[Federal Register Volume 79, Number 113 (Thursday, June 12, 2014)]
[Rules and Regulations]
[Pages 33647-33669]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-12868]



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Federal Register / Vol. 79, No. 113 / Thursday, June 12, 2014 / Rules 
and Regulations

[[Page 33647]]



SMALL BUSINESS ADMINISTRATION

13 CFR Part 121

RIN 3245-AG60


Small Business Size Standards: Inflation Adjustment to Monetary 
Based Size Standards

AGENCY: U.S. Small Business Administration.

ACTION: Interim Final Rule with request for comments.

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

SUMMARY: The U.S. Small Business Administration (SBA or Agency) is 
adjusting the monetary based industry size standards (i.e., receipts, 
assets, net worth, and net income) for inflation that has occurred 
since the last adjustment in 2008. These adjustments are in addition to 
the recent revisions to size standards as part of the current 
comprehensive size standards review, as mandated by the Small Business 
Jobs Act of 2010 (Jobs Act). Also adjusted for inflation are program 
based size standards, with the exception of the new alternative size 
standard for SBA's 7(a) and 504 loan programs that was established 
under the Jobs Act. The new alternative size standard will remain in 
effect until SBA establishes a permanent alternative size standard for 
the 7(a) and 504 loan programs. SBA is also deleting references to 
Surety Bond Guarantee size standards for contracts awarded in 2005 in 
the Presidentially declared disaster areas following Hurricanes 
Katrina, Rita, and Wilma. In addition, SBA is deleting the 
determination date for eligibility under the Agency's Economic Injury 
Disaster Loan (EIDL) Program in connection with the same 2005 
hurricanes. Finally, SBA is clarifying that footnote 9 to its table of 
size standards is not limited to NAICS 531190, but rather applies to 
all industries in Industry Group 5311, Lessors of Real Estate.

DATES: 
    Effective Date: This rule is effective July 14, 2014.
    Comment Date: Comments must be received on or before August 11, 
2014.

ADDRESSES: You may submit comments, identified by RIN 3245-AG60, by any 
of the following methods: (1) Federal Rulemaking Portal: http://www.regulations.gov, following the specific instructions for submitting 
comments; or (2) Mail/Hand Delivery/Courier: Khem R. Sharma, Ph.D., 
Chief, Office of Size Standards, 409 Third Street SW., Mail Code 6530, 
Washington, DC 20416. SBA will not accept comments submitted by email 
to this rule.
    SBA will post all comments to this interim final rule on 
www.regulations.gov. If you wish to submit confidential business 
information (CBI) as defined in the User Notice at www.regulations.gov, 
you must submit such information to the U.S. Small Business 
Administration, Khem R. Sharma, Ph.D., Chief, Office of Size Standards, 
409 Third Street SW., Mail Code 6530, Washington, DC 20416, or send an 
email to sizestandards@sba.gov. Highlight the information that you 
consider to be CBI and explain why you believe SBA should hold this 
information as confidential. SBA will review your information and 
determine whether it will make the information public.

FOR FURTHER INFORMATION CONTACT: Jorge Laboy-Bruno, Ph.D., Office of 
Size Standards, (202) 205-6618 or sizestandards@sba.gov.

SUPPLEMENTARY INFORMATION: As explained in the SBA's ``Size Standard 
Methodology'' White paper available at www.sba.gov/size, SBA reviews 
small business size standards and makes necessary adjustments to them 
for two reasons: (i) Changes in industry structure and Federal market 
conditions; and (ii) inflation. Recently, SBA reviewed all monetary 
based industry size standards with respect to industry structure and 
Federal market conditions. SBA published a series of rules to revise 
many of them as part of its ongoing comprehensive size standards 
review. In this rule, SBA is adjusting its monetary based industry size 
standards for inflation that has occurred since the last inflation 
adjustment, published in July 2008 (73 FR 41237). These include 
receipts based size standards for 476 industries and 11 subindustries 
(i.e., ``exceptions'' in SBA Table of Size Standards) and assets based 
size standards for five industries. Additionally, SBA is adjusting 
three program specific receipts based size standards, namely, (1) Sales 
or Leases of Government Property (other than manufacturing); (2) 
stockpile purchases; and (3) the alternative size standard for the 
Small Business Investment Company (SBIC) Program that is based on 
tangible net worth and net income. As explained elsewhere in this rule, 
SBA is not adjusting the new tangible net worth and net income based 
alternative size standard established under the Jobs Act for its 7(a) 
and 504 Loan Programs. Also not adjusted is the $750,000 receipts based 
size standard set by statute for agricultural industries.
    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 Size 
Standards (67 FR 3041 (January 23, 2002)) and 13 CFR 121.102). 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 and is making a decision 
on whether or not to adjust size standards within a reasonable period 
of time since its last inflation adjustment. Previous inflation 
adjustments to size standards were in SBA Final Rule: Small Business 
Size Standards; Inflation Adjustment to Size Standards July 2008 (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)); SBA Final Rule: Small Business Size 
Standards; Inflation Adjustment to Size Standards (49 FR 5025 (February 
9, 1984)); and SBA Final Rule: Small Business Size Standards (39 FR 
44423 (December 24, 1974)).

[[Page 33648]]

    Many businesses may have lost small business eligibility for 
Federal assistance under SBA's monetary based size standards simply 
because of inflation that has occurred since the 2008 adjustment. This 
rule aims to reinstate those firms' eligibility for Federal assistance.
    As mentioned above, the adjustment for inflation in this rule 
applies to all monetary based industry size standards, except for the 
$750,000 receipts based size standard for agricultural industries 
(which is set by the statute). Adjustments in this rule are in addition 
to revisions that were part of SBA's ongoing comprehensive size 
standards review, as mandated by the Jobs Act. SBA's comprehensive size 
standards review primarily focused 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. It did not consider the impacts of inflation on size standards.
    Rather than reviewing all size standards at one time, for the 
comprehensive review, SBA reviewed size standards on a Sector by Sector 
basis over a period of several years. The objective of the 
comprehensive size standards review is to review all size standards and 
make necessary adjustments so that they are consistent with current 
industry structure and Federal market conditions. Including inflation 
as an additional factor in the analysis would have meant applying 
different inflation rates to different sectors at different times. For 
example, the applicable inflation would be lower for sectors reviewed 
earlier in the cycle and higher for those reviewed later, resulting in 
inconsistent size standards across sectors and industries. To avoid 
this, SBA decided to evaluate all monetary based size standards for 
inflation separately at one time upon completion of the comprehensive 
review. As mentioned above, SBA recently completed reviewing all 
monetary based industry size standards.
    Updating size standards based on inflation, in addition to latest 
industry and Federal contracting data under the comprehensive review, 
not only satisfies the Jobs Act's mandate that SBA review all size 
standards, but also is consistent with Executive Order 13563 on 
improving regulation and regulatory review.

SBA's Inflation Adjustment Methodology

    For this interim final rule, SBA has used the same methodology it 
has described in its ``Size Standards Methodology'' White Paper, 
available at www.sba.gov/size. SBA had also applied the same 
methodology in its previous inflation adjustments, including the last 
adjustment in 2008. This methodology involves the following steps.
    1. Selecting an inflation measure.
    2. Selecting a base period.
    3. Selecting an end period.
    4. Calculating the inflation rate.
    5. Adjusting the monetary based size standards.

Selecting an Inflation Measure

    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 the Agency use a broad 
measure of inflation to adjust its size standards. In the past, SBA's 
preferred measure of inflation had 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 http://www.bea.gov/iTable.
    There are a number of other price indexes that the Federal 
Government produces to measure inflation. In its ``Size Standards 
Methodology,'' SBA has stated that, besides the GDP price index used in 
the previous adjustments, it may also consider using alternative 
inflation measures to adjust size standards in future inflation 
adjustments, including industry specific inflation indices that will 
better capture the variation in inflation levels across industries. 
Accordingly, for the current inflation adjustment, SBA reviewed some 
possible industry specific inflation measures. These included chain-
type GDP price indices by industry from BEA and consumer and producer 
prices by industry from the U.S. Bureau of Labor Statistics (BLS). 
Additionally, in recent years, SBA received comments from the public 
suggesting that the Agency should consider using alternative measures 
of price indexes to adjust size standards for inflation (see SBA Final 
Rule: Small Business Size Standards; Business Loan Program and Disaster 
Assistance Loan Program 73 FR 41237 (July 18, 2008)). The commenters 
argued that the GDP price index underestimates inflation and that it 
does not account for cost increases that are unique to certain 
industries that may have experienced a higher rate of inflation than 
the one suggested by GDP price index. In response, besides the GDP 
price index, in this rule, SBA also reviewed data on several 
alternative inflation measures published by the Federal Government, 
namely the consumer price index (CPI), the personal consumption 
expenditures price index (PCEPI), the producer price index (PPI), and 
the employment cost index (ECI). The Agency compared the performance of 
these indexes with the performance of the GDP price index to determine 
the appropriateness of using the GDP price index to adjust size 
standards for inflation. Below are brief descriptions of each of these 
indexes.
    GDP chain-type price index (GDP price index): The GDP price index 
measures the prices of final goods and services produced by the U.S. 
economy. BEA produces this index on a quarterly basis. It is derived 
from the prices of personal consumption expenditures, gross private 
domestic investment, net exports, and government consumption 
expenditures, and gross investment. Therefore, it is a very broad 
measure of inflation in the economy. It is used to adjust for inflation 
the gross value of the output of the U.S. economy in NIPA during a 
period considered. For more information, refer to the BEA Web site at 
http://www.bea.gov/national/Index.htm.
    Consumer price index (CPI): The CPI, produced monthly by the BLS, 
is a measure of the average change in the prices paid by urban 
consumers for a market basket of goods and services, including imports. 
The federal government, Federal Reserve Bank, and the private sector 
use this index as an economic indicator to assess inflationary 
pressures in the economy. The CPI and its components are also used to 
adjust other economic series (including various components of NIPA by 
the BEA) for price change and to convert these series to inflation-free 
or constant dollars. Finally, the CPI is used to adjust social security 
and other Government payments. For a detailed explanation, refer to the 
BLS Web site at http://stats.bls.gov/cpi.
    Personal consumption expenditures price index (PCEPI): Similar to 
the CPI, the PCEPI measures the change in prices paid for goods and 
services purchased by consumers, and is produced by the BEA on a 
quarterly basis. The two indexes are similar, but they differ in terms 
of coverage, weighting, and calculation procedures (see http://www.bea.gov/iTable). Given its low volatility, comprehensive coverage 
of goods and services, and historical revision of the data, the Federal 
Reserve Bank uses the PCEPI to measure inflation for policy 
considerations.

[[Page 33649]]

    Producers' price index (PPI): Also published by the BLS on a 
monthly basis, the PPI is a family of indexes that measure the average 
change over time in the prices domestic producers receive for their 
goods and services. Like the CPI, the PPIs data are used to adjust 
other economic time series for price changes and to translate those 
series into inflation-free or constant dollars. For example, constant-
dollar GDP series are derived using deflators based on PPI data. The 
PPIs capture price movements of goods and services prior to the retail 
level. Therefore, they may not account for subsequent price changes 
experienced by businesses and final consumers. The U.S. government and 
the Federal Reserve Bank use PPI data in formulating fiscal and 
monetary policies. Finally, PPI data are also commonly used in 
escalating purchase and sales contracts. For more information, refer to 
the BLS Web site at http://www.bls.gov/ppil.
    Employment cost index (ECI): Produced by the BLS, ECI provides a 
quarterly measure of changes in labor costs (i.e. wages and salaries 
and other benefit costs), as well as changes in total compensation. It 
is one of the principal indicators used by the Federal Reserve Bank in 
assessing inflationary conditions in the economy. The ECI is also 
widely used by both Government and private sector. Some examples of its 
uses are to formulate and assess public policy, to aid collective 
bargaining negotiations, to evaluate benefit packages, to index 
Medicare payments, and to adjust wages in long-term contracts. For more 
information, refer to the BLS Web site at http://www.blsgov/new.released/eci.toc.htm.
    Industry specific inflation measures: Additionally, SBA evaluated 
if the differences between inflation for individual industries and the 
overall measure of inflation, as measured by the GDP price index, are 
significant. For this, SBA examined the value added price indexes 
(VAPI) and Gross Output price indexes (GOPI) by industry contained in 
BEA's GDP-by-industry accounts tables (see http://www.bea.gov/iTable). 
Value added by industry is the contribution of individual industries to 
the nation's GDP. Gross Output by Industry measures goods and services 
produced by an industry, valued at producers' prices (i.e., the prices 
received by producers, including excise and sales taxes). The VAPI and 
GOPI data are published only annually and the latest data available are 
for 2012. The level of industry disaggregation is not as detailed as in 
the Economic Census data. SBA calculated the inflation by industry 
between the calendar years 2008 and 2012 using VAPI and GOPI, and 
computed the average inflation rate over all industries for which the 
data were available.
    SBA also compared the inflation rates based on CPI, PCEPI, PPI, 
ECI, and the GDP price index for the period between the first quarter 
of 2008 and the second quarter of 2013. The results indicated that, 
although these price indexes tend to show some variations in the short 
run, they all move in the same direction in the long run, but in 
different magnitudes. Inflation based on the CPI and PCEPI measures was 
more or less similar to the one based on the GDP price index and it was 
somewhat higher based on the PPI and ECI measures. With some variations 
among industries, SBA found that, on average, inflation rate by 
industry based on VAPI and GOPI was also more or less similar to the 
overall inflation rate based on the GDP price index.
    The above discussion shows that there exist differences among 
various price indexes with respect to what they measure and how they 
are derived. However, generally speaking, all indexes measure changes 
in some types of price levels in the economy and they all are used by 
the Government, Federal Reserve and private sector to assess 
inflationary pressures in the economy, deflate other economic data 
series, and adjust social security and other income payments. Each 
price index has its own limitations and advantages and there is no 
universal preference of one index to others.
    As stated above, SBA requires a broad measure of inflation for 
adjusting its size standards for inflation. In general, the majority of 
firms participating in the SBA's and other Federal programs receive 
income or receipts from multiple industries. Among the various 
inflation measures SBA reviewed, the GDP price index appears to be the 
most comprehensive measure of movements in the general price level in 
the economy. It incorporates price changes for all sectors of the 
economy, including consumer products and services, capital goods, 
exports, and government services. It is also the most stable measure of 
inflation overtime relative to other price indexes, especially PPI and 
ECI. Besides, the GDP price index is widely used as a measure of 
inflation for policy purposes, and has historical validity and gained 
acceptance of the small business community. SBA believes that using 
some other price indexes (such as PPI and ECI) that yield higher 
inflation than the GDP price index will overestimate the adjustments 
for inflation and may affect the competitiveness of smaller businesses 
for Federal opportunities. Most importantly, the GDP price index seems 
to incorporate information from most other indexes, including PPI, CPI, 
and ECI, since the BEA uses several subcomponents of these price 
indexes to deflate various components of GDP (see BEA, ``Concepts and 
Methods of the U.S. National Income and Product Accounts'' at http://bea.gov/national).
    For these reasons, SBA continues to prefer using the GDP price 
index as the best aggregate measure of inflation for the U.S. economy. 
Thus, as in the previous inflation adjustments, SBA has decided to use 
the GDP price index to adjust monetary based size standards for the 
current inflation adjustment as well.

Selecting the Base and End Periods

    For this rule, SBA selected the first quarter of 2008 as the base 
period, because it was the end period for the July 2008 adjustment. SBA 
selected the fourth quarter of 2013 as the end period for this 
inflation adjustment.

Calculating the Rate of Inflation

    The GDP price index for the base period was 98.5 and the GDP price 
index for the end period was 107.1. Accordingly, inflation increased 
8.73 percent from the first quarter of 2008 to the fourth quarter of 
2013 ((107.1 / 98.5) -1.00) x 100 percent = 8.73 percent. During this 
period, inflation has been relatively subdued, principally because of a 
weak and slow economic recovery from the 2007-2009 recession of the 
U.S. economy, despite some bursts of sharp rises in energy and 
commodity prices at different times during the period.

Making Adjustments to Size Standards

    Adjustment to receipts based industry size standards: Receipts 
based size standards were adjusted by multiplying their current levels 
by 1.0873, and rounding the results to the nearest $500,000. Table 1, 
Inflation Adjustment to Receipts Based Size Standards, summarizes the 
results of the analysis for 16 different receipts based size standards 
levels, ranging from $5 million to $35.5 million. As stated elsewhere 
in the rule, the $750,000 receipts based size standard for agricultural 
industries was not adjusted because it was set by the statute. The 
first column of Table 1 shows the current receipts based size 
standards, the second column shows their inflation-adjusted values but 
not rounded, the third column shows their inflation-adjusted values 
rounded to the nearest $500,000, and the fourth column shows the count 
of industries and subindustries that are associated with

[[Page 33650]]

each of the receipts based size standards levels. The results lead to 
adjustment to 487 size standards, including 476 industries and 11 
subindustries or ``exceptions.''

                         Table 1--Inflation Adjustment to Receipts Based Size Standards
----------------------------------------------------------------------------------------------------------------
                                                                              Size standards
                                                           Size standards      adjusted for
                                                            adjusted for        inflation,         Number of
   Current monetary based size standards  ($ million)      inflation, but       rounded to     industries (incl.
                                                          not rounded  ($    nearest $500,000     exceptions)
                                                              million)         ($ million)
(1)                                                                    (2)                (3)                (4)
----------------------------------------------------------------------------------------------------------------
$5.0...................................................               $5.4               $5.5                  4
7.0....................................................                7.6                7.5                127
10.0...................................................               10.9               11.0                 39
14.0...................................................               15.2               15.0                 94
16.5...................................................               17.9               18.0                  1
17.5...................................................               19.0               19.0                  2
19.0...................................................               20.7               20.5                 39
23.0...................................................               25.0               25.0                  1
25.5...................................................               27.7               27.5                 55
27.0...................................................               29.4               29.5                  4
28.0...................................................               30.4               30.5                  2
29.5...................................................               32.1               32.0                  2
30.0...................................................               32.6               32.5                 40
33.5...................................................               36.4               36.5                 11
34.5...................................................               37.5               37.5                  1
35.5...................................................               38.6               38.5                 65
                                                        --------------------------------------------------------
    Total Industries and Subindustries.................  .................  .................                487
----------------------------------------------------------------------------------------------------------------

    Adjustment to assets based size standard: Currently, five 
industries in North American Classification Systems (NAICS) Sector 52, 
Finance and Insurance, have the size standard of $500 million in 
average assets. Similar to the receipts based size standards, the 
assets based size standard was adjusted by multiplying the current 
value by 1.0873. The result was $543.7 million, but it was rounded to 
$550 million.
    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 size standards 
were also adjusted for inflation in the same manner as the receipts 
based industry size standards. Table 2, Inflation Adjustment to Program 
Based Size Standards, shows the program based size standards and their 
corresponding inflation-adjusted values. The size standard for 
``smaller enterprises'' under the Small Business Investment Company 
(SBIC) Program is set by statute (see 13 CFR 107.710(a)) and, 
therefore, not adjusted.

                          Table 2--Inflation Adjustment to Program Based Size Standards
----------------------------------------------------------------------------------------------------------------
                                                                   Size standard in millions of dollars
                                                        --------------------------------------------------------
             Program                   CFR Citation                                                Inflation-
                                                           Current size        Measurement        adjusted size
                                                             standard                               standard
----------------------------------------------------------------------------------------------------------------
SBIC Program.....................  13 CFR 121.301(c)...             $18.0  Net Worth..........             $19.5
                                                                      6.0  Net income.........               6.5
Sales of Government Property       13 CFR 121.502......               7.0  Average Annual                    7.5
 Other Than Manufacturing (which                                            Receipts.
 uses employee[dash]based size
 standards).
Stockpile Purchases..............  13 CFR 121.512......              57.5  Average Annual                   62.5
                                                                            Receipts.
----------------------------------------------------------------------------------------------------------------

Special Considerations

    New 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 
of $8.5 million in tangible net worth and $3 million in net income, 
then set forth in 13 CFR 121.301(b)(2). The Jobs Act also provided 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

[[Page 33651]]

permanent alternative size standard for those programs.
    Size Standards for Surety Bond Guarantee Assistance: SBA has 
decided to remove 13 CFR 121.301(d)(2). Currently, 13 CFR 121.301(d) 
reads as follows:
    (1) A business concern, combined with its affiliates, must meet the 
size standard for the primary industry in which such business concern, 
combined with its affiliates, is engaged.
    (2) For any contract or subcontract, public or private, to be 
performed in the Presidentially-declared disaster areas resulting from 
the 2005 Hurricanes Katrina, Rita or Wilma, a construction (general or 
special trade) concern or concern performing a contract for services is 
small if it meets the size standard set forth in paragraph (d)(1) of 
this section, or the average annual receipts of the concern, together 
with its affiliates, do not exceed $7 million, whichever is higher.
    SBA believes that paragraph (2) is no longer necessary for two 
reasons. First, given paragraph (1), paragraph (2) is now mostly 
redundant, because the inflation adjusted receipts based size standards 
for all industries, except for four, are higher than $7 million (see 
Table 1, Inflation Adjustment to Receipts Based Size Standards, above). 
Second, SBA would not expect, after more than eight years since the 
Hurricanes Katrina, Rita, and Wilma occurred, small businesses in these 
disaster areas would be in need of a separate size standard, which now 
has only limited application. Paragraph (2) made sense when the size 
standard for a construction concern (general or special trade) for 
Surety Bond Guarantee was $7 million or less in average receipts, but 
the size standards for all industries in construction are now higher 
than $7 million. On August 11, 2010, SBA issued a direct final rule to 
amend small business size standards for its Surety Bond Guarantee 
Program (75 FR 48549). Specifically, the direct final rule provided 
that a business concern is small if such concern, combined with its 
affiliates, does not exceed the size standard for the NAICS code that 
corresponds to the primary industry of the business concern, combined 
with its affiliates.
    Size Standards for Economic Injury Disaster Loan (EIDL) Assistance: 
Since it has been more than eight years since the Hurricanes Katrina, 
Rita, and Wilma occurred, SBA has decided to remove the text relating 
to when the Agency determines size status for EIDL assistance under 
disaster declarations for the Hurricanes Katrina, Rita, and Wilma from 
13 CFR 121.302(c).
    Size Standard for Leasing of Building Space to Federal Government 
by Owners--Footnote 9: It has come to SBA's attention that there can be 
some confusion concerning to what NAICS code(s) footnote 9 and the size 
standard for the ``Leasing of Building Space to Federal Government by 
Owners'' exception apply. Specifically, footnote 9 states, ``NAICS code 
531190--Leasing of building space to the Federal Government by Owners: 
For Government procurement, a size standard of $35.5 million in gross 
receipts applies to the owners of building space leased to the Federal 
Government. The standard does not apply to an agent.'' In the SBA's 
table of size standards, this ``exception'' follows immediately after 
NAICS 531190, Lessors of Other Real Estate Property. This has been 
understood by some to mean that the exception and footnote 9 apply only 
to NAICS 531190.
    However, the size standard exception for ``Leasing of Building 
Space to Federal Government by Owners'' is meant to apply to all 
industries in NAICS Industry Group 5311, Lessors of Real Estate. That 
is consistent with SBA's original application of the footnote to 
Standard Industrial Classification (SIC) Major Group 651, Real Estate 
Operators (Except Developers) and Lessors, when the SBA's table of size 
standards was based on the SIC system.
    To clarify this, SBA is adding the footnote 9 superscript to each 
of the four NAICS Industry codes within NAICS Industry Group 5311 and 
removing from the table the exception that follows NAICS 531190. The 
new inflation-adjusted size standard for the Leasing of Building Space 
to Federal Government by Owners exception will be $38.5 million in 
average annual receipts.

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 (such as a response to a natural disaster or an economic 
situation) 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 2008. Many businesses may have lost small business 
eligibility for Federal assistance under SBA's monetary based size 
standards simply as a result of the inflation that has occurred since 
that time. This rule is necessary to make those businesses eligible for 
Federal assistance. Any delay in the adoption of inflation adjusted 
size standards could cause serious harm to those businesses and others 
that are about to exceed current size standards. Immediate 
implementation of this rule would enable those businesses to benefit 
from Federal assistance programs and help them create jobs. SBA 
believes that the job creation under the current economic environment 
of high unemployment is in the best interest of the public.
    The standard notice and comment rulemaking would delay the 
implementation of this rule by at least eight to twelve 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.
    SBA believes that delaying the adoption of updated size standards 
for inflation is not in the best interest of small businesses in the 
current economic environment. The U.S. economy was in recession from 
December 2007 to June 2009, the longest and deepest of any recessions 
since before World War II. The economy lost more than eight million 
non-farm jobs during 2008-2009. In response, Congress passed and the 
President signed into law the American Recovery and Reinvestment Act of 
2009 (Recovery Act) to promote economic recovery and to preserve and 
create jobs. Although the recession officially ended in June 2009, the 
unemployment rate is still at 6.7 percent in March 2014 (www.bls.gov) 
and is forecast to remain around this level at least through the end of 
2014. (http://www.federalreserve.gov/monetarypolicy/mpr--20130717--

[[Page 33652]]

part3.htm). In 2010, Congress passed and the President signed the Jobs 
Act to promote small business job creation. The Jobs Act included 
several measures to help small businesses create jobs. Delaying the 
adoption of updated size standards would prevent businesses that have 
exceeded size standards due to inflation from participating in Federal 
financial and procurement assistance programs for small businesses. 
This would be contrary to the expressed will of the President and the 
Congress.
    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 act in the public 
interest in determining eligibility for Federal assistance under the 
Small Business Act, 15 U.S.C. 633(d). SBA had also implemented 
inflation adjustments to size standards through an interim final rule 
in 2002 and 2005 without any controversies.
    By publishing this rule as an interim final rule, SBA is not 
excluding public participation in the rulemaking process. SBA is 
soliciting comments from interested parties on this interim final rule 
on a number of issues, including SBA's methodology for inflation 
adjustment and alternative measures of inflation. SBA will evaluate all 
comments and revise, if necessary, this rule, and publish a final rule 
on a later date.

Request for Comments

    SBA seeks comments on this rule, specifically on the following 
issues.
    1. SBA welcomes comments from the 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 size standards for changes in labor productivity and technical 
change, similar to adjusting monetary based size standards for 
inflation.
    3. SBA also invites comments on any other aspects of this 
rulemaking, such as the changes to size standards for business loan 
programs, disaster loan programs, and the surety bond guarantee 
program.

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

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

Cost Benefit Analysis

1. Is there a need for the regulatory action?

    SBA's statutory mission is to aid and assist small businesses 
through a variety of financial, procurement, business development, and 
advocacy programs. To assist the intended beneficiaries of these 
programs effectively, SBA must establish distinct definitions of which 
businesses are deemed small businesses. The Small Business Act (15 
U.S.C. 632(a)) (Act) delegates to the SBA Administrator the 
responsibility for establishing small business definitions. The Act 
also requires that small business definitions vary to reflect industry 
differences. The supplementary information to this interim final rule 
explains how SBA adjusts size standards for inflation. SBA is required 
to assess the impact of inflation on its monetary based size standards 
at least once every five years (67 FR 3041 and 13 CFR 102(c)). Many 
businesses may have lost small business eligibility for Federal 
assistance under SBA's monetary based size standards simply because of 
inflation that has occurred since the last inflation adjustment to size 
standards in 2008. This interim final rule aims to make those 
businesses eligible again for Federal assistance.

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

    The most significant benefit to businesses of this interim final 
rule is to enable businesses that have exceeded size standards simply 
due to inflation to regain eligibility for Federal small business 
assistance programs. This will also help businesses to retain small 
business eligibility for Federal programs for a longer period. These 
programs include SBA's financial assistance programs, economic injury 
disaster loans, and Federal procurement programs intended for small 
businesses. Federal procurement programs provide targeted opportunities 
for small businesses under SBA's business development programs, such as 
8(a), Small Disadvantaged Businesses (SDB), small businesses located in 
Historically Underutilized Business Zones (HUBZone), women-owned small 
businesses (WOSB), economically disadvantaged women-owned small 
businesses (EDWOSB), and service-disabled veteran-owned small 
businesses (SDVOSB). Federal agencies may also use SBA's size standards 
for a variety of other regulatory and program purposes. These programs 
assist small businesses to become more knowledgeable, stable, and 
competitive. SBA estimates that this rule will enable approximately 
8,500 firms in industries and subindustries with receipts based size 
standards and about 170 firms in industries with assets based size 
standards, currently above SBA's size standards, to gain small business 
status and become eligible for these programs. This will increase the 
small business share of total receipts in industries and subindustries 
with receipts based size standards from 31.2 percent to 31.8 percent 
and the small business share of total assets in industries with assets 
based size standards from 8.8 percent to 9.4 percent.
    Three groups will benefit from the revisions of size standards in 
this rule: (1) Some businesses that are above the current size 
standards may gain small business status under the higher, inflation-
adjusted size standards, thereby enabling them to participate in 
Federal small business assistance programs; (2) growing small 
businesses that are close to exceeding the current size standards will 
be able to retain their small business status under the higher size 
standards, thereby enabling them to continue their participation in the 
programs; and (3) Federal agencies will have a larger pool of small 
businesses from which to draw for their small business procurement 
programs.
    SBA estimates that firms gaining small business status under the 
inflation adjusted size standards could receive Federal contracts 
totaling $150 million to $200 million annually under SBA's small 
business, 8(a), SDB, HUBZone, WOSB, EDWOSB, and SDVOSB Programs, and 
unrestricted procurements. The added competition for many of these 
procurements can also result in lower prices to the Government for 
procurements reserved for small businesses, but SBA cannot quantify 
this benefit.
    Based on the fiscal years 2010-2012 data, SBA estimates about 80 
additional loans totaling about $30 million could

[[Page 33653]]

be made to these newly defined small businesses under SBA's 7(a) and 
504 Loan Programs under the adjusted size standards. Increasing the 
size standards will likely result in more small business guaranteed 
loans to businesses in these industries, but it is impractical to try 
to estimate the exact number and total amount of loans. There are two 
reasons for this: (1) Under the Jobs Act, SBA can now guarantee 
substantially larger loans than in the past; and (2) as described 
above, the Jobs Act established an alternative size standard ($15 
million in tangible net worth and $5 million in net income after income 
taxes) for business concerns that do not meet the size standards for 
their industry. Therefore, SBA finds it difficult to quantify the 
actual impact of these inflation adjusted size standards on its 7(a) 
and 504 Loan Programs.
    Newly defined small businesses will also benefit from SBA's 
Economic Injury Disaster Loan (EIDL) Program. Since this program is 
contingent on the occurrence and severity of a disaster in the future, 
SBA cannot make a meaningful estimate of this impact.
    In addition, newly defined small businesses will also benefit 
through reduced fees, less paperwork, and fewer compliance requirements 
that are available to small businesses through Federal government.
    To the extent that those nearly 8,700 additional small firms could 
become active in Federal procurement programs, the adjusted size 
standards in this final interim rule may entail some additional 
administrative costs to the government as a result of more businesses 
being eligible for Federal small business programs. For example, there 
will be more firms seeking SBA's guaranteed loans, more firms eligible 
for enrollment in the System of Award Management (SAM) database, and 
more firms seeking certification as 8(a) or HUBZone firms or qualifying 
for small business, WOSB, EDWOSB, SDVOSB, and SDB status. Among those 
newly defined small businesses seeking SBA's assistance, there could be 
some additional costs associated with compliance and verification of 
small business status and protests of small business status. However, 
SBA believes that these added administrative costs will be minimal 
because mechanisms are already in place to handle these requirements.
    In some cases, Federal government contracts may have higher costs. 
With a greater number of businesses defined as small, Federal agencies 
may choose to set aside more contracts for competition among small 
businesses only rather than using full and open competition. The 
movement from unrestricted to small business set-aside contracting 
might result in competition among fewer total bidders, although there 
will be more small businesses eligible to submit offers. However, the 
additional costs associated with fewer bidders are expected to be minor 
since, by law, procurements may be set aside for small businesses or 
reserved for the 8(a), HUBZone, WOSB, EDWOSB, or SDVOSB Programs only 
if awards are expected to be made at fair and reasonable prices. In 
addition, there may be higher costs when more full and open contracts 
are awarded to HUBZone businesses that receive price evaluation 
preferences.
    The size standards adjustments in this interim final rule may have 
some distributional effects among large and small businesses. Although 
SBA cannot estimate with certainty the actual outcome of the gains and 
losses among small and large businesses, it can identify several 
probable impacts. There may be a transfer of some Federal contracts to 
small businesses from large businesses. Large businesses may have fewer 
Federal contract opportunities as Federal agencies decide to set aside 
more contracts for small businesses. In addition, some Federal 
contracts may be awarded to HUBZone concerns instead of large 
businesses since these firms may be eligible for a price evaluation 
preference for contracts when they compete on a full and open basis.
    Similarly, some businesses defined small under the current size 
standards may obtain fewer Federal contracts due to the increased 
competition from more businesses defined as small under the proposed 
size standards. This transfer may be offset by a greater number of 
Federal procurements set aside for all small businesses. The number of 
newly defined and expanding small businesses that are willing and able 
to sell to the Federal Government will limit the potential transfer of 
contracts from large and currently defined small businesses. SBA cannot 
estimate the potential distributional impacts of these transfers with 
any degree of precision.
    The revision to the current monetary based industry size standards 
for 481 industries and 11 subindustries, and to the monetary based size 
standards for other specific programs are consistent with SBA's 
statutory mandate to assist small business. This regulatory action 
promotes the Administration's objectives. One of SBA's goals in support 
of the Administration's objectives is to help individual small 
businesses succeed through fair and equitable access to capital and 
credit, Government contracts, and management and technical assistance. 
Reviewing and modifying size standards, when appropriate, including 
periodic inflation adjustments, ensure that intended beneficiaries have 
access to small business programs designed to assist them.

Executive Order 13563

    A description of the need for this regulatory action and benefits 
and costs associated with this action including possible distributions 
impacts that relate to Executive Order 13563 is included above in the 
Cost Benefit Analysis under Executive Order 12866.
    In an effort to engage interested parties in this action, SBA gave 
appropriate consideration to all input, suggestions, recommendations, 
and relevant information obtained from industry groups, individual 
businesses, and Federal agencies in preparing this interim final rule.
    The review of size standards in industries and financial assistance 
programs covered in this interim final rule is consistent with 
Executive Order 13563, Section 6, calling for retrospective analyses of 
existing rules. The last inflationary adjustment of monetary based size 
standards occurred in July 2008.
    Additionally to the inflationary adjustment of monetary based size 
standards of this final interim rule, SBA finalized a comprehensive 
review of all the receipts and assets based industry size standards to 
ensure that they have supportable bases.

Executive Order 12988

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

Executive Order 13132

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

Paperwork Reduction Act

    For the purpose of the Paperwork Reduction Act, 44 U.S.C. Ch. 35, 
SBA has determined that this interim final

[[Page 33654]]

rule will not impose any new reporting or record keeping requirements.

Initial Regulatory Flexibility Analysis

    Under the Regulatory Flexibility Act (RFA), this interim final rule 
may have a significant impact on a substantial number of small 
businesses in the industries and subindustries covered by this rule. As 
described above, this rule may affect small businesses seeking Federal 
contracts, loans under SBA's 7(a), 504 and Economic Injury Disaster 
Loan Programs, and assistance under other Federal small business 
programs.
    Immediately below, SBA sets forth an initial regulatory flexibility 
analysis (IRFA) of this interim final rule 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 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, the revision to the 
monetary based size standards for inflation more appropriately defines 
small businesses. This interim final rule merely restores small 
business eligibility in real terms to businesses that have grown above 
the size standard due to inflation rather than due to increased 
business activity. A review of the latest inflation indexes indicates 
that inflation has increased a sufficient amount to warrant an increase 
to the current monetary based size standards.
    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. As 
discussed in the supplementary information, inflation has increases at 
a sufficient level since the time of the 2008 final rule to warrant a 
further adjustment to size standards at this time.

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

    SBA estimates that about 8,500 additional firms will become small 
because of increased receipts based size standards of 476 industries 
and 11 subindustries. That represents 0.2 percent of total firms that 
are small under current monetary based size standards. This will result 
in an increase in the small business share of total industry receipts 
in those industries and subindustries from 31.2 percent under the 
current size standards to 31.8 percent under the inflation-adjusted 
size standards. Due to the adjustment of assets based size standards in 
five industries, about 170 additional firms will gain small business 
status in those industries. This will increase the small business share 
of total assets in those industries from 8.8 percent to 9.4 percent. 
The size standards adopted in this interim final rule will enable 
businesses that have exceeded the size standards for their industries 
to regain small business status. It will also help currently small 
businesses to retain their small business status for a longer period. 
Many firms may have lost their eligibility and find it difficult to 
compete at current size standards with companies that are significantly 
larger than they are. SBA believes the competitive impact will be 
positive for existing small businesses and for those that exceed the 
size standards but are on the very low end of those that are not small. 
They might otherwise be called or referred to as mid-sized businesses, 
although SBA only defines what is small; entities that are not small 
are ``other than small.''

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

    The inflation adjustment to size standards imposes no additional 
reporting or record keeping requirements on small businesses. However, 
qualifying for Federal procurement and a number of other programs 
requires that businesses register in the SAM database and certify in 
SAM that they are small at least once annually. Therefore, newly 
eligible small businesses opting to participate in those programs must 
comply with SAM requirements. Businesses whose status changes in SAM 
from other than small to small must update their SAM profiles and 
complete the ``representations and certifications'' sections of SAM. 
However, there are no costs associated with SAM registration or 
certification. Changing size standards alters the access to SBA's 
programs that assist small businesses, but does not impose a regulatory 
burden because they neither regulate nor control business behavior.

4. What are the relevant Federal rules, 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 additional 8.73 
percent inflation that has occurred since the time of the final rule 
published in July 2008 sufficiently affects the real value of the size 
standards to warrant applying an increase at this time.

List of Subjects in 13 CFR Part 121

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

[[Page 33655]]

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

PART 121--SMALL BUSINESS SIZE REGULATIONS

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

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


0
2. In Sec.  121.201, amend the table ``Small Business Size Standards by 
NAICS Industry'' as follows:
0
a. Revise the entries for ``112112'', ``112310'', ``113110'', 
``113210'', ``114111'', ``114112'', ``114119'', ``114210'', ``115111'', 
``115112'', ``115113'', ``115114'', ``115115'', ``115116'', ``115210'', 
``115310'', ``115310 first and second sub-entry'', ``213112'', 
``213113'', ``213114'', ``213115'', ``221310'',''221320'', ``221330'', 
``236115'', ``236116'', ``236117'', ``236118'', ``236210'', ``236220'', 
``237110'', ``237120'', ``237130'', ``237210'', ``237310'', ``237990'', 
``237990 first sub-entry'', ``238110'', ``238120'', ``238130'', 
``238140'', ``238150'', ``238160'', ``238170'', ``238190'', ``238210'', 
``238220'', ``238290'', ``238310'', ``238320'', ``238330'', ``238340'', 
``238350'', ``238390'', ``238910'', ``238990'', ``238990 first sub-
entry ``, ``441120'', ``441210'', ``441222'', ``441228'', ``441310'', 
``441320'', ``442110'', ``442210'', ``442291'', ``442299'', ``443141'', 
``443142'', ``444110'', ``444120'', ``444130'', ``444190'', ``444210'', 
``444220'', ``445110'', ``445120'', ``445210'', ``445220'', ``445230'', 
``445291'', ``445292'', ``445299'', ``445310'', ``446110'', ``446120'', 
``446130'', ``446191'', ``446199'', ``447110'', ``447190'', ``448110'', 
``448120'', ``448130'', ``448140'', ``448150'', ``448190'', ``448210'', 
``448310'', ``448320'', ``451110'', ``451120'', ``451130'', ``451140'', 
``451211'', ``451212'', ``452111'', ``452112'', ``452910'', ``452990'', 
``453110'', ``453210'', ``453220'', ``453310'', ``453910'', ``453920'', 
``453930'', ``453991'', ``453998'', ``454111'', ``454112'', ``454113'', 
``454210'', ``454390'', ``481211'', ``481211 first sub-entry'', 
``481212'', ``481212 first sub-entry'', ``481219'', ``484110'', 
``484121'', ``484122'', ``484210'', ``484220'', ``484230'', ``485111'', 
``485112'', ``485113'', ``485119'', ``485210'', ``485310'', ``485320'', 
``485410'', ``485510'', ``485991'', ``485999'', ``486210'', ``486990'', 
``487110'', ``487210'', ``487990'', ``488111'', ``488119'', ``488190'', 
``488210'', ``488310'', ``488320'', ``488330'', ``488390'', ``488410'', 
``488490'', ``488510'', ``488510 first sub-entry'', ``488991'', 
``488999'', ``491110'', ``492210'', ``493110'', ``493120'', ``493130'', 
``493190'', ``511210'', ``512110'', ``512120'', ``512131'', ``512132'', 
``512191'', ``512199'', ``512210'', ``512240'', ``512290'', ``515111'', 
``515112'', ``515120'', ``515210'', ``517410'', ``517919'', ``518210'', 
``519110'', ``519120'', ``519190'', ``522110'', ``522120'', ``522130'', 
``522190'', ``522210'', ``522220'', ``522291'', ``522292'', ``522293'', 
``522294'', ``522298'', ``522310'', ``522320'', ``522390'', ``523110'', 
``523120'', ``523130'', ``523140'', ``523210'', ``523910'', ``523920'', 
``523930'', ``523991'', ``523999'', ``524113'', ``524114'', ``524127'', 
``524128'', ``524130'', ``524210'', ``524291'', ``524292'', ``524298'', 
``525110'', ``525120'', ``525190'', ``525910'', ``525920'', ``525990'', 
``531110'', ``531120'', ``531130'', ``531190'', ``531210'', ``531311'', 
``531312'', ``531320'', ``531390'', ``532111'', ``532112'', ``532120'', 
``532210'', ``532220'', ``532230'', ``532291'', ``532292'', ``532299'', 
``532310'', ``532411'', ``532412'', ``532420'', ``532490'', ``533110'', 
``541110'', ``541191'', ``541199'', ``541211'', ``541213'', ``541214'', 
``541219'', ``541310'', ``541320'', ``541330'', ``541330 first, second 
and third sub-entry'', ``541340'', ``541350'', ``541360'', ``541370'', 
``541380'', ``541410'', ``541420'', ``541430'', ``541490'', ``541511'', 
``541512'', ``541513'', ``541519'', ``541519 first-sub entry'', 
``541611'', ``541612'', ``541613'', ``541614'', ``541618'', ``541620'', 
``541690'', ``541720'', ``541810'', ``541820'', ``541830'', ``541840'', 
``541850'', ``541860'', ``541870'', ``541890'', ``541910'', ``541921'', 
``541922'', ``541930'', ``541940'', ``541990'', ``551111'', ``551112'', 
``561110'', ``561210'', ``561311'', ``561312'', ``561320'', ``561330'', 
``561410'', ``561421'', ``561422'', ``561431'', ``561439'', ``561440'', 
``561450'', ``561491'', ``561492'', ``561499'', ``561510'', ``561520'', 
``561591'', ``561599'', ``561611'', ``561612'', ``561613'', ``561621'', 
``561622'', ``561710'', ``561720'', ``561730'', ``561740'', ``561790'', 
``561910'', ``561920'', ``561990'', ``562111'', ``562112'', ``562119'', 
``562211'', ``562212'', ``562213'', ``562219'', ``562910'', ``562920'', 
``562991'', ``562998'', ``611110'', ``611210'', ``611310'', ``611410'', 
``611420'', ``611430'', ``611511'', ``611512'', ``611513'', ``611519'', 
``611519 first sub-entry'', ``611610'', ``611620'', ``611630'', 
``611691'', ``611692'', ``611699'', ``611710'', ``621111'', ``621112'', 
``621210'', ``621310'', ``621320'', ``621330'', ``621340'', ``621391'', 
``621399'', ``621410'', ``621420'', ``621491'', ``621492'', ``621493'', 
``621498'', ``621511'', ``621512'', ``621610'', ``621910'', ``621991'', 
``621999'', ``622110'', ``622210'', ``622310'', ``623110'', ``623210'', 
``623220'', ``623311'', ``623312'', ``623990'', ``624110'', ``624120'', 
``624190'', ``624210'', ``624221'', ``624229'', ``624230'', ``624310'', 
``624410'', ``711110'', ``711120'', ``711130'', ``711190'', ``711211'', 
``711212'', ``711219'', ``711310'', ``711320'', ``711410'', ``711510'', 
``712110'', ``712120'', ``712130'', ``712190'', ``713110'', ``713120'', 
``713210'', ``713290'', ``713910'', ``713920'', ``713930'', ``713940'', 
``713950'', ``713990'', ``721110'', ``721120'', ``721191'', ``721199'', 
``721211'', ``721214'', ``721310'', ``722310'', ``722320'', ``722330'', 
``722410'', ``722511'', ``722513'', ``722514'', ``722515'', ``811111'', 
``811112'', ``811113'', ``811118'', ``811121'', ``811122'', ``811191'', 
``811192'', ``811198'', ``811211'', ``811212'', ``811213'', ``811219'', 
``811310'', ``811411'', ``811412'', ``811420'', ``811430'', ``811490'', 
``812111'', ``812112'', ``812113'', ``812191'', ``812199'', ``812210'', 
``812220'', ``812310'', ``812320'', ``812331'', ``812332'', ``812910'', 
``812921'', ``812922'', ``812930'', ``812990'', ``813110'', ``813211'', 
``813212'', ``813219'', ``813311'', ``813312'', ``813319'', ``813410'', 
``813910'', ``813920'', ``813930'', ``813940'', and''813990''.
0
b. For entries ``531110'', ``531120'', ``531130'', and ``531190'' add 
superscript ``9'' to the entry in the columns ``NAICS U.S. industry 
title'' and ``Size standards in millions of dollars''.
0
c. Remove ``sub-entry'' (or ``except'') under entry ``531190''.
0
d. Add ``sub-entry'' (or ``except'') under entry ``562910.''
0
d. Revise footnotes 9 and 15
    The revisions read as follows:


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

* * * * *

[[Page 33656]]



                                 Small Business Size Standards by NAICS Industry
----------------------------------------------------------------------------------------------------------------
                                                                                                 Size standards
              NAICS Codes                 NAICS U.S. industry title      Size standards in        in number of
                                                                        millions of dollars         employees
----------------------------------------------------------------------------------------------------------------
                              Sector 11--Agriculture, Forestry, Fishing and Hunting
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
                                Subsector 112--Animal Production and Aquaculture
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
112112.................................  Cattle Feedlots...........  $7.5.....................  ................
 
                                                  * * * * * * *
112310.................................  Chicken Egg Production....  $15.0....................  ................
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
                                       Subsector 113--Forestry and Logging
----------------------------------------------------------------------------------------------------------------
113110.................................  Timber Tract Operations...  $11.0....................  ................
113210.................................  Forest Nurseries and        $11.0....................  ................
                                          Gathering of Forest
                                          Products.
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
                                  Subsector 114--Fishing, Hunting and Trapping
----------------------------------------------------------------------------------------------------------------
114111.................................  Finfish Fishing...........  $20.5....................  ................
114112.................................  Shellfish Fishing.........  $5.5.....................  ................
114119.................................  Other Marine Fishing......  $7.5.....................  ................
114210.................................  Hunting and Trapping......  $5.5.....................  ................
----------------------------------------------------------------------------------------------------------------
                         Subsector 115--Support Activities for Agriculture and Forestry
----------------------------------------------------------------------------------------------------------------
115111.................................  Cotton Ginning............  $11.0....................  ................
115112.................................  Soil Preparation,           $7.5.....................  ................
                                          Planting, and Cultivating.
115113.................................  Crop Harvesting, Primarily  $7.5.....................  ................
                                          by Machine.
115114.................................  Postharvest Crop            $27.5....................  ................
                                          Activities (except Cotton
                                          Ginning).
115115.................................  Farm Labor Contractors and  $15.0....................  ................
                                          Crew Leaders.
115116.................................  Farm Management Services..  $7.5.....................  ................
115210.................................  Support Activities for      $7.5.....................  ................
                                          Animal Production.
115310.................................  Support Activities for      $7.5.....................  ................
                                          Forestry.
Except,................................  Forest Fire Suppression     $19.0 \17\...............  ................
                                          \17\.
Except,................................  Fuels Management Services   $19.0 \17\...............  ................
                                          \17\.
----------------------------------------------------------------------------------------------------------------
                            Sector 21--Mining, Quarrying, and Oil and Gas Extraction
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
                                  Subsector 213--Support Activities for Mining
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
213112.................................  Support Activities for Oil  $38.5....................  ................
                                          and Gas Operations.
213113.................................  Support Activities for      $20.5....................  ................
                                          Coal Mining.
213114.................................  Support Activities for      $20.5....................  ................
                                          Metal Mining.
213115.................................  Support Activities for      $7.5.....................  ................
                                          Nonmetallic Minerals
                                          (except Fuels).
----------------------------------------------------------------------------------------------------------------
                                              Sector 22--Utilities
                                            Subsector 221--Utilities
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
221310.................................  Water Supply and            $27.5....................  ................
                                          Irrigation Systems.
221320.................................  Sewage Treatment            $20.5....................  ................
                                          Facilities.
221330.................................  Steam and                   $15.0....................  ................
                                          Air[dash]Conditioning
                                          Supply.
----------------------------------------------------------------------------------------------------------------

[[Page 33657]]

 
                                             Sector 23--Construction
                                    Subsector 236--Construction of Buildings
----------------------------------------------------------------------------------------------------------------
236115.................................  New Single-family Housing   $36.5....................  ................
                                          Construction (Except For-
                                          Sale Builders).
236116.................................  New Multifamily Housing     $36.5....................  ................
                                          Construction (except For-
                                          Sale Builders).
236117.................................  New Housing For-Sale        $36.5....................  ................
                                          Builders.
236118.................................  Residential Remodelers....  $36.5....................  ................
236210.................................  Industrial Building         $36.5....................  ................
                                          Construction.
236220.................................  Commercial and              $36.5....................  ................
                                          Institutional Building
                                          Construction.
----------------------------------------------------------------------------------------------------------------
                             Subsector 237--Heavy and Civil Engineering Construction
----------------------------------------------------------------------------------------------------------------
237110.................................  Water and Sewer Line and    $36.5....................  ................
                                          Related Structures
                                          Construction.
237120.................................  Oil and Gas Pipeline and    $36.5....................  ................
                                          Related Structures
                                          Construction.
237130.................................  Power and Communication     $36.5....................  ................
                                          Line and Related
                                          Structures Construction.
237210.................................  Land Subdivision..........  $27.5....................  ................
237310.................................  Highway, Street, and        $36.5....................  ................
                                          Bridge Construction.
237990.................................  Other Heavy and Civil       $36.5....................  ................
                                          Engineering Construction.
Except,................................  Dredging and Surface        $27.5 \2\................  ................
                                          Cleanup Activities \2\.
----------------------------------------------------------------------------------------------------------------
                                   Subsector 238--Specialty Trade Contractors
----------------------------------------------------------------------------------------------------------------
238110.................................  Poured Concrete Foundation  $15.0....................  ................
                                          and Structure Contractors.
238120.................................  Structural Steel and        $15.0....................  ................
                                          Precast Concrete
                                          Contractors.
238130.................................  Framing Contractors.......  $15.0....................  ................
238140.................................  Masonry Contractors.......  $15.0....................  ................
238150.................................  Glass and Glazing           $15.0....................  ................
                                          Contractors.
238160.................................  Roofing Contractors.......  $15.0....................  ................
238170.................................  Siding Contractors........  $15.0....................  ................
238190.................................  Other Foundation,           $15.0....................  ................
                                          Structure, and Building
                                          Exterior Contractors.
238210.................................  Electrical Contractors and  $15.0....................  ................
                                          Other Wiring Installation
                                          Contractors.
238220.................................  Plumbing, Heating, and Air- $15.0....................  ................
                                          Conditioning Contractors.
238290.................................  Other Building Equipment    $15.0....................  ................
                                          Contractors.
238310.................................  Drywall and Insulation      $15.0....................  ................
                                          Contractors.
238320.................................  Painting and Wall Covering  $15.0....................  ................
                                          Contractors.
238330.................................  Flooring Contractors......  $15.0....................  ................
238340.................................  Tile and Terrazzo           $15.0....................  ................
                                          Contractors.
238350.................................  Finish Carpentry            $15.0....................  ................
                                          Contractors.
238390.................................  Other Building Finishing    $15.0....................  ................
                                          Contractors.
238910.................................  Site Preparation            $15.0....................  ................
                                          Contractors.
238990.................................  All Other Specialty Trade   $15.0....................  ................
                                          Contractors.
Except,................................  Building and Property       $15.0 \13\...............  ................
                                          Specialty Trade Services
                                          \13\.
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
                                           Sector 44-45--Retail Trade
----------------------------------------------------------------------------------------------------------------
  (These NAICS codes shall not be used to classify Government acquisitions for supplies. They also shall not be
   used by Federal government contractors when subcontracting for the acquisition for supplies. The applicable
 manufacturing NAICS code shall be used to classify acquisitions for supplies. A Wholesale Trade or Retail Trade
 business concern submitting an offer or a quote on a supply acquisition is categorized as a nonmanufacturer and
          deemed small if it has 500 or fewer employees and meets the requirements of 13 CFR 121.406.)
----------------------------------------------------------------------------------------------------------------
                                 Subsector 441--Motor Vehicle and Parts Dealers
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
441120.................................  Used Car Dealers..........  $25.0....................  ................
441210.................................  Recreational Vehicle        $32.5....................  ................
                                          Dealers.

[[Page 33658]]

 
441222.................................  Boat Dealers..............  $32.5....................  ................
441228.................................  Motorcycle, ATV, and All    $32.5....................  ................
                                          Other Motor Vehicle
                                          Dealers.
441310.................................  Automotive Parts and        $15.0....................  ................
                                          Accessories Stores.
441320.................................  Tire Dealers..............  $15.0....................  ................
----------------------------------------------------------------------------------------------------------------
                              Subsector 442--Furniture and Home Furnishings Stores
----------------------------------------------------------------------------------------------------------------
442110.................................  Furniture Stores..........  $20.5....................  ................
442210.................................  Floor Covering Stores.....  $7.5.....................  ................
442291.................................  Window Treatment Stores...  $7.5.....................  ................
442299.................................  All Other Home Furnishings  $20.5....................  ................
                                          Stores.
----------------------------------------------------------------------------------------------------------------
                                 Subsector 443--Electronics and Appliance Stores
----------------------------------------------------------------------------------------------------------------
443141.................................  Household Appliance Stores  $11.0....................  ................
443142.................................  Electronics Stores........  $32.5....................  ................
----------------------------------------------------------------------------------------------------------------
                   Subsector 444--Building Material and Garden Equipment and Supplies Dealers
----------------------------------------------------------------------------------------------------------------
444110.................................  Home Centers..............  $38.5....................  ................
444120.................................  Paint and Wallpaper Stores  $27.5....................  ................
444130.................................  Hardware Stores...........  $7.5.....................  ................
444190.................................  Other Building Material     $20.5....................  ................
                                          Dealers.
444210.................................  Outdoor Power Equipment     $7.5.....................  ................
                                          Stores.
444220.................................  Nursery and Garden Centers  $11.0....................  ................
----------------------------------------------------------------------------------------------------------------
                                     Subsector 445--Food and Beverage Stores
----------------------------------------------------------------------------------------------------------------
445110.................................  Supermarkets and Other      $32.5....................  ................
                                          Grocery (except
                                          Convenience) Stores.
445120.................................  Convenience Stores........  $29.5....................  ................
445210.................................  Meat Markets..............  $7.5.....................  ................
445220.................................  Fish and Seafood Markets..  $7.5.....................  ................
445230.................................  Fruit and Vegetable         $7.5.....................  ................
                                          Markets.
445291.................................  Baked Goods Stores........  $7.5.....................  ................
445292.................................  Confectionery and Nut       $7.5.....................  ................
                                          Stores.
445299.................................  All Other Specialty Food    $7.5.....................  ................
                                          Stores.
445310.................................  Beer, Wine and Liquor       $7.5.....................  ................
                                          Stores.
----------------------------------------------------------------------------------------------------------------
                                 Subsector 446--Health and Personal Care Stores
----------------------------------------------------------------------------------------------------------------
446110.................................  Pharmacies and Drug Stores  $27.5....................  ................
446120.................................  Cosmetics, Beauty Supplies  $27.5....................  ................
                                          and Perfume Stores.
446130.................................  Optical Goods Stores......  $20.5....................  ................
446191.................................  Food (Health) Supplement    $15.0....................  ................
                                          Stores.
446199.................................  All Other Health and        $7.5.....................  ................
                                          Personal Care Stores.
----------------------------------------------------------------------------------------------------------------
                                        Subsector 447--Gasoline Stations
----------------------------------------------------------------------------------------------------------------
447110.................................  Gasoline Stations with      $29.5....................  ................
                                          Convenience Stores.
447190.................................  Other Gasoline Stations...  $15.0....................  ................
----------------------------------------------------------------------------------------------------------------
                             Subsector 448--Clothing and Clothing Accessories Stores
----------------------------------------------------------------------------------------------------------------
448110.................................  Men's Clothing Stores.....  $11.0....................  ................
448120.................................  Women's Clothing Stores...  $27.5....................  ................
448130.................................  Children's and Infants'     $32.5....................  ................
                                          Clothing Stores.
448140.................................  Family Clothing Stores....  $38.5....................  ................
448150.................................  Clothing Accessories        $15.0....................  ................
                                          Stores.
448190.................................  Other Clothing Stores.....  $20.5....................  ................
448210.................................  Shoe Stores...............  $27.5....................  ................
448310.................................  Jewelry Stores............  $15.0....................  ................
448320.................................  Luggage and Leather Goods   $27.5....................  ................
                                          Stores.
----------------------------------------------------------------------------------------------------------------
                           Subsector 451--Sporting Good, Hobby, Book and Music Stores
----------------------------------------------------------------------------------------------------------------
451110.................................  Sporting Goods Stores.....  $15.0....................  ................
451120.................................  Hobby, Toy and Game Stores  $27.5....................  ................
451130.................................  Sewing, Needlework and      $27.5....................  ................
                                          Piece Goods Stores.

[[Page 33659]]

 
451140.................................  Musical Instrument and      $11.0....................  ................
                                          Supplies Stores.
451211.................................  Book Stores...............  $27.5....................  ................
451212.................................  News Dealers and            $7.5.....................  ................
                                          Newsstands.
----------------------------------------------------------------------------------------------------------------
                                    Subsector 452--General Merchandise Stores
----------------------------------------------------------------------------------------------------------------
452111.................................  Department Stores (except   $32.5....................  ................
                                          Discount Department
                                          Stores).
452112.................................  Discount Department Stores  $29.5....................  ................
452910.................................  Warehouse Clubs and         $29.5....................  ................
                                          Superstores.
452990.................................  All Other General           $32.5....................  ................
                                          Merchandise Stores.
----------------------------------------------------------------------------------------------------------------
                                  Subsector 453--Miscellaneous Store Retailers
----------------------------------------------------------------------------------------------------------------
453110.................................  Florists..................  $7.5.....................  ................
453210.................................  Office Supplies and         $32.5....................  ................
                                          Stationery Stores.
453220.................................  Gift, Novelty and Souvenir  $7.5.....................  ................
                                          Stores.
453310.................................  Used Merchandise Stores...  $7.5.....................  ................
453910.................................  Pet and Pet Supplies        $20.5....................  ................
                                          Stores.
453920.................................  Art Dealers...............  $7.5.....................  ................
453930.................................  Manufactured (Mobile) Home  $15.0....................  ................
                                          Dealers.
453991.................................  Tobacco Stores............  $7.5.....................  ................
453998.................................  All Other Miscellaneous     $7.5.....................  ................
                                          Store Retailers (except
                                          Tobacco Stores).
----------------------------------------------------------------------------------------------------------------
                                        Subsector 454--Nonstore Retailers
----------------------------------------------------------------------------------------------------------------
454111.................................  Electronic Shopping.......  $32.5....................  ................
454112.................................  Electronic Auctions.......  $38.5....................  ................
454113.................................  Mail[dash]Order Houses....  $38.5....................  ................
454210.................................  Vending Machine Operators.  $11.0....................  ................
 
                                                  * * * * * * *
454390.................................  Other Direct Selling        $7.5.....................  ................
                                          Establishments.
----------------------------------------------------------------------------------------------------------------
                                  Sector 48-49--Transportation and Warehousing
                                        Subsector 481--Air Transportation
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
481211.................................  Nonscheduled Chartered      .........................             1,500
                                          Passenger Air
                                          Transportation.
Except,................................  Offshore Marine Air         $30.5....................  ................
                                          Transportation Services.
481212.................................  Nonscheduled Chartered      .........................             1,500
                                          Freight Air
                                          Transportation.
Except,................................  Offshore Marine Air         $30.5....................  ................
                                          Transportation Services.
481219.................................  Other Nonscheduled Air      $15.0....................  ................
                                          Transportation.
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
                                       Subsector 484--Truck Transportation
----------------------------------------------------------------------------------------------------------------
484110.................................  General Freight Trucking,   $27.5....................  ................
                                          Local.
484121.................................  General Freight Trucking,   $27.5....................  ................
                                          Long[dash]Distance,
                                          Truckload.
484122.................................  General Freight Trucking,   $27.5....................  ................
                                          Long[dash]Distance, Less
                                          Than Truckload.
484210.................................  Used Household and Office   $27.5....................  ................
                                          Goods Moving.
484220.................................  Specialized Freight         $27.5....................  ................
                                          (except Used Goods)
                                          Trucking, Local.
484230.................................  Specialized Freight         $27.5....................  ................
                                          (except Used Goods)
                                          Trucking,
                                          Long[dash]Distance.
----------------------------------------------------------------------------------------------------------------
                           Subsector 485--Transit and Ground Passenger Transportation
----------------------------------------------------------------------------------------------------------------
485111.................................  Mixed Mode Transit Systems  $15.0....................  ................
485112.................................  Commuter Rail Systems.....  $15.0....................  ................
485113.................................  Bus and Other Motor         $15.0....................  ................
                                          Vehicle Transit Systems.
485119.................................  Other Urban Transit         $15.0....................  ................
                                          Systems.
485210.................................  Interurban and Rural Bus    $15.0....................  ................
                                          Transportation.
485310.................................  Taxi Service..............  $15.0....................  ................

[[Page 33660]]

 
485320.................................  Limousine Service.........  $15.0....................  ................
485410.................................  School and Employee Bus     $15.0....................  ................
                                          Transportation.
485510.................................  Charter Bus Industry......  $15.0....................  ................
485991.................................  Special Needs               $15.0....................  ................
                                          Transportation.
485999.................................  All Other Transit and       $15.0....................  ................
                                          Ground Passenger
                                          Transportation.
----------------------------------------------------------------------------------------------------------------
                                     Subsector 486--Pipeline Transportation
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
486210.................................  Pipeline Transportation of  $27.5....................  ................
                                          Natural Gas.
 
                                                  * * * * * * *
486990.................................  All Other Pipeline          $37.50...................  ................
                                          Transportation.
----------------------------------------------------------------------------------------------------------------
                              Subsector 487--Scenic and Sightseeing Transportation
----------------------------------------------------------------------------------------------------------------
487110.................................  Scenic and Sightseeing      $7.5.....................  ................
                                          Transportation, Land.
487210.................................  Scenic and Sightseeing      $7.5.....................  ................
                                          Transportation, Water.
487990.................................  Scenic and Sightseeing      $7.5.....................  ................
                                          Transportation, Other.
----------------------------------------------------------------------------------------------------------------
                              Subsector 488--Support Activities for Transportation
----------------------------------------------------------------------------------------------------------------
488111.................................  Air Traffic Control.......  $32.5....................  ................
488119.................................  Other Airport Operations..  $32.5....................  ................
488190.................................  Other Support Activities    $32.5....................  ................
                                          for Air Transportation.
488210.................................  Support Activities for      $15.0....................  ................
                                          Rail Transportation.
488310.................................  Port and Harbor Operations  $38.5....................  ................
488320.................................  Marine Cargo Handling.....  $38.5....................  ................
488330.................................  Navigational Services to    $38.5....................  ................
                                          Shipping.
488390.................................  Other Support Activities    $38.5....................  ................
                                          for Water Transportation.
488410.................................  Motor Vehicle Towing......  $7.5.....................  ................
488490.................................  Other Support Activities    $7.5.....................  ................
                                          for Road Transportation.
488510.................................  Freight Transportation      $15.0 \10\...............  ................
                                          Arrangement \10\.
Except,................................  Non[dash]Vessel Owning      $27.5....................  ................
                                          Common Carriers and
                                          Household Goods
                                          Forwarders.
488991.................................  Packing and Crating.......  $27.5....................  ................
488999.................................  All Other Support           $7.5.....................  ................
                                          Activities for
                                          Transportation.
----------------------------------------------------------------------------------------------------------------
                                          Subsector 491--Postal Service
----------------------------------------------------------------------------------------------------------------
491110.................................  Postal Service............  $7.5.....................  ................
----------------------------------------------------------------------------------------------------------------
                                     Subsector 492--Couriers and Messengers
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
492210.................................  Local Messengers and Local  $27.5....................  ................
                                          Delivery.
----------------------------------------------------------------------------------------------------------------
                                     Subsector 493--Warehousing and Storage
----------------------------------------------------------------------------------------------------------------
493110.................................  General Warehousing and     $27.5....................  ................
                                          Storage.
493120.................................  Refrigerated Warehousing    $27.5....................  ................
                                          and Storage.
493130.................................  Farm Product Warehousing    $27.5....................  ................
                                          and Storage.
493190.................................  Other Warehousing and       $27.5....................  ................
                                          Storage.
----------------------------------------------------------------------------------------------------------------
                                             Sector 51--Information
                             Subsector 511--Publishing Industries (except Internet)
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
511210.................................  Software Publishers.......  $38.5....................  ................
----------------------------------------------------------------------------------------------------------------
                          Subsector 512--Motion Picture and Sound Recording Industries
----------------------------------------------------------------------------------------------------------------
512110.................................  Motion Picture and Video    $32.5....................  ................
                                          Production.
512120.................................  Motion Picture and Video    $32.0....................  ................
                                          Distribution.
512131.................................  Motion Picture Theaters     $38.5....................  ................
                                          (except Drive[dash]Ins).

[[Page 33661]]

 
512132.................................  Drive[dash]In Motion        $7.5.....................  ................
                                          Picture Theaters.
512191.................................  Teleproduction and Other    $32.0....................  ................
                                          Postproduction Services.
512199.................................  Other Motion Picture and    $20.5....................  ................
                                          Video Industries.
512210.................................  Record Production.........  $7.5.....................  ................
 
                                                  * * * * * * *
512240.................................  Sound Recording Studios...  $7.5.....................  ................
512290.................................  Other Sound Recording       $11.0....................  ................
                                          Industries.
----------------------------------------------------------------------------------------------------------------
                                  Subsector 515--Broadcasting (except Internet)
----------------------------------------------------------------------------------------------------------------
515111.................................  Radio Networks............  $32.5....................  ................
515112.................................  Radio Stations............  $38.5....................  ................
515120.................................  Television Broadcasting...  $38.5....................  ................
515210.................................  Cable and Other             $38.5....................  ................
                                          Subscription Programming.
----------------------------------------------------------------------------------------------------------------
                                        Subsector 517--Telecommunications
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
517410.................................  Satellite                   $32.5....................  ................
                                          Telecommunications.
 
                                                  * * * * * * *
517919.................................  All Other                   $32.5....................  ................
                                          Telecommunications.
----------------------------------------------------------------------------------------------------------------
                          Subsector 518--Data Processing, Hosting, and Related Services
----------------------------------------------------------------------------------------------------------------
518210.................................  Data Processing, Hosting,   $32.5....................  ................
                                          and Related Services.
----------------------------------------------------------------------------------------------------------------
                                    Subsector 519--Other Information Services
----------------------------------------------------------------------------------------------------------------
519110.................................  News Syndicates...........  $27.5....................  ................
519120.................................  Libraries and Archives....  $15.0....................  ................
 
                                                  * * * * * * *
519190.................................  All Other Information       $27.5....................  ................
                                          Services.
----------------------------------------------------------------------------------------------------------------
                                        Sector 52--Finance and Insurance
                           Subsector 522--Credit Intermediation and Related Activities
----------------------------------------------------------------------------------------------------------------
522110.................................  Commercial Banking \8\....  $550 million in assets     ................
                                                                      \8\.
522120.................................  Savings Institutions \8\..  $550 million in assets     ................
                                                                      \8\.
522130.................................  Credit Unions \8\.........  $550 million in assets     ................
                                                                      \8\.
522190.................................  Other Depository Credit     $550 million in assets     ................
                                          Intermediation \8\.         \8\.
522210.................................  Credit Card Issuing \8\...  $550 million in assets     ................
                                                                      \8\.
522220.................................  Sales Financing...........  $38.5....................  ................
522291.................................  Consumer Lending..........  $38.5....................  ................
522292.................................  Real Estate Credit........  $38.5....................  ................
522293.................................  International Trade         $38.5....................  ................
                                          Financing.
522294.................................  Secondary Market Financing  $38.5....................  ................
522298.................................  All Other Nondepository     $38.5....................  ................
                                          Credit Intermediation.
522310.................................  Mortgage and Nonmortgage    $7.5.....................  ................
                                          Loan Brokers.
522320.................................  Financial Transactions      $38.5....................  ................
                                          Processing, Reserve, and
                                          Clearinghouse Activities.
522390.................................  Other Activities Related    $20.5....................  ................
                                          to Credit Intermediation.
----------------------------------------------------------------------------------------------------------------
     Subsector 523--Securities, Commodity Contracts, and Other Financial Investments and Related Activities
----------------------------------------------------------------------------------------------------------------
523110.................................  Investment Banking and      $38.5....................  ................
                                          Securities Dealing.
523120.................................  Securities Brokerage......  $38.5....................  ................
523130.................................  Commodity Contracts         $38.5....................  ................
                                          Dealing.
523140.................................  Commodity Contracts         $38.5....................  ................
                                          Brokerage.
523210.................................  Securities and Commodity    $38.5....................  ................
                                          Exchanges.
523910.................................  Miscellaneous               $38.5....................  ................
                                          Intermediation.
523920.................................  Portfolio Management......  $38.5....................  ................
523930.................................  Investment Advice.........  $38.5....................  ................
523991.................................  Trust, Fiduciary and        $38.5....................  ................
                                          Custody Activities.

[[Page 33662]]

 
523999.................................  Miscellaneous Financial     $38.5....................  ................
                                          Investment Activities.
----------------------------------------------------------------------------------------------------------------
                            Subsector 524--Insurance Carriers and Related Activities
----------------------------------------------------------------------------------------------------------------
524113.................................  Direct Life Insurance       $38.5....................  ................
                                          Carriers.
524114.................................  Direct Health and Medical   $38.5....................  ................
                                          Insurance Carriers.
 
                                                  * * * * * * *
524127.................................  Direct Title Insurance      $38.5....................  ................
                                          Carriers.
524128.................................  Other Direct Insurance      $38.5....................  ................
                                          (except Life, Health and
                                          Medical) Carriers.
524130.................................  Reinsurance Carriers......  $38.5....................  ................
524210.................................  Insurance Agencies and      $7.5.....................  ................
                                          Brokerages.
524291.................................  Claims Adjusting..........  $20.5....................  ................
524292.................................  Third Party Administration  $32.5....................  ................
                                          of Insurance and Pension
                                          Funds.
524298.................................  All Other Insurance         $15.0....................  ................
                                          Related Activities.
----------------------------------------------------------------------------------------------------------------
                            Subsector 525--Funds, Trusts and Other Financial Vehicles
----------------------------------------------------------------------------------------------------------------
525110.................................  Pension Funds.............  $32.5....................  ................
525120.................................  Health and Welfare Funds..  $32.5....................  ................
525190.................................  Other Insurance Funds.....  $32.5....................  ................
525910.................................  Open[dash]End Investment    $32.5....................  ................
                                          Funds.
525920.................................  Trusts, Estates, and        $32.5....................  ................
                                          Agency Accounts.
525990.................................  Other Financial Vehicles..  $32.5....................  ................
----------------------------------------------------------------------------------------------------------------
                                  Sector 53--Real Estate and Rental and Leasing
                                           Subsector 531--Real Estate
----------------------------------------------------------------------------------------------------------------
531110.................................  Lessors of Residential      $27.5 \9\................  ................
                                          Buildings and Dwellings
                                          \9\.
531120.................................  Lessors of Nonresidential   $27.5 \9\................  ................
                                          Buildings (except
                                          Miniwarehouses) \ 9\.
531130.................................  Lessors of Miniwarehouses   $27.5 \9\................  ................
                                          and Self Storage Units
                                          \9\.
531190.................................  Lessors of Other Real       $27.5 \9\................  ................
                                          Estate Property \9\.
531210.................................  Offices of Real Estate      $7.5 \10\................  ................
                                          Agents and Brokers \10\.
531311.................................  Residential Property        $7.5.....................  ................
                                          Managers.
531312.................................  Nonresidential Property     $7.5.....................  ................
                                          Managers.
531320.................................  Offices of Real Estate      $7.5.....................  ................
                                          Appraisers.
531390.................................  Other Activities Related    $7.5.....................  ................
                                          to Real Estate.
----------------------------------------------------------------------------------------------------------------
                                   Subsector 532--Rental and Leasing Services
----------------------------------------------------------------------------------------------------------------
532111.................................  Passenger Car Rental......  $38.5....................  ................
532112.................................  Passenger Car Leasing.....  $38.5....................  ................
532120.................................  Truck, Utility Trailer,     $38.5....................  ................
                                          and RV (Recreational
                                          Vehicle) Rental and
                                          Leasing.
532210.................................  Consumer Electronics and    $38.5....................  ................
                                          Appliances Rental.
532220.................................  Formal Wear and Costume     $20.5....................  ................
                                          Rental.
532230.................................  Video Tape and Disc Rental  $27.5....................  ................
532291.................................  Home Health Equipment       $32.5....................  ................
                                          Rental.
532292.................................  Recreational Goods Rental.  $7.5.....................  ................
532299.................................  All Other Consumer Goods    $7.5.....................  ................
                                          Rental.
532310.................................  General Rental Centers....  $7.5.....................  ................
532411.................................  Commercial Air, Rail, and   $32.5....................  ................
                                          Water Transportation
                                          Equipment Rental and
                                          Leasing.
532412.................................  Construction, Mining and    $32.5....................  ................
                                          Forestry Machinery and
                                          Equipment Rental and
                                          Leasing.
532420.................................  Office Machinery and        $32.5....................  ................
                                          Equipment Rental and
                                          Leasing.
532490.................................  Other Commercial and        $32.5....................  ................
                                          Industrial Machinery and
                                          Equipment Rental and
                                          Leasing.
----------------------------------------------------------------------------------------------------------------
               Subsector 533--Lessors of Nonfinancial Intangible Assets (except Copyrighted Works)
----------------------------------------------------------------------------------------------------------------
533110.................................  Lessors of Nonfinancial     $38.5....................  ................
                                          Intangible Assets (except
                                          Copyrighted Works).
----------------------------------------------------------------------------------------------------------------

[[Page 33663]]

 
                           Sector 54--Professional, Scientific and Technical Services
                         Subsector 541--Professional, Scientific and Technical Services
----------------------------------------------------------------------------------------------------------------
541110.................................  Offices of Lawyers........  $11.0....................  ................
541191.................................  Title Abstract and          $11.0....................  ................
                                          Settlement Offices.
541199.................................  All Other Legal Services..  $11.0....................  ................
541211.................................  Offices of Certified        $20.5....................  ................
                                          Public Accountants.
541213.................................  Tax Preparation Services..  $20.5....................  ................
541214.................................  Payroll Services..........  $20.5....................  ................
541219.................................  Other Accounting Services.  $20.5....................  ................
541310.................................  Architectural Services....  $7.5.....................  ................
541320.................................  Landscape Architectural     $7.5.....................  ................
                                          Services.
541330.................................  Engineering Services......  $15.0....................  ................
Except,................................  Military and Aerospace      $38.5....................  ................
                                          Equipment and Military
                                          Weapons.
Except,................................  Contracts and Subcontracts  $38.5....................  ................
                                          for Engineering Services
                                          Awarded Under the
                                          National Energy Policy
                                          Act of 1992.
Except,................................  Marine Engineering and      $38.5....................  ................
                                          Naval Architecture.
541340.................................  Drafting Services.........  $7.5.....................  ................
541350.................................  Building Inspection         $7.5.....................  ................
                                          Services.
541360.................................  Geophysical Surveying and   $15.0....................  ................
                                          Mapping Services.
541370.................................  Surveying and Mapping       $15.0....................  ................
                                          (except Geophysical)
                                          Services.
541380.................................  Testing Laboratories......  $15.0....................  ................
541410.................................  Interior Design Services..  $7.5.....................  ................
541420.................................  Industrial Design Services  $7.5.....................  ................
541430.................................  Graphic Design Services...  $7.5.....................  ................
541490.................................  Other Specialized Design    $7.5.....................  ................
                                          Services.
541511.................................  Custom Computer             $27.5....................  ................
                                          Programming Services.
541512.................................  Computer Systems Design     $27.5....................  ................
                                          Services.
541513.................................  Computer Facilities         $27.5....................  ................
                                          Management Services.
541519.................................  Other Computer Related      $27.5....................  ................
                                          Services.
Except,................................  Information Technology      .........................          150 \18\
                                          Value Added Resellers
                                          \18\.
541611.................................  Administrative Management   $15.0....................  ................
                                          and General Management
                                          Consulting Services.
541612.................................  Human Resources Consulting  $15.0....................  ................
                                          Services.
541613.................................  Marketing Consulting        $15.0....................  ................
                                          Services.
541614.................................  Process, Physical           $15.0....................  ................
                                          Distribution and
                                          Logistics Consulting
                                          Services.
541618.................................  Other Management            $15.0....................  ................
                                          Consulting Services.
541620.................................  Environmental Consulting    $15.0....................  ................
                                          Services.
541690.................................  Other Scientific and        $15.0....................  ................
                                          Technical Consulting
                                          Services.
 
                                                  * * * * * * *
541720.................................  Research and Development    $20.5....................  ................
                                          in the Social Sciences
                                          and Humanities.
541810.................................  Advertising Agencies \10\.  $15.0 \10\...............  ................
541820.................................  Public Relations Agencies.  $15.0....................  ................
541830.................................  Media Buying Agencies.....  $15.0....................  ................
541840.................................  Media Representatives.....  $15.0....................  ................
541850.................................  Outdoor Advertising.......  $15.0....................  ................
541860.................................  Direct Mail Advertising...  $15.0....................  ................
541870.................................  Advertising Material        $15.0....................  ................
                                          Distribution Services.
541890.................................  Other Services Related to   $15.0....................  ................
                                          Advertising.
541910.................................  Marketing Research and      $15.0....................  ................
                                          Public Opinion Polling.
541921.................................  Photography Studios,        $7.5.....................  ................
                                          Portrait.
541922.................................  Commercial Photography....  $7.5.....................  ................
541930.................................  Translation and             $7.5.....................  ................
                                          Interpretation Services.
541940.................................  Veterinary Services.......  $7.5.....................  ................
541990.................................  All Other Professional,     $15.0....................  ................
                                          Scientific and Technical
                                          Services.
----------------------------------------------------------------------------------------------------------------
                               Sector 55--Management of Companies and Enterprises
                             Subsector 551--Management of Companies and Enterprises
----------------------------------------------------------------------------------------------------------------
551111.................................  Offices of Bank Holding     $20.5....................  ................
                                          Companies.

[[Page 33664]]

 
551112.................................  Offices of Other Holding    $20.5....................  ................
                                          Companies.
----------------------------------------------------------------------------------------------------------------
                Sector 56--Administrative and Support, Waste Management and Remediation Services
                               Subsector 561--Administrative and Support Services
----------------------------------------------------------------------------------------------------------------
561110.................................  Office Administrative       $7.5.....................  ................
                                          Services.
561210.................................  Facilities Support          $38.5 \12\...............  ................
                                          Services \12\.
561311.................................  Employment Placement        $27.5....................  ................
                                          Agencies.
561312.................................  Executive Search Services.  $27.5....................  ................
561320.................................  Temporary Help Services...  $27.5....................  ................
561330.................................  Professional Employer       $27.5....................  ................
                                          Organizations.
561410.................................  Document Preparation        $15.0....................  ................
                                          Services.
561421.................................  Telephone Answering         $15.0....................  ................
                                          Services.
561422.................................  Telemarketing Bureaus and   $15.0....................  ................
                                          Other contact Centers.
561431.................................  Private Mail Centers......  $15.0....................  ................
561439.................................  Other Business Service      $15.0....................  ................
                                          Centers (including Copy
                                          Shops).
561440.................................  Collection Agencies.......  $15.0....................  ................
561450.................................  Credit Bureaus............  $15.0....................  ................
561491.................................  Repossession Services.....  $15.0....................  ................
561492.................................  Court Reporting and         $15.0....................  ................
                                          Stenotype Services.
561499.................................  All Other Business Support  $15.0....................  ................
                                          Services.
561510.................................  Travel Agencies \10\......  $20.5 \10\...............  ................
561520.................................  Tour Operators \10\.......  $20.5 \10\...............  ................
561591.................................  Convention and Visitors     $20.5....................  ................
                                          Bureaus.
561599.................................  All Other Travel            $20.5....................  ................
                                          Arrangement and
                                          Reservation Services.
561611.................................  Investigation Services....  $20.5....................  ................
561612.................................  Security Guards and Patrol  $20.5....................  ................
                                          Services.
561613.................................  Armored Car Services......  $20.5....................  ................
561621.................................  Security Systems Services   $20.5....................  ................
                                          (except Locksmiths).
561622.................................  Locksmiths................  $20.5....................  ................
561710.................................  Exterminating and Pest      $11.0....................  ................
                                          Control Services.
561720.................................  Janitorial Services.......  $18.0....................  ................
561730.................................  Landscaping Services......  $7.5.....................  ................
561740.................................  Carpet and Upholstery       $5.5.....................  ................
                                          Cleaning Services.
561790.................................  Other Services to           $7.5.....................  ................
                                          Buildings and Dwellings.
561910.................................  Packaging and Labeling      $11.0....................  ................
                                          Services.
561920.................................  Convention and Trade Show   $11.0 \10\...............  ................
                                          Organizers \10\.
561990.................................  All Other Support Services  $11.0....................  ................
----------------------------------------------------------------------------------------------------------------
                            Subsector 562--Waste Management and Remediation Services
----------------------------------------------------------------------------------------------------------------
562111.................................  Solid Waste Collection....  $38.5....................  ................
562112.................................  Hazardous Waste Collection  $38.5....................  ................
562119.................................  Other Waste Collection....  $38.5....................  ................
562211.................................  Hazardous Waste Treatment   $38.5....................  ................
                                          and Disposal.
562212.................................  Solid Waste Landfill......  $38.5....................  ................
562213.................................  Solid Waste Combustors and  $38.5....................  ................
                                          Incinerators.
562219.................................  Other Nonhazardous Waste    $38.5....................  ................
                                          Treatment and Disposal.
562910.................................  Remediation Services......  $20.5....................  ................
Except,................................  Environmental Remediation   .........................          500 \14\
                                          Services \14\.
562920.................................  Materials Recovery          $20.5....................  ................
                                          Facilities.
562991.................................  Septic Tank and Related     $7.5.....................  ................
                                          Services.
562998.................................  All Other Miscellaneous     $7.5.....................  ................
                                          Waste Management Services.
----------------------------------------------------------------------------------------------------------------
                                         Sector 61--Educational Services
                                       Subsector 611--Educational Services
----------------------------------------------------------------------------------------------------------------
611110.................................  Elementary and Secondary    $11.0....................  ................
                                          Schools.
611210.................................  Junior Colleges...........  $20.5....................  ................
611310.................................  Colleges, Universities and  $27.5....................  ................
                                          Professional Schools.
611410.................................  Business and Secretarial    $7.5.....................  ................
                                          Schools.
611420.................................  Computer Training.........  $11.0....................  ................
611430.................................  Professional and            $11.0....................  ................
                                          Management Development
                                          Training.

[[Page 33665]]

 
611511.................................  Cosmetology and Barber      $7.5.....................  ................
                                          Schools.
611512.................................  Flight Training...........  $27.5....................  ................
611513.................................  Apprenticeship Training...  $7.5.....................  ................
611519.................................  Other Technical and Trade   $15.0....................  ................
                                          Schools.
Except,................................  Job Corps Centers \16\....  $38.5 \16\...............  ................
611610.................................  Fine Arts Schools.........  $7.5.....................  ................
611620.................................  Sports and Recreation       $7.5.....................  ................
                                          Instruction.
611630.................................  Language Schools..........  $11.0....................  ................
611691.................................  Exam Preparation and        $7.5.....................  ................
                                          Tutoring.
611692.................................  Automobile Driving Schools  $7.5.....................  ................
611699.................................  All Other Miscellaneous     $11.0....................  ................
                                          Schools and Instruction.
611710.................................  Educational Support         $15.0....................  ................
                                          Services.
----------------------------------------------------------------------------------------------------------------
                                  Sector 62--Health Care and Social Assistance
                                 Subsector 621--Ambulatory Health Care Services
----------------------------------------------------------------------------------------------------------------
621111.................................  Offices of Physicians       $11.0....................  ................
                                          (except Mental Health
                                          Specialists).
621112.................................  Offices of Physicians,      $11.0....................  ................
                                          Mental Health Specialists.
621210.................................  Offices of Dentists.......  $7.5.....................  ................
621310.................................  Offices of Chiropractors..  $7.5.....................  ................
621320.................................  Offices of Optometrists...  $7.5.....................  ................
621330.................................  Offices of Mental Health    $7.5.....................  ................
                                          Practitioners (except
                                          Physicians).
621340.................................  Offices of Physical,        $7.5.....................  ................
                                          Occupational and Speech
                                          Therapists and
                                          Audiologists.
621391.................................  Offices of Podiatrists....  $7.5.....................  ................
621399.................................  Offices of All Other        $7.5.....................  ................
                                          Miscellaneous Health
                                          Practitioners.
621410.................................  Family Planning Centers...  $11.0....................  ................
621420.................................  Outpatient Mental Health    $15.0....................  ................
                                          and Substance Abuse
                                          Centers.
621491.................................  HMO Medical Centers.......  $32.5....................  ................
621492.................................  Kidney Dialysis Centers...  $38.5....................  ................
621493.................................  Freestanding Ambulatory     $15.0....................  ................
                                          Surgical and Emergency
                                          Centers.
621498.................................  All Other Outpatient Care   $20.5....................  ................
                                          Centers.
621511.................................  Medical Laboratories......  $32.5....................  ................
621512.................................  Diagnostic Imaging Centers  $15.0....................  ................
621610.................................  Home Health Care Services.  $15.0....................  ................
621910.................................  Ambulance Services........  $15.0....................  ................
621991.................................  Blood and Organ Banks.....  $32.5....................  ................
621999.................................  All Other Miscellaneous     $15.0....................  ................
                                          Ambulatory Health Care
                                          Services.
----------------------------------------------------------------------------------------------------------------
                                            Subsector 622--Hospitals
----------------------------------------------------------------------------------------------------------------
622110.................................  General Medical and         $38.5....................  ................
                                          Surgical Hospitals.
622210.................................  Psychiatric and Substance   $38.5....................  ................
                                          Abuse Hospitals.
622310.................................  Specialty (except           $38.5....................  ................
                                          Psychiatric and Substance
                                          Abuse) Hospitals.
----------------------------------------------------------------------------------------------------------------
                             Subsector 623--Nursing and Residential Care Facilities
----------------------------------------------------------------------------------------------------------------
623110.................................  Nursing Care Facilities     $27.5....................  ................
                                          (Skilled Nursing
                                          Facilities).
623210.................................  Residential Intellectual    $15.0....................  ................
                                          and Developmental
                                          Disability Facilities.
623220.................................  Residential Mental Health   $15.0....................  ................
                                          and Substance Abuse
                                          Facilities.
623311.................................  Continuing Care Retirement  $27.5....................  ................
                                          Communities.
623312.................................  Assisted Living Facilities  $11.0....................  ................
                                          for the Elderly.
623990.................................  Other Residential Care      $11.0....................  ................
                                          Facilities.
----------------------------------------------------------------------------------------------------------------
                                        Subsector 624--Social Assistance
----------------------------------------------------------------------------------------------------------------
624110.................................  Child and Youth Services..  $11.0....................  ................
624120.................................  Services for the Elderly    $11.0....................  ................
                                          and Persons with
                                          Disabilities.

[[Page 33666]]

 
624190.................................  Other Individual and        $11.0....................  ................
                                          Family Services.
624210.................................  Community Food Services...  $11.0....................  ................
624221.................................  Temporary Shelters........  $11.0....................  ................
624229.................................  Other Community Housing     $15.0....................  ................
                                          Services.
624230.................................  Emergency and Other Relief  $32.5....................  ................
                                          Services.
624310.................................  Vocational Rehabilitation   $11.0....................  ................
                                          Services.
624410.................................  Child Day Care Services...  $7.5.....................  ................
----------------------------------------------------------------------------------------------------------------
                                  Sector 71--Arts, Entertainment and Recreation
                     Subsector 711--Performing Arts, Spectator Sports and Related Industries
----------------------------------------------------------------------------------------------------------------
711110.................................  Theater Companies and       $20.5....................  ................
                                          Dinner Theaters.
711120.................................  Dance Companies...........  $11.0....................  ................
711130.................................  Musical Groups and Artists  $11.0....................  ................
711190.................................  Other Performing Arts       $27.5....................  ................
                                          Companies.
711211.................................  Sports Teams and Clubs....  $38.5....................  ................
711212.................................  Race Tracks...............  $38.5....................  ................
711219.................................  Other Spectator Sports....  $11.0....................  ................
711310.................................  Promoters of Performing     $32.5....................  ................
                                          Arts, Sports and Similar
                                          Events with Facilities.
711320.................................  Promoters of Performing     $15.0....................  ................
                                          Arts, Sports and Similar
                                          Events without Facilities.
711410.................................  Agents and Managers for     $11.0....................  ................
                                          Artists, Athletes,
                                          Entertainers and Other
                                          Public Figures.
711510.................................  Independent Artists,        $7.5.....................  ................
                                          Writers, and Performers.
----------------------------------------------------------------------------------------------------------------
                        Subsector 712--Museums, Historical Sites and Similar Institutions
----------------------------------------------------------------------------------------------------------------
712110.................................  Museums...................  $27.5....................  ................
712120.................................  Historical Sites..........  $7.5.....................  ................
712130.................................  Zoos and Botanical Gardens  $27.5....................  ................
712190.................................  Nature Parks and Other      $7.5.....................  ................
                                          Similar Institutions.
----------------------------------------------------------------------------------------------------------------
                          Subsector 713--Amusement, Gambling and Recreation Industries
----------------------------------------------------------------------------------------------------------------
713110.................................  Amusement and Theme Parks.  $38.5....................  ................
713120.................................  Amusement Arcades.........  $7.5.....................  ................
713210.................................  Casinos (except Casino      $27.5....................  ................
                                          Hotels).
713290.................................  Other Gambling Industries.  $32.5....................  ................
713910.................................  Golf Courses and Country    $15.0....................  ................
                                          Clubs.
713920.................................  Skiing Facilities.........  $27.5....................  ................
713930.................................  Marinas...................  $7.5.....................  ................
713940.................................  Fitness and Recreational    $7.5.....................  ................
                                          Sports Centers.
713950.................................  Bowling Centers...........  $7.5.....................  ................
713990.................................  All Other Amusement and     $7.5.....................  ................
                                          Recreation Industries.
----------------------------------------------------------------------------------------------------------------
                                   Sector 72--Accommodation and Food Services
                                          Subsector 721--Accommodation
----------------------------------------------------------------------------------------------------------------
721110.................................  Hotels (except Casino       $32.5....................  ................
                                          Hotels) and Motels.
721120.................................  Casino Hotels.............  $32.5....................  ................
721191.................................  Bed[dash]and[dash]Breakfas  $7.5.....................  ................
                                          t Inns.
721199.................................  All Other Traveler          $7.5.....................  ................
                                          Accommodation.
721211.................................  RV (Recreational Vehicle)   $7.5.....................  ................
                                          Parks and Campgrounds.
721214.................................  Recreational and Vacation   $7.5.....................  ................
                                          Camps (except
                                          Campgrounds).
721310.................................  Rooming and Boarding        $7.5.....................  ................
                                          Houses.
----------------------------------------------------------------------------------------------------------------
                                Subsector 722--Food Services and Drinking Places
----------------------------------------------------------------------------------------------------------------
722310.................................  Food Service Contractors..  $38.5....................  ................
722320.................................  Caterers..................  $7.5.....................  ................
722330.................................  Mobile Food Services......  $7.5.....................  ................
722410.................................  Drinking Places (Alcoholic  $7.5.....................  ................
                                          Beverages).
722511.................................  Full-Service Restaurants..  $7.5.....................  ................
722513.................................  Limited-Service             $11.0....................  ................
                                          Restaurants.
722514.................................  Cafeterias, Grill Buffets,  $27.5....................  ................
                                          and Buffets.
722515.................................  Snack and Nonalcoholic      $7.5.....................  ................
                                          Beverage Bars.
----------------------------------------------------------------------------------------------------------------

[[Page 33667]]

 
                            Sector 81--Other Services (Except Public Administration)
                                      Subsector 811--Repair and Maintenance
----------------------------------------------------------------------------------------------------------------
811111.................................  General Automotive Repair.  $7.5.....................  ................
811112.................................  Automotive Exhaust System   $7.5.....................  ................
                                          Repair.
811113.................................  Automotive Transmission     $7.5.....................  ................
                                          Repair.
811118.................................  Other Automotive            $7.5.....................  ................
                                          Mechanical and Electrical
                                          Repair and Maintenance.
811121.................................  Automotive Body, Paint and  $7.5.....................  ................
                                          Interior Repair and
                                          Maintenance.
811122.................................  Automotive Glass            $11.0....................  ................
                                          Replacement Shops.
811191.................................  Automotive Oil Change and   $7.5.....................  ................
                                          Lubrication Shops.
811192.................................  Car Washes................  $7.5.....................  ................
811198.................................  All Other Automotive        $7.5.....................  ................
                                          Repair and Maintenance.
811211.................................  Consumer Electronics        $7.5.....................  ................
                                          Repair and Maintenance.
811212.................................  Computer and Office         $27.5....................  ................
                                          Machine Repair and
                                          Maintenance.
811213.................................  Communication Equipment     $11.0....................  ................
                                          Repair and Maintenance.
811219.................................  Other Electronic and        $20.5....................  ................
                                          Precision Equipment
                                          Repair and Maintenance.
811310.................................  Commercial and Industrial   $7.5.....................  ................
                                          Machinery and Equipment
                                          (except Automotive and
                                          Electronic) Repair and
                                          Maintenance.
811411.................................  Home and Garden Equipment   $7.5.....................  ................
                                          Repair and Maintenance.
811412.................................  Appliance Repair and        $15.0....................  ................
                                          Maintenance.
811420.................................  Reupholstery and Furniture  $7.5.....................  ................
                                          Repair.
811430.................................  Footwear and Leather Goods  $7.5.....................  ................
                                          Repair.
811490.................................  Other Personal and          $7.5.....................  ................
                                          Household Goods Repair
                                          and Maintenance.
----------------------------------------------------------------------------------------------------------------
                                  Subsector 812--Personal and Laundry Services
----------------------------------------------------------------------------------------------------------------
812111.................................  Barber Shops..............  $7.5.....................  ................
812112.................................  Beauty Salons.............  $7.5.....................  ................
812113.................................  Nail Salons...............  $7.5.....................  ................
812191.................................  Diet and Weight Reducing    $20.5....................  ................
                                          Centers.
812199.................................  Other Personal Care         $7.5.....................  ................
                                          Services.
812210.................................  Funeral Homes and Funeral   $7.5.....................  ................
                                          Services.
812220.................................  Cemeteries and Crematories  $20.5....................  ................
812310.................................  Coin[dash]Operated          $7.5.....................  ................
                                          Laundries and Drycleaners.
812320.................................  Drycleaning and Laundry     $5.5.....................  ................
                                          Services (except
                                          Coin[dash]Operated).
812331.................................  Linen Supply..............  $32.5....................  ................
812332.................................  Industrial Launderers.....  $38.5....................  ................
812910.................................  Pet Care (except            $7.5.....................  ................
                                          Veterinary) Services.
812921.................................  Photofinishing              $20.5....................  ................
                                          Laboratories (except
                                          One[dash]Hour).
812922.................................  One[dash]Hour               $15.0....................  ................
                                          Photofinishing.
812930.................................  Parking Lots and Garages..  $38.5....................  ................
812990.................................  All Other Personal          $7.5.....................  ................
                                          Services.
----------------------------------------------------------------------------------------------------------------
              Subsector 813--Religious, Grantmaking, Civic, Professional and Similar Organizations
----------------------------------------------------------------------------------------------------------------
813110.................................  Religious Organizations...  $7.5.....................  ................
813211.................................  Grantmaking Foundations...  $32.5....................  ................
813212.................................  Voluntary Health            $27.5....................  ................
                                          Organizations.
813219.................................  Other Grantmaking and       $38.5....................  ................
                                          Giving Services.
813311.................................  Human Rights Organizations  $27.5....................  ................
813312.................................  Environment, Conservation   $15.0....................  ................
                                          and Wildlife
                                          Organizations.
813319.................................  Other Social Advocacy       $7.5.....................  ................
                                          Organizations.
813410.................................  Civic and Social            $7.5.....................  ................
                                          Organizations.
813910.................................  Business Associations.....  $7.5.....................  ................
813920.................................  Professional Organizations  $15.0....................  ................
813930.................................  Labor Unions and Similar    $7.5.....................  ................
                                          Labor Organizations.
813940.................................  Political Organizations...  $7.5.....................  ................

[[Page 33668]]

 
813990.................................  Other Similar               $7.5.....................  ................
                                          Organizations (except
                                          Business, Professional,
                                          Labor, and Political
                                          Organizations).
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------

Footnotes

* * * * *
    2. NAICS code 237990--Dredging: To be considered small for 
purposes of Government procurement, a firm must perform at least 40 
percent of the volume dredged with its own equipment or equipment 
owned by another small dredging concern.
* * * * *
    8. NAICS codes 522110, 522120, 522130, 522190, and 522210--A 
financial institution's assets are determined by averaging the 
assets reported on its four quarterly financial statements for the 
preceding year. ``Assets'' for the purposes of this size standard 
means the assets defined according to the Federal Financial 
Institutions Examination Council 041 call report form for NAICS 
codes 522110, 522120, 522190, and 522210 and the National Credit 
Union Administration 5300 call report form for NAICS code 522130.
    9. NAICS codes 531110, 531120, 531130, and 531190--Leasing of 
Building Space to the Federal Government by Owners: For Government 
procurement, a size standard of $38.5 million in gross receipts 
applies to the owners of building space leased to the Federal 
Government. The standard does not apply to an agent.
    10. NAICS codes 488510 (part), 531210, 541810, 561510, 561520, 
and 561920--As measured by total revenues, but excluding funds 
received in trust for an unaffiliated third party, such as bookings 
or sales subject to commissions. The commissions received are 
included as revenue.
* * * * *
    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% or more 
of the value of an entire procurement, then the proper 
classification of the procurement is that of the specific industry, 
not Facilities Support Services.
    (b) ``Facilities Support Services'' requires the performance of 
three or more separate activities in the areas of services or 
specialty trade contractors industries. If services are performed, 
these service activities must each be in a separate NAICS industry. 
If the procurement requires the use of specialty trade contractors 
(plumbing, painting, plastering, carpentry, etc.), all such 
specialty trade contractors activities are considered a single 
activity and classified as ``Building and Property Specialty Trade 
Services. Since'' Building and Property Specialty Trade Services'' 
is only one activity, two additional activities of separate NAICS 
industries are required for a procurement to be classified as 
``Facilities Support Services.''
    13. NAICS code 238990--Building and Property Specialty Trade 
Services:
    If a procurement requires the use of multiple specialty trade 
contractors (i.e., plumbing, painting, plastering, carpentry, etc.), 
and no specialty trade accounts for 50% or more of the value of the 
procurement, all such specialty trade contractors activities are 
considered a single activity and classified as Building and Property 
Specialty Trade Services.
    14. NAICS code 562910--Environmental Remediation Services:
    (a) For SBA assistance as a small business concern in the 
industry of Environmental Remediation Services, other than for 
Government procurement, a concern must be engaged primarily in 
furnishing a range of services for the remediation of a contaminated 
environment to an acceptable condition including, but not limited 
to, preliminary assessment, site inspection, testing, remedial 
investigation, feasibility studies, remedial design, containment, 
remedial action, removal of contaminated materials, storage of 
contaminated materials and security and site closeouts. If one of 
such activities accounts for 50 percent or more of a concern's total 
revenues, employees, or other related factors, the concern's primary 
industry is that of the particular industry and not the 
Environmental Remediation Services Industry.
    (b) For purposes of classifying a Government procurement as 
Environmental Remediation Services, the general purpose of the 
procurement must be to restore or directly support the restoration 
of a contaminated environment (such as preliminary assessment, site 
inspection, testing, remedial investigation, feasibility studies, 
remedial design, remediation services, containment, removal of 
contaminated materials or security and site closeouts), although the 
general purpose of the procurement need not necessarily include 
remedial actions. Also, the procurement must be composed of 
activities in three or more separate industries with separate NAICS 
codes or, in some instances (e.g., engineering), smaller components 
of NAICS codes with separate and distinct size standards. These 
activities may include, but are not limited to, separate activities 
in industries such as: Heavy Construction; Special Trade 
Contractors; Engineering Services; Architectural Services; 
Management Consulting Services; Hazardous and Other Waster 
Collection; Remediation Services; Testing Laboratories; and Research 
and Development in the Physical, Engineering, and Life Sciences. If 
any activity in the procurement can be identified with a separate 
NAICS code, or component of a code with a separate distinct size 
standard, and that industry accounts for 50 percent or more of the 
value of the entire procurement, then the proper size standard is 
the one for that particular industry, and not the Environmental 
Remediation Service size standard.
    15. Subsector 483--Water Transportation--Offshore Marine 
Services: The applicable size standard shall be $30.5 million for 
firms furnishing specific transportation services to concerns 
engaged in offshore oil and/or natural gas exploration, drilling 
production, or marine research; such services encompass passenger 
and freight transportation, anchor handling, and related logistical 
services to and from the work site or at sea.
    16. NAICS code 611519--Job Corps Centers. For classifying a 
Federal procurement, the purpose of the solicitation must be for the 
management and operation of a U.S. Department of Labor Job Corps 
Center. The activities involved include admissions activities, life 
skills training, educational activities, comprehensive career 
preparation activities, career development activities, career 
transition activities, as well as the management and support 
functions and services needed to operate and maintain the facility. 
For SBA assistance as a small business concern, other than for 
Federal Government procurements, a concern must be primarily engaged 
in providing the services to operate and maintain Federal Job Corps 
Centers.
    17. NAICS code 115310--Support Activities for Forestry--Forest 
Fire Suppression and Fuels Management Services are two components of 
Support Activities for Forestry. Forest Fire Suppression includes 
establishments which provide services to fight forest fires. These 
firms usually have fire-fighting crews and equipment. Fuels 
Management Services firms provide services to clear land of 
hazardous materials that would fuel forest fires. The treatments 
used by these firms may include prescribed fire, mechanical removal, 
establishing fuel breaks, thinning, pruning, and piling.
    18. NAICS code 541519--An Information Technology Value Added 
Reseller provides a total solution to information technology 
acquisitions by providing multi-vendor hardware and software along 
with significant services. Significant value added services consist 
of, but are not limited to, configuration consulting and design, 
systems integration, installation of multi-vendor

[[Page 33669]]

computer equipment, customization of hardware or software, training, 
product technical support, maintenance, and end user support. For 
purposes of Government procurement, an information technology 
procurement classified under this industry category must consist of 
at least 15% and not more than 50% of value added services as 
measured by the total price less the cost of information technology 
hardware, computer software, and profit. If the contract consists of 
less than 15% of value added services, then it must be classified 
under a NAICS manufacturing industry. If the contract consists of 
more than 50% of value added services, then it must be classified 
under the NAICS industry that best describes the predominate service 
of the procurement. To qualify as an Information Technology Value 
Added Reseller for purposes of SBA assistance, other than for 
Government procurement, a concern must be primarily engaged in 
providing information technology equipment and computer software and 
provide value added services which account for at least 15% of its 
receipts but not more than 50% of its receipts.
* * * * *

0
3. Amend Sec.  121.301 by revising paragraphs (c)(2) introductory text 
and (d), 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 
$19.5 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 $6.5 million. If the applicant is not 
required by law to pay Federal income taxes at the enterprise level, 
but is required to pass income through to its shareholders, partners, 
beneficiaries, or other equitable owners, the applicant's ``net income 
after Federal income taxes'' will be its net income reduced by an 
amount computed as follows:
* * * * *
    (d) For Surety Bond Guarantee assistance--a business concern, 
combined with its affiliates, must meet the size standard for the 
primary industry in which such business concern, combined with its 
affiliates, is engaged.
* * * * *

0
4. Amend Sec.  121.302 by revising paragraph (c) to read as follows:


Sec.  121.302  When does SBA determine the size status of the 
applicant?

* * * * *
    (c) For disaster loan assistance (other than physical disaster 
loans), size status is determined as of the date the disaster 
commenced, as set forth in the Disaster Declaration. For pre-disaster 
mitigation loans, size status is determined as of the date SBA accepts 
a complete Pre-Disaster Mitigation Small Business Loan Application for 
processing. Refer to Sec.  123.408 of this chapter to find out what SBA 
considers to be a complete Pre-Disaster Mitigation Small Business Loan 
Application.
* * * * *

0
5. Amend Sec.  121.502 by revising paragraph (a)(2) to read as follows:


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

    (a) * * *
    (2) A concern not primarily engaged in manufacturing is small for 
sales or leases of Government property if it has annual receipts not 
exceeding $7.5 million.
* * * * *

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


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

* * * * *
    (b) Its annual receipts, together with its affiliates, do not 
exceed $62.5 million.

    Dated: May 21, 2014.
Maria Contreras-Sweet,
Administrator.
[FR Doc. 2014-12868 Filed 6-11-14; 8:45 am]
BILLING CODE 8205-01-P