[Federal Register Volume 79, Number 113 (Thursday, June 12, 2014)]
[Rules and Regulations]
[Pages 33647-33669]
From the Federal Register Online via the Government Publishing 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 [email protected]. Highlight the information that you
consider to be CBI and explain why you believe SBA should hold this
information as confidential. SBA will review your information and
determine whether it will make the information public.
FOR FURTHER INFORMATION CONTACT: Jorge Laboy-Bruno, Ph.D., Office of
Size Standards, (202) 205-6618 or [email protected].
SUPPLEMENTARY INFORMATION: As explained in the SBA's ``Size 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