for ``492210'';
0
p. Subsector 493;
0
q. Under subsector 512, the entries for ``512110'', ``512120'',
``512131'', ``512132'', ``512191'', ``512199'', ``512240'', and
``512290'';
0
r. Under subsector 513, the entry for ``513210'';
0
s. Subsector 516;
0
t. Under subsector 517, the entries for ``517410'' and ``517810'';
0
u. Under subsector 518, the entry for ``518210'';
0
v. Under subsector 519, the entry for ``519210'';
0
w. Subsectors 522 and 523;
0
x. Under subsector 524, the entries for ``524113'', ``524114'',
``524127'', ``524128'', ``524130'', ``524210'', ``524291'', ``524292'',
and ``524298'';
0
y. Subsectors 525 and 531 through 533;
0
z. Under subsector 541, the entries for ``541110'', ``541191'',
``541199'', ``541211'', ``541213'', ``541214'', ``541219'', ``541310'',
``541320'', ``541330'', ``541330 (Exception 1)'', ``541330 (Exception
2)'', ``541330 (Exception 3)'', ``541340'', ``541350'', ``541360'',
``541370'', ``541380'', ``541410'', ``541420'', ``541430'', ``541490'',
``541511'' through ``541513'', ``541519'', ``541611'' through
``541614'', ``541618'', ``541620'', ``541690'', ``541720'', ``541810'',
``541820'', ``541830'', ``541840'', ``541850'', ``541860'', ``541870'',
``541890'', ``541910'', ``541921'', ``541922'', ``541930'', ``541940'',
and ``541990'';
0
aa. Subsectors 551 and 561;
0
bb. Under subsector 562, the entries for ''562111'', ``562112'',
``562119'', ``562211'' through ``562213'', ``562219'', ``562910'',
``562920'', ``562991'', and ``562998''; and
0
cc. Subsectors 611, 621 through 624, 711 through 713, 721, 722, and 811
through 813; and
0
dd. Revising footnote 9 at the end of the table.
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 in
NAICS codes NAICS U.S. industry Size standards in millions of number of
title dollars employees
----------------------------------------------------------------------------------------------------------------
Sector 11--Agriculture, Forestry, Fishing and Hunting
Subsector 111--Crop Production
----------------------------------------------------------------------------------------------------------------
111110................................ Soybean Farming....... $2.25........................ .................
111120................................ Oilseed (except $2.25........................ .................
Soybean) Farming.
111130................................ Dry Pea and Bean $2.75........................ .................
Farming.
111140................................ Wheat Farming......... $2.25........................ .................
111150................................ Corn Farming.......... $2.5......................... .................
[[Page 69143]]
111160................................ Rice Farming.......... $2.5......................... .................
111191................................ Oilseed and Grain $2.25........................ .................
Combination Farming.
111199................................ All Other Grain $2.25........................ .................
Farming.
111211................................ Potato Farming........ $4.25........................ .................
111219................................ Other Vegetable $3.75........................ .................
(except Potato) and
Melon Farming.
111310................................ Orange Groves......... $4.0......................... .................
111320................................ Citrus (except Orange) $4.25........................ .................
Groves.
111331................................ Apple Orchards........ $4.5......................... .................
111332................................ Grape Vineyards....... $4.0......................... .................
111333................................ Strawberry Farming.... $5.5......................... .................
111334................................ Berry (except $3.75........................ .................
Strawberry) Farming.
111335................................ Tree Nut Farming...... $3.75........................ .................
111336................................ Fruit and Tree Nut $5.0......................... .................
Combination Farming.
111339................................ Other Noncitrus Fruit $3.5......................... .................
Farming.
111411................................ Mushroom Production... $4.5......................... .................
111419................................ Other Food Crops Grown $4.5......................... .................
Under Cover.
111421................................ Nursery and Tree $3.25........................ .................
Production.
111422................................ Floriculture $3.75........................ .................
Production.
111910................................ Tobacco Farming....... $2.5......................... .................
111920................................ Cotton Farming........ $3.25........................ .................
111930................................ Sugarcane Farming..... $5.0......................... .................
111940................................ Hay Farming........... $2.5......................... .................
111991................................ Sugar Beet Farming.... $2.5......................... .................
111992................................ Peanut Farming........ $2.5......................... .................
111998................................ All Other $2.5......................... .................
Miscellaneous Crop
Farming.
----------------------------------------------------------------------------------------------------------------
Subsector 112--Animal Production and Aquaculture
----------------------------------------------------------------------------------------------------------------
112111................................ Beef Cattle Ranching $2.5......................... .................
and Farming.
112112................................ Cattle Feedlots....... $22.0........................ .................
112120................................ Dairy Cattle and Milk $3.75........................ .................
Production.
112210................................ Hog and Pig Farming... $4.0......................... .................
112310................................ Chicken Egg Production $19.0........................ .................
112320................................ Broilers and Other $3.5......................... .................
Meat Type Chicken
Production.
112330................................ Turkey Production..... $3.75........................ .................
112340................................ Poultry Hatcheries.... $4.0......................... .................
112390................................ Other Poultry $3.75........................ .................
Production.
112410................................ Sheep Farming......... $3.5......................... .................
112420................................ Goat Farming.......... $2.5......................... .................
112511................................ Finfish Farming and $3.75........................ .................
Fish Hatcheries.
112512................................ Shellfish Farming..... $3.75........................ .................
112519................................ Other Aquaculture..... $3.75........................ .................
112910................................ Apiculture............ $3.25........................ .................
112920................................ Horse and Other Equine $2.75........................ .................
Production.
112930................................ Fur-Bearing Animal and $3.75........................ .................
Rabbit Production.
112990................................ All Other Animal $2.75........................ .................
Production.
----------------------------------------------------------------------------------------------------------------
Subsector 113--Forestry and Logging
----------------------------------------------------------------------------------------------------------------
113110................................ Timber Tract $19.0........................ .................
Operations.
113210................................ Forest Nurseries and $20.5........................ .................
Gathering of Forest
Products.
* * * * * * *
----------------------------------------------------------------------------------------------------------------
Subsector 114--Fishing, Hunting and Trapping
----------------------------------------------------------------------------------------------------------------
114111................................ Finfish Fishing....... $25.0........................ .................
114112................................ Shellfish Fishing..... $14.0........................ .................
114119................................ Other Marine Fishing.. $11.5........................ .................
114210................................ Hunting and Trapping.. $8.5......................... .................
----------------------------------------------------------------------------------------------------------------
Subsector 115--Support Activities for Agriculture and Forestry
----------------------------------------------------------------------------------------------------------------
115111................................ Cotton Ginning........ $16.0........................ .................
115112................................ Soil Preparation, $9.5......................... .................
Planting, and
Cultivating.
115113................................ Crop Harvesting, $13.5........................ .................
Primarily by Machine.
115114................................ Postharvest Crop $34.0........................ .................
Activities (except
Cotton Ginning).
115115................................ Farm Labor Contractors $19.0........................ .................
and Crew Leaders.
115116................................ Farm Management $15.5........................ .................
Services.
115210................................ Support Activities for $11.0........................ .................
Animal Production.
115310................................ Support Activities for $11.5........................ .................
Forestry.
[[Page 69144]]
115310 (Exception 1).................. Forest Fire $34.0 \1\.................... .................
Suppression \1\.
115310 (Exception 2).................. Fuels Management $34.0 \1\.................... .................
Services \1\.
----------------------------------------------------------------------------------------------------------------
Sector 21--Mining, Quarrying, and Oil and Gas Extraction
----------------------------------------------------------------------------------------------------------------
* * * * * * *
----------------------------------------------------------------------------------------------------------------
Subsector 213--Support Activities for Mining
----------------------------------------------------------------------------------------------------------------
* * * * * * *
213112................................ Support Activities for $47.0........................ .................
Oil and Gas
Operations.
213113................................ Support Activities for $27.5........................ .................
Coal Mining.
213114................................ Support Activities for $41.0........................ .................
Metal Mining.
213115................................ Support Activities for $20.5........................ .................
Nonmetallic Minerals
(except Fuels).
----------------------------------------------------------------------------------------------------------------
Sector 22--Utilities
Subsector 221--Utilities
----------------------------------------------------------------------------------------------------------------
* * * * * * *
221310................................ Water Supply and $41.0........................ .................
Irrigation Systems.
221320................................ Sewage Treatment $35.0........................ .................
Facilities.
221330................................ Steam and $30.0........................ .................
Air[dash]Conditioning
Supply.
----------------------------------------------------------------------------------------------------------------
Sector 23--Construction
Subsector 236--Construction of Buildings
----------------------------------------------------------------------------------------------------------------
236115................................ New Single-family $45.0........................ .................
Housing Construction
(Except For-Sale
Builders).
236116................................ New Multifamily $45.0........................ .................
Housing Construction
(except For-Sale
Builders).
236117................................ New Housing For-Sale $45.0........................ .................
Builders.
236118................................ Residential Remodelers $45.0........................ .................
236210................................ Industrial Building $45.0........................ .................
Construction.
236220................................ Commercial and $45.0........................ .................
Institutional
Building Construction.
----------------------------------------------------------------------------------------------------------------
Subsector 237--Heavy and Civil Engineering Construction
----------------------------------------------------------------------------------------------------------------
237110................................ Water and Sewer Line $45.0........................ .................
and Related
Structures
Construction.
237120................................ Oil and Gas Pipeline $45.0........................ .................
and Related
Structures
Construction.
237130................................ Power and $45.0........................ .................
Communication Line
and Related
Structures
Construction.
237210................................ Land Subdivision...... $34.0........................ .................
237310................................ Highway, Street, and $45.0........................ .................
Bridge Construction.
237990................................ Other Heavy and Civil $45.0........................ .................
Engineering
Construction.
237900 (Exception).................... Dredging and Surface $37.0 \2\.................... .................
Cleanup Activities
\2\.
----------------------------------------------------------------------------------------------------------------
Subsector 238--Specialty Trade Contractors
----------------------------------------------------------------------------------------------------------------
238110................................ Poured Concrete $19.0........................ .................
Foundation and
Structure Contractors.
238120................................ Structural Steel and $19.0........................ .................
Precast Concrete
Contractors.
238130................................ Framing Contractors... $19.0........................ .................
238140................................ Masonry Contractors... $19.0........................ .................
238150................................ Glass and Glazing $19.0........................ .................
Contractors.
238160................................ Roofing Contractors... $19.0........................ .................
238170................................ Siding Contractors.... $19.0........................ .................
238190................................ Other Foundation, $19.0........................ .................
Structure, and
Building Exterior
Contractors.
238210................................ Electrical Contractors $19.0........................ .................
and Other Wiring
Installation
Contractors.
238220................................ Plumbing, Heating, and $19.0........................ .................
Air[dash]Conditioning
Contractors.
238290................................ Other Building $22.0........................ .................
Equipment Contractors.
238310................................ Drywall and Insulation $19.0........................ .................
Contractors.
238320................................ Painting and Wall $19.0........................ .................
Covering Contractors.
238330................................ Flooring Contractors.. $19.0........................ .................
238340................................ Tile and Terrazzo $19.0........................ .................
Contractors.
238350................................ Finish Carpentry $19.0........................ .................
Contractors.
238390................................ Other Building $19.0........................ .................
Finishing Contractors.
238910................................ Site Preparation $19.0........................ .................
Contractors.
238990................................ All Other Specialty $19.0........................ .................
Trade Contractors.
238990 (Exception).................... Building and Property $19.0 \13\................... .................
Specialty Trade
Services \13\.
[[Page 69145]]
* * * * * * *
----------------------------------------------------------------------------------------------------------------
Sector 44--45--Retail Trade
----------------------------------------------------------------------------------------------------------------
* * * * * * *
----------------------------------------------------------------------------------------------------------------
Subsector 441--Motor Vehicle and Parts Dealers
----------------------------------------------------------------------------------------------------------------
* * * * * * *
441120................................ Used Car Dealers...... $30.5........................ .................
441210................................ Recreational Vehicle $40.0........................ .................
Dealers.
441222................................ Boat Dealers.......... $40.0........................ .................
441227................................ Motorcycle, ATV, and $40.0........................ .................
All Other Motor
Vehicle Dealers.
441330................................ Automotive Parts and $28.5........................ .................
Accessories Retailers.
441340................................ Tire Dealers.......... $25.5........................ .................
----------------------------------------------------------------------------------------------------------------
Subsector 444--Building Material and Garden Equipment and Supplies Dealers
----------------------------------------------------------------------------------------------------------------
444110................................ Home Centers.......... $47.0........................ .................
444120................................ Paint and Wallpaper $34.0........................ .................
Retailers.
444140................................ Hardware Retailers.... $16.5........................ .................
444180................................ Other Building $25.0........................ .................
Material Dealers.
444230................................ Outdoor Power $9.5......................... .................
Equipment Retailers.
444240................................ Nursery, Garden $21.5........................ .................
Center, and Farm
Supply Retailers.
----------------------------------------------------------------------------------------------------------------
Subsector 445--Food and Beverage Stores
----------------------------------------------------------------------------------------------------------------
445110................................ Supermarkets and Other $40.0........................ .................
Grocery Retailers
(except Convenience
Retailers).
445131................................ Convenience Retailers. $36.5........................ .................
445132................................ Vending Machine $21.0........................ .................
Operators.
445230................................ Fruit and Vegetable $9.0......................... .................
Retailers.
445240................................ Meat Retailers........ $9.0......................... .................
445250................................ Fish and Seafood $9.0......................... .................
Retailers.
445291................................ Baked Goods Retailers. $16.0........................ .................
445292................................ Confectionery and Nut $19.5........................ .................
Retailers.
445298................................ All Other Specialty $10.0........................ .................
Food Retailers.
445320................................ Beer, Wine, and Liquor $10.0........................ .................
Retailers.
----------------------------------------------------------------------------------------------------------------
Subsector 449--Furniture, Home Furnishings, Electronics, and Appliance Retailers
----------------------------------------------------------------------------------------------------------------
449110................................ Furniture Retailers... $25.0........................ .................
449121................................ Floor Covering $9.0......................... .................
Retailers.
449122................................ Window Treatment $11.5........................ .................
Retailers.
449129................................ All Other Home $33.5........................ .................
Furnishings Retailers.
449210................................ Electronics and $40.0........................ .................
Appliance Retailers.
----------------------------------------------------------------------------------------------------------------
Subsector 455--General Merchandise Retailers
----------------------------------------------------------------------------------------------------------------
455110................................ Department Stores..... $40.0........................ .................
455211................................ Warehouse Clubs and $47.0........................ .................
Supercenters.
455219................................ All Other General $40.0........................ .................
Merchandise Retailers.
----------------------------------------------------------------------------------------------------------------
Subsector 456--Health and Personal Care Retailers
----------------------------------------------------------------------------------------------------------------
456110................................ Pharmacies and Drug $37.5........................ .................
Retailers.
456120................................ Cosmetics, Beauty $34.0........................ .................
Supplies, and Perfume
Retailers.
456130................................ Optical Goods $29.5........................ .................
Retailers.
456191................................ Food (Health) $22.5........................ .................
Supplement Retailers.
456199................................ All Other Health and $9.5......................... .................
Personal Care
Retailers.
----------------------------------------------------------------------------------------------------------------
Subsector 457--Gasoline Stations and Fuel Dealers
----------------------------------------------------------------------------------------------------------------
457110................................ Gasoline Stations with $36.5........................ .................
Convenience Stores.
457120................................ Other Gasoline $33.5........................ .................
Stations.
----------------------------------------------------------------------------------------------------------------
Subsector 458--Clothing, Clothing Accessories, Shoe, and Jewelry Retailers
----------------------------------------------------------------------------------------------------------------
458110................................ Clothing and Clothing $47.0........................ .................
Accessories Retailers.
458210................................ Shoe Retailers........ $34.0........................ .................
[[Page 69146]]
458310................................ Jewelry Retailers..... $20.5........................ .................
458320................................ Luggage and Leather $38.0........................ .................
Goods Retailers.
----------------------------------------------------------------------------------------------------------------
Subsector 459--Sporting Goods, Hobby, Musical Instrument, Book, and Miscellaneous Retailers
----------------------------------------------------------------------------------------------------------------
459110................................ Sporting Goods $26.5........................ .................
Retailers.
459120................................ Hobby, Toy, and Game $35.0........................ .................
Retailers.
459130................................ Sewing, Needlework, $34.0........................ .................
and Piece Goods
Retailers.
459140................................ Musical Instrument and $22.5........................ .................
Supplies Retailers.
459210................................ Book Retailers and $36.0........................ .................
News Dealers.
459310................................ Florists.............. $9.0......................... .................
459410................................ Office Supplies and $40.0........................ .................
Stationery Retailers.
459420................................ Gift, Novelty, and $13.5........................ .................
Souvenir Retailers.
459510................................ Used Merchandise $14.0........................ .................
Retailers.
459910................................ Pet and Pet Supplies $32.0........................ .................
Retailers.
459920................................ Art Dealers........... $16.5........................ .................
459930................................ Manufactured (Mobile) $19.0........................ .................
Home Dealers.
459991................................ Tobacco, Electronic $11.5........................ .................
Cigarette, and Other
Smoking Supplies
Retailers.
459999................................ All Other $11.5........................ .................
Miscellaneous
Retailers.
----------------------------------------------------------------------------------------------------------------
Sector 48-49--Transportation and Warehousing
Subsector 481--Air Transportation
----------------------------------------------------------------------------------------------------------------
* * * * * * *
481219................................ Other Nonscheduled Air $25.0........................ .................
Transportation.
* * * * * * *
----------------------------------------------------------------------------------------------------------------
Subsector 484--Truck Transportation
----------------------------------------------------------------------------------------------------------------
484110................................ General Freight $34.0........................ .................
Trucking, Local.
484121................................ General Freight $34.0........................ .................
Trucking,
Long[dash]Distance,
Truckload.
484122................................ General Freight $43.0........................ .................
Trucking,
Long[dash]Distance,
Less Than Truckload.
484210................................ Used Household and $34.0........................ .................
Office Goods Moving.
484220................................ Specialized Freight $34.0........................ .................
(except Used Goods)
Trucking, Local.
484230................................ Specialized Freight $34.0........................ .................
(except Used Goods)
Trucking,
Long[dash]Distance.
----------------------------------------------------------------------------------------------------------------
Subsector 485--Transit and Ground Passenger Transportation
----------------------------------------------------------------------------------------------------------------
485111................................ Mixed Mode Transit $29.0........................ .................
Systems.
485112................................ Commuter Rail Systems. $47.0........................ .................
485113................................ Bus and Other Motor $32.5........................ .................
Vehicle Transit
Systems.
485119................................ Other Urban Transit $37.5........................ .................
Systems.
485210................................ Interurban and Rural $32.0........................ .................
Bus Transportation.
485310................................ Taxi and Ridesharing $19.0........................ .................
Services.
485320................................ Limousine Service..... $19.0........................ .................
485410................................ School and Employee $30.0........................ .................
Bus Transportation.
485510................................ Charter Bus Industry.. $19.0........................ .................
485991................................ Special Needs $19.0........................ .................
Transportation.
485999................................ All Other Transit and $19.0........................ .................
Ground Passenger
Transportation.
----------------------------------------------------------------------------------------------------------------
Subsector 486--Pipeline Transportation
----------------------------------------------------------------------------------------------------------------
* * * * * * *
486210................................ Pipeline $41.5........................ .................
Transportation of
Natural Gas.
* * * * * * *
486990................................ All Other Pipeline $46.0........................ .................
Transportation.
----------------------------------------------------------------------------------------------------------------
Subsector 487--Scenic and Sightseeing Transportation
----------------------------------------------------------------------------------------------------------------
487110................................ Scenic and Sightseeing $20.5........................ .................
Transportation, Land.
487210................................ Scenic and Sightseeing $14.0........................ .................
Transportation, Water.
487990................................ Scenic and Sightseeing $25.0........................ .................
Transportation, Other.
----------------------------------------------------------------------------------------------------------------
Subsector 488--Support Activities for Transportation
----------------------------------------------------------------------------------------------------------------
488111................................ Air Traffic Control... $40.0........................ .................
488119................................ Other Airport $40.0........................ .................
Operations.
[[Page 69147]]
488190................................ Other Support $40.0........................ .................
Activities for Air
Transportation.
488210................................ Support Activities for $34.0........................ .................
Rail Transportation.
488310................................ Port and Harbor $47.0........................ .................
Operations.
488320................................ Marine Cargo Handling. $47.0........................ .................
488330................................ Navigational Services $47.0........................ .................
to Shipping.
488390................................ Other Support $47.0........................ .................
Activities for Water
Transportation.
488410................................ Motor Vehicle Towing.. $9.0......................... .................
488490................................ Other Support $18.0........................ .................
Activities for Road
Transportation.
488510................................ Freight Transportation $20.0 \10\................... .................
Arrangement \10\.
488510 (Exception).................... Non[dash]Vessel Owning $34.0........................ .................
Common Carriers and
Household Goods
Forwarders.
488991................................ Packing and Crating... $34.0........................ .................
488999................................ All Other Support $25.0........................ .................
Activities for
Transportation.
----------------------------------------------------------------------------------------------------------------
Subsector 491--Postal Service
----------------------------------------------------------------------------------------------------------------
491110................................ Postal Service........ $9.0......................... .................
----------------------------------------------------------------------------------------------------------------
Subsector 492--Couriers and Messengers
----------------------------------------------------------------------------------------------------------------
* * * * * * *
492210................................ Local Messengers and $34.0........................ .................
Local Delivery.
----------------------------------------------------------------------------------------------------------------
Subsector 493--Warehousing and Storage
----------------------------------------------------------------------------------------------------------------
493110................................ General Warehousing $34.0........................ .................
and Storage.
493120................................ Refrigerated $36.5........................ .................
Warehousing and
Storage.
493130................................ Farm Product $34.0........................ .................
Warehousing and
Storage.
493190................................ Other Warehousing and $36.5........................ .................
Storage.
----------------------------------------------------------------------------------------------------------------
Sector 51--Information
Subsector 512--Motion Picture and Sound Recording Industries
----------------------------------------------------------------------------------------------------------------
512110................................ Motion Picture and $40.0........................ .................
Video Production.
512120................................ Motion Picture and $39.0........................ .................
Video Distribution.
512131................................ Motion Picture $47.0........................ .................
Theaters (except
Drive[dash]Ins).
512132................................ Drive[dash]In Motion $12.5........................ .................
Picture Theaters.
512191................................ Teleproduction and $39.0........................ .................
Other Postproduction
Services.
512199................................ Other Motion Picture $28.5........................ .................
and Video Industries.
* * * * * * *
512240................................ Sound Recording $11.0........................ .................
Studios.
* * * * * * *
512290................................ Other Sound Recording $22.5........................ .................
Industries.
----------------------------------------------------------------------------------------------------------------
Subsector 513--Publishing Industries
----------------------------------------------------------------------------------------------------------------
* * * * * * *
513210................................ Software Publishers $47.0 \15\................... .................
\15\.
----------------------------------------------------------------------------------------------------------------
Subsector 516--Broadcasting and Content Providers
----------------------------------------------------------------------------------------------------------------
516110................................ Radio Broadcasting $47.0........................ .................
Stations.
516120................................ Television $47.0........................ .................
Broadcasting Stations.
516210................................ Media Streaming $47.0........................ .................
Distribution
Services, Social
Networks, and Other
Media Networks and
Content Providers.
----------------------------------------------------------------------------------------------------------------
Subsector 517--Telecommunications
----------------------------------------------------------------------------------------------------------------
* * * * * * *
517410................................ Satellite $44.0........................ .................
Telecommunications.
517810................................ All Other $40.0........................ .................
Telecommunications.
----------------------------------------------------------------------------------------------------------------
Subsector 518--Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
----------------------------------------------------------------------------------------------------------------
518210................................ Computing $40.0........................ .................
Infrastructure
Providers, Data
Processing, Web
Hosting, and Related
Services.
----------------------------------------------------------------------------------------------------------------
[[Page 69148]]
Subsector 519--Web Search Portals, Libraries, Archives, and Other Information Services
----------------------------------------------------------------------------------------------------------------
519210................................ Libraries and Archives $21.0........................ .................
* * * * * * *
----------------------------------------------------------------------------------------------------------------
Sector 52--Finance and Insurance
Subsector 522--Credit Intermediation and Related Activities
----------------------------------------------------------------------------------------------------------------
522110................................ Commercial Banking \8\ $850 million in assets \8\... .................
522130................................ Credit Unions \8\..... $850 million in assets \8\... .................
522180................................ Savings Institutions $850 million in assets \8\... .................
and Other Depository
Credit
Intermediation\8\.
522210................................ Credit Card Issuing $850 million in assets \8\... .................
\8\.
522220................................ Sales Financing....... $47.0........................ .................
522291................................ Consumer Lending...... $47.0........................ .................
522292................................ Real Estate Credit.... $47.0........................ .................
522299................................ International, $47.0........................ .................
Secondary Market, and
All Other
Nondepository Credit
Intermediation.
522310................................ Mortgage and $15.0........................ .................
Nonmortgage Loan
Brokers.
522320................................ Financial Transactions $47.0........................ .................
Processing, Reserve,
and Clearinghouse
Activities.
522390................................ Other Activities $28.5........................ .................
Related to Credit
Intermediation.
----------------------------------------------------------------------------------------------------------------
Subsector 523--Securities, Commodity Contracts, and Other Financial Investments and Related Activities
----------------------------------------------------------------------------------------------------------------
523150................................ Investment Banking and $47.0........................ .................
Securities
Intermediation.
523160................................ Commodity Contracts $41.5........................ .................
Intermediation.
523210................................ Securities and $47.0........................ .................
Commodity Exchanges.
523910................................ Miscellaneous $47.0........................ .................
Intermediation.
523940................................ Portfolio Management $47.0........................ .................
and Investment Advice.
523991................................ Trust, Fiduciary and $47.0........................ .................
Custody Activities.
523999................................ Miscellaneous $47.0........................ .................
Financial Investment
Activities.
----------------------------------------------------------------------------------------------------------------
Subsector 524--Insurance Carriers and Related Activities
----------------------------------------------------------------------------------------------------------------
524113................................ Direct Life Insurance $47.0........................ .................
Carriers.
524114................................ Direct Health and $47.0........................ .................
Medical Insurance
Carriers.
* * * * * * *
524127................................ Direct Title Insurance $47.0........................ .................
Carriers.
524128................................ Other Direct Insurance $47.0........................ .................
(except Life, Health
and Medical) Carriers.
524130................................ Reinsurance Carriers.. $47.0........................ .................
524210................................ Insurance Agencies and $15.0........................ .................
Brokerages.
524291................................ Claims Adjusting...... $25.0........................ .................
524292................................ Pharmacy Benefit $45.5........................ .................
Management and Other
Third Party
Administration of
Insurance and Pension
Funds.
524298................................ All Other Insurance $30.5........................ .................
Related Activities.
----------------------------------------------------------------------------------------------------------------
Subsector 525--Funds, Trusts and Other Financial Vehicles
----------------------------------------------------------------------------------------------------------------
525110................................ Pension Funds......... $40.0........................ .................
525120................................ Health and Welfare $40.0........................ .................
Funds.
525190................................ Other Insurance Funds. $40.0........................ .................
525910................................ Open[dash]End $40.0........................ .................
Investment Funds.
525920................................ Trusts, Estates, and $40.0........................ .................
Agency Accounts.
525990................................ Other Financial $40.0........................ .................
Vehicles.
----------------------------------------------------------------------------------------------------------------
Sector 53--Real Estate and Rental and Leasing
Subsector 531--Real Estate
----------------------------------------------------------------------------------------------------------------
531110................................ Lessors of Residential $34.0\9\..................... .................
Buildings and
Dwellings \9\.
531120................................ Lessors of $34.0 \9\.................... .................
Nonresidential
Buildings (except
Miniwarehouses)\ 9\.
531130................................ Lessors of $34.0 \9\.................... .................
Miniwarehouses and
Self-Storage Units\9\.
531190................................ Lessors of Other Real $34.0 \9\.................... .................
Estate Property \9\.
531210................................ Offices of Real Estate $15.0 \10\................... .................
Agents and
Brokers\10\.
531311................................ Residential Property $12.5........................ .................
Managers.
531312................................ Nonresidential $19.5........................ .................
Property Managers.
531320................................ Offices of Real Estate $9.5......................... .................
Appraisers.
[[Page 69149]]
531390................................ Other Activities $19.5........................ .................
Related to Real
Estate.
----------------------------------------------------------------------------------------------------------------
Subsector 532--Rental and Leasing Services
----------------------------------------------------------------------------------------------------------------
532111................................ Passenger Car Rental.. $47.0........................ .................
532112................................ Passenger Car Leasing. $47.0........................ .................
532120................................ Truck, Utility $47.0........................ .................
Trailer, and RV
(Recreational
Vehicle) Rental and
Leasing.
532210................................ Consumer Electronics $47.0........................ .................
and Appliances Rental.
532281................................ Formal Wear and $25.0........................ .................
Costume Rental.
532282................................ Video Tape and Disc $35.0........................ .................
Rental.
532283................................ Home Health Equipment $41.0........................ .................
Rental.
532284................................ Recreational Goods $9.0......................... .................
Rental.
532289................................ All Other Consumer $12.5........................ .................
Goods Rental.
532310................................ General Rental Centers $9.0......................... .................
532411................................ Commercial Air, Rail, $45.5........................ .................
and Water
Transportation
Equipment Rental and
Leasing.
532412................................ Construction, Mining $40.0........................ .................
and Forestry
Machinery and
Equipment Rental and
Leasing.
532420................................ Office Machinery and $40.0........................ .................
Equipment Rental and
Leasing.
532490................................ Other Commercial and $40.0........................ .................
Industrial Machinery
and Equipment Rental
and Leasing.
----------------------------------------------------------------------------------------------------------------
Subsector 533--Lessors of Nonfinancial Intangible Assets (except Copyrighted Works)
----------------------------------------------------------------------------------------------------------------
533110................................ Lessors of $47.0........................ .................
Nonfinancial
Intangible Assets
(except Copyrighted
Works).
----------------------------------------------------------------------------------------------------------------
Sector 54--Professional, Scientific and Technical Services
Subsector 541--Professional, Scientific and Technical Services
----------------------------------------------------------------------------------------------------------------
541110................................ Offices of Lawyers.... $15.5........................ .................
541191................................ Title Abstract and $19.5........................ .................
Settlement Offices.
541199................................ All Other Legal $20.5........................ .................
Services.
541211................................ Offices of Certified $26.5........................ .................
Public Accountants.
541213................................ Tax Preparation $25.0........................ .................
Services.
541214................................ Payroll Services...... $39.0........................ .................
541219................................ Other Accounting $25.0........................ .................
Services.
541310................................ Architectural Services $12.5........................ .................
541320................................ Landscape $9.0......................... .................
Architectural
Services.
541330................................ Engineering Services.. $25.5........................ .................
541330 (Exception 1).................. Military and Aerospace $47.0........................ .................
Equipment and
Military Weapons.
541330 (Exception 2).................. Contracts and $47.0........................ .................
Subcontracts for
Engineering Services
Awarded Under the
National Energy
Policy Act of 1992.
541330 (Exception 3).................. Marine Engineering and $47.0........................ .................
Naval Architecture.
541340................................ Drafting Services..... $9.0......................... .................
541350................................ Building Inspection $11.5........................ .................
Services.
541360................................ Geophysical Surveying $28.5........................ .................
and Mapping Services.
541370................................ Surveying and Mapping $19.0........................ .................
(except Geophysical)
Services.
541380................................ Testing Laboratories $19.0........................ .................
and Services.
541410................................ Interior Design $9.0......................... .................
Services.
541420................................ Industrial Design $17.0........................ .................
Services.
541430................................ Graphic Design $9.0......................... .................
Services.
541490................................ Other Specialized $13.5........................ .................
Design Services.
541511................................ Custom Computer $34.0........................ .................
Programming Services.
541512................................ Computer Systems $34.0........................ .................
Design Services.
541513................................ Computer Facilities $37.0........................ .................
Management Services.
541519................................ Other Computer Related $34.0........................ .................
Services.
* * * * * * *
541611................................ Administrative $24.5........................ .................
Management and
General Management
Consulting Services.
541612................................ Human Resources $29.0........................ .................
Consulting Services.
541613................................ Marketing Consulting $19.0........................ .................
Services.
541614................................ Process, Physical $20.0........................ .................
Distribution and
Logistics Consulting
Services.
541618................................ Other Management $19.0........................ .................
Consulting Services.
541620................................ Environmental $19.0........................ .................
Consulting Services.
541690................................ Other Scientific and $19.0........................ .................
Technical Consulting
Services.
* * * * * * *
541720................................ Research and $28.0........................ .................
Development in the
Social Sciences and
Humanities.
541810................................ Advertising Agencies $25.5 \10\................... .................
\10\.
541820................................ Public Relations $19.0........................ .................
Agencies.
541830................................ Media Buying Agencies. $32.5........................ .................
[[Page 69150]]
541840................................ Media Representatives. $21.0........................ .................
541850................................ Indoor and Outdoor $34.5........................ .................
Display Advertising.
541860................................ Direct Mail $22.0........................ .................
Advertising.
541870................................ Advertising Material $28.5........................ .................
Distribution Services.
541890................................ Other Services Related $19.0........................ .................
to Advertising.
541910................................ Marketing Research and $22.5........................ .................
Public Opinion
Polling.
541921................................ Photography Studios, $16.0........................ .................
Portrait.
541922................................ Commercial Photography $9.0......................... .................
541930................................ Translation and $22.5........................ .................
Interpretation
Services.
541940................................ Veterinary Services... $10.0........................ .................
541990................................ All Other $19.5........................ .................
Professional,
Scientific and
Technical Services.
----------------------------------------------------------------------------------------------------------------
Sector 55--Management of Companies and Enterprises
Subsector 551--Management of Companies and Enterprises
----------------------------------------------------------------------------------------------------------------
551111................................ Offices of Bank $38.5........................ .................
Holding Companies.
551112................................ Offices of Other $45.5........................ .................
Holding Companies.
----------------------------------------------------------------------------------------------------------------
Sector 56--Administrative and Support, Waste Management and Remediation Services
----------------------------------------------------------------------------------------------------------------
Subsector 561--Administrative and Support Services
561110................................ Office Administrative $12.5........................ .................
Services.
561210................................ Facilities Support $47.0 \12\................... .................
Services \12\.
561311................................ Employment Placement $34.0........................ .................
Agencies.
561312................................ Executive Search $34.0........................ .................
Services.
561320................................ Temporary Help $34.0........................ .................
Services.
561330................................ Professional Employer $41.5........................ .................
Organizations.
561410................................ Document Preparation $19.0........................ .................
Services.
561421................................ Telephone Answering $19.0........................ .................
Services.
561422................................ Telemarketing Bureaus $25.5........................ .................
and Other Contact
Centers.
561431................................ Private Mail Centers.. $19.0........................ .................
561439................................ Other Business Service $26.5........................ .................
Centers (including
Copy Shops).
561440................................ Collection Agencies... $19.5........................ .................
561450................................ Credit Bureaus........ $41.0........................ .................
561491................................ Repossession Services. $19.0........................ .................
561492................................ Court Reporting and $19.0........................ .................
Stenotype Services.
561499................................ All Other Business $21.5........................ .................
Support Services.
561510................................ Travel Agencies \10\.. $25.0 \10\................... .................
561520................................ Tour Operators \10\... $25.0 \10\................... .................
561591................................ Convention and $25.0........................ .................
Visitors Bureaus.
561599................................ All Other Travel $32.5........................ .................
Arrangement and
Reservation Services.
561611................................ Investigation and $25.0........................ .................
Personal Background
Check Services.
561612................................ Security Guards and $29.0........................ .................
Patrol Services.
561613................................ Armored Car Services.. $43.0........................ .................
561621................................ Security Systems $25.0........................ .................
Services (except
Locksmiths).
561622................................ Locksmiths............ $25.0........................ .................
561710................................ Exterminating and Pest $17.5........................ .................
Control Services.
561720................................ Janitorial Services... $22.0........................ .................
561730................................ Landscaping Services.. $9.5......................... .................
561740................................ Carpet and Upholstery $8.5......................... .................
Cleaning Services.
561790................................ Other Services to $9.0......................... .................
Buildings and
Dwellings.
561910................................ Packaging and Labeling $19.5........................ .................
Services.
561920................................ Convention and Trade $20.0 \10\................... .................
Show Organizers\10\.
561990................................ All Other Support $16.5........................ .................
Services.
----------------------------------------------------------------------------------------------------------------
Subsector 562--Waste Management and Remediation Services
----------------------------------------------------------------------------------------------------------------
562111................................ Solid Waste Collection $47.0........................ .................
562112................................ Hazardous Waste $47.0........................ .................
Collection.
562119................................ Other Waste Collection $47.0........................ .................
562211................................ Hazardous Waste $47.0........................ .................
Treatment and
Disposal.
562212................................ Solid Waste Landfill.. $47.0........................ .................
562213................................ Solid Waste Combustors $47.0........................ .................
and Incinerators.
562219................................ Other Nonhazardous $47.0........................ .................
Waste Treatment and
Disposal.
562910................................ Remediation Services.. $25.0........................ .................
* * * * * * *
562920................................ Materials Recovery $25.0........................ .................
Facilities.
562991................................ Septic Tank and $9.0......................... .................
Related Services.
562998................................ All Other $16.5........................ .................
Miscellaneous Waste
Management Services.
----------------------------------------------------------------------------------------------------------------
[[Page 69151]]
Sector 61--Educational Services
Subsector 611--Educational Services
----------------------------------------------------------------------------------------------------------------
611110................................ Elementary and $20.0........................ .................
Secondary Schools.
611210................................ Junior Colleges....... $32.5........................ .................
611310................................ Colleges, Universities $34.5........................ .................
and Professional
Schools.
611410................................ Business and $20.5........................ .................
Secretarial Schools.
611420................................ Computer Training..... $16.0........................ .................
611430................................ Professional and $15.0........................ .................
Management
Development Training.
611511................................ Cosmetology and Barber $13.0........................ .................
Schools.
611512................................ Flight Training....... $34.0........................ .................
611513................................ Apprenticeship $11.5........................ .................
Training.
611519................................ Other Technical and $21.0........................ .................
Trade Schools.
611519 (Exception).................... Job Corps Centers \16\ $47.0 \16\................... .................
611610................................ Fine Arts Schools..... $9.0......................... .................
611620................................ Sports and Recreation $9.0......................... .................
Instruction.
611630................................ Language Schools...... $20.5........................ .................
611691................................ Exam Preparation and $12.5........................ .................
Tutoring.
611692................................ Automobile Driving $10.0........................ .................
Schools.
611699................................ All Other $16.5........................ .................
Miscellaneous Schools
and Instruction.
611710................................ Educational Support $24.0........................ .................
Services.
----------------------------------------------------------------------------------------------------------------
Sector 62--Health Care and Social Assistance
Subsector 621--Ambulatory Health Care Services
----------------------------------------------------------------------------------------------------------------
621111................................ Offices of Physicians $16.0........................ .................
(except Mental Health
Specialists).
621112................................ Offices of Physicians, $13.5........................ .................
Mental Health
Specialists.
621210................................ Offices of Dentists... $9.0......................... .................
621310................................ Offices of $9.0......................... .................
Chiropractors.
621320................................ Offices of $9.0......................... .................
Optometrists.
621330................................ Offices of Mental $9.0......................... .................
Health Practitioners
(except Physicians).
621340................................ Offices of Physical, $12.5........................ .................
Occupational and
Speech Therapists and
Audiologists.
621391................................ Offices of Podiatrists $9.0......................... .................
621399................................ Offices of All Other $10.0........................ .................
Miscellaneous Health
Practitioners.
621410................................ Family Planning $19.0........................ .................
Centers.
621420................................ Outpatient Mental $19.0........................ .................
Health and Substance
Abuse Centers.
621491................................ HMO Medical Centers... $44.5........................ .................
621492................................ Kidney Dialysis $47.0........................ .................
Centers.
621493................................ Freestanding $19.0........................ .................
Ambulatory Surgical
and Emergency Centers.
621498................................ All Other Outpatient $25.5........................ .................
Care Centers.
621511................................ Medical Laboratories.. $41.5........................ .................
621512................................ Diagnostic Imaging $19.0........................ .................
Centers.
621610................................ Home Health Care $19.0........................ .................
Services.
621910................................ Ambulance Services.... $22.5........................ .................
621991................................ Blood and Organ Banks. $40.0........................ .................
621999................................ All Other $20.5........................ .................
Miscellaneous
Ambulatory Health
Care Services.
----------------------------------------------------------------------------------------------------------------
Subsector 622--Hospitals
----------------------------------------------------------------------------------------------------------------
622110................................ General Medical and $47.0........................ .................
Surgical Hospitals.
622210................................ Psychiatric and $47.0........................ .................
Substance Abuse
Hospitals.
622310................................ Specialty (except $47.0........................ .................
Psychiatric and
Substance Abuse)
Hospitals.
----------------------------------------------------------------------------------------------------------------
Subsector 623--Nursing and Residential Care Facilities
----------------------------------------------------------------------------------------------------------------
623110................................ Nursing Care $34.0........................ .................
Facilities (Skilled
Nursing Facilities).
623210................................ Residential $19.0........................ .................
Intellectual and
Developmental
Disability Facilities.
623220................................ Residential Mental $19.0........................ .................
Health and Substance
Abuse Facilities.
623311................................ Continuing Care $34.0........................ .................
Retirement
Communities.
623312................................ Assisted Living $23.5........................ .................
Facilities for the
Elderly.
623990................................ Other Residential Care $16.0........................ .................
Facilities.
----------------------------------------------------------------------------------------------------------------
Subsector 624--Social Assistance
----------------------------------------------------------------------------------------------------------------
624110................................ Child and Youth $15.5........................ .................
Services.
624120................................ Services for the $15.0........................ .................
Elderly and Persons
with Disabilities.
624190................................ Other Individual and $16.0........................ .................
Family Services.
624210................................ Community Food $19.5........................ .................
Services.
624221................................ Temporary Shelters.... $13.5........................ .................
624229................................ Other Community $19.0........................ .................
Housing Services.
624230................................ Emergency and Other $41.5........................ .................
Relief Services.
[[Page 69152]]
624310................................ Vocational $15.0........................ .................
Rehabilitation
Services.
624410................................ Child Care Services... $9.5......................... .................
----------------------------------------------------------------------------------------------------------------
Sector 71--Arts, Entertainment and Recreation
Subsector 711--Performing Arts, Spectator Sports and Related Industries
----------------------------------------------------------------------------------------------------------------
711110................................ Theater Companies and $25.0........................ .................
Dinner Theaters.
711120................................ Dance Companies....... $18.0........................ .................
711130................................ Musical Groups and $15.0........................ .................
Artists.
711190................................ Other Performing Arts $34.0........................ .................
Companies.
711211................................ Sports Teams and Clubs $47.0........................ .................
711212................................ Racetracks............ $47.0........................ .................
711219................................ Other Spectator Sports $16.5........................ .................
711310................................ Promoters of $40.0........................ .................
Performing Arts,
Sports and Similar
Events with
Facilities.
711320................................ Promoters of $22.0........................ .................
Performing Arts,
Sports and Similar
Events without
Facilities.
711410................................ Agents and Managers $17.5........................ .................
for Artists,
Athletes,
Entertainers and
Other Public Figures.
711510................................ Independent Artists, $9.0......................... .................
Writers, and
Performers.
----------------------------------------------------------------------------------------------------------------
Subsector 712--Museums, Historical Sites and Similar Institutions
----------------------------------------------------------------------------------------------------------------
712110................................ Museums............... $34.0........................ .................
712120................................ Historical Sites...... $13.0........................ .................
712130................................ Zoos and Botanical $34.0........................ .................
Gardens.
712190................................ Nature Parks and Other $19.5........................ .................
Similar Institutions.
----------------------------------------------------------------------------------------------------------------
Subsector 713--Amusement, Gambling and Recreation Industries
----------------------------------------------------------------------------------------------------------------
713110................................ Amusement and Theme $47.0........................ .................
Parks.
713120................................ Amusement Arcades..... $9.0......................... .................
713210................................ Casinos (except Casino $34.0........................ .................
Hotels).
713290................................ Other Gambling $40.0........................ .................
Industries.
713910................................ Golf Courses and $19.0........................ .................
Country Clubs.
713920................................ Skiing Facilities..... $35.0........................ .................
713930................................ Marinas............... $11.0........................ .................
713940................................ Fitness and $17.5........................ .................
Recreational Sports
Centers.
713950................................ Bowling Centers....... $12.5........................ .................
713990................................ All Other Amusement $9.0......................... .................
and Recreation
Industries.
----------------------------------------------------------------------------------------------------------------
Sector 72--Accommodation and Food Services
Subsector 721--Accommodation
----------------------------------------------------------------------------------------------------------------
721110................................ Hotels (except Casino $40.0........................ .................
Hotels) and Motels.
721120................................ Casino Hotels......... $40.0........................ .................
721191................................ Bed[dash]and[dash]Brea $9.0......................... .................
kfast Inns.
721199................................ All Other Traveler $9.0......................... .................
Accommodation.
721211................................ RV (Recreational $10.0........................ .................
Vehicle) Parks and
Campgrounds.
721214................................ Recreational and $9.0......................... .................
Vacation Camps
(except Campgrounds).
721310................................ Rooming and Boarding $14.0........................ .................
Houses, Dormitories,
and Workers' Camps.
----------------------------------------------------------------------------------------------------------------
Subsector 722--Food Services and Drinking Places
----------------------------------------------------------------------------------------------------------------
722310................................ Food Service $47.0........................ .................
Contractors.
722320................................ Caterers.............. $9.0......................... .................
722330................................ Mobile Food Services.. $9.0......................... .................
722410................................ Drinking Places $9.0......................... .................
(Alcoholic Beverages).
722511................................ Full-Service $11.5........................ .................
Restaurants.
722513................................ Limited-Service $13.5........................ .................
Restaurants.
722514................................ Cafeterias, Grill $34.0........................ .................
Buffets, and Buffets.
722515................................ Snack and Nonalcoholic $22.5........................ .................
Beverage Bars.
----------------------------------------------------------------------------------------------------------------
Sector 81--Other Services (Except Public Administration)
Subsector 811--Repair and Maintenance
----------------------------------------------------------------------------------------------------------------
811111................................ General Automotive $9.0......................... .................
Repair.
811114................................ Specialized Automotive $9.0......................... .................
Repair.
811121................................ Automotive Body, Paint $9.0......................... .................
and Interior Repair
and Maintenance.
811122................................ Automotive Glass $17.5........................ .................
Replacement Shops.
811191................................ Automotive Oil Change $11.0........................ .................
and Lubrication Shops.
811192................................ Car Washes............ $9.0......................... .................
811198................................ All Other Automotive $10.0........................ .................
Repair and
Maintenance.
[[Page 69153]]
811210................................ Electronic and $34.0........................ .................
Precision Equipment
Repair and
Maintenance.
811310................................ Commercial and $12.5........................ .................
Industrial Machinery
and Equipment (except
Automotive and
Electronic) Repair
and Maintenance.
811411................................ Home and Garden $9.0......................... .................
Equipment Repair and
Maintenance.
811412................................ Appliance Repair and $19.0........................ .................
Maintenance.
811420................................ Reupholstery and $9.0......................... .................
Furniture Repair.
811430................................ Footwear and Leather $9.0......................... .................
Goods Repair.
811490................................ Other Personal and $9.0......................... .................
Household Goods
Repair and
Maintenance.
----------------------------------------------------------------------------------------------------------------
Subsector 812--Personal and Laundry Services
----------------------------------------------------------------------------------------------------------------
812111................................ Barber Shops.......... $9.5......................... .................
812112................................ Beauty Salons......... $9.5......................... .................
812113................................ Nail Salons........... $9.0......................... .................
812191................................ Diet and Weight $27.5........................ .................
Reducing Centers.
812199................................ Other Personal Care $9.0......................... .................
Services.
812210................................ Funeral Homes and $12.5........................ .................
Funeral Services.
812220................................ Cemeteries and $25.0........................ .................
Crematories.
812310................................ Coin[dash]Operated $13.0........................ .................
Laundries and
Drycleaners.
812320................................ Drycleaning and $8.0......................... .................
Laundry Services
(except
Coin[dash]Operated).
812331................................ Linen Supply.......... $40.0........................ .................
812332................................ Industrial Launderers. $47.0........................ .................
812910................................ Pet Care (except $9.0......................... .................
Veterinary) Services.
812921................................ Photofinishing $29.5........................ .................
Laboratories (except
One[dash]Hour).
812922................................ One[dash]Hour $19.0........................ .................
Photofinishing.
812930................................ Parking Lots and $47.0........................ .................
Garages.
812990................................ All Other Personal $15.0........................ .................
Services.
----------------------------------------------------------------------------------------------------------------
Subsector 813--Religious, Grantmaking, Civic, Professional and Similar Organizations
----------------------------------------------------------------------------------------------------------------
813110................................ Religious $13.0........................ .................
Organizations.
813211................................ Grantmaking $40.0........................ .................
Foundations.
813212................................ Voluntary Health $34.0........................ .................
Organizations.
813219................................ Other Grantmaking and $47.0........................ .................
Giving Services.
813311................................ Human Rights $34.0........................ .................
Organizations.
813312................................ Environment, $19.5........................ .................
Conservation and
Wildlife
Organizations.
813319................................ Other Social Advocacy $18.0........................ .................
Organizations.
813410................................ Civic and Social $9.5......................... .................
Organizations.
813910................................ Business Associations. $15.5........................ .................
813920................................ Professional $23.5........................ .................
Organizations.
813930................................ Labor Unions and $16.5........................ .................
Similar Labor
Organizations.
813940................................ Political $14.0........................ .................
Organizations.
813990................................ Other Similar $13.5........................ .................
Organizations (except
Business,
Professional, Labor,
and Political
Organizations).
* * * * * * *
----------------------------------------------------------------------------------------------------------------
Footnotes
* * * * * * *
1. NAICS code 115310 (Support Activities for Forestry)--Forest Fire Suppression and Fuels Management Services
are two components of Support Activities for Forestry. Forest Fire Suppression includes establishments which
provide services to fight forest fires. These firms usually have fire-fighting crews and equipment. Fuels
Management Services firms provide services to clear land of hazardous materials that would fuel forest fires.
The treatments used by these firms may include prescribed fire, mechanical removal, establishing fuel breaks,
thinning, pruning, and piling.
2. NAICS code 237990--Dredging: To be considered small for purposes of Government procurement, a firm must
perform at least 40 percent of the volume dredged with its own equipment or equipment owned by another small
dredging concern.
* * * * * * *
8. NAICS Codes 522110, 522130, 522180, 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, 522180, and 522210 and the National Credit
Union Administration 5300 call report form for NAICS code 522130.
9. NAICS codes 531110, 531120, 531130, and 531190--Leasing of Building Space to the Federal Government by
Owners: For Government procurement, a size standard of $47 million in gross receipts applies to the owners of
building space leased to the Federal Government. The standard does not apply to an agent.
10. NAICS codes 488510 (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.
* * * * * * *
12. NAICS code 561210--Facilities Support Services:
(a) If one or more activities of Facilities Support Services as defined in paragraph (b) (below in this
footnote) can be identified with a specific industry and that industry accounts for 50 percent or more of the
value of an entire procurement, then the proper classification of the procurement is that of the specific
industry, not Facilities Support Services.
[[Page 69154]]
(b) ``Facilities Support Services'' requires the performance of three or more separate activities in the areas
of services or specialty trade contractors industries. If services are performed, these service activities
must each be in a separate NAICS industry. If the procurement requires the use of specialty trade contractors
(plumbing, painting, plastering, carpentry, etc.), all such specialty trade contractors activities are
considered a single activity and classified as ``Building and Property Specialty Trade Services.'' Since
``Building and Property Specialty Trade Services'' is only one activity, two additional activities of separate
NAICS industries are required for a procurement to be classified as ``Facilities Support Services.''
13. NAICS code 238990--Building and Property Specialty Trade Services: If a procurement requires the use of
multiple specialty trade contractors (i.e., plumbing, painting, plastering, carpentry, etc.), and no specialty
trade accounts for 50 percent or more of the value of the procurement, all such specialty trade contractors
activities are considered a single activity and classified as Building and Property Specialty Trade Services.
* * * * * * *
15. NAICS code 513210--For purposes of Government procurement, the purchase of software subject to potential
waiver of the nonmanufacturer rule pursuant to Sec. 121.1203(d) should be classified under this NAICS code.
16. NAICS code 611519--Job Corps Centers. For classifying a Federal procurement, the purpose of the solicitation
must be for the management and operation of a U.S. Department of Labor Job Corps Center. The activities
involved include admissions activities, life skills training, educational activities, comprehensive career
preparation activities, career development activities, career transition activities, as well as the management
and support functions and services needed to operate and maintain the facility. For SBA assistance as a small
business concern, other than for Federal Government procurements, a concern must be primarily engaged in
providing the services to operate and maintain Federal Job Corps Centers.
* * * * * * *
0
3. Amend Sec. 121.301 by revising the first sentence of paragraph
(c)(2) to read as follows:
Sec. 121.301 What size standards are applicable to financial
assistance programs?
* * * * *
(c) * * *
(2) Including its affiliates, tangible net worth not in excess of
$24 million, and average net income after Federal income taxes
(excluding any carry-over losses) for the preceding two completed
fiscal years not in excess of $8 million. * * *
* * * * *
Sec. 121.502 [Amended]
0
4. Amend Sec. 121.502 in paragraph (a)(2) by removing the number ``$8
million'' and adding in its place the number ``$9 million''.
Sec. 121.512 [Amended]
0
5. Amend Sec. 121.512 in paragraph (b) by removing the number ``$67.5
million'' and adding in its place the number ``$76.5 million''.
PART 124--8(a) BUSINESS DEVELOPMENT/SMALL DISADVANTAGED BUSINESS
STATUS DETERMINATIONS
0
6. The authority citation for part 124 continues to read as follows:
Authority: 15 U.S.C. 634(b)(6), 636(j), 637(a), 637(d), 644, 42
U.S.C. 9815; and Pub. L. 99-661, 100 Stat. 3816; Sec. 1207, Pub. L.
100-656, 102 Stat. 3853; Pub. L. 101-37, 103 Stat. 70; Pub. L. 101-
574, 104 Stat. 2814; Sec. 8021, Pub. L. 108-87, 117 Stat. 1054; and
Sec. 330, Pub. L. 116-260.
Sec. 124.104 [Amended]
0
7. Amend Sec. 124.104:
0
a. In paragraph (c)(2) introductory text by removing the number
``$750,000'' and adding in its place the number ``$850,000'';
0
b. In paragraph (c)(3)(i) by removing the number ``$350,000'' and
adding in its place the number ``$400,000''; and
0
c. In paragraph (c)(4) by removing the number ``$6 million'' and adding
in its place the number ``$6.5 million''.
Sec. 124.519 [Amended]
0
8. Amend Sec. 124.519 in paragraph (a) by removing the number
``$100,000,000'' and adding in its place the number ``$168,500,000''.
PART 127--WOMEN-OWNED SMALL BUSINESS FEDERAL CONTRACT PROGRAM
0
9. The authority citation for part 127 continues to read as follows:
Authority: 15 U.S.C. 632, 634(b)(6), 637(m), 644 and 657r.
Sec. 127.203 [Amended]
0
10. Amend Sec. 127.203:
0
a. In paragraph (b)(1) by removing the number ``$750,000'' and adding
in its place the number ``$850,000'';
0
b. In paragraph (c)(3)(i) by removing the number ``$350,000'' and
adding in its place the number ``$400,000''; and
0
c. In paragraph (c)(4) by removing the number ``$6 million'' and adding
in its place the number ``$6.5 million''.
Isabella Casillas Guzman,
Administrator.
[FR Doc. 2022-24595 Filed 11-16-22; 8:45 am]
BILLING CODE 8026-09-P