Small Business Size Standards; Restructuring of Size Standards

Summary:

The U.S. Small Business Administration (SBA) proposes to modify its small business size standards by establishing size standards in terms of the number of employees of a business concern for most industries and SBA programs. This change will reduce the number of different size standard levels and at the same time simplify size standards and their application to Federal Government programs. Under this proposal, size standards will range between 50 employees and 1,500 employees, depending on the industry or SBA program.

For a limited number of industries, SBA proposes to establish a maximum average annual receipts amount (referred to as a receipts cap) along with the employee-based size standard. Concerns in those industries that meet the employee-based size standard also cannot exceed a specific receipts cap to qualify as an eligible small business.

To further simplify size standards, SBA also proposes the following: (1) modify the size standard for the Surety Bond Guarantee (SBG) Program by replacing the $6 million size standard with the requirement that the contractor meet the size standard for its primary industry; (2) extend the 125,000 barrels per calendar day component of the size standard for petroleum refiners beyond Federal Government procurement to all Federal small business programs using SBA's size standards; (3) eliminate the special size standard based on market share for tire manufacturers that applies to only Federal Government procurement; (4) modify three receipts-based size standards and one employee-based size standard for the sale or lease of Government property; and (5) revise the nonmanufacturer size standard applicable to Federal procurements from 500 employees to 100 employees, the size standard that applies to wholesale trade businesses for all other SBA programs.

Table of Contents

Table of Figures

Dates:

Comments must be received on or before May 18, 2004.

Addresses:

Send comments to Gary M. Jackson, Assistant Administrator for Size Standards, 409 Third Street, SW., Mail Code 6530, Washington DC 20416; by email to restructure.sizestandards@sba.gov; or by facsimile at (202) 205-6390. You may also submit comments to www.regulations.gov. Upon receipt of a written request under the Freedom of Information Act, SBA will make all public comments available.

For further information contact:

Contact the SBA's Office of Size Standards at (202) 205-6618 or sizestandards@sba.gov.

Supplementary information:

SBA's 37 small business size standards have evolved over the past 40 years from a considerably smaller number that applied only to SBA's financial assistance programs and to Federal procurement programs. Presently, there are size standards for 1,151 industries and 11 special financial and procurement programs. Many of these size standards resulted from the expansion and development of new SBA programs, the increasing size and complexity of the U.S. economy, and demands from small businesses to address unique situations.

SBA's current size standards use two primary measures of business size—number of employees and average annual receipts. Financial assets, electric generation, and refining capacity are used for a few specialized industries. In addition, SBA's Small Business Investment Company (SBIC) and the Certified Development Company (CDC) Programs determine small business eligibility based on either the industry-based size standards or net worth and net income size standards.

The current structure of SBA's size standards has worked well. However, several recurring criticisms suggest that SBA should consider improving their current structure. These criticisms raise questions about the complexity of determining if a business is small, the fairness of defining a business as small in some industries but not others, the influence of Federal procurement programs in establishing size standards, and the intentional misclassification of Federal contracts or the primary industry activity of a business to apply a different, and usually a much higher, size standard.

SBA's last comprehensive attempt to address size standards was in the late 1970s and early 1980s. Although SBA considered several approaches, it made only a few minor changes. The most important change replaced two sets of size standards, one for procurement programs and one for financial programs, with a single set for all programs. SBA also adjusted receipts-based size standards for inflation and formalized a methodology for evaluating size standards.

In the early 1990s, SBA proposed to streamline size standards with nine levels of size standards (four receipts-based size standards and five employee-based size standards) similar to one aspect of this proposed rule. Public comments tended to favor this approach. However, SBA determined that converting receipts-based size standards in effect at that time to one of four proposed receipts levels created a number of unacceptable anomalies and, therefore, did not adopt it as a final rule.

Currently, SBA's size standards consist of 37 different size levels which apply to 1,151 industries and 13 sub-industry activities in the North American Industry Classification System (NAICS). In addition, a size standard has been established for 11 financial and procurement programs. Thirty size standards are based on annual receipts, five are based on number of employees, and two are based on other measures. Table 1a below summarizes the current receipts-based size standards and Table 1b summarizes the current employee-based and other size standards.

Table 1a.—Size Standards Based on Annual Receipts
Range of receipts-based size standardsNumber of differentreceipts- based size standards in the range Number of industries covered by sizestandards in this range
$48.5 million 1 1
$21.5 million to $30 million 8 52
$12.5 million to $21 million 7 24
$12 million 1 24
$7 million to $11 million 7 46
$6 million 1 337
$1.5 million to $4 million 4 18
$0.75 million 1 46
Table 1b.—Employee-based and Other Size Standards
Size standardNumber of industries covered by the size standard
1,500 employees 17
1,000 employees 66
750 employees 63
500 employees 388
100 employees 71
$150 million in assets 6
4 million megawatt hours 6

Most variations in size standards occur among those based on annual receipts. In many cases, a specific receipts-based size standard applies to only one or a few industries. SBA believes it can simplify size standards and make them less complicated by establishing a single size standard measure and reducing the number of different size standard levels. With fewer size standards, they will be clearer, more consistent, and easier to understand, resulting in less confusion to users, particularly the non-governmental users, such as small businesses. In addition, a single size measure eliminates a problem that some concerns encounter when they operate in different industries that have different size standard measures. The information technology industries provide a good example of this situation. Many information technology businesses provide both goods and services. Yet, SBA's size standards are based on number of employees for providers of computer and peripheral equipment and receipts for providers of computer services. Consequently, an information technology business may be small for one type of work but not small for a related activity.

Proposal to Use Employee-based Size Standards for All Industries

SBA proposes to restructure its size standards by establishing an employee-based size standard for each industry. The number of employees of a business concern is its average number of persons employed for each pay period over the firm's latest 12 months and includes the employees of all affiliates. Any person on the payroll must be included as one employee regardless of hours worked or temporary status. The number of employees of a firm in business under 12 months is based on the average for each pay period it has been in business. For more information on how SBA calculates the employment size of a business, see 13 CFR 121.106.

The size standards currently based on number of employees will be retained at their current levels. This proposal converts the current size standards that are based on receipts, financial assets, or generating capacity to employee-based size standards. SBA proposes to establish an employee-based size standard which varies for each industry, but is limited to one of the following ten employee levels:

Table 2.—Proposed Employee Size Standard Levels
50 100 150 200 300
400 500 750 1,000 1,500

SBA believes that fewer size standard levels also help to simplify size standards. In converting receipts-based size standards to employee-based size standards (described further below), five new employee size levels (50, 150, 200, 300, and 400) along with the current five employee size levels (100, 500, 750, 1,000 and 1,500) results in employee-based size standards that equate to about the same number of eligible small businesses as does the current receipts-based size standards. A fewer number of employee size levels would result in a much larger number of businesses gaining or losing small business eligibility while a greater number of employee size levels would apply to only a small number of businesses and not simplify the size standards to the same degree.

Why the SBA Proposes Employee-Based Size Standards for All Industries

SBA believes that a single measure of size helps make size standards less complex. Having a single size measure simplifies the structure and enables SBA to establish fewer size standard levels. Under a structure composed of one size measure and fewer size standard levels, many small businesses that currently operate in several industries each with different size standards would in many cases be subject to only one or two different size standards under the proposed employee-based size standards. SBA believes that the benefits of simplification that come from having a single size measure outweigh the benefits of retaining multiple size measures.

Proposing number of employees as the only measure of business size departs from SBA's long tradition of using receipts and other non-employee size measures. SBA has generally utilized receipts as a preferred size measure because it constitutes the value of a concern's output. Other measures of size are used where receipts tend to skew the value added by a concern in the production of goods and services. For example, SBA uses number of employees to define a small manufacturing concern. For manufacturing, two manufacturers in the same industry with the same number of employees can generate significantly different receipts depending on the number of stages in their production operations. Receipts for a manufacturer in its final production stage include the value added by the manufacturer(s) in its earlier production stages. This is true even though the value added by the final manufacturer may be minor relative to the value of the final product. Because of this characteristic of manufacturing, number of employees has a stronger correlation to value added than do receipts.

Several aspects of employee-based size standards support SBA's decision to use them as the single measure of sizefor all industries. The single best reason to do so is that they do not vary with changing economic conditions. Inflation, for example, has no direct impact on employee-based size standards. Similarly, rising costs unique to an industry have no direct impact on employee-based size standards. An ideal size standard would not affect eligibility, unless a company's level of real output of goods and services changes.

Employment also tends to be a more stable measure of business size. Businesses have economic incentives to maintain their workforce as business fluctuates to avoid recruitment and training costs. Using overtime can satisfy short-term increases in output until management is convinced that a permanent increase in business activity justifies adding personnel. Most businesses, especially small businesses, display a strong commitment to their employees and they are reluctant to change employment levels frequently in response to short-term business considerations.

Finally, number of employees is a widely accepted measure of business size. More than half of the present SBA size standards are expressed in employees. Although employment is an input into the production of goods and services, it generally accounts for a significant portion of total costs. A business's employment level is a representative indicator of its resources as well as its scale of operations. In one of the few studies conducted on an appropriate size standard measure, two researchers concluded that the number of employees of a business had a stronger correlation with the qualitative description of a small business (an approach to defining a small business preferred by many small business analysts) than did receipts. (See“Definition of Small Business,” Scott Holmes and Brian Gibson, The University of Newcastle, April 5, 2001. The report is available at http://www.smallbusiness.org.au/sbc/publications/sbc004a.htm.)

How SBA Determined the Number of Employees for Size Standards With Annual Receipts and Other Size Measures

SBA developed criteria for deciding which of the ten employee size standard levels to apply to an industry that currently has a receipts-based size standard. These criteria were designed to convert a receipts-based size standard to an equivalent employee-based size standard. The primary tool used to calculate the equivalent employee size standard associated with a receipts-based size standard is the receipts-to-employee ratio for an industry. Data to calculate these ratios were provided to the SBA by the U.S. Bureau of the Census in a special tabulation of the 1997 Economic Census (The 1997 Economic Census is available at

http://www.census.gov/epcd/www/econ97.html). Since total receipts in an industry are provided along with employees in the industry, SBA was able to calculate receipts per employee ratios for almost all industries covered by this rule. These ratios were next adjusted 8.54% to account for inflation that occurred from 1997 to 2002 (the year in which receipts-based size standards were last adjusted for inflation). SBA used the chain-type price index for gross domestic product (GDP) (as published by the U.S. Department of Commerce, Bureau of Economic Analysis, and is available at

http://www.bea.gov/bea/ARTICLES/2003/10October/D-Pages/1003DpgC.pdf), which is a broad measure of inflation for the economy as a whole. The resulting figure was divided into the present receipt-based size standard for the industry under review to calculate an employee equivalent size standard. This employee equivalent size standard was then rounded to the closest of the ten employee size standard levels to minimize the difference between the current receipts-based size standard and the calculated employee-based size standard.

The criteria also preserve the common size standard level that SBA currently has established for related industries. That is, for closely related industries that have the same receipts size standard, SBA has proposed an employee size standard that best represents an equivalent employee size standard for that group of industries, such as the computer services industries.

Below are the criteria and how SBA applied them to receipts-based size standards.

Selection of Employment Size Standard for Industries With a $6 Million Size Standard

For industries with a $6 million size standard, SBA had three considerations. The first consideration was whether to propose a 50 employee size standard for those industries. SBA's methodology for evaluating a size standard for a nonmanufacturing industry presumes that $6 million in average annual receipts is an appropriate size standard. This size standard is generally referred to as the “nonmanufacturing anchor size standard.” SBA considers a size standard higher or lower than the anchor level as appropriate for an industry when the structural economic characteristics of the industry are significantly different from the typical nonmanufacturing industry. SBA has decided to retain the concept of an anchor size standard for the nonmanufacturing industries as part of its restructuring and simplification of size standards. However, SBA proposes that the anchor size standard will be expressed in number of employees rather than receipts. Based on the ratio of receipts to employees in the nonmanufacturing industries, 50 employees is the employee anchor size standard for the nonmanufacturing industries. SBA is proposing a 50 employee size standard for industries currently with a $6 million size standard, unless the criteria discussed in the second and third considerations are present within an industry.

SBA's second consideration was whether the size standard should be higher than the 50 employee size standard anchor for industries where the conversion of receipts to employees produces a figure significantly above 50 employees. The SBA has decided to propose a size standard of 50 employees for industries where the conversion produces an equivalent size standard from 51 to 74 employees, since these levels round to the closest of the ten proposed employee size standards. For industries where the receipts to employees conversion results in a figure of 75 employees or more, the SBA selected a size standard above 50 employees, but only if other information justified the higher size standard. In these cases, a higher size standard is appropriate to (1) reflect the industrial structure of the industry, or (2) avoid a significant reduction in the number of small businesses currently eligible to compete for Federal procurements. [1]

SBA's third consideration examined the relationship of the size standard with other size standards within anindustry subsector or industry group (three-digit and four-digit NAICS codes, respectively). For several industries with a $6 million size standard, SBA decided to propose a size standard greater than 50 employees in order to maintain the size standard relationship within their industry group (such as for the Land Subdivision and Land Development industry, NAICS 236110).

An example of the decision process utilizing the three criteria is Barber Shops (NAICS 81211), whose present size standard is $6 million. Dividing $6 million by the inflation-adjusted figure of $34,700 receipts per employee resulted in the equivalent size standard of 172 employees. This level rounds to 150 employees using the preselected employee size standards. However, the SBA believes that a 150 employee size standard for barber shops is too high, and that the 50 employee proposed anchor size standard better matches the industry structure for barber shops, as well as public perception of what constitutes a small business in this industry. This industry has one of the largest concentrations of very small businesses, where the average size barber shop is only three employees.

By contrast, the present size standard for the Other Airport Operations industry (NAICS 488119) has the same $6 million anchor size standard. Dividing $6 million by the $56,969 receipts per employee resulted in the equivalent size standard of 105 employees, which the SBA rounded to 100 employees. The average size firm in this industry has 49 employees—more than four times the average size firm of 11 employees for the nonmanufacturing industries with a $6 million size standard. In addition, the 50 employee anchor size standard would render approximately 50 currently defined small businesses ineligible to compete for Federal procurements that require small business status. In FY 2002, the Federal Government awarded more than $280 million in contract awards, with small businesses obtaining less than $17 million in contracts. A 50 employee size standard would have the unintended result of further diminishing the participation of small businesses in Federal contracting within this industry activity.

Three hundred and thirty-seven industries have a size standard of $6 million. In applying the above considerations, SBA proposes a 50 employee size standard for 315 industries, and a higher size standard for the remaining 21 industries. The chart below identifies the 21 industries with a size standard higher than 50 employees and the basis for proposing a higher size standard.

Table 3.—Industries Currently With a $6 Million Size Standard That SBA Proposes a Size Standard Higher Than 50 Employees
NAICS codesNAICS industryProposedemployee size standard Reason for employee size standard different fromanchor size standard
237210 Land Subdivision 200 Common size standard for all industries in Subsector 237 and impact on Federal procurement.
485111 Mixed Mode Transit Systems 100 Common size standard for most transit industries (NAICS Subsector 485).
485112 Commuter Rail Systems 100 Common size standard for most transit industries.
485113 Bus and Other Motor Vehicle Transit Systems 100 High average firm size.
485119 Other Urban Transit Systems 100 Common size standard for most transit industries.
485210 Interurban and Rural Bus Transportation 100 High average firm size.
485410 School and Employee Bus Transportation 100 High average firm size and common size standard for most transit industries.
485510 Charter Bus Service 100 Common size standard for most transit industries.
486210 Pipeline Transportation of Natural Gas 100 High average firm size and common size standard with NAICS 486990, All Other Pipeline Transportation.
488119 Other Airport Operations 100 High average firm size and impact on Federal procurement.
488190 Other Support Activities for Air Transportation 100 Common size standard with NAICS 488119 and impact on Federal procurement.
512131 Motion Picture Theatres (except Drive-In) 100 High average firm size.
518112 Web Search Portals 150 Common size standard for all industries in Subsector 518 and impact on Federal procurement.
561422 Telemarketing Bureaus 150 High average firm size.
621910 Ambulance Services 100 High average firm size and common size standard with other ambulatory health services.
711310 Promoters of Performing Arts, Sports, Similar Events with Facilities 100 High average firm size.
713110 Amusement and Theme Parks 100 High average firm size.
713920 Skiing Facilities 200 High average firm size.
721110 Hotels (except Casino Hotels) and Motels 100 High average firm size and impact on Federal procurement.
721120 Casino Hotels 100 High average firm size and common size standard with hotels and motels.
812930 Parking Lots and Garages 100 High average firm size.

Selection of Employment Size Standard for Industries Size Standards Above or Below $6 Million

For industries that have a size standard below $6 million, SBA has proposed 50 employees. This would establish the policy that any business with 50 or fewer employees is a small business regardless of its industry. Only a few industries would be affected by this proposal, and we strongly believe that the benefits of simplification outweigh any impact on SBA's programs or on other Federal small business programs.

For industries with a size standard above $6 million, SBA calculated an equivalent employee size standard based on the ratio of receipts to employees. For example, the receipts per employee of a computer systems design firm is $152,000. A firm of $21 million equates to a firm with 127 employees. Because SBA is proposing to have size standards at one of ten employee levels, SBA rounded this figure to the nearest employee size standard, or 150 employees.

For most of these industries, SBA proposes the size standard resulting from the receipts per employee ratio. For closely related industries (those within the same 4-digit NAICS Industry Group or 3-digit NAICS Subsector) that currently have a common receipts-based size standard, SBA proposes a common employee-based size standard, even though a different size standard could be established for each closely related industry based on the receipts-to-employee calculation. SBA recognizes that small businesses are often eligible for SBA assistance in a number of closely related industries, and it simplifies size standards if closely related industries have the same size standard. An example of this pattern is the computer services industries in which businesses typically operate in at least several of the nine computer services industries. After reviewing the equivalent employee-based size standards for the nine computer services industries, SBA is recommending a common size standard of 150 employees for all nine computer services industries. Examples of other industries where SBA proposes a common size standard include the consulting service industries, the trucking industries, the warehousing industries, and the waste management industries.

Summary of Proposed Employee Size Standards

In summary, the major factors influencing the proposed employee size standard are:

• A size standard of 50 employees generally applies when an industry receipt-based size standard is at the present anchor of $6 million in average annual receipts or is less than $6 million;

• An employee size standard above 50 employees applies to an industry with a $6 million size standard if the calculated equivalent employee size standard is above 76 employees and industry structure, existing size standards relationships, or Federal procurement implications merited a size standard above 50 employees.

• An employee size standard for an industry above $6 million is based on the calculated equivalent employee-based size standard.

• Exceptions to these rules occurred when SBA attempted to maintain traditional size standards relationships within closely related industries.

Selection of Employment Size Standard for Industries With Size Standards Based on Electric Generation and Financial Assets

The size standard for the industries involved in the generation, transmission, or distribution of electric energy (NAICS 221111-221122) is 4 million megawatts of total electric output (see footnote 1 of the table to size standards in § 121.210). The U.S. Bureau of the Census does not publish capacity data on businesses in this industry. SBA identified small electric utilities from the U.S. Department of Energy's publication “Financial Statistics of Investor-Owned Electric Utilities, 1996” (available at

http://www.eia.doe.gov/cneaf/electricity/invest/invest _sum.html). SBA reviewed publicly available information, such as Security and Exchange Commission 10-K reports, to determine the employment levels of small electric utilities. Based on this review, SBA is proposing a 1,000 employee size standard for the electrical generation, transmission, and distribution industries. At that employment size, electric utilities under the current 4 million megawatt size standard would continue to be defined as small without adding other electric utilities as small.

The size standard for the banking and other credit intermediation industries (NAICS 522110—522210, and 522293) is $150 million in financial assets (see footnote 8 to the table of size standards in § 21.201). The U.S. Bureau of the Census does not publish industry financial data on the banking and credit industries. Using asset and employment data published by the Federal Deposit Insurance Corporation's Statistics on Depository Institutions (available at http://www2.fdic.gov/SDI/main4.asp), the average assets per employee of smaller banks is about $2.5 million. Based on those data, a $150 million bank would have, on average, about 60 employees. Applying the methodology described above, SBA is proposing a 50 employee size standard for banking and other credit intermediation industries since that is the nearest of the ten employee size standards proposed by this rule.

Proposal To Add a Maximum Average Annual Receipts Cap as an Additional Component of the Size Standard for Certain Industries

SBA further proposes that 31 industries will have a maximum average annual receipts amount (referred to as a receipts cap) along with the employee-based size standard. To qualify as small, concerns in those industries would have to be no greater in size than the employee-based size standard and have average annual receipts less than the receipts cap amount. SBA proposes that 36 size standards in the following 31 industries have an annual receipts cap along with the proposed employee size standard. Table 4, below, lists those industries and SBA's proposed employee size standards and receipts caps.

Table 4.—Industries With Proposed Receipts Caps
NAICS codesNAICS U.S. industry titleProposed number ofemployees Proposed maximumannual receipts ($ million)
115310 Support Activities for Forestry 50 N/A
Except, Forest Fire Suppression 400 $20.0
Except, Fuels Management Services 400 $20.0
236115 New Single-Family Housing Construction (except Operative Builders) 150 $35.0
236116 New Multifamily Housing Construction (except Operative Builders) 150 $35.0
236117 New Housing Operative Builders 150 $35.0
236118 Residential Remodelers 150 $35.0
236210 Industrial Building Construction 150 $35.0
236220 Commercial and Institutional Building Construction 150 $35.0
237110 Water and Sewer Line and Related Structures Construction 200 $35.0
237120 Oil and Gas Pipeline and Related Structures Construction 200 $35.0
237130 Power and Communication Line and Related Structures Construction 200 $35.0
237210 Land Subdivision 200 $35.0
237310 Highway, Street, and Bridge Construction 200 $35.0
237990 Other Heavy and Civil Engineering Construction 200 $35.0
Except, Dredging and Surface Cleanup Activities 150 $22.0
518210 Data Processing, Hosting, and Related Services 150 $30.0
541310 Architectural Services 50 $7.0
541330 Engineering Services 50 $7.0
Except, Military and Aerospace Equipment and Military Weapons 200 $30.0
Except, Contracts and Subcontracts for Engineering Services Awarded Under the National Energy Policy Act of 1992 200 $30.0
Except, Marine Engineering and Naval Architecture 150 $30.0
541511 Custom Computer Programming Services 150 $30.0
541512 Computer Systems Design Services 150 $30.0
541513 Computer Facilities Management Services 150 $30.0
541519 Other Computer Related Services 150 $30.0
541611 Administrative Management and General Management Consulting Services 50 $10.0
541612 Human Resources and Executive Search Consulting Services 50 $10.0
541613 Marketing Consulting Services 50 $10.0
541614 Process, Physical Distribution and Logistics Consulting Services 50 $10.0
541618 Other Management Consulting Services 50 $10.0
541620 Environmental Consulting Services 50 $10.0
541690 Other Scientific and Technical Consulting Services 50 $10.0
541990 All Other Professional, Scientific and Technical Services 50 $10.0
561110 Office Administrative Services 50 $10.0
561210 Facilities Support Services 400 $40.0
611519 Other Technical and Trade Schools 50 N/A
Except, Job Corps Centers 400 $30.0

In some industries, businesses have more latitude in deciding whether to hire employees to perform work or to subcontract the work to others. For example, general contractors can decide what and how much construction work to perform themselves and what work to subcontract to others. Under an employee-based size standard, a business may exceed the size standard because it decided to perform more work in-house while another business performing the same level of work stays under the employee size standard because more work is subcontracted. Under SBA's Small Business Size Regulations, the employees of a subcontractor are not included in counting the number of employees of a business (unless affiliation was found between the business and subcontractor). SBA recognizes that such decisions and their implications on small business status are best made by the management of concerns that will be affected. SBA is concerned, however, about cases where businesses operating in industries that have greater latitude in subcontracting significant portions of work purposely subcontract an unusual amount of work relative to customary industry practices to retain small business status. Because of this potential, SBA proposes to establish an average annual receipts cap along with employee size standards in the 31 industries listed in Table 4, above.

In the industries for which SBA proposes an employee-based size standards and receipts cap size standard, it expects that most businesses which are small under the applicable employee size standard will also meet the corresponding receipts cap. The purpose of the receipts cap is to prevent businesses from creatively manipulating their employment levels to remain small. Without such a receipts cap requirement, SBA might otherwise, and inappropriately, provide large businesses with assistance that is intended for small businesses, and put small businesses in the position of competing against businesses that by any consideration are not small. As discussed further below, the receipts cap will include almost all businesses under the employee size standard, but exclude those businesses that have an inordinate amount of receipts for their level of employment.

How the SBA Determined the Maximum Annual Receipts Cap Level for the Industry Activities in Table 4 (Above)

The methodology in determining the receipts caps was to first examine the size distribution of firms that are presently in SBA's Procurement Marketing and Access (PRO-Net) database which was merged with the Department of Defense Central Contractor Registration—the SBA's list of small businesses interested in doing business with the Federal Government. For each of the 31 industries under review, it has data on the number ofemployees and the annual receipts of each firm in that database that is active in the industry. SBA analyzed employment and receipts data of small businesses near the proposed employee size standard. By calculating a receipts to employee ratio for each of these small businesses, and then multiplying that ratio by the proposed size standard in employees, the SBA was able to estimate at what point a small business would lose eligibility under a receipt cap if it were to expand to the new size standard limit based on employees. In other words, if a business has 110 employees, what level of receipts would it produce if it expanded to a proposed 150 employee size standard.

The proposed receipt caps were designed to permit a majority of the small businesses that are presently under the size standard to expand to the proposed employee-based size standard without exceeding the dollar caps. The receipts caps proposed generally range from 22% to 35% higher than the current receipts size standards for those industries with a size standard of $15 million or higher, and from 67% to 74% higher than the current receipts size standard for those industries that have a receipts size standard of $6 million or less. The only exemption to this analysis was for the newly established Job Corps Centers size standard (part of NAICS 611519). This sub-industry consists of a small number of businesses. The current receipts size standard fully captures all small businesses under the proposed employee size standard for this sub-industry category and is retained as the receipts cap.

Simplification of Other Program and Special Size Standards

SBA has established a number of size standards to meet the needs of specific programs or to address special Federal procurement considerations. SBA proposes to eliminate or modify six of these size standards in an attempt to further simplify size standards and to apply consistent size standards for all Federal Government programs and purposes.

1. Surety Bond Guarantee (SBG) Program size standard: SBA proposes that any construction (general or special trade) concern or a concern performing a contract for services is small provided it meets the size standard for the NAICS code for its primary industry. Currently, the size standard for the SBG Program is $6 million for performing contracts for construction (general or special trades) or services (see 13 CFR 121.301(d)(1)).

Federal procurement regulations require a contractor to meet the size standard for the NAICS code that best describes the principal purposes of the procurement. Therefore, if a contractor bids and is successful as a prime contractor on a Federal procurement, it may qualify as a small business if it meets the size standard for the procurement, even if the size standard exceeds $6 million. Further, § 121.305 states “A concern qualified as small for a particular procurement, including an 8(a) subcontract, is small for financial assistance directly and primarily relating to the performance of the particular procurement.” SBA's SBG Program is a financial assistance program, and contractors awarded Federal contracts requiring a surety bond are therefore eligible for SBA's guarantee on the bond, if a guarantee is needed, including those with size standards in excess of $6 million, provided the contractor meets the size standard for its industry.

However, for SBA to guarantee a surety bond involving a subcontract or a bond running to an obligee other than the Federal Government, such as a private owner or non-Federal political subdivision or agency, a contractor is not eligible for an SBA guarantee unless it meets the current $6 million size standard. SBA believes this is inconsistent with the intent of its SBG Program because it does not provide assistance to small businesses otherwise eligible as small for SBA's other financial assistance programs. SBA proposes to eliminate the $6 million size standard. SBA proposes, rather, that a contractor applying for SBA's guarantee meet the size standard for its primary industry for any bond (§ 121.301(d)). This is consistent with the intent of this proposed rule, which is to base all size standards on number of employees and have a single size standard for all programs.

2. Petroleum refining size standard: The size standard for the Petroleum Refineries industry (NAICS 324110) is 1,500 employees. In addition, for purposes of the Federal Government's procurement of refined petroleum products, the refiner may not have more than 125,000 barrels per calendar day (bpcd) capacity of petroleum-based inputs, including crude oil or bona fide feedstocks. This is included in Footnote 4 to SBA's current table of small business size standards. SBA increased the refining capacity from 75,000 bpcd to 125,000 bpcd, effective April 28, 2003 (see 68 FR 15047 dated March 28, 2003, available at http://www.sba.gov/size/indexwhatsnew.html#petrol-fr).

SBA proposes to extend the 125,000 bpcd size standard component to all Federal Government programs. Before the April 28, 2003 revision, SBA had progressively increased the refining capacity component over a number of years. In its last two rulemaking actions pertaining to the petroleum refining size standard, SBA's proposed rules included a request for comments on whether SBA should retain or eliminate the refining capacity component. SBA retained it because industry comments have always been very strong in favor of doing so. The petroleum refining industry has always affirmed that refining capacity is the single best measure of a refiner's size. Further, it is the same measure that the U.S. Department of Energy, Energy Information Administration, uses to assess the size of refiners and their refineries.

Before proposing to increase the refining capacity component, SBA studied the petroleum refining industry to analyze the effect that it would have on existing small businesses. The final rule increasing it to 125,000 bpcd did not increase the number of small businesses, nor did any small businesses lose eligibility. That is, there was no change in the number of small refiners. There were other reasons for the rule, more fully described in the Federal Register notice cited above. This proposed change (footnote 5, § 121.201) is consistent with SBA's intention to simplify size standards, by having a single size standard apply to an industry for all Federal Government programs and purposes.

Because the remaining eligibility requirements for petroleum refiners are Federal procurement specific, and not part of the size standard, SBA does not propose to extend them to other Federal programs.

3. Tire manufacturing size standard: The size standard for the Tire Manufacturing (except Retreading) industry (NAICS 326211) is 1,000 employees. For the Federal Government's procurement of pneumatic tires under this NAICS code and within Census Classification codes 30111 and 30112, SBA has established an alternative size standard based on a concern's share of the worldwide tire market (see Footnote 5 to SBA's current table of size standards). Tire manufacturers satisfying the provisions of this alternative size standard exceed 1,000 employees in size. SBA implemented these requirements effective January 18, 1967 (see 31 FR 15737). SBA believes, based on Federal procurement data, that this footnote is no longer necessary. A review of Federalcontract awards in fiscal years 2001 and 2002 found that all small businesses receiving tire supply contracts met the current 1,000 employee size standard. SBA therefore proposes to eliminate this alternative size standard.

4. Sales or lease of Federal Government property: SBA proposes to modify the following three receipts-based and one employee-based size standards that pertain to programs involving the sale and lease of Federal Government property:

(a) Size standards for sales or leases of Government property: The current size standard for concerns not primarily engaged in manufacturing is $6 million (see § 121.502(a)(2)). SBA proposes to establish a size standard of 50 employees for those concerns. This is consistent with the intent of this proposed rule, which is to base all size standards on number of employees. Also, this proposal is consistent with the criteria to propose a 50 employee size standard for industries that currently have a $6 million size standard unless certain conditions exits. SBA does not believe industry or procurement factors exist to warrant a different size standard.

(b) Size standards for the purchase of Government-owned Special Salvage Timber: To purchase Government-owned Special Salvage Timber from the U.S. Forest Service or the U.S. Bureau of Land Management, a concern, with its affiliates, can have no more than 25 employees during any of its pay periods for the last twelve months, and must meet other requirements as well (see § 121.508). SBA proposes to increase this size standard to 50 employees. SBA believes that applying the 50 employee anchor size standard as a minimum size standard is warranted to achieve its overall goal of simplicity and uniformity among the various size standards. SBA does not propose to amend any other parts of § 121.508, since they are Federal procurement specific requirements and not part of the size standard.

(c) Size standard for leasing of Government land for coal mining: Under the current size standard, a concern, together with its affiliates, may have no more than 250 employees (see § 121.509(a)). SBA proposes increasing this to 300 employees. Retaining 250 employees as a size standard would increase the number of size standards overall (from 10 to 11), and this would be the only 250 employee size standard. SBA has decided to round up this size standard to the 300 employee level instead of rounding down to 250 employees to avoid eliminating eligibility of currently defined small businesses for this program.

(d) Size standard for stockpile purchases: Under the current standard, a concern, together with its affiliates, may not have average annual receipts that exceed $48.5 million (§ 121.512(b)). SBA proposes to establish a size standard of 400 employees for those concerns. Based on the ratio of receipts to employees of businesses with $48.5 million or less in receipts ($109,000 receipts per employee), this size standard equates to 445 employees. Four hundred employees is the closest of the 10 employee-based size standards proposed in this rule. SBA believes that the proposed size standard would not eliminate the eligibility of currently defined small businesses for this program

5. Nonmanufacturer size standard: The SBA proposes to revise the nonmanufacturer size standard from 500 employees to 100 employees. A nonmanufacturer is a business that provides a manufactured product to the Federal Government that it itself did not manufacture (see § 121.406(b)). Substantially all nonmanufacturers are in industries categorized within the Wholesale Trade industries (NAICS Sector 42). A size standard of 100 employees applies to wholesalers for SBA and Federal Government programs, except for Federal procurement programs. Therefore, to further the simplification of small business size standards, the SBA is proposing to eliminate the special 500 employee nonmanufacturer size standard by applying the 100 employee size standard for Wholesale Trade to Federal procurement programs.

SBA continues to believe that 100 employees is an appropriate size standard for the Wholesale Trade Sector. The average size of a wholesaler is 16 employees. Wholesalers with fewer than 100 employees comprise 97% of all wholesalers, employ about 50% of all employees, and generate one-third of total industry receipts. The relatively small share of total industry receipts generated by small wholesalers, however, reflects the significantly higher receipts per employee generated by larger wholesalers in the industry than by small wholesalers. Given the industry share of firms and employment of wholesalers with fewer than 100 employees, SBA believes a current Wholesale Trade Sector size standard of 100 employees would be an appropriate size standard.

Exceptions to the SBA's Proposal To Simplify Size Standards by Basing All of Them on Number of Employees

This proposed rule does not change three size standards, because they are either established by statute or reflect unique program objectives. To ensure that the public is aware of the reasons for not modifying these size standards, SBA explains why it does not propose to modify the following:

1. Agricultural Enterprises: The Small Business Act (15 U.S.C. 632(a)(1)) states in section 3(a)(1) “an agricultural enterprise shall be deemed to be a small business concern if it (including its affiliates) has annual receipts not in excess of $750,000.” This provision applies to concerns in the Crop Production (NAICS Subsector 111) and Animal Production (NAICS Subsector 112) industries. SBA has no authority to modify this Congressionally-mandated size standard.

2. Net Worth/Net Income: Size standards based on the net worth and net income of a business concern are an alternative to SBA's industry-based size standards for the CDC and SBIC financial assistance programs authorized under Title III and Title V of the Small Business Investment Act (Pub. L. 100-107). That is, an applicant may qualify as a small business if it meets the size standard for its primary industry or the net worth and net income size standards. For the CDC program, an applicant must meet either: (a) SBA's size standard established for its primary industry activity; or (b) have tangible net worth not in excess of $7 million and average net income after Federal income taxes for its two preceding completed fiscal years not in excess of $2.5 million (§ 121.301(b)). For assistance under SBA's SBIC Program, an applicant must meet either: (a) SBA's size standard established for its primary industry activity; or, (b) with its affiliates, have tangible net worth not in excess of $18 million and average net income after Federal income taxes for its two preceding completed fiscal years not in excess of $6 million (§ 121.301(c)).

The alternative net worth and net income size standards for the CDC and SBIC programs have been in place for many years and have worked well in serving the intended beneficiaries. Most small businesses qualifying under the net worth and net income size standards also qualify under the industry-based size standards. However, the option to qualify as small under the industry-based size standards ensures that a small business eligible for other SBA programs is also eligible for assistance under the CDC and SBIC Programs. Therefore, SBA believes that the net worth and net income size standards should be retained for these programs.

Impact on Small Business Eligibility of the Proposed Rule

This proposed rule would change the 514 size standards that are based on receipts, financial assets, or electric generation. As discussed above, the proposed conversion of these receipts-based size standards to employee-based size standards attempts to establish an employment level that is generally equivalent to the receipts-based size standard. Because of variation within industries, some businesses will gain or lose small business eligibility. The decision to establish only ten employee size standard levels also results in some businesses gaining or losing small business eligibility. An analysis of the impact of the proposed rule on small business eligibility shows that a relatively small number of businesses will be affected. Out of approximately 4.4 million businesses in the industries with revised size standards, 35,200 businesses could gain and 34,100 could lose small business eligibility, with the net effect of 1,110 additional businesses defined as small. The 69,300 businesses affected by this proposal represent 1.6% of the 4.4 million businesses in industries with changing size standards. The regulatory impact and regulatory flexibility analyses discussed below describe the impact of this proposal in greater detail.

Alternatives to This Proposed Rule

SBA considered a number of alternative approaches to simplify and restructure its size standards. These are briefly described below. SBA welcomes comments on these alternatives or other alternatives to restructure and simplify size standards.

1. Retain the existing employee-based size standards, while reducing the 30 receipts-based size standards to a fewer number of size standard levels, such as four to eight different receipts size standards. This approach is similar to SBA's proposals of December 31, 1992 (57 FR 62522) and September 2, 1993 (58 FR 46573), which SBA did not adopt as final rules. As discussed above in this proposed rule, SBA believes a single size measure (with a receipts size standards cap for a limited number of industries) represents a less complicated set of size standards.

2. Establish size standards by industry category that would generally be based on NAICS Industry Sectors or Subsectors, such as the size standards of the three Construction Subsectors. Under this approach, SBA could establish a size standard by number of employees and/or receipts for each industry group, and size standards across industries would vary considerably less. This approach would limit SBA's ability to fully assess the need for distinct size standards for specific industries, especially in the Professional, Scientific, and Technical Services Industry Sector.

3. Base all size standards on number of employees, with no receipts cap component. SBA discusses above in this proposed rule why it believes a receipts cap along with an employee size standard is needed for certain industries.

Request for Comments

SBA requests comments on its proposal to simplify and restructure size standards. Specifically, SBA requests comments on the following issues:

1. Are SBA's small business size standards complex, confusing or difficult to use? If so, please describe to what extent the proposed rule addresses this concern.

2. Should all small business size standards be based on number of employees?

3. Do the proposed size standards essentially maintain the level of small business eligibility within an industry that currently exists under the current receipts-based size standards?

4. Should there be a receipts cap component for those industries where subcontracting and outsourcing opportunities may allow a business to remain small but generate an unusually large amount of receipts?

5. Is it appropriate to apply an additional receipts cap requirement for the 31 industries in Table 4, above? Are there other industries that SBA should have a receipts cap?

6. Are the proposed receipts cap levels an appropriate or acceptable way to exclude large businesses?

7. Is one or more of the alternatives that SBA considered preferable to the proposed rule? If so, please explain why. What would be the impact of SBA's adopting one of the alternatives in place of the proposed rule?

8. Should SBA modify the size standard for its SBG Program and require that any construction (general or special trade) concern or concern performing a contract for services is small provided it meets the size standard for its primary industry?

9. Should SBA extend to all Federal Programs the 125,000 bpcd component of the size standard applicable to the Federal Government's procurement of refined petroleum, as described above?

10. Should the SBA eliminate the 500 employee size standard for nonmanufacturers applicable to Federal procurement programs and apply the Wholesale Trade Sector size standard of 100 employees?

11. Should SBA eliminate the special market share size standard for tire manufacturers, as described above?

12. Does the expanded use of employee-based size standards result in additional burdens on businesses verifying small business status or on Federal agencies that use SBA's size standards? These issues are discussed as part of SBA's regulatory impact and regulatory flexibility analyses of this proposed rule (see following two sections).

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

The Office of Management and Budget (OMB) has determined that this rule is a significant regulatory action for purposes of Executive Order 12866. Size standards determine which businesses are eligible for Federal small business programs. This is not a major rule under the Congressional Review Act, 5 U.S.C. 800. For purposes of Executive Order 12988, SBA has determined that this rule is drafted, to the extent practicable, in accordance with the standards set forth in that order. For purposes of Executive Order 13132, SBA has determined that this rule does not have any federalism implications warranting the preparation of a Federalism Assessment.

For purposes of the Paperwork Reduction Act, 44 U.S.C. Ch. 35, SBA has determined that this rule would not impose new reporting or record keeping requirements. It is important to note, however, that while there are no new reporting and record keeping requirements, the size status of a business in industries that currently have a receipts-based size standard will no longer be based on a concern's Federal Income Tax returns, except for those industries whose size standards have receipts caps. Rather, proof of eligibility as a small business will be a concern's payroll records for the period of measurement specified in § 121.106. SBA acknowledges that, in the event it must determine a business' employment size status, it may be more difficult to verify the accuracy of the payroll records submitted. At times, SBA may request a business provide more information to substantiate its employment information. SBA estimates that it takes four hours, on average, to complete an “Application for Small Business Size Determination” (SBA Form 355, OMB Approval No. 3245-0101). SBA invites comments onwhether using employee-based size standards for new industries would be significantly more burdensome on small businesses and result in additional time to complete SBA Form 355. If so, how could SBA reduce the burden?

Regulatory Impact Analysis

1. Need for This Regulatory Action

Small business size standards have become complicated and burdensome for many users. Because size standards have become more complex over time, SBA believes that they should be made more uniform and easier to use. SBA believes that these simplified size standards will be less of a hindrance to small businesses that would like to participate in Federal small business programs and to personnel involved in small business Federal procurement and lending programs.

SBA is chartered to aid and assist small businesses through a variety of financial, procurement, business development, and advocacy programs. To effectively assist intended beneficiaries of these programs, SBA must establish distinct definitions by which businesses are deemed small businesses. The Small Business Act (Act) gives the SBA Administrator responsibility for establishing small business definitions. The Act also requires that small business definitions vary to reflect industry differences. The supplementary information to this proposed rule explains how SBA proposes to modify size standards, and why it believes that establishing employee-based size standards for all industries will be simpler while defining small businesses as equally well as the current structure.

2. Potential Benefits and Costs of This Regulatory Action

Small businesses will benefit because they will find it easier to use the small business size standards to determine if they are a small business. Also, there will be more common size standards among similar industries. Because size standards will be perceived as being less confusing and more straightforward, more small businesses will be encouraged to participate in Federal Government small business programs.

Other users of SBA's small business size standards, such as Federal Government Contracting Officers and commercial lenders that participate in SBA's financial assistance programs, will also benefit. There will be fewer size standards and they will be able to apply them more easily to their needs, and provide better and faster service to small businesses in need of assistance.

In the Federal Government, SBA's size standards are used for procurement programs, the Small Business Innovation Research Program (SBIR), loan programs, and regulatory flexibility analyses; plus, agencies use the size standards for other programmatic purposes. Currently, six agencies use small business size standards for various programs specific to their agencies. After discussions with each of these agencies, SBA believes that this proposed revision of its size standards would not negatively impact any of the program objectives of these agencies. Three agencies viewed positively the objective of simplifying size standards.

The U.S. Department of Transportation pointed out that certain Federal, state and local disadvantaged businesses enterprise (DBE) programs administer programs to certify businesses as small DBEs. Most of the businesses seeking DBE certification come from the construction and services industries that currently have receipts-based size standards. The change to employee size standards from receipts size standards will require applicants for small DBE certification to state their size in terms of number of employees. If a certification office questions the employment size of an applicant, the applicant will have to substantiate their employment size based on payroll records. A review of payroll records is a more time-consuming process than reviewing an applicant's Federal Income Tax return when questions arise concerning the applicant's receipts size. SBA believes that in most cases, the additional time to request and evaluate an applicant's employment size will not be substantial. SBA requests comments on the use of employee size standards on the DBE certification process and how to minimize an additional burden, if any, on the DBE process.

If an agency believes that a size standard different from an SBA's size standard is appropriate for its programs, it must contact SBA. If the agency seeks to change size standards in a general rulemaking context, then the agency should contact SBA's Office of Size Standards (see 13 CFR 121.901-904). If the agency seeks to change size standards for the purposes of its analysis under the Regulatory Flexibility Act (RFA), then the agency should contact SBA's Office of Advocacy (Advocacy) pursuant to section 601(3) of the RFA. Section 601(3) of the RFA requires the agency to consult with Advocacy and provide opportunity for public comment when it uses a different size standard for the RFA analysis.

Additional costs to the Federal Government will be negligible, if any. There will be approximately 1,100 additional small businesses under the proposed restructured size standards. This is less than 0.03% of the businesses in the affected industries. SBA believes that there will be a savings to the Federal Government because there will be fewer size standards, all having employee-based measures, which will reduce administrative costs.

In this rule, the SBA also proposes to revise the nonmanufacturer size standard from 500 employees to 100 employees. The great majority of nonmanufacturers are categorized under Wholesale Trade Sector (NAICS Sector 42) in which the size standard for all industries is 100 employees, except for Federal procurements. To further the simplification, SBA is proposing the same size standard of 100 employees for Federal procurement for wholesale trade industries under the nonmanufacturer size standard. This shift from a 500 employee size standard to one of 100 employees is estimated to affect 744 firms active in Federal procurement based on the SBA's Pro-Net data base of firms interested in doing business with the Federal Government. This data base includes a total of 30,700 firms in the wholesale trade NAICS codes, and a percentage loss of 2.4% would occur if the 100 employee size standard were finalized.

SBA estimates that there will be little distributional effects if this proposed rule is adopted. Small business size standards primarily serve Federal Government agencies in their procurement programs. Federal prime contractors also use them in their subcontracting plans. Since there will be less than a 0.03% increase in newly eligible small businesses, it is possible that a very limited amount of the Federal contracts will transfer from non-small businesses to small businesses.

The proposed revision to the current size standard structure is consistent with SBA's statutory mandate to assist small business. This regulatory action promotes the Administration's objectives. One of SBA's goals in support of the Administration's objectives is to help individual small businesses succeed through fair and equitable access to capital and credit. Reviewing and modifying size standards, when appropriate, ensures that intended beneficiaries have access to small business programs designed to assist them. Size standards do not interfere with State, local, or tribal governments in the exercise of their government functions. In a few cases, State and local governments andpolitical subdivisions have voluntarily adopted SBA's size standards for their programs to eliminate the need to establish an administrative mechanism to develop their own size standards.

Initial Regulatory Flexibility Analysis

Under the RFA, this rule, if finalized, could have a significant impact on a substantial number of small entities because 35,200 businesses could gain and 34,100 could lose small business eligibility for Federal Government programs. SBA estimates that the net effect will be approximately 1,100 more eligible small businesses than at present. Immediately below, SBA sets forth an initial regulatory flexibility analysis of this rule addressing the following: (1) Need for and objective of the rule; (2) description and estimate of the number of small entities to which the rule will apply; (3) projected reporting, record keeping, and other compliance requirements of the rule; (4) relevant Federal rules that may duplicate, overlap, or conflict with the rule; and (5) alternatives to allow the Agency to accomplish its regulatory objectives while minimizing the impact on small entities.

1. Need for and Objective of the Rule

Small business size standards have become complicated and difficult to apply for many users. Because size standards have become so complex and confusing, SBA believes size standards should be more uniform and consistent, easier to use, and more reliable. SBA believes that these simplified size standards will be less of a hindrance to small businesses that would like to participate in Federal small business programs. In addition, it will reduce perceived impediments for providers of small business assistance who use them, such as personnel involved in Federal procurement and commercial lending, and possibly increase small business participation in Federal programs.

2. Description and Estimate of the Number of Small Entities To Which the Rule Will Apply

The SBA estimates that the simplification of size standards by converting receipt-based size standards to employee-based size standards will have a net impact of increasing the number of businesses eligible for SBA assistance by 1,100 firms. This includes an additional 35,200 businesses in 196 industries and the loss of 34,100 businesses in 229 industries. Overall, the SBA estimates that a total of 69,300 businesses could be impacted by this rule in terms of eligibility for SBA's programs. Since approximately 4.4 million businesses are active in industries covered by this rule, SBA estimates that 1.6% of businesses could be affected. However, the great majority of these businesses are not involved in SBA's programs in any one year, and the actual impact is likely to be only a small proportion of the 69,300 estimate. SBA's guaranteed loan program, for example, generated approximately 55,000 loans in FY 2002, indicating that just over one percent of eligible small businesses seek out SBA financial assistance in a given year. The SBA's PRO-Net database of small businesses interested in Federal procurement includes approximately 200,000 businesses—again, only a small proportion (about 4%) of businesses considered small by the SBA. Overall, SBA estimates that fewer than 3,000 businesses out of 4.4 million firms will be directly affected if these proposed changes were to be finalized, and that about half of these businesses would gain eligibility while the other half would lose eligibility.

Although the overall impact will be small relative to the number of businesses with revised size standards, certain industries will be impacted more than others. In particular, the SBA notes that the two restaurant industries, Full Service Restaurants (NAICS 722110) and Limited Service Restaurants (NAICS 722211), have the largest number of businesses losing eligibility for SBA assistance if this rule were to be finalized. In total, these two industries would lose about 14,600 businesses out of 272,000 businesses in both industries, a loss of 5.4% of the total. This stems from SBA's moving from a $6 million size standard to a 50 employee size standard in these industries. However, even under the new anchor size standard of 50 employees, 252,000 out of 272,000 businesses in these two restaurant industries would remain small and eligible for SBA assistance, almost 93% of the total. Other industries with relatively higher proportion of small businesses that could lose eligibility include Child Day Care Services (NAICS 624410), with a loss of 3.1% of businesses; Golf Courses and Country Clubs (NAICS 7138910), with a loss of 10.7% of businesses; Vocational Rehabilitation Services (NAICS 624310), with a loss of 20.7% of businesses; and Fitness and Recreational Sports Centers (NAICS 713940), with a loss of 5.4% of businesses. Among industries gaining eligibility, the biggest impact is Offices of Real Estate Agents and Brokers (NAICS 531210), with an additional 3,600 businesses out of a total of 54,700, or 6.6%.

Overall, SBA estimates that most industries will experience a very small impact from this rule relative to the total number of businesses that are active in industries covered by this rule. Among industries for which the SBA has industry data provided by the U.S. Bureau of the Census, there are a total of 440 industries with 4.4 million businesses, or approximately 10,000 businesses in the average industry. Of these 440 industries, 198 would have a total impact of fewer than 20 businesses, while 288 would have a total impact of fewer than 50 businesses.

Also in this rule, the SBA proposes to revise the nonmanufacturer size standard from 500 employees to 100 employees. The great majority of nonmanufacturers are categorized under Wholesale Trade Sector (NAICS Sector 42) in which the size standard for all industries is 100 employees, except for Federal procurements. To further the simplification, SBA is proposing the same size standard of 100 employees for Federal procurements for wholesale trade industries under the nonmanufacturer size standard. This shift from a 500 employee size standard to one of 100 employees is estimated to affect 744 firms active in Federal procurement based on the SBA's PRO-Net data base of firms interested in doing business with the Federal Government. This data base includes a total of 30,700 firms in the wholesale trade NAICS codes, and a percentage loss of 2.4% would occur if the 100 employee size standard were finalized.

3. Projected Reporting, Record Keeping, and Other Compliance Requirements of the Rule

The new table with all size standards based on number of employees does not impose any additional reporting, record keeping, or compliance requirements on small entities. Users may need to revise existing data bases that use current size standards. However, this is true anytime SBA changes or otherwise modifies a size standard. For example, a much more extensive change occurred when SBA converted from the Standard Industrial Classification (SIC) system to NAICS effective October 1, 2000, and later adopted, effective October 1, 2002, the U.S. Office of Management and Budget's 2002 modifications to NAICS. SBA was not made aware of any user problems with those actions.

It is important to note, however, that while there are no new reporting and record keeping requirements, the size status of a business in industries that currently have a receipts-size standard will no longer be based on a concern's Federal Income Tax returns, except forthose industries whose size standards have receipts caps. Rather, proof of eligibility as a small business will be a concern's payroll records for the period of measurement specified in § 121.106. SBA acknowledges that, in the event it must determine a business' employment size status, it may be more difficult to verify the accuracy of the payroll records submitted. At times, SBA may request a business to provide more information to substantiate its employment information. SBA estimates that it takes four hours, on average, to complete an “Application for Small Business Size Determination” (SBA Form 355). SBA invites comments as to whether using employee-based size standards for new industries would be significantly more burdensome on small businesses and result in additional time to complete a SBA Form 355 and, if so, how SBA could reduce the burden.

4. Relevant Federal Rules That May Duplicate, Overlap, or Conflict With the Rule

In the Federal Government, SBA's size standards are used for procurement programs, the SBIR Program, loan programs, and regulatory flexibility analysis; plus, agencies use the size standards for other programmatic purposes. Currently, six agencies use small business size standards for various programs specific to their agencies. After discussions with each of these agencies, SBA believes that this proposed revision of its size standards will not negatively impact any of the program objectives of these agencies. Three agencies viewed positively the objective of simplifying size standards.

The U.S. Department of Transportation pointed out that certain Federal, state, and local governments administer programs to certify businesses as small disadvantaged business enterprises (DBE). Most of the businesses seeking DBE certification come from the construction and services industries that currently have receipts-based size standards. The change to employee size standards from receipts size standards will require applicants for small DBE certification to state their size in terms of number of employees. If a certification office questions the employment size of an applicant, the applicant will have to substantiate its employment size based on payroll records. A review of payroll records is a more time-consuming process than reviewing an applicant's Federal Income Tax return when questions arise concerning the applicant's receipts size. SBA believes that in most cases, the additional time to request and evaluate an applicant's employment size will not be substantial. SBA requests comments on the use of employee size standards on the DBE certification process and how to minimize an additional burden, if any, on the DBE process.

5. Alternatives To Allow the Agency To Accomplish Its Regulatory Objectives While Minimizing the Impact on Small Entities

As discussed above in the Supplementary Information, there are three alternatives to the proposed rule: (a) Retain the existing employee-based size standards, while reducing the 30 receipts-based size standards to a fewer number of size standard levels, such as four to eight different receipts size standards; (b) establish size standards by industry category that would generally be based on NAICS Industry Sectors or Subsectors, such as the size standards of the three Construction Subsectors; and (c) base all size standards on number of employees, with no receipts cap component.

SBA believes the proposed size standards based on number of employees will simplify size standards and will likely have a minimal adverse impact on small entities. The other alternatives SBA considered would achieve fewer benefits in terms of simplifying size standards or have a much greater impact on the number of businesses either gaining or losing small business eligibility.

List of subjects in 13 cfr part 121

Administrative practice and procedure, Government procurement, Government property, Grant programs—business, Individuals with disabilities, Loan programs—business, Reporting and recordkeeping requirements, Small businesses.

For the reasons set forth in the preamble, SBA proposes to amend part 13 CFR Part 121.

Part 121—small business size regulations

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

Authority:

15 U.S.C. 632(a), 634(b)(6), 636(b), 637(a), 644(c), and 662(5); and Sec. 304, Pub. L. 103-403, 108 Stat. 4175, 4188, Pub. L. 106-24, 113 Stat. 39.

2. Revise § 121.201 to read as follows:

3. § 121.201What size standards has SBA identified by North American Industry Classification System codes?

The size standards set forth in this section apply to all SBA programs unless otherwise specified in this part. The size standards themselves are expressed in number of employees. Some of the NAICS industries have an additional maximum annual receipts amount. For those NAICS industries with additional annual receipts amounts, the business concern must not exceed the employee-based size standard and the annual receipts amount to qualify as a small business. The number of employees and annual receipts amount are together a single size standard, and they indicate the maximum allowed for a concern, together with its affiliates, to be considered a small business.

NAICS codesNAICS U.S. industry titleSize standards in number of employeesMaximumaverage annual receipts ($ million)
1 NAICS code 115310—Support Activities for Forestry: Forest Fire Suppression and Fuels Management Services are two components of Support Activities for Forestry. Forest Fire Suppression includes establishments which provide services to fight forest fires. These firms usually have fire-fighting crews and equipment. Fuels Management Services firms provide services to clear land of hazardous materials that would fuel forest fires. The treatments used by these firms may include prescribed fire, mechanical removal, establishing fuel breaks, thinning, pruning, and piling.
2 NAICS code 237990—Dredging: To be considered small for purposes of Government procurement, a firm must perform at least 40% of the volume dredged with its own equipment or equipment owned by another small dredging concern.
3 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.
4 NAICS code 311421—Fruit and Vegetable Canning: For purposes of Government procurement for food canning and preserving, the standard of 500 employees excludes agricultural labor as defined in section 3306(k) of the Internal Revenue Code, 26 U.S.C. 3306(k).
5 NAICS code 324110—Petroleum Refineries: To be an eligible small business, a firm may not have more than 1,500 employees or more than 125,000 barrels per day capacity of petroleum-based inputs, including crude oil or bona fide feedstocks. Capacity includes owned or leased facilities as well as facilities under a processing agreement or an arrangement such as an exchange agreement or a throughput. In addition, for the Federal Government's procurement of refined petroleum products, the total product to be delivered under the contract must be at least 90% refined by the successful bidder from either crude oil or bona fide feedstocks.
6 NAICS Subsectors 333—Machinery Manufacturing; 334—Computer and Electronic Product Manufacturing; 335—Electrical Equipment, Appliance and Component Manufacturing; and 336—Transportation Equipment Manufacturing: For rebuilding machinery or equipment on a factory basis, or equivalent, use the NAICS code for a newly manufactured product. Concerns performing major rebuilding or overhaul activities do not necessarily have to meet the criteria for being a “manufacturer” although the activities may be classified under a manufacturing NAICS code. Ordinary repair services or preservation are not considered rebuilding.
7 NAICS code 336413—Other Aircraft Parts and Auxiliary Equipment Manufacturing: Contracts for the rebuilding or overhaul of aircraft ground support equipment on a contract basis are classified under NAICS code 336413.
8 Subsector 483—Water Transportation—Offshore Marine Services: The applicable size standard shall be 150 employees 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.
9 NAICS code 531190—Lessors of Other Real Property, Leasing of Building Space to the Federal Government by Owners: For Government procurement, a size standard of 150 employees applies to the owners of building space leased to the Federal Government. The standard does not apply to an agent.
10 NAICS code 541710—Research and Development in the Physical, Engineering, and Life Sciences: For research and development contracts requiring the delivery of a manufactured product, the appropriate size standard is that of the manufacturing industry.
(a) “Research and Development” means laboratory or other physical research and development. It does not include economic, educational, engineering, operations, systems, or other nonphysical research; or computer programming, data processing, commercial and/or medical laboratory testing.
(b) For purposes of the Small Business Innovation Research (SBIR) program only, a different definition has been established. See§ 121.701 of these regulations.
(c) “Research and Development” for guided missiles and space vehicles includes evaluations and simulation, and other services requiring thorough knowledge of complete missiles and spacecraft.
11 NAICS 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 construction 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 construction activities are considered a single activity and classified as Base Housing Maintenance. Since Base Housing Maintenance is only one activity, two additional activities of separate NAICS industries are required for a procurement to be classified as “Facilities Support Services.”
12 NAICS 562910—Environmental Remediation Services:
(a) For SBA assistance as a small business concern in the industry of Environmental Remediation Services, other than for Government procurement, a concern must be engaged primarily in furnishing a range of services for the remediation of a contaminated environment to an acceptable condition including, but not limited to, preliminary assessment, site inspection, testing, remedial investigation, feasibility studies, remedial design, containment, remedial action, removal of contaminated materials, storage of contaminated materials and security and site closeouts. If one of such activities accounts for 50% or more of a concern's total revenues, employees, or other related factors, the concern's primary industry is that of the particular industry and not the Environmental Remediation Services Industry.
(b) For purposes of classifying a Government procurement as Environmental Remediation Services, the general purpose of the procurement must be to restore or directly support the restoration of a contaminated environment (such as, preliminary assessment, site inspection, testing, remedial investigation, feasibility studies, remedial design, remediation services, containment, removal of contaminated materials, storage of contaminated materials or security and site closeouts) and also the procurement must be composed of activities in three or more separate industries with separate NAICS codes or, in some instances (e.g., engineering), smaller sub-components of NAICS codes with separate, distinct size standards. These activities may include, but are not limited to, separate activities in industries such as: Heavy Construction; Special Trade Construction; Engineering Services; Architectural Services; Management Consulting Services; Hazardous and Other Waste Collection; Remediation Services; Testing Laboratories; and Research and Development in the Physical, Engineering and Life Sciences. If any activity in the procurement can be identified with a separate NAICS code, or component of a code with a separate distinct size standard, and that industry accounts for 50 percent or more of the value of the entire procurement, then the proper size standard is the one for that particular industry, and not the Environmental Remediation Service size standard.
13 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.
14 NAICS Sector 92—Public Administration: Small Business Size Standards are not established for this sector. Establishments in the Public Administration sector are Federal, state, and local government agencies which administer and oversee government programs and activities that are not performed by private establishments. Concerns performing operational services for the administration of a government program are classified under the NAICS private sector industry based on the activities performed. Similarly, procurements for these types of services are classified under the NAICS private sector industry that best describes the activities to be performed. For example, if a government agency issues a procurement for law enforcement services, the requirement would be classified using one of the NAICS industry codes under 56161, Investigation, Guard, and Armored Car Services.
15 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 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.
Sector 11—Agriculture, Forestry, Fishing and Hunting
Subsector 111—Crop Production
111110 Soybean Farming $0.75
111120 Oilseed (except Soybean) Farming $0.75
111130 Dry Pea and Bean Farming $0.75
111140 Wheat Farming $0.75
111150 Corn Farming $0.75
111160 Rice Farming $0.75
111191 Oilseed and Grain Combination Farming $0.75
111199 All Other Grain Farming $0.75
111211 Potato Farming $0.75
111219 Other Vegetable (except Potato) and Melon Farming $0.75
111310 Orange Groves $0.75
111320 Citrus (except Orange) Groves $0.75
111331 Apple Orchards $0.75
111332 Grape Vineyards $0.75
111333 Strawberry Farming $0.75
111334 Berry (except Strawberry) Farming $0.75
111335 Tree Nut Farming $0.75
111336 Fruit and Tree Nut Combination Farming $0.75
111339 Other Noncitrus Fruit Farming $0.75
111411 Mushroom Production $0.75
111419 Other Food Crops Grown Under Cover $0.75
111421 Nursery and Tree Production $0.75
111422 Floriculture Production $0.75
111910 Tobacco Farming $0.75
111920 Cotton Farming $0.75
111930 Sugarcane Farming $0.75
111940 Hay Farming $0.75
111991 Sugar Beet Farming $0.75
111992 Peanut Farming $0.75
111998 All Other Miscellaneous Crop Farming $0.75
Subsector 112—Animal Production
112111 Beef Cattle Ranching and Farming $0.75
112112 Cattle Feedlots 50
112120 Dairy Cattle and Milk Production $0.75
112210 Hog and Pig Farming $0.75
112310 Chicken Egg Production 50
112320 Broilers and Other Meat Type Chicken Production $0.75
112330 Turkey Production $0.75
112340 Poultry Hatcheries $0.75
112390 Other Poultry Production $0.75
112410 Sheep Farming $0.75
112420 Goat Farming $0.75
112511 Finfish Farming and Fish Hatcheries $0.75
112512 Shellfish Farming $0.75
112519 Other Animal Aquaculture $0.75
112910 Apiculture $0.75
112920 Horse and Other Equine Production $0.75
112930 Fur-Bearing Animal and Rabbit Production $0.75
112990 All Other Animal Production $0.75
Subsector 113—Forestry and Logging
113110 Timber Tract Operations 50
113210 Forest Nurseries and Gathering of Forest Products 50
113310 Logging 500
Subsector 114—Fishing, Hunting and Trapping
114111 Finfish Fishing 50
114112 Shellfish Fishing 50
114119 Other Marine Fishing 50
114210 Hunting and Trapping 50
Subsector 115—Support Activities for Agriculture and Forestry
115111 Cotton Ginning 50
115112 Soil Preparation, Planting, and Cultivating 50
115113 Crop Harvesting, Primarily by Machine 50
115114 Postharvest Crop Activities (except Cotton Ginning) 50
115115 Farm Labor Contractors and Crew Leaders 50
115116 Farm Management Services 50
115210 Support Activities for Animal Production 50
115310 Support Activities for Forestry 50
Except, Forest Fire Suppression1 1400 1$20.0
Except, Fuels Management Services1 1400 1$20.0
Sector 21—Mining
Subsector 211—Oil and Gas Extraction
211111 Crude Petroleum and Natural Gas Extraction 500
211112 Natural Gas Liquid Extraction 500
Subsector 212—Mining (except Oil and Gas)
212111 Bituminous Coal and Lignite Surface Mining 500
212112 Bituminous Coal Underground Mining 500
212113 Anthracite Mining 500
212210 Iron Ore Mining 500
212221 Gold Ore Mining 500
212222 Silver Ore Mining 500
212231 Lead Ore and Zinc Ore Mining 500
212234 Copper Ore and Nickel Ore Mining 500
212291 Uranium-Radium-Vanadium Ore Mining 500
212299 All Other Metal Ore Mining 500
212311 Dimension Stone Mining and Quarrying 500
212312 Crushed and Broken Limestone Mining and Quarrying 500
212313 Crushed and Broken Granite Mining and Quarrying 500
212319 Other Crushed and Broken Stone Mining and Quarrying 500
212321 Construction Sand and Gravel Mining 500
212322 Industrial Sand Mining 500
212324 Kaolin and Ball Clay Mining 500
212325 Clay and Ceramic and Refractory Minerals Mining 500
212391 Potash, Soda, and Borate Mineral Mining 500
212392 Phosphate Rock Mining 500
212393 Other Chemical and Fertilizer Mineral Mining 500
212399 All Other Nonmetallic Mineral Mining 500
Subsector 213—Support Activities for Mining
213111 Drilling Oil and Gas Wells 500
213112 Support Activities for Oil and Gas Operations 50
213113 Support Activities for Coal Mining 50
213114 Support Activities for Metal Mining 50
213115 Support Activities for Nonmetallic Minerals (except Fuels) 50
Sector 22—Utilities
Subsector 221—Utilities
221111 Hydroelectric Power Generation 1,000
221112 Fossil Fuel Electric Power Generation 1,000
221113 Nuclear Electric Power Generation 1,000
221119 Other Electric Power Generation 1,000
221121 Electric Bulk Power Transmission and Control 1,000
221122 Electric Power Distribution 1,000
221210 Natural Gas Distribution 500
221310 Water Supply and Irrigation Systems 50
221320 Sewage Treatment Facilities 50
221330 Steam and Air-Conditioning Supply 50
Sector 23—Construction
Subsector 236—Construction of Buildings
236115 New Single-Family Housing Construction (except Operative Builders) 150 $35.0
236116 New Multifamily Housing Construction (except Operative Builders) 150 $35.0
236117 New Housing Operative Builders 150 $35.0
236118 Residential Remodelers 150 $35.0
236210 Industrial Building Construction 150 $35.0
236220 Commercial and Institutional Building Construction 150 $35.0
Subsector 237—Heavy and Civil Engineering Construction
237110 Water and Sewer Line and Related Structures Construction 200 $35.0
237120 Oil and Gas Pipeline and Related Structures Construction 200 $35.0
237130 Power and Communication Line and Related Structures Construction 200 $35.0
237210 Land Subdivision 200 $35.0
237310 Highway, Street, and Bridge Construction 200 $35.0
237990 Other Heavy and Civil Engineering Construction 200 $35.0
Except, Dredging and Surface Cleanup Activities2 2150 2$22.0
Subsector 238—Specialty Trade Contractors
238110 Poured Concrete Foundation and Structure Contractors 100
238120 Structural Steel and Precast Concrete Contractors 100
238130 Framing Contractors 100
238140 Masonry Contractors 100
238150 Glass and Glazing Contractors 100
238160 Roofing Contractors 100
238170 Siding Contractors 100
238190 Other Foundation, Structure, and Building Exterior Contractors 100
238210 Electrical Contractors 100
238220 Plumbing, Heating, and Air-Conditioning Contractors 100
238290 Other Building Equipment Contractors 100
238310 Drywall and Insulation Contractors 100
238320 Painting and Wall Covering Contractors 100
238330 Flooring Contractors 100
238340 Tile and Terrazzo Contractors 100
238350 Finish Carpentry Contractors 100
238390 Other Building Finishing Contractors 100
238910 Site Preparation Contractors 100
238990 All Other Specialty Trade Contractors 100
Except, Building and Property Specialty Trade Services3 3100
Sectors 31—33—Manufacturing
Subsector 311—Food Manufacturing
311111 Dog and Cat Food Manufacturing 500
311119 Other Animal Food Manufacturing 500
311211 Flour Milling 500
311212 Rice Milling 500
311213 Malt Manufacturing 500
311221 Wet Corn Milling 750
311222 Soybean Processing 500
311223 Other Oilseed Processing 1,000
311225 Fats and Oils Refining and Blending 1,000
311230 Breakfast Cereal Manufacturing 1,000
311311 Sugarcane Mills 500
311312 Cane Sugar Refining 750
311313 Beet Sugar Manufacturing 750
311320 Chocolate and Confectionery Manufacturing from Cacao Beans 500
311330 Confectionery Manufacturing from Purchased Chocolate 500
311340 Non-Chocolate Confectionery Manufacturing 500
311411 Frozen Fruit, Juice and Vegetable Manufacturing 500
311412 Frozen Specialty Food Manufacturing 500
311421 Fruit and Vegetable Canning4 4500
311422 Specialty Canning 1,000
311423 Dried and Dehydrated Food Manufacturing 500
311511 Fluid Milk Manufacturing 500
311512 Creamery Butter Manufacturing 500
311513 Cheese Manufacturing 500
311514 Dry, Condensed, and Evaporated Dairy Product Manufacturing 500
311520 Ice Cream and Frozen Dessert Manufacturing 500
311611 Animal (except Poultry) Slaughtering 500
311612 Meat Processed from Carcasses 500
311613 Rendering and Meat By-product Processing 500
311615 Poultry Processing 500
311711 Seafood Canning 500
311712 Fresh and Frozen Seafood Processing 500
311811 Retail Bakeries 500
311812 Commercial Bakeries 500
311813 Frozen Cakes, Pies, and Other Pastries Manufacturing 500
311821 Cookie and Cracker Manufacturing 750
311822 Flour Mixes and Dough Manufacturing from Purchased Flour 500
311823 Dry Pasta Manufacturing 500
311830 Tortilla Manufacturing 500
311911 Roasted Nuts and Peanut Butter Manufacturing 500
311919 Other Snack Food Manufacturing 500
311920 Coffee and Tea Manufacturing 500
311930 Flavoring Syrup and Concentrate Manufacturing 500
311941 Mayonnaise, Dressing and Other Prepared Sauce Manufacturing 500
311942 Spice and Extract Manufacturing 500
311991 Perishable Prepared Food Manufacturing 500
311999 All Other Miscellaneous Food Manufacturing 500
Subsector 312—Beverage and Tobacco Product Manufacturing
312111 Soft Drink Manufacturing 500
312112 Bottled Water Manufacturing 500
312113 Ice Manufacturing 500
312120 Breweries 500
312130 Wineries 500
312140 Distilleries 750
312210 Tobacco Stemming and Redrying 500
312221 Cigarette Manufacturing 1,000
312229 Other Tobacco Product Manufacturing 500
Subsector 313—Textile Mills
313111 Yarn Spinning Mills 500
313112 Yarn Texturizing, Throwing and Twisting Mills 500
313113 Thread Mills 500
313210 Broadwoven Fabric Mills 1,000
313221 Narrow Fabric Mills 500
313222 Schiffli Machine Embroidery 500
313230 Nonwoven Fabric Mills 500
313241 Weft Knit Fabric Mills 500
313249 Other Knit Fabric and Lace Mills 500
313311 Broadwoven Fabric Finishing Mills 1,000
313312 Textile and Fabric Finishing (except Broadwoven Fabric) Mills 500
313320 Fabric Coating Mills 1,000
Subsector 314—Textile Product Mills
314110 Carpet and Rug Mills 500
314121 Curtain and Drapery Mills 500
314129 Other Household Textile Product Mills 500
314911 Textile Bag Mills 500
314912 Canvas and Related Product Mills 500
314991 Rope, Cordage and Twine Mills 500
314992 Tire Cord and Tire Fabric Mills 1,000
314999 All Other Miscellaneous Textile Product Mills 500
Subsector 315—Apparel Manufacturing
315111 Sheer Hosiery Mills 500
315119 Other Hosiery and Sock Mills 500
315191 Outerwear Knitting Mills 500
315192 Underwear and Nightwear Knitting Mills 500
315211 Men's and Boys' Cut and Sew Apparel Contractors 500
315212 Women's, Girls', and Infants' Cut and Sew Apparel Contractors 500
315221 Men's and Boys' Cut and Sew Underwear and Nightwear Manufacturing 500
315222 Men's and Boys' Cut and Sew Suit, Coat and Overcoat Manufacturing 500
315223 Men's and Boys' Cut and Sew Shirt (except Work Shirt) Manufacturing 500
315224 Men's and Boys' Cut and Sew Trouser, Slack and Jean Manufacturing 500
315225 Men's and Boys' Cut and Sew Work Clothing Manufacturing 500
315228 Men's and Boys' Cut and Sew Other Outerwear Manufacturing 500
315231 Women's and Girls' Cut and Sew Lingerie, Loungewear and Nightwear Manufacturing 500
315232 Women's and Girls' Cut and Sew Blouse and Shirt Manufacturing 500
315233 Women's and Girls' Cut and Sew Dress Manufacturing 500
315234 Women's and Girls' Cut and Sew Suit, Coat, Tailored Jacket and Skirt Manufacturing 500
315239 Women's and Girls' Cut and Sew Other Outerwear Manufacturing 500
315291 Infants' Cut and Sew Apparel Manufacturing 500
315292 Fur and Leather Apparel Manufacturing 500
315299 All Other Cut and Sew Apparel Manufacturing 500
315991 Hat, Cap and Millinery Manufacturing 500
315992 Glove and Mitten Manufacturing 500
315993 Men's and Boys' Neckwear Manufacturing 500
315999 Other Apparel Accessories and Other Apparel Manufacturing 500
Subsector 316—Leather and Allied Product Manufacturing
316110 Leather and Hide Tanning and Finishing 500
316211 Rubber and Plastics Footwear Manufacturing 1,000
316212 House Slipper Manufacturing 500
316213 Men's Footwear (except Athletic) Manufacturing 500
316214 Women's Footwear (except Athletic) Manufacturing 500
316219 Other Footwear Manufacturing 500
316991 Luggage Manufacturing 500
316992 Women's Handbag and Purse Manufacturing 500
316993 Personal Leather Good (except Women's Handbag and Purse) Manufacturing 500
316999 All Other Leather Good Manufacturing 500
Subsector 321—Wood Product Manufacturing
321113 Sawmills 500
321114 Wood Preservation 500
321211 Hardwood Veneer and Plywood Manufacturing 500
321212 Softwood Veneer and Plywood Manufacturing 500
321213 Engineered Wood Member (except Truss) Manufacturing 500
321214 Truss Manufacturing 500
321219 Reconstituted Wood Product Manufacturing 500
321911 Wood Window and Door Manufacturing 500
321912 Cut Stock, Resawing Lumber, and Planing 500
321918 Other Millwork (including Flooring) 500
321920 Wood Container and Pallet Manufacturing 500
321991 Manufactured Home (Mobile Home) Manufacturing 500
321992 Prefabricated Wood Building Manufacturing 500
321999 All Other Miscellaneous Wood Product Manufacturing 500
Subsector 322—Paper Manufacturing
322110 Pulp Mills 750
322121 Paper (except Newsprint) Mills 750
322122 Newsprint Mills 750
322130 Paperboard Mills 750
322211 Corrugated and Solid Fiber Box Manufacturing 500
322212 Folding Paperboard Box Manufacturing 750
322213 Setup Paperboard Box Manufacturing 500
322214 Fiber Can, Tube, Drum, and Similar Products Manufacturing 500
322215 Non-Folding Sanitary Food Container Manufacturing 750
322221 Coated and Laminated Packaging Paper and Plastics Film Manufacturing 500
322222 Coated and Laminated Paper Manufacturing 500
322223 Plastics, Foil, and Coated Paper Bag Manufacturing 500
322224 Uncoated Paper and Multiwall Bag Manufacturing 500
322225 Laminated Aluminum Foil Manufacturing for Flexible Packaging Uses 500
322226 Surface-Coated Paperboard Manufacturing 500
322231 Die-Cut Paper and Paperboard Office Supplies Manufacturing 500
322232 Envelope Manufacturing 500
322233 Stationery, Tablet, and Related Product Manufacturing 500
322291 Sanitary Paper Product Manufacturing 500
322299 All Other Converted Paper Product Manufacturing 500
Subsector 323—Printing and Related Support Activities
323110 Commercial Lithographic Printing 500
323111 Commercial Gravure Printing 500
323112 Commercial Flexographic Printing 500
323113 Commercial Screen Printing 500
323114 Quick Printing 500
323115 Digital Printing 500
323116 Manifold Business Forms Printing 500
323117 Books Printing 500
323118 Blankbook, Loose-leaf Binder and Device Manufacturing 500
323119 Other Commercial Printing 500
323121 Tradebinding and Related Work 500
323122 Prepress Services 500
Subsector 324—Petroleum and Coal Products Manufacturing
324110 Petroleum Refineries5 51,500
324121 Asphalt Paving Mixture and Block Manufacturing 500
324122 Asphalt Shingle and Coating Materials Manufacturing 750
324191 Petroleum Lubricating Oil and Grease Manufacturing 500
324199 All Other Petroleum and Coal Products Manufacturing 500
Subsector 325—Chemical Manufacturing
325110 Petrochemical Manufacturing 1,000
325120 Industrial Gas Manufacturing 1,000
325131 Inorganic Dye and Pigment Manufacturing 1,000
325132 Synthetic Organic Dye and Pigment Manufacturing 750
325181 Alkalies and Chlorine Manufacturing 1,000
325182 Carbon Black Manufacturing 500
325188 All Other Basic Inorganic Chemical Manufacturing 1,000
325191 Gum and Wood Chemical Manufacturing 500
325192 Cyclic Crude and Intermediate Manufacturing 750
325193 Ethyl Alcohol Manufacturing 1,000
325199 All Other Basic Organic Chemical Manufacturing 1,000
325211 Plastics Material and Resin Manufacturing 750
325212 Synthetic Rubber Manufacturing 1,000
325221 Cellulosic Organic Fiber Manufacturing 1,000
325222 Noncellulosic Organic Fiber Manufacturing 1,000
325311 Nitrogenous Fertilizer Manufacturing 1,000
325312 Phosphatic Fertilizer Manufacturing 500
325314 Fertilizer (Mixing Only) Manufacturing 500
325320 Pesticide and Other Agricultural Chemical Manufacturing 500
325411 Medicinal and Botanical Manufacturing 750
325412 Pharmaceutical Preparation Manufacturing 750
325413 In-Vitro Diagnostic Substance Manufacturing 500
325414 Biological Product (except Diagnostic) Manufacturing 500
325510 Paint and Coating Manufacturing 500
325520 Adhesive Manufacturing 500
325611 Soap and Other Detergent Manufacturing 750
325612 Polish and Other Sanitation Good Manufacturing 500
325613 Surface Active Agent Manufacturing 500
325620 Toilet Preparation Manufacturing 500
325910 Printing Ink Manufacturing 500
325920 Explosives Manufacturing 750
325991 Custom Compounding of Purchased Resins 500
325992 Photographic Film, Paper, Plate and Chemical Manufacturing 500
325998 All Other Miscellaneous Chemical Product and Preparation Manufacturing 500
Subsector 326—Plastics and Rubber Products Manufacturing
326111 Unsupported Plastics Bag Manufacturing 500
326112 Unsupported Plastics Packaging Film and Sheet Manufacturing 500
326113 Unsupported Plastics Film and Sheet (except Packaging) Manufacturing 500
326121 Unsupported Plastics Profile Shapes Manufacturing 500
326122 Plastics Pipe and Pipe Fitting Manufacturing 500
326130 Laminated Plastics Plate, Sheet and Shape Manufacturing 500
326140 Polystyrene Foam Product Manufacturing 500
326150 Urethane and Other Foam Product (except Polystyrene) Manufacturing 500
326160 Plastics Bottle Manufacturing 500
326191 Plastics Plumbing Fixture Manufacturing 500
326192 Resilient Floor Covering Manufacturing 750
326199 All Other Plastics Product Manufacturing 500
326211 Tire Manufacturing (except Retreading) 1,000
326212 Tire Retreading 500
326220 Rubber and Plastics Hoses and Belting Manufacturing 500
326291 Rubber Product Manufacturing for Mechanical Use 500
326299 All Other Rubber Product Manufacturing 500
Subsector 327—Nonmetallic Mineral Product Manufacturing
327111 Vitreous China Plumbing Fixture and China and Earthenware Bathroom Accessories Manufacturing 750
327112 Vitreous China, Fine Earthenware and Other Pottery Product Manufacturing 500
327113 Porcelain Electrical Supply Manufacturing 500
327121 Brick and Structural Clay Tile Manufacturing 500
327122 Ceramic Wall and Floor Tile Manufacturing 500
327123 Other Structural Clay Product Manufacturing 500
327124 Clay Refractory Manufacturing 500
327125 Nonclay Refractory Manufacturing 750
327211 Flat Glass Manufacturing 1,000
327212 Other Pressed and Blown Glass and Glassware Manufacturing 750
327213 Glass Container Manufacturing 750
327215 Glass Product Manufacturing Made of Purchased Glass 500
327310 Cement Manufacturing 750
327320 Ready-Mix Concrete Manufacturing 500
327331 Concrete Block and Brick Manufacturing 500
327332 Concrete Pipe Manufacturing 500
327390 Other Concrete Product Manufacturing 500
327410 Lime Manufacturing 500
327420 Gypsum Product Manufacturing 1,000
327910 Abrasive Product Manufacturing 500
327991 Cut Stone and Stone Product Manufacturing 500
327992 Ground or Treated Mineral and Earth Manufacturing 500
327993 Mineral Wool Manufacturing 750
327999 All Other Miscellaneous Nonmetallic Mineral Product Manufacturing 500
Subsector 331—Primary Metal Manufacturing
331111 Iron and Steel Mills 1,000
331112 Electrometallurgical Ferroalloy Product Manufacturing 750
331210 Iron and Steel Pipe and Tube Manufacturing from Purchased Steel 1,000
331221 Cold-Rolled Steel Shape Manufacturing 1,000
331222 Steel Wire Drawing 1,000
331311 Alumina Refining 1,000
331312 Primary Aluminum Production 1,000
331314 Secondary Smelting and Alloying of Aluminum 750
331315 Aluminum Sheet, Plate and Foil Manufacturing 750
331316 Aluminum Extruded Product Manufacturing 750
331319 Other Aluminum Rolling and Drawing 750
331411 Primary Smelting and Refining of Copper 1,000
331419 Primary Smelting and Refining of Nonferrous Metal (except Copper and Aluminum) 750
331421 Copper Rolling, Drawing and Extruding 750
331422 Copper Wire (except Mechanical) Drawing 1,000
331423 Secondary Smelting, Refining, and Alloying of Copper 750
331491 Nonferrous Metal (except Copper and Aluminum) Rolling, Drawing and Extruding 750
331492 Secondary Smelting, Refining, and Alloying of Nonferrous Metal (except Copper and Aluminum) 750
331511 Iron Foundries 500
331512 Steel Investment Foundries 500
331513 Steel Foundries (except Investment) 500
331521 Aluminum Die-Casting Foundries 500
331522 Nonferrous (except Aluminum) Die-Casting Foundries 500
331524 Aluminum Foundries (except Die-Casting) 500
331525 Copper Foundries (except Die-Casting) 500
331528 Other Nonferrous Foundries (except Die-Casting) 500
Subsector 332—Fabricated Metal Product Manufacturing
332111 Iron and Steel Forging 500
332112 Nonferrous Forging 500
332114 Custom Roll Forming 500
332115 Crown and Closure Manufacturing 500
332116 Metal Stamping 500
332117 Powder Metallurgy Part Manufacturing 500
332211 Cutlery and Flatware (except Precious) Manufacturing 500
332212 Hand and Edge Tool Manufacturing 500
332213 Saw Blade and Handsaw Manufacturing 500
332214 Kitchen Utensil, Pot and Pan Manufacturing 500
332311 Prefabricated Metal Building and Component Manufacturing 500
332312 Fabricated Structural Metal Manufacturing 500
332313 Plate Work Manufacturing 500
332321 Metal Window and Door Manufacturing 500
332322 Sheet Metal Work Manufacturing 500
332323 Ornamental and Architectural Metal Work Manufacturing 500
332410 Power Boiler and Heat Exchanger Manufacturing 500
332420 Metal Tank (Heavy Gauge) Manufacturing 500
332431 Metal Can Manufacturing 1,000
332439 Other Metal Container Manufacturing 500
332510 Hardware Manufacturing 500
332611 Spring (Heavy Gauge) Manufacturing 500
332612 Spring (Light Gauge) Manufacturing 500
332618 Other Fabricated Wire Product Manufacturing 500
332710 Machine Shops 500
332721 Precision Turned Product Manufacturing 500
332722 Bolt, Nut, Screw, Rivet and Washer Manufacturing 500
332811 Metal Heat Treating 750
332812 Metal Coating, Engraving (except Jewelry and Silverware), and Allied Services to Manufacturers 500
332813 Electroplating, Plating, Polishing, Anodizing and Coloring 500
332911 Industrial Valve Manufacturing 500
332912 Fluid Power Valve and Hose Fitting Manufacturing 500
332913 Plumbing Fixture Fitting and Trim Manufacturing 500
332919 Other Metal Valve and Pipe Fitting Manufacturing 500
332991 Ball and Roller Bearing Manufacturing 750
332992 Small Arms Ammunition Manufacturing 1,000
332993 Ammunition (except Small Arms) Manufacturing 1,500
332994 Small Arms Manufacturing 1,000
332995 Other Ordnance and Accessories Manufacturing 500
332996 Fabricated Pipe and Pipe Fitting Manufacturing 500
332997 Industrial Pattern Manufacturing 500
332998 Enameled Iron and Metal Sanitary Ware Manufacturing 750
332999 All Other Miscellaneous Fabricated Metal Product Manufacturing 500
Subsector 333—Machinery Manufacturing6
333111 Farm Machinery and Equipment Manufacturing 500
333112 Lawn and Garden Tractor and Home Lawn and Garden Equipment Manufacturing 500
333120 Construction Machinery Manufacturing 750
333131 Mining Machinery and Equipment Manufacturing 500
333132 Oil and Gas Field Machinery and Equipment Manufacturing 500
333210 Sawmill and Woodworking Machinery Manufacturing 500
333220 Plastics and Rubber Industry Machinery Manufacturing 500
333291 Paper Industry Machinery Manufacturing 500
333292 Textile Machinery Manufacturing 500
333293 Printing Machinery and Equipment Manufacturing 500
333294 Food Product Machinery Manufacturing 500
333295 Semiconductor Machinery Manufacturing 500
333298 All Other Industrial Machinery Manufacturing 500
333311 Automatic Vending Machine Manufacturing 500
333312 Commercial Laundry, Drycleaning and Pressing Machine Manufacturing 500
333313 Office Machinery Manufacturing 1,000
333314 Optical Instrument and Lens Manufacturing 500
333315 Photographic and Photocopying Equipment Manufacturing 500
333319 Other Commercial and Service Industry Machinery Manufacturing 500
333411 Air Purification Equipment Manufacturing 500
333412 Industrial and Commercial Fan and Blower Manufacturing 500
333414 Heating Equipment (except Warm Air Furnaces) Manufacturing 500
333415 Air-Conditioning and Warm Air Heating Equipment and Commercial and Industrial Refrigeration Equipment Manufacturing 750
333511 Industrial Mold Manufacturing 500
333512 Machine Tool (Metal Cutting Types) Manufacturing 500
333513 Machine Tool (Metal Forming Types) Manufacturing 500
333514 Special Die and Tool, Die Set, Jig and Fixture Manufacturing 500
333515 Cutting Tool and Machine Tool Accessory Manufacturing 500
333516 Rolling Mill Machinery and Equipment Manufacturing 500
333518 Other Metalworking Machinery Manufacturing 500
333611 Turbine and Turbine Generator Set Unit Manufacturing 1,000
333612 Speed Changer, Industrial High-Speed Drive and Gear Manufacturing 500
333613 Mechanical Power Transmission Equipment Manufacturing 500
333618 Other Engine Equipment Manufacturing 1,000
333911 Pump and Pumping Equipment Manufacturing 500
333912 Air and Gas Compressor Manufacturing 500
333913 Measuring and Dispensing Pump Manufacturing 500
333921 Elevator and Moving Stairway Manufacturing 500
333922 Conveyor and Conveying Equipment Manufacturing 500
333923 Overhead Traveling Crane, Hoist and Monorail System Manufacturing 500
333924 Industrial Truck, Tractor, Trailer and Stacker Machinery Manufacturing 750
333991 Power-Driven Hand Tool Manufacturing 500
333992 Welding and Soldering Equipment Manufacturing 500
333993 Packaging Machinery Manufacturing 500
333994 Industrial Process Furnace and Oven Manufacturing 500
333995 Fluid Power Cylinder and Actuator Manufacturing 500
333996 Fluid Power Pump and Motor Manufacturing 500
333997 Scale and Balance (except Laboratory) Manufacturing 500
333999 All Other Miscellaneous General Purpose Machinery Manufacturing 500
Subsector 334—Computer and Electronic Product Manufacturing6
334111 Electronic Computer Manufacturing 1,000
334112 Computer Storage Device Manufacturing 1,000
334113 Computer Terminal Manufacturing 1,000
334119 Other Computer Peripheral Equipment Manufacturing 1,000
334210 Telephone Apparatus Manufacturing 1,000
334220 Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing 750
334290 Other Communications Equipment Manufacturing 750
334310 Audio and Video Equipment Manufacturing 750
334411 Electron Tube Manufacturing 750
334412 Bare Printed Circuit Board Manufacturing 500
334413 Semiconductor and Related Device Manufacturing 500
334414 Electronic Capacitor Manufacturing 500
334415 Electronic Resistor Manufacturing 500
334416 Electronic Coil, Transformer, and Other Inductor Manufacturing 500
334417 Electronic Connector Manufacturing 500
334418 Printed Circuit Assembly (Electronic Assembly) Manufacturing 500
334419 Other Electronic Component Manufacturing 500
334510 Electromedical and Electrotherapeutic Apparatus Manufacturing 500
334511 Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing 750
334512 Automatic Environmental Control Manufacturing for Residential, Commercial and Appliance Use 500
334513 Instruments and Related Products Manufacturing for Measuring, Displaying, and Controlling Industrial Process Variables 500
334514 Totalizing Fluid Meter and Counting Device Manufacturing 500
334515 Instrument Manufacturing for Measuring and Testing Electricity and Electrical Signals 500
334516 Analytical Laboratory Instrument Manufacturing 500
334517 Irradiation Apparatus Manufacturing 500
334518 Watch, Clock, and Part Manufacturing 500
334519 Other Measuring and Controlling Device Manufacturing 500
334611 Software Reproducing 500
334612 Prerecorded Compact Disc (except Software), Tape, and Record Reproducing 750
334613 Magnetic and Optical Recording Media Manufacturing 1,000
Subsector 335—Electrical Equipment, Appliance and Component Manufacturing6
335110 Electric Lamp Bulb and Part Manufacturing 1,000
335121 Residential Electric Lighting Fixture Manufacturing 500
335122 Commercial, Industrial and Institutional Electric Lighting Fixture Manufacturing 500
335129 Other Lighting Equipment Manufacturing 500
335211 Electric Housewares and Household Fan Manufacturing 750
335212 Household Vacuum Cleaner Manufacturing 750
335221 Household Cooking Appliance Manufacturing 750
335222 Household Refrigerator and Home Freezer Manufacturing 1,000
335224 Household Laundry Equipment Manufacturing 1,000
335228 Other Major Household Appliance Manufacturing 500
335311 Power, Distribution and Specialty Transformer Manufacturing 750
335312 Motor and Generator Manufacturing 1,000
335313 Switchgear and Switchboard Apparatus Manufacturing 750
335314 Relay and Industrial Control Manufacturing 750
335911 Storage Battery Manufacturing 500
335912 Primary Battery Manufacturing 1,000
335921 Fiber Optic Cable Manufacturing 1,000
335929 Other Communication and Energy Wire Manufacturing 1,000
335931 Current-Carrying Wiring Device Manufacturing 500
335932 Noncurrent-Carrying Wiring Device Manufacturing 500
335991 Carbon and Graphite Product Manufacturing 750
335999 All Other Miscellaneous Electrical Equipment and Component Manufacturing 500
Subsector 336—Transportation Equipment Manufacturing7
336111 Automobile Manufacturing 1,000
336112 Light Truck and Utility Vehicle Manufacturing 1,000
336120 Heavy Duty Truck Manufacturing 1,000
336211 Motor Vehicle Body Manufacturing 1,000
336212 Truck Trailer Manufacturing 500
336213 Motor Home Manufacturing 1,000
336214 Travel Trailer and Camper Manufacturing 500
336311 Carburetor, Piston, Piston Ring and Valve Manufacturing 500
336312 Gasoline Engine and Engine Parts Manufacturing 750
336321 Vehicular Lighting Equipment Manufacturing 500
336322 Other Motor Vehicle Electrical and Electronic Equipment Manufacturing 750
336330 Motor Vehicle Steering and Suspension Components (except Spring) Manufacturing 750
336340 Motor Vehicle Brake System Manufacturing 750
336350 Motor Vehicle Transmission and Power Train Parts Manufacturing 750
336360 Motor Vehicle Seating and Interior Trim Manufacturing 500
336370 Motor Vehicle Metal Stamping 500
336391 Motor Vehicle Air-Conditioning Manufacturing 750
336399 All Other Motor Vehicle Parts Manufacturing 750
336411 Aircraft Manufacturing 1,500
336412 Aircraft Engine and Engine Parts Manufacturing 1,000
336413 Other Aircraft Part and Auxiliary Equipment Manufacturing7 71,000
336414 Guided Missile and Space Vehicle Manufacturing 1,000
336415 Guided Missile and Space Vehicle Propulsion Unit and Propulsion Unit Parts Manufacturing 1,000
336419 Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing 1,000
336510 Railroad Rolling Stock Manufacturing 1,000
336611 Ship Building and Repairing 1,000
336612 Boat Building 500
336991 Motorcycle, Bicycle and Parts Manufacturing 500
336992 Military Armored Vehicle, Tank and Tank Component Manufacturing 1,000
336999 All Other Transportation Equipment Manufacturing 500
Subsector 337—Furniture and Related Product Manufacturing
337110 Wood Kitchen Cabinet and Counter Top Manufacturing 500
337121 Upholstered Household Furniture Manufacturing 500
337122 Nonupholstered Wood Household Furniture Manufacturing 500
337124 Metal Household Furniture Manufacturing 500
337125 Household Furniture (except Wood and Metal) Manufacturing 500
337127 Institutional Furniture Manufacturing 500
337129 Wood Television, Radio, and Sewing Machine Cabinet Manufacturing 500
337211 Wood Office Furniture Manufacturing 500
337212 Custom Architectural Woodwork and Millwork Manufacturing 500
337214 Office Furniture (except Wood) Manufacturing 500
337215 Showcase, Partition, Shelving, and Locker Manufacturing 500
337910 Mattress Manufacturing 500
337920 Blind and Shade Manufacturing 500
Subsector 339—Miscellaneous Manufacturing
339111 Laboratory Apparatus and Furniture Manufacturing 500
339112 Surgical and Medical Instrument Manufacturing 500
339113 Surgical Appliance and Supplies Manufacturing 500
339114 Dental Equipment and Supplies Manufacturing 500
339115 Ophthalmic Goods Manufacturing 500
339116 Dental Laboratories 500
339911 Jewelry (except Costume) Manufacturing 500
339912 Silverware and Hollowware Manufacturing 500
339913 Jewelers' Material and Lapidary Work Manufacturing 500
339914 Costume Jewelry and Novelty Manufacturing 500
339920 Sporting and Athletic Goods Manufacturing 500
339931 Doll and Stuffed Toy Manufacturing 500
339932 Game, Toy, and Children's Vehicle Manufacturing 500
339941 Pen and Mechanical Pencil Manufacturing 500
339942 Lead Pencil and Art Good Manufacturing 500
339943 Marking Device Manufacturing 500
339944 Carbon Paper and Inked Ribbon Manufacturing 500
339950 Sign Manufacturing 500
339991 Gasket, Packing, and Sealing Device Manufacturing 500
339992 Musical Instrument Manufacturing 500
339993 Fastener, Button, Needle and Pin Manufacturing 500
339994 Broom, Brush and Mop Manufacturing 500
339995 Burial Casket Manufacturing 500
339999 All Other Miscellaneous Manufacturing 500
Sector 42—Wholesale Trade
Subsector 423—Merchant Wholesalers, Durable Goods
423110 Automobile and Other Motor Vehicle Merchant Wholesalers 100
423120 Motor Vehicle Supplies and New Parts Merchant Wholesalers 100
423130 Tire and Tube Merchant Wholesalers 100
423140 Motor Vehicle Parts (Used) Merchant Wholesalers 100
423210 Furniture Merchant Wholesalers 100
423220 Home Furnishing Merchant Wholesalers 100
423310 Lumber, Plywood, Millwork, and Wood Panel Merchant Wholesalers 100
423320 Brick, Stone, and Related Construction Material Merchant Wholesalers 100
423330 Roofing, Siding, and Insulation Material Merchant Wholesalers 100
423390 Other Construction Material Merchant Wholesalers 100
423410 Photographic Equipment and Supplies Merchant Wholesalers 100
423420 Office Equipment Merchant Wholesalers 100
423430 Computer and Computer Peripheral Equipment and Software Merchant Wholesalers 100
423440 Other Commercial Equipment Merchant Wholesalers 100
423450 Medical, Dental, and Hospital Equipment and Supplies Merchant Wholesalers 100
423460 Ophthalmic Goods Merchant Wholesalers 100
423490 Other Professional Equipment and Supplies Merchant Wholesalers 100
423510 Metal Service Centers and Other Metal Merchant Wholesalers 100
423520 Coal and Other Mineral and Ore Merchant Wholesalers 100
423610 Electrical Apparatus and Equipment, Wiring Supplies, and Related Equipment Merchant Wholesalers 100
423620 Electrical and Electronic Appliance, Television, and Radio Set Merchant Wholesalers 100
423690 Other Electronic Parts and Equipment Merchant Wholesalers 100
423710 Hardware Merchant Wholesalers 100
423720 Plumbing and Heating Equipment and Supplies (Hydronics) Merchant Wholesalers 100
423730 Warm Air Heating and Air-Conditioning Equipment and Supplies Merchant Wholesalers 100
423740 Refrigeration Equipment and Supplies Merchant Wholesalers 100
423810 Construction and Mining (except Oil Well) Machinery and Equipment Merchant Wholesalers 100
423820 Farm and Garden Machinery and Equipment Merchant Wholesalers 100
423830 Industrial Machinery and Equipment Merchant Wholesalers 100
423840 Industrial Supplies Merchant Wholesalers 100
423850 Service Establishment Equipment and Supplies Merchant Wholesalers 100
423860 Transportation Equipment and Supplies (except Motor Vehicle) Merchant Wholesalers 100
423910 Sporting and Recreational Goods and Supplies Merchant Wholesalers 100
423920 Toy and Hobby Goods and Supplies Merchant Wholesalers 100
423930 Recyclable Material Merchant Wholesalers 100
423940 Jewelry, Watch, Precious Stone, and Precious Metal Merchant Wholesalers 100
423990 Other Miscellaneous Durable Goods Merchant Wholesalers 100
Subsector 424—Merchant Wholesalers, Nondurable Goods
424110 Printing and Writing Paper Merchant Wholesalers 100
424120 Stationary and Office Supplies Merchant Wholesalers 100
424130 Industrial and Personal Service Paper Merchant Wholesalers 100
424210 Drugs and Druggists' Sundries Merchant Wholesalers 100
424310 Piece Goods, Notions, and Other Dry Goods Merchant Wholesalers 100
424320 Men's and Boys' Clothing and Furnishings Merchant Wholesalers 100
424330 Women's, Children's, and Infants' Clothing and Accessories Merchant Wholesalers 100
424340 Footwear Merchant Wholesalers 100
424410 General Line Grocery Merchant Wholesalers 100
424420 Packaged Frozen Food Merchant Wholesalers 100
424430 Dairy Product (except Dried or Canned) Merchant Wholesalers 100
424440 Poultry and Poultry Product Merchant Wholesalers 100
424450 Confectionery Merchant Wholesalers 100
424460 Fish and Seafood Merchant Wholesalers 100
424470 Meat and Meat Product Merchant Wholesalers 100
424480 Fresh Fruit and Vegetable Merchant Wholesalers 100
424490 Other Grocery and Related Products Merchant Wholesalers 100
424510 Grain and Field Bean Merchant Wholesalers 100
424520 Livestock Merchant Wholesalers 100
424590 Other Farm Product Raw Material Merchant Wholesalers 100
424610 Plastics Materials and Basic Forms and Shapes Merchant Wholesalers 100
424690 Other Chemical and Allied Products Merchant Wholesalers 100
424710 Petroleum Bulk Stations and Terminals 100
424720 Petroleum and Petroleum Products Merchant Wholesalers (except Bulk Stations and Terminals) 100
424810 Beer and Ale Merchant Wholesalers 100
424820 Wine and Distilled Alcoholic Beverage Merchant Wholesalers 100
424910 Farm Supplies Merchant Wholesalers 100
424920 Book, Periodical, and Newspaper Merchant Wholesalers 100
424930 Flower, Nursery Stock, and Florists' Supplies Merchant Wholesalers 100
424940 Tobacco and Tobacco Product Merchant Wholesalers 100
424950 Paint, Varnish, and Supplies Merchant Wholesalers 100
424990 Other Miscellaneous Nondurable Goods Merchant Wholesalers 100
Subsector 425—Wholesale Electronic Markets and Agents and Brokers
425110 Business to Business Electronic Markets 100
425120 Wholesale Trade Agents and Brokers 100
Sectors 44-45—Retail Trade
Subsector 441—Motor Vehicle and Parts Dealers
441110 New Car Dealers 50
441120 Used Car Dealers 50
441210 Recreational Vehicle Dealers 50
441221 Motorcycle Dealers 50
441222 Boat Dealers 50
441229 All Other Motor Vehicle Dealers 50
441310 Automotive Parts and Accessories Stores 50
441320 Tire Dealers 50
Subsector 442—Furniture and Home Furnishings Stores
442110 Furniture Stores 50
442210 Floor Covering Stores 50
442291 Window Treatment Stores 50
442299 All Other Home Furnishings Stores 50
Subsector 443—Electronics and Appliance Stores
443111 Household Appliance Stores 50
443112 Radio, Television and Other Electronics Stores 50
443120 Computer and Software Stores 50
443130 Camera and Photographic Supplies Stores 50
Subsector 444—Building Material and Garden Equipment and Supplies Dealers
444110 Home Centers 50
444120 Paint and Wallpaper Stores 50
444130 Hardware Stores 50
444190 Other Building Material Dealers 50
444210 Outdoor Power Equipment Stores 50
444220 Nursery and Garden Centers 50
Subsector 445—Food and Beverage Stores
445110 Supermarkets and Other Grocery (except Convenience) Stores 150
445120 Convenience Stores 150
445210 Meat Markets 50
445220 Fish and Seafood Markets 50
445230 Fruit and Vegetable Markets 50
445291 Baked Goods Stores 50
445292 Confectionery and Nut Stores 50
445299 All Other Specialty Food Stores 50
445310 Beer, Wine and Liquor Stores 50
Subsector 446—Health and Personal Care Stores
446110 Pharmacies and Drug Stores 50
446120 Cosmetics, Beauty Supplies and Perfume Stores 50
446130 Optical Goods Stores 50
446191 Food (Health) Supplement Stores 50
446199 All Other Health and Personal Care Stores 50
Subsector 447—Gasoline Stations
447110 Gasoline Stations with Convenience Stores 100
447190 Other Gasoline Stations 50
Subsector 448—Clothing and Clothing Accessories Stores
448110 Men's Clothing Stores 50
448120 Women's Clothing Stores 50
448130 Children's and Infants' Clothing Stores 50
448140 Family Clothing Stores 50
448150 Clothing Accessories Stores 50
448190 Other Clothing Stores 50
448210 Shoe Stores 50
448310 Jewelry Stores 50
448320 Luggage and Leather Goods Stores 50
Subsector 451—Sporting Good, Hobby, Book and Music Stores
451110 Sporting Goods Stores 50
451120 Hobby, Toy and Game Stores 50
451130 Sewing, Needlework and Piece Goods Stores 50
451140 Musical Instrument and Supplies Stores 50
451211 Book Stores 50
451212 News Dealers and Newsstands 50
451220 Prerecorded Tape, Compact Disc and Record Stores 50
Subsector 452—General Merchandise Stores
452111 Department Stores (except Discount Department Stores) 150
452112 Discount Department Stores 150
452910 Warehouse Clubs and Superstores 150
452990 All Other General Merchandise Stores 100
Subsector 453—Miscellaneous Store Retailers
453110 Florists 50
453210 Office Supplies and Stationery Stores 50
453220 Gift, Novelty and Souvenir Stores 50
453310 Used Merchandise Stores 50
453910 Pet and Pet Supplies Stores 50
453920 Art Dealers 50
453930 Manufactured (Mobile) Home Dealers 50
453991 Tobacco Stores 50
453998 All Other Miscellaneous Store Retailers (except Tobacco Stores) 50
Subsector 454—Nonstore Retailers
454111 Electronic Shopping 50
454112 Electronic Auctions 50
454113 Mail-Order Houses 50
454210 Vending Machine Operators 50
454311 Heating Oil Dealers 50
454312 Liquefied Petroleum Gas (Bottled Gas) Dealers 50
454319 Other Fuel Dealers 50
454390 Other Direct Selling Establishments 50
Sectors 48-49—Transportation
Subsector 481—Air Transportation
481111 Scheduled Passenger Air Transportation 1,500
481112 Scheduled Freight Air Transportation 1,500
481211 Nonscheduled Chartered Passenger Air Transportation 1,500
Except, Offshore Marine Air Transportation Services 150
481212 Nonscheduled Chartered Freight Air Transportation 1,500
Except, Offshore Marine Air Transportation Services 150
481219 Other Nonscheduled Air Transportation 50
Subsector 482—Rail Transportation
482111 Line-Haul Railroads 1,500
482112 Short Line Railroads 500
Subsector 483—Water Transportation 8
483111 Deep Sea Freight Transportation 500
483112 Deep Sea Passenger Transportation 500
483113 Coastal and Great Lakes Freight Transportation 500
483114 Coastal and Great Lakes Passenger Transportation 500
483211 Inland Water Freight Transportation 500
483212 Inland Water Passenger Transportation 500
Subsector 484—Truck Transportation
484110 General Freight Trucking, Local 200
484121 General Freight Trucking, Long-Distance, Truckload 200
484122 General Freight Trucking, Long-Distance, Less Than Truckload 200
484210 Used Household and Office Goods Moving 200
484220 Specialized Freight (except Used Goods) Trucking, Local 200
484230 Specialized Freight (except Used Goods) Trucking, Long-Distance 200
Subsector 485—Transit and Ground Passenger Transportation
485111 Mixed Mode Transit Systems 100
485112 Commuter Rail Systems 100
485113 Bus and Motor Vehicle Transit Systems 100
485119 Other Urban Transit Systems 100
485210 Interurban and Rural Bus Transportation 100
485310 Taxi Service 50
485320 Limousine Service 50
485410 School and Employee Bus Transportation 100
485510 Charter Bus Industry 100
485991 Special Needs Transportation 50
485999 All Other Transit and Ground Passenger Transportation 50
Subsector 486—Pipeline Transportation
486110 Pipeline Transportation of Crude Oil 1,500
486210 Pipeline Transportation of Natural Gas 100
486910 Pipeline Transportation of Refined Petroleum Products 1,500
486990 All Other Pipeline Transportation 100
Subsector 487—Scenic and Sightseeing Transportation
487110 Scenic and Sightseeing Transportation, Land 50
487210 Scenic and Sightseeing Transportation, Water 50
487990 Scenic and Sightseeing Transportation, Other 50
Subsector 488—Support Activities for Transportation
488111 Air Traffic Control 50
488119 Other Airport Operations 100
488190 Other Support Activities for Air Transportation 100
488210 Support Activities for Rail Transportation 50
488310 Port and Harbor Operations 200
488320 Marine Cargo Handling 200
488330 Navigational Services to Shipping 50
488390 Other Support Activities for Water Transportation 50
488410 Motor Vehicle Towing 50
488490 Other Support Activities for Road Transportation 50
488510 Freight Transportation Arrangement 50
488991 Packing and Crating 100
488999 All Other Support Activities for Transportation 50
Subsector 491—Postal Service
491110 Postal Service 50
Subsector 492—Couriers and Messengers
492110 Couriers 1,500
492210 Local Messengers and Local Delivery 200
Subsector 493—Warehousing and Storage
493110 General Warehousing and Storage 200
493120 Refrigerated Warehousing and Storage 200
493130 Farm Product Warehousing and Storage 200
493190 Other Warehousing and Storage 200
Sector 51—Information
Subsector 511—Publishing Industries (except Internet)
511110 Newspaper Publishers 500
511120 Periodical Publishers 500
511130 Book Publishers 500
511140 Directory and Mailing List Publishers 500
511191 Greeting Card Publishers 500
511199 All Other Publishers 500
511210 Software Publishers 150
Subsector 512—Motion Picture and Sound Recording Industries
512110 Motion Picture and Video Production 100
512120 Motion Picture and Video Distribution 100
512131 Motion Picture Theaters (except Drive-Ins) 100
512132 Drive-In Motion Picture Theaters 50
512191 Teleproduction and Other Postproduction Services 100
512199 Other Motion Picture and Video Industries 50
512210 Record Production 50
512220 Integrated Record Production/Distribution 750
512230 Music Publishers 500
512240 Sound Recording Studios 50
512290 Other Sound Recording Industries 50
Subsector 515—Broadcasting (except Internet)
515111 Radio Networks 50
515112 Radio Stations 50
515120 Television Broadcasting 100
515210 Cable and Other Subscription Programming 100
Subsector 516—Internet Publishing and Broadcasting
516110 Internet Publishing and Broadcasting 500
Subsector 517—Telecommunications
517110 Wired Telecommunications Carriers 1,500
517211 Paging 1,500
517212 Cellular and Other Wireless Telecommunications 1,500
517310 Telecommunications Resellers 1,500
517410 Satellite Telecommunications 100
517510 Cable and Other Program Distribution 100
517910 Other Telecommunications 100
Subsector 518—Internet Service Providers, Web Search Portals, and Data Processing Services
518111 Internet Service Providers 150
518112 Web Search Portals 150
518210 Data Processing, Hosting, and Related Services 150 $30.0
Subsector 519—Other Information Services
519110 News Syndicates 50
519120 Libraries and Archives 50
519190 All Other Information Services 50
Sector 52—Finance and Insurance
Subsector 522—Credit Intermediation and Related Activities
522110 Commercial Banking 50
522120 Savings Institutions 50
522130 Credit Unions 50
522190 Other Depository Credit Intermediation 50
522210 Credit Card Issuing 50
522220 Sales Financing 50
522291 Consumer Lending 50
522292 Real Estate Credit 50
522293 International Trade Financing 50
522294 Secondary Market Financing 50
522298 All Other Non-Depository Credit Intermediation 50
522310 Mortgage and Nonmortgage Loan Brokers 50
522320 Financial Transactions Processing, Reserve, and Clearing House Activities 50
522390 Other Activities Related to Credit Intermediation 50
Subsector 523—Financial Investments and Related Activities
523110 Investment Banking and Securities Dealing 50
523120 Securities Brokerage 50
523130 Commodity Contracts Dealing 50
523140 Commodity Contracts Brokerage 50
523210 Securities and Commodity Exchanges 50
523910 Miscellaneous Intermediation 50
523920 Portfolio Management 50
523930 Investment Advice 50
523991 Trust, Fiduciary and Custody Activities 50
523999 Miscellaneous Financial Investment Activities 50
Subsector 524—Insurance Carriers and Related Activities
524113 Direct Life Insurance Carriers 50
524114 Direct Health and Medical Insurance Carriers 50
524126 Direct Property and Casualty Insurance Carriers 1,500
524127 Direct Title Insurance Carriers 50
524128 Other Direct Insurance (except Life, Health and Medical) Carriers 50
524130 Reinsurance Carriers 50
524210 Insurance Agencies and Brokerages 50
524291 Claims Adjusting 50
524292 Third Party Administration of Insurance and Pension Funds 50
524298 All Other Insurance Related Activities 50
Subsector 525—Funds, Trusts and Other Financial Vehicles
525110 Pension Funds 50
525120 Health and Welfare Funds 50
525190 Other Insurance Funds 50
525910 Open-End Investment Funds 50
525920 Trusts, Estates, and Agency Accounts 50
525930 Real Estate Investment Trusts 50
525990 Other Financial Vehicles 50
Sector 53—Real Estate and Rental and Leasing
Subsector 531—Real Estate
531110 Lessors of Residential Buildings and Dwellings 50
531120 Lessors of Nonresidential Buildings (except Miniwarehouses) 50
531130 Lessors of Miniwarehouses and Self Storage Units 150
531190 Lessors of Other Real Estate Property 50
Except, Leasing of Building Space to Federal Government by Owners9 9150
531210 Offices of Real Estate Agents and Brokers 50
531311 Residential Property Managers 50
531312 Nonresidential Property Managers 50
531320 Offices of Real Estate Appraisers 50
531390 Other Activities Related to Real Estate 50
Subsector 532—Rental and Leasing Services
532111 Passenger Car Rental 150
532112 Passenger Car Leasing 150
532120 Truck, Utility Trailer, and RV (Recreational Vehicle) Rental and Leasing 150
532210 Consumer Electronics and Appliances Rental 50
532220 Formal Wear and Costume Rental 50
532230 Video Tape and Disc Rental 50
532291 Home Health Equipment Rental 50
532292 Recreational Goods Rental 50
532299 All Other Consumer Goods Rental 50
532310 General Rental Centers 50
532411 Commercial Air, Rail, and Water Transportation Equipment Rental and Leasing 50
532412 Construction, Mining and Forestry Machinery and Equipment Rental and Leasing 50
532420 Office Machinery and Equipment Rental and Leasing 50
532490 Other Commercial and Industrial Machinery and Equipment Rental and Leasing 50
Subsector 533—Lessors of Nonfinancial Intangible Assets (except Copyrighted Works)
533110 Lessors of Nonfinancial Intangible Assets (except Copyrighted Works) 50
Sector 54—Professional, Scientific and Technical Services
Subsector 541— Professional, Scientific and Technical Services
541110 Offices of Lawyers 50
541191 Title Abstract and Settlement Offices 50
541199 All Other Legal Services 50
541211 Offices of Certified Public Accountants 100
541213 Tax Preparation Services 50
541214 Payroll Services 100
541219 Other Accounting Services 100
541310 Architectural Services 50 $7.0
541320 Landscape Architectural Services 50
541330 Engineering Services 50 $7.0
Except, Military and Aerospace Equipment and Military Weapons 200 $30.0
Except, Contracts and Subcontracts for Engineering Services Awarded Under the National Energy Policy Act of 1992 200 $30.0
Except, Marine Engineering and Naval Architecture 150 $30.0
541340 Drafting Services 50
541350 Building Inspection Services 50
541360 Geophysical Surveying and Mapping Services 50
541370 Surveying and Mapping (except Geophysical) Services 50
541380 Testing Laboratories 100
541410 Interior Design Services 50
541420 Industrial Design Services 50
541430 Graphic Design Services 50
541490 Other Specialized Design Services 50
541511 Custom Computer Programming Services 150 $30.0
541512 Computer Systems Design Services 150 $30.0
541513 Computer Facilities Management Services 150 $30.0
541519 Other Computer Related Services 150 $30.0
Except, Information Technology Value Added Resellers15 15150
541611 Administrative Management and General Management Consulting Services 50 $10.0
541612 Human Resources and Executive Search Consulting Services 50 $10.0
541613 Marketing Consulting Services 50 $10.0
541614 Process, Physical Distribution and Logistics Consulting Services 50 $10.0
541618 Other Management Consulting Services 50 $10.0
541620 Environmental Consulting Services 50 $10.0
541690 Other Scientific and Technical Consulting Services 50 $10.0
541710 Research and Development in the Physical, Engineering, and Life Sciences10 10500
Except, Aircraft 1,500
Except, Aircraft Parts, and Auxiliary Equipment, and Aircraft Engine Parts 1,000
Except, Space Vehicles and Guided Missiles, their Propulsion Units, their Propulsion Units Parts, and their Auxiliary Equipment and Parts 1,000
541720 Research and Development in the Social Sciences and Humanities 50
541810 Advertising Agencies 50
541820 Public Relations Agencies 50
541830 Media Buying Agencies 50
541840 Media Representatives 50
541850 Display Advertising 50
541860 Direct Mail Advertising 50
541870 Advertising Material Distribution Services 50
541890 Other Services Related to Advertising 50
541910 Marketing Research and Public Opinion Polling 50
541921 Photography Studios, Portrait 50
541922 Commercial Photography 50
541930 Translation and Interpretation Services 50
541940 Veterinary Services 50
541990 All Other Professional, Scientific and Technical Services 50 $10.0
Sector 55—Management of Companies and Enterprises
Subsector 551—Management of Companies and Enterprises
551111 Offices of Bank Holding Companies 50
551112 Offices of Other Holding Companies 50
Sector 56—Administrative and Support, Waste Management and Remediation Services
Subsector 561—Administrative and Support Services
561110 Office Administrative Services 50 $10.0
561210 Facilities Support Services11 11400 11$40.0
561310 Employment Placement Agencies 50
561320 Temporary Help Services 500
561330 Employee Leasing Services 500
561410 Document Preparation Services 50
561421 Telephone Answering Services 50
561422 Telemarketing Bureaus 150
561431 Private Mail Centers 50
561439 Other Business Service Centers (including Copy Shops) 50
561440 Collection Agencies 50
561450 Credit Bureaus 50
561491 Repossession Services 50
561492 Court Reporting and Stenotype Services 50
561499 All Other Business Support Services 50
561510 Travel Agencies 50
561520 Tour Operators 50
561591 Convention and Visitors Bureaus 50
561599 All Other Travel Arrangement and Reservation Services 50
561611 Investigation Services 200
561612 Security Guards and Patrol Services 500
561613 Armored Car Services 200
561621 Security Systems Services (except Locksmiths) 200
561622 Locksmiths 50
561710 Exterminating and Pest Control Services 50
561720 Janitorial Services 500
561730 Landscaping Services 50
561740 Carpet and Upholstery Cleaning Services 50
561790 Other Services to Buildings and Dwellings 50
561910 Packaging and Labeling Services 50
561920 Convention and Trade Show Organizers 50
561990 All Other Support Services 50
Subsector 562—Waste Management and Remediation Services
562111 Solid Waste Collection 100
562112 Hazardous Waste Collection 100
562119 Other Waste Collection 100
562211 Hazardous Waste Treatment and Disposal 100
562212 Solid Waste Landfill 100
562213 Solid Waste Combustors and Incinerators 100
562219 Other Nonhazardous Waste Treatment and Disposal 100
562910 Remediation Services 100
Except, Environmental Remediation Services12 12500
562920 Materials Recovery Facilities 100
562991 Septic Tank and Related Services 50
562998 All Other Miscellaneous Waste Management Services 50
Sector 61—Educational Services
Subsector 611—Educational Services
611110 Elementary and Secondary Schools 50
611210 Junior Colleges 50
611310 Colleges, Universities and Professional Schools 50
611410 Business and Secretarial Schools 50
611420 Computer Training 50
611430 Professional and Management Development Training 50
611511 Cosmetology and Barber Schools 50
611512 Flight Training 200
611513 Apprenticeship Training 50
611519 Other Technical and Trade Schools 50
Except, Job Corps Centers 13 13400 13$30.0
611610 Fine Arts Schools 50
611620 Sports and Recreation Instruction 50
611630 Language Schools 50
611691 Exam Preparation and Tutoring 50
611692 Automobile Driving Schools 50
611699 All Other Miscellaneous Schools and Instruction 50
611710 Educational Support Services 50
Sector 62—Health Care and Social Assistance
Subsector 621—Ambulatory Health Care Services
621111 Offices of Physicians (except Mental Health Specialists) 100
621112 Offices of Physicians, Mental Health Specialists 100
621210 Offices of Dentists 50
621310 Offices of Chiropractors 50
621320 Offices of Optometrists 50
621330 Offices of Mental Health Practitioners (except Physicians) 50
621340 Offices of Physical, Occupational and Speech Therapists and Audiologists 50
621391 Offices of Podiatrists 50
621399 Offices of All Other Miscellaneous Health Practitioners 50
621410 Family Planning Centers 100
621420 Outpatient Mental Health and Substance Abuse Centers 100
621491 HMO Medical Centers 100
621492 Kidney Dialysis Centers 200
621493 Freestanding Ambulatory Surgical and Emergency Centers 100
621498 All Other Outpatient Care Centers 100
621511 Medical Laboratories 100
621512 Diagnostic Imaging Centers 100
621610 Home Health Care Services 300
621910 Ambulance Services 100
621991 Blood and Organ Banks 100
621999 All Other Miscellaneous Ambulatory Health Care Services 100
Subsector 622—Hospitals
622110 General Medical and Surgical Hospitals 400
622210 Psychiatric and Substance Abuse Hospitals 400
622310 Specialty (except Psychiatric and Substance Abuse) Hospitals 400
Subsector 623—Nursing and Residential Care Facilities
623110 Nursing Care Facilities 300
623210 Residential Mental Retardation Facilities 300
623220 Residential Mental Health and Substance Abuse Facilities 50
623311 Continuing Care Retirement Communities 300
623312 Homes for the Elderly 50
623990 Other Residential Care Facilities 50
Subsector 624—Social Assistance
624110 Child and Youth Services 50
624120 Services for the Elderly and Persons with Disabilities 50
624190 Other Individual and Family Services 50
624210 Community Food Services 50
624221 Temporary Shelters 50
624229 Other Community Housing Services 50
624230 Emergency and Other Relief Services 50
624310 Vocational Rehabilitation Services 50
624410 Child Day Care Services 50
Sector 71—Arts, Entertainment and Recreation
Subsector 711—Performing Arts, Spectator Sports and Related Industries
711110 Theater Companies and Dinner Theaters 50
711120 Dance Companies 50
711130 Musical Groups and Artists 50
711190 Other Performing Arts Companies 50
711211 Sports Teams and Clubs 50
711212 Race Tracks 50
711219 Other Spectator Sports 50
711310 Promoters of Performing Arts, Sports and Similar Events with Facilities 100
711320 Promoters of Performing Arts, Sports and Similar Events without Facilities 50
711410 Agents and Managers for Artists, Athletes, Entertainers and Other Public Figures 50
711510 Independent Artists, Writers, and Performers 50
Subsector 712—Museums, Historical Sites and Similar Institutions
712110 Museums 50
712120 Historical Sites 50
712130 Zoos and Botanical Gardens 50
712190 Nature Parks and Other Similar Institutions 50
Subsector 713—Amusement, Gambling and Recreation Industries
713110 Amusement and Theme Parks 100
713120 Amusement Arcades 50
713210 Casinos (except Casino Hotels) 50
713290 Other Gambling Industries 50
713910 Golf Courses and Country Clubs 50
713920 Skiing Facilities 200
713930 Marinas 50
713940 Fitness and Recreational Sports Centers 50
713950 Bowling Centers 50
713990 All Other Amusement and Recreation Industries 50
Sector 72—Accommodation and Food Services
Subsector 721—Accommodation
721110 Hotels (except Casino Hotels) and Motels 100
721120 Casino Hotels 100
721191 Bed and Breakfast Inns 50
721199 All Other Traveler Accommodation 50
721211 RV (Recreational Vehicle) Parks and Campgrounds 50
721214 Recreational and Vacation Camps (except Campgrounds) 50
721310 Rooming and Boarding Houses 50
Subsector 722—Food Services and Drinking Places
722110 Full-Service Restaurants 50
722211 Limited-Service Restaurants 50
722212 Cafeterias 50
722213 Snack and Nonalcoholic Beverage Bars 50
722310 Food Service Contractors 400
722320 Caterers 50
722330 Mobile Food Services 50
722410 Drinking Places (Alcoholic Beverages) 50
Sector 81—Other Services
Subsector 811—Repair and Maintenance
811111 General Automotive Repair 50
811112 Automotive Exhaust System Repair 50
811113 Automotive Transmission Repair 50
811118 Other Automotive Mechanical and Electrical Repair and Maintenance 50
811121 Automotive Body, Paint and Interior Repair and Maintenance 50
811122 Automotive Glass Replacement Shops 50
811191 Automotive Oil Change and Lubrication Shops 50
811192 Car Washes 50
811198 All Other Automotive Repair and Maintenance 50
811211 Consumer Electronics Repair and Maintenance 50
811212 Computer and Office Machine Repair and Maintenance 150
811213 Communication Equipment Repair and Maintenance 50
811219 Other Electronic and Precision Equipment Repair and Maintenance 50
811310 Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance 50
811411 Home and Garden Equipment Repair and Maintenance 50
811412 Appliance Repair and Maintenance 50
811420 Reupholstery and Furniture Repair 50
811430 Footwear and Leather Goods Repair 50
811490 Other Personal and Household Goods Repair and Maintenance 50
Subsector 812—Personal and Laundry Services
812111 Barber Shops 50
812112 Beauty Salons 50
812113 Nail Salons 50
812191 Diet and Weight Reducing Centers 50
812199 Other Personal Care Services 50
812210 Funeral Homes and Funeral Services 50
812220 Cemeteries and Crematories 50
812310 Coin-Operated Laundries and Drycleaners 50
812320 Drycleaning and Laundry Services (except Coin-Operated) 50
812331 Linen Supply 200
812332 Industrial Launderers 200
812910 Pet Care (except Veterinary) Services 50
812921 Photo Finishing Laboratories (except One-Hour) 50
812922 One-Hour Photo Finishing 50
812930 Parking Lots and Garages 100
812990 All Other Personal Services 50
Subsector 813—Religious, Grantmaking, Civic, Professional and Similar Organizations
813110 Religious Organizations 50
813211 Grantmaking Foundations 50
813212 Voluntary Health Organizations 50
813219 Other Grantmaking and Giving Services 50
813311 Human Rights Organizations 50
813312 Environment, Conservation and Wildlife Organizations 50
813319 Other Social Advocacy Organizations 50
813410 Civic and Social Organizations 50
813910 Business Associations 50
813920 Professional Organizations 50
813930 Labor Unions and Similar Labor Organizations 50
813940 Political Organizations 50
813990 Other Similar Organizations (except Business, Professional, Labor, and Political Organizations) 50
Sector 92—Public Administration14
(Small business size standards are not established for this sector. Establishments in the Public Administration sector are Federal, state, and local government agencies which administer and oversee government programs and activities that are not performed by private establishments.)
* * * * *

3. Revise § 121.301(d) to read as follows:

§ 121.301 * * * * *

(d) For Surety Bond Guarantee assistance an applicant, including its affiliates, must not exceed the size standard for the industry in which the applicant is primarily engaged.

* * * * *

4. Revise § 121.406(b)(1)(i) to read as follows:

§ 121.406 * * * * *

(b)Nonmanufacturers.(1) * * *

(i) Does not exceed 100 employees;

* * * * *

5. Revise § 121.502(a)(2) to read as follows:

§ 121.502

(a) * * *

(2) A concern not primarily engaged in manufacturing is small for sales or leases of Government property if it does not exceed 50 employees.

* * * * *

6. Revise § 121.508(a)(2) to read as follows:

§ 121.508

(a) * * *

(2) Have, together with its affiliates, no more than 50 employees during any pay period for the last 12 months; and,

* * * * *

7. Revise § 121.509(a) to read as follows:

§ 121.509 * * * * *

(a) Together with its affiliates, does not have more than 300 employees;

* * * * *

9. Revise § 121.512(b) to read as follows:

§ 121.512 * * * * *

(b) Together with its affiliates, it does not have more than 400 employees.

Dated: February 3, 2004. Hector V. Barreto,

Administrator.

Footnotes

1. Federal procurement is an appropriate consideration because of the special support provided by SBA to small businesses through the 8(a) Business Development Program, the Small Disadvantaged Business Program, the HUBZone Program, the Small Business Set-Aside program and subcontracting programs. Not only has SBA implemented policies to assist small businesses to develop through these Federal procurement programs, but the businesses themselves have made economic and business decisions affecting their eligibility for these programs. The SBA wants to avoid taking away small business eligibility for Federal procurement programs from a large number of small businesses that could otherwise result from this size standards restructuring proposal. This consideration is limited to industries in which significant Federal Government contracting opportunities exist, or with approximately $100 million or more in Federal contracting.

References

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