76390 Federal Register / Vol. 85, No. 229 / Friday, November 27, 2020 / Proposed Rules 

SMALL BUSINESS ADMINISTRATION 

13 CFR Part 121 

RIN 3245–AG88 

Small Business Size Standards: 

Education Services; Health Care and 

Social Assistance; Arts, Entertainment 

and Recreation; Accommodation and 

Food Services; Other Services 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Proposed rule. 

SUMMARY: The U.S. Small Business 

Administration (SBA) proposes to 

increase its receipts-based small 

business size definitions (commonly 

referred to as ‘‘size standards’’) for 

North American Industry Classification 

System (NAICS) Sectors related to 

Education Services; Health Care and 

Social Assistance; Arts, Entertainment 

and Recreation; Accommodation and 

Food Services; and Other Services. SBA 

proposes to increase size standards for 

70 industries in those sectors, including 

14 industries in NAICS Sector 61 

(Education Services), 18 industries in 

Sector 62 (Health Care and Social 

Assistance), 11 industries in Sector 71 

(Arts, Entertainment and Recreation), 4 

industries in Sector 72 (Accommodation 

and Food Services), and 23 industries in 

Sector 81 (Other Services). SBA’s 

proposed revisions rely on its recently 

revised ‘‘Size Standards Methodology’’ 

(Methodology). SBA seeks comments on 

its proposed changes to size standards 

in the above sectors, and the data 

sources it evaluated to develop the 

proposed size standards. 

DATES: SBA must receive comments to 

this proposed rule on or before January 

26, 2021. 

ADDRESSES: Identify your comments by 

RIN 3245–AG88 and submit them by 

one of the following methods: (1) 

Federal eRulemaking Portal: 

www.regulations.gov; follow the 

instructions for submitting comments; 

or (2) Mail/Hand Delivery/Courier: 

Khem R. Sharma, Ph.D., Chief, Office of 

Size Standards, 409 Third Street SW, 

Mail Code 6530, Washington, DC 20416. 

SBA will post all comments to this 

proposed rule on www.regulations.gov. 

If you wish to submit confidential 

business information (CBI) as defined in 

the User Notice at www.regulations.gov, 

you must submit such information to 

U.S. Small Business Administration, 

Khem R. Sharma, Ph.D., Chief, Office of 

Size Standards, 409 Third Street SW, 

Mail Code 6530, Washington, DC 20416, 

or send an email to sizestandards@

sba.gov. Highlight the information that 

you consider to be CBI and explain why 

you believe SBA should hold this 

information as confidential. SBA will 

review your information and determine 

whether it will make the information 

public. 

FOR FURTHER INFORMATION CONTACT: 

Jorge Laboy-Bruno, Ph.D., Economist, 

Office of Size Standards, (202) 205–6618 

or sizestandards@sba.gov. 

SUPPLEMENTARY INFORMATION: 

Discussion of Size Standards 

To determine eligibility for Federal 

small business assistance, SBA 

establishes small business size 

definitions (usually referred to as ‘‘size 

standards’’) for private sector industries 

in the United States. SBA uses 2 

primary measures of business size for 

size standards purposes: Average annual 

receipts and average number of 

employees. SBA uses financial assets for 

certain financial industries and refining 

capacity, in addition to employees, for 

the petroleum refining industry to 

measure business size. In addition, 

SBA’s Small Business Investment 

Company (SBIC), Certified Development 

Company (504), and 7(a) Loan Programs 

use either the industry-based size 

standards or tangible net worth and net 

income-based alternative size standards 

to determine eligibility for those 

programs. 

In September 2010, Congress passed 

the Jobs Act (Pub. L. 111–240, 124 Stat. 

2504, September 27, 2010) requiring 

SBA to review all size standards every 

5 years and make necessary adjustments 

to reflect current industry and market 

conditions. In accordance with the Jobs 

Act, in early 2016 SBA completed the 

first 5-year review of all size 

standards—except those for agricultural 

enterprises for which size standards 

were previously set by Congress—and 

made appropriate adjustments to size 

standards for a number of industries to 

reflect current industry and Federal 

market conditions. 

During the previous 5-year 

comprehensive review SBA reviewed 

the receipts-based size standards for 17 

industries and 1 exception within 

NAICS Sector 61; 39 industries within 

Sector 62; 25 industries within Sector 

71; 15 industries within Sector 72; and 

48 industries within Sector 81. These 

reviews of receipts-based size standards 

occurred from October 2010 to 

December 2013. SBA’s analyses of the 

relevant industry and Federal 

contracting data available at that time 

supported lowering size standards for 

41 industries and 1 exception in these 

sectors. However, taking into 

consideration economic conditions at 

the time, SBA decided to either retain 

all size standards for which the industry 

analysis suggested a lower size standard 

at existing levels or bring them up to the 

relevant common size standard. In the 

final rules, SBA increased receiptsbased size standards for 77 of those 

industries, including 9 industries in 

Sector 61 (77 FR 58739, September 24, 

2012), 28 industries in Sector 62 (77 FR 

58755, September 24, 2012), 17 

industries in Sector 71 (78 FR 37417, 

June 20, 2013), 5 industries in Sector 72 

(75 FR 61604, October 6, 2010), and 18 

industries in Sector 81 (75 FR 61591, 

October 6, 2010). SBA retained the 

existing size standards for the remaining 

68 industries and 1 exception in these 

sectors. Table 1, Size Standards 

Revisions During the First 5-Year 

Review, provides a summary of these 

revisions by NAICS sector. 

TABLE 1—SIZE STANDARDS REVISIONS DURING THE FIRST 5-YEAR REVIEW

NAICS sector Sector name 

Number of 

size standards 

reviewed 

Number of 

size standards 

increased 

Number size 

standards 

lowered 

Number of 

size standards 

maintained 

61 ......................... Education Services ........................................................ 18 9 0 9 

62 ......................... Health Care and Social Assistance ............................... 39 28 0 11 

71 ......................... Arts, Entertainment and Recreation .............................. 25 17 0 8 

72 ......................... Accommodation and Food Services ............................. 15 5 0 10 

81 ......................... Other Services ............................................................... 48 18 0 30 

All Sectors .... ........................................................................................ 145 77 0 68 


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Currently, there are 27 different size 

standards levels covering 1,023 NAICS 

industries and 14 subindustry activities 

(commonly known as ‘‘exceptions’’ in 

SBA’s table of size standards). 16 of 

these size levels are based on average 

annual receipts, 9 are based on average 

number of employees, and 2 are based 

on other measures. 

SBA also adjusts its monetary-based 

size standards for inflation at least once 

every 5 years. An interim final rule on 

SBA’s latest inflation adjustment to size 

standards, effective August 19, 2019, 

was published in the Federal Register 

on July 18, 2019 (84 FR 34261). SBA 

also updates its size standards, every 5 

years to adopt the Office of Management 

and Budget’s (OMB) quinquennial 

NAICS revisions to its table of small 

business size standards. Effective 

October 1, 2017, SBA adopted the 

OMB’s 2017 NAICS revisions to its size 

standards (82 FR 44886, September 27, 

2017). 

This proposed rule is one of a series 

of proposed rules that will review size 

standards of industries grouped by 

various NAICS sectors. Rather than 

review all size standards at one time, 

SBA is reviewing size standards by 

grouping industries within various 

NAICS sectors that use the same size 

measure (i.e., employees or receipts). In 

the current review, SBA will review size 

standards in 6 groups of NAICS sectors. 

(In the prior review, SBA reviewed size 

standards mostly on a sector-by-sector 

basis.) Once SBA completes its review 

of size standards for a group of sectors, 

it issues for public comments a 

proposed rule to revise size standards 

for those industries based on the latest 

available data and other factors deemed 

relevant by the SBA’s Administrator. 

Below is a discussion of SBA’s 

revised ‘‘Size Standards Methodology’’ 

(Methodology), available at 

www.sba.gov/size, for establishing, 

reviewing, or modifying receipts-based 

size standards that SBA has applied to 

this proposed rule. SBA examines the 

structural characteristics of an industry 

as a basis to assess industry differences 

and the overall degree of 

competitiveness of an industry and of 

firms within the industry. Industry 

structure is typically examined by 

analyzing 4 primary factors—average 

firm size, degree of competition within 

an industry, start-up costs and entry 

barriers, and distribution of firms by 

size. To assess the ability of small 

businesses to compete for Federal 

contracting opportunities under the 

current size standards, as the fifth 

primary factor, SBA also examines, for 

each industry averaging $20 million or 

more in average annual Federal contract 

dollars, the small business share in 

Federal contract dollars relative to the 

small business share in total industry’s 

receipts. When necessary, SBA also 

considers other secondary factors that 

are relevant to the industries and the 

interests of small businesses, including 

impacts of size standards changes on 

small businesses. 

Size Standards Methodology 

SBA has recently revised its 

Methodology for establishing, 

reviewing, or modifying size standards 

when necessary. See the notification in 

the April 11, 2019, edition of the 

Federal Register (84 FR 14587). The 

revised methodology is available on 

SBA’s size standards web page at 

www.sba.gov/size. Prior to finalizing the 

revised Methodology, SBA issued a 

notification in the April 27, 2018 

edition of the Federal Register (83 FR 

18468) to solicit comments from the 

public and notify stakeholders of the 

proposed changes to the Methodology. 

SBA considered all public comments in 

finalizing the revised Methodology. For 

a summary of comments and SBA’s 

responses, refer to the SBA’s April 11, 

2019, Federal Register notification. 

The revised Methodology represents a 

major change from the previous 

methodology, which was issued on 

October 21, 2009 (74 FR 53940). 

Specifically, in its revised Methodology 

SBA is replacing the ‘‘anchor’’ approach 

applied in the previous methodology 

with a ‘‘percentile’’ approach for 

evaluating differences in characteristics 

among various industries. Under the 

‘‘anchor’’ approach, SBA generally 

evaluated the characteristics of 

individual industries relative to the 

average characteristics of industries 

with the anchor size standard to 

determine whether they should have a 

higher or a lower size standard than the 

anchor. In the ‘‘percentile’’ approach, 

SBA ranks each industry among all 

industries with the same measure of size 

standards (such as receipts or 

employees) in terms of 4 primary 

industry factors, discussed in the 

Industry Analysis subsection below. 

The ‘‘percentile’’ approach is explained 

more fully elsewhere in this proposed 

rule. For a more detailed explanation 

please see the revised methodology at 

www.sba.gov/size. Additionally, as the 

fifth factor, SBA evaluates the difference 

between the small business share in 

Federal contract dollars and the small 

business share in total industry’s 

receipts to compute the size standard for 

the Federal contracting factor. The 

overall size standard for an industry is 

then obtained by averaging all size 

standards supported by each primary 

factor. The evaluation of the Federal 

contracting factor is explained more 

fully elsewhere in this proposed rule. 

SBA does not apply all aspects of its 

Methodology to all proposed rules 

because not all features are relevant for 

every industry covered by each 

proposed rule. For example, since all 

industries covered by this proposed rule 

have receipts-based size standards, the 

Methodology described in this proposed 

rule applies only to establishing, 

reviewing, or modifying receipts-based 

size standards. SBA’s Methodology is 

available on its website at www.sba.gov/ 

size. 

Industry Analysis 

Congress granted SBA’s Administrator 

discretion to establish detailed small 

business size standards (see 15 U.S.C. 

632(a)(2)). Specifically, section 3(a)(3) of 

the Small Business Act (15 U.S.C. 

632(a)(3)) requires that ‘‘. . .the [SBA] 

Administrator shall ensure that the size 

standard varies from industry to 

industry to the extent necessary to 

reflect the differing characteristics of the 

various industries and consider other 

factors deemed to be relevant by the 

Administrator.’’ Accordingly, the 

economic structure of an industry is the 

basis for establishing, reviewing, or 

modifying small business size 

standards. In addition, SBA considers 

current economic conditions, its 

mission and program objectives, the 

Administration’s current policies, 

impacts on small businesses under 

current size and proposed or revised 

size standards, suggestions from 

industry groups and Federal agencies, 

and public comments on the proposed 

rule. SBA also examines whether a size 

standard based on industry and other 

relevant data successfully excludes 

businesses that are dominant in the 

industry. 

The goal of SBA’s size standards 

review is to determine whether its 

existing small business size standards 

reflect the current industry structure 

and Federal market conditions and 

revise them when the latest available 

data suggest that revisions are 

warranted. In the past, SBA compared 

the characteristics of each industry with 

the average characteristics of a group of 

industries associated with the ‘‘anchor’’ 

size standard. For example, in the first 

5-year comprehensive review of size 

standards under the Jobs Act, $7 million 

(now $8.0 million due to the inflation 

adjustment in 2019; see 84 FR 34261 

(July 18, 2019)) was considered the 

‘‘anchor’’ for receipts-based size 

standards and 500 employees was the 

‘‘anchor’’ for employee-based size 

standards. If the characteristics of a 


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specific industry under review were 

similar to the average characteristics of 

industries in the anchor group, SBA 

generally adopted the anchor size 

standard for that industry. If the specific 

industry’s characteristics were 

significantly different from those in the 

anchor group, SBA assigned a size 

standard that was higher or lower than 

the anchor. To determine a size 

standard above or below the anchor size 

standard, SBA evaluated the 

characteristics of a second comparison 

group of industries with higher size 

standards. For industries with receiptsbased standards, the second comparison 

group consisted of industries with size 

standards between $23 million and 

$35.5 million, with the weighted 

average size standard for the group 

equaling $29 million. For manufacturing 

industries and other industries with 

employee-based size standards (except 

for Wholesale Trade and Retail Trade), 

the second comparison group included 

industries with a size standard of 1,000 

employees or 1,500 employees, with the 

weighted average size standard of 1,323 

employees. Using the anchor size 

standard and average size standard for 

the second comparison group, SBA 

computed a size standard for an 

industry’s characteristic (factor) based 

on the industry’s position for that factor 

relative to the average values of the 

same factor for industries in the anchor 

and second comparison groups. 

Under the ‘‘percentile’’ approach, for 

each industry factor, an industry is 

ranked and compared with the 20th 

percentile and 80th percentile values of 

that factor among the industries sharing 

the same measure of size standards (i.e., 

receipts or employees). Combining that 

result with the 20th percentile and 80th 

percentile values of size standards 

among the industries with the same 

measure of size standards, SBA 

computes a size standard supported by 

each industry factor for each industry. 

In the previous Methodology, 

comparison industry groups were 

predetermined independent of the data, 

while in the revised Methodology they 

are established using the actual data. A 

more detailed description of the 

percentile method is provided in SBA’s 

Methodology, available at www.sba.gov/ 

size. 

The primary factors that SBA 

evaluates to examine industry structure 

include average firm size, startup costs 

and entry barriers, industry 

competition, and distribution of firms 

by size. SBA also evaluates, as an 

additional primary factor, small 

business success in receiving Federal 

contracting assistance under the current 

size standards. Specifically, for the 

Federal contracting factor, SBA 

examines the small business share of 

Federal contract dollars relative to small 

business share of total receipts within 

an industry. These are, generally, the 5 

most important factors SBA examines 

when establishing, reviewing, or 

revising a size standard for an industry. 

However, SBA will also consider and 

evaluate other secondary factors that it 

believes are relevant to a particular 

industry (such as technological changes, 

growth trends, SBA financial assistance, 

and other program factors). SBA also 

considers possible impacts of size 

standard revisions on eligibility for 

Federal small business assistance, 

current economic conditions, the 

Administration’s policies, and 

suggestions from industry groups and 

Federal agencies. Public comments on 

proposed rules also provide important 

additional information. SBA thoroughly 

reviews all public comments before 

making a final decision on its proposed 

revisions to size standards. Below are 

brief descriptions of each of the 5 

primary factors that SBA has evaluated 

for each industry being reviewed in this 

proposed rule. A more detailed 

description of this analysis is provided 

in the SBA’s Methodology, available at 

www.sba.gov/size. 

1. Average Firm Size 

SBA computes 2 measures of average 

firm size: Simple average and weighted 

average. For industries with receiptsbased size standards, the simple average 

is the total receipts of the industry 

divided by the total number of firms in 

the industry. The weighted average firm 

size is the summation of all the receipts 

of the firms in an industry multiplied by 

their share of receipts in the industry. 

The simple average weighs all firms 

within an industry equally regardless of 

their size. The weighted average 

overcomes that limitation by giving 

more weight to larger firms. The size 

standard supported by average firm size 

is obtained by averaging size standards 

supported by simple average firm size 

and weighted average firm size. 

If the average firm size of an industry 

is higher than the average firm size for 

most other industries, this would 

generally support a size standard higher 

than the size standards for other 

industries. Conversely, if the industry’s 

average firm size is lower than that of 

most other industries, it would provide 

a basis to assign a lower size standard 

as compared to size standards for most 

other industries. 

2. Startup Costs and Entry Barriers 

Startup costs reflect a firm’s initial 

size in an industry. New entrants to an 

industry must have sufficient capital 

and other assets to start and maintain a 

viable business. If firms entering an 

industry under review have greater 

capital requirements than firms in most 

other industries, all other factors 

remaining the same, this would be a 

basis for a higher size standard. 

Conversely, if the industry has smaller 

capital needs compared to most other 

industries, a lower size standard would 

be considered appropriate. 

Given the lack of actual data on 

startup costs and entry barriers by 

industry, SBA uses average assets as a 

proxy for startup costs and entry 

barriers. To calculate average assets, 

SBA begins with the sales to total assets 

ratio for an industry from the Risk 

Management Association’s Annual 

Statement Studies, available at https://

rmau.org. SBA then applies these ratios 

to the average receipts of firms in that 

industry obtained from the Economic 

Census tabulation. An industry with 

average assets that are significantly 

higher than most other industries is 

likely to have higher startup costs; this 

in turn will support a higher size 

standard. Conversely, an industry with 

average assets that are similar to or 

lower than most other industries is 

likely to have lower startup costs; this 

will support either lowering or 

maintaining the size standard. 

3. Industry Competition 

Industry competition is generally 

measured by the share of total industry 

receipts generated by the largest firms in 

an industry. SBA generally evaluates the 

share of industry receipts generated by 

the 4 largest firms in each industry. This 

is referred to as the ‘‘4-firm 

concentration ratio,’’ a commonly used 

economic measure of market 

competition. Using the 4-firm 

concentration ratio, SBA compares the 

degree of concentration within an 

industry to the degree of concentration 

of the other industries with the same 

measure of size standards. If a 

significantly higher share of economic 

activity within an industry is 

concentrated among the 4 largest firms 

compared to most other industries, all 

else being equal, SBA would set a size 

standard that is relatively higher than 

for most other industries. Conversely, if 

the market share of the 4 largest firms 

in an industry is appreciably lower than 

the similar share for most other 

industries, the industry will be assigned 

a size standard that is lower than those 

for most other industries. 

4. Distribution of Firms by Size 

SBA examines the shares of industry 

total receipts accounted for by firms of 


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different receipts and employment sizes 

in an industry. This is an additional 

factor SBA considers in assessing 

competition within an industry besides 

the 4-firm concentration ratio. If the 

preponderance of an industry’s 

economic activity is attributable to 

smaller firms, this generally indicates 

that small businesses are competitive in 

that industry, which would support 

adopting a smaller size standard. A 

higher size standard would be 

supported for an industry in which the 

distribution of firms indicates that most 

of the economic activity is concentrated 

among the larger firms. 

Concentration is a measure of 

inequality of distribution. To determine 

the degree of inequality of distribution 

in an industry, SBA computes the Gini 

coefficient, using the Lorenz curve. The 

Lorenz curve presents the cumulative 

percentages of units (firms) along the 

horizontal axis and the cumulative 

percentages of receipts (or other 

measures of size) along the vertical axis. 

(For further detail, see SBA’s 

Methodology on its website at 

www.sba.gov/size.) Gini coefficient 

values vary from zero to one. If receipts 

are distributed equally among all the 

firms in an industry, the value of the 

Gini coefficient will equal zero. If an 

industry’s total receipts are attributed to 

a single firm, the Gini coefficient will 

equal one. 

SBA compares the degree of 

inequality of distribution for an industry 

under review with other industries with 

the same type of size standards. If an 

industry shows a higher degree of 

inequality of distribution (hence a 

higher Gini coefficient value) compared 

to most other industries in the group 

this would, all else being equal, warrant 

a size standard that is higher than the 

size standards assigned to most other 

industries. Conversely, an industry with 

lower degree of inequality (i.e., a lower 

Gini coefficient value) than most others 

will be assigned a lower size standard 

relative to others. 

5. Federal Contracting 

As the fifth factor, SBA examines the 

success small businesses are having in 

winning Federal contracts under the 

current size standard as well as the 

possible impact a size standard change 

may have on Federal small business 

contracting opportunities. The Small 

Business Act requires the Federal 

Government to ensure that small 

businesses receive a ‘‘fair proportion’’ of 

Federal contracts. The legislative history 

also discusses the importance of size 

standards in Federal contracting. To 

incorporate the Federal contracting 

factor in the size standards analysis, 

SBA evaluates small business 

participation in Federal contracting in 

terms of the share of total Federal 

contract dollars awarded to small 

businesses relative to the small business 

share of industry’s total receipts. In 

general, if the share of Federal contract 

dollars awarded to small businesses in 

an industry is significantly smaller than 

the small business share of total 

industry’s receipts, all else remaining 

the same, a justification would exist for 

considering a size standard higher than 

the current size standard. In cases where 

small business share of the Federal 

market is already appreciably high 

relative to the small business share of 

the overall market, SBA generally 

assumes that the existing size standard 

is adequate with respect to the Federal 

contracting factor. 

The disparity between the small 

business Federal market share and 

industry-wide small business share may 

be due to various factors, such as 

extensive administrative and 

compliance requirements associated 

with Federal contracts, the different 

skill set required to perform Federal 

contracts as compared to typical 

commercial contracting work, and the 

size of Federal contracts. These, as well 

as other factors, are likely to influence 

the type of firms within an industry that 

compete for Federal contracts. By 

comparing the small business Federal 

contracting share with the industrywide small business share, SBA 

includes in its size standards analysis 

the latest Federal market conditions. 

Besides the impact on Federal 

contracting, SBA also examines impacts 

on SBA’s loan programs both under the 

current and revised size standards. 

Sources of Industry and Program Data 

SBA’s primary source of industry data 

used in this proposed rule for evaluating 

industry characteristics and developing 

size standards is a special tabulation of 

the Economic Census from the U.S. 

Census Bureau (https://

www.census.gov/programs-surveys/ 

economic-census.html). The tabulation 

based on the 2012 Economic Census is 

the latest available. The special 

tabulation provides industry data on the 

number of firms, number of 

establishments, number of employees, 

annual payroll, and annual receipts of 

companies by Industry (6-digit level), 

Industry Group (4-digit level), Subsector 

(3-digit level), and Sector (2-digit level). 

These data are arrayed by various 

classes of firms’ size based on the 

overall number of employees and 

receipts of the entire enterprise (all 

establishments and affiliated firms) from 

all industries. The special tabulation 

also contains information for different 

levels of NAICS categories on average 

and median firm size in terms of both 

receipts and employment, total receipts 

generated by the 4 and 8 largest firms, 

the Herfindahl-Hirschman Index (HHI), 

the Gini coefficient, and size 

distributions of firms by various receipts 

and employment size groupings. 

In some cases, where data were not 

available due to disclosure prohibitions 

in the Census Bureau’s tabulation, SBA 

either estimated missing values using 

available relevant data or examined data 

at a higher level of industry aggregation, 

such as at the NAICS 2-digit (Sector), 3- 

digit (Subsector), or 4-digit (Industry 

Group) level. In some instances, SBA’s 

analysis was based only on those factors 

for which data were available or 

estimates of missing values were 

possible. 

To evaluate some industries that are 

not covered by the Economic Census, 

SBA used a similar special tabulation of 

the latest County Business Patterns 

(CBP) published by the U.S. Census 

Bureau (www.census.gov/programssurveys/cbp.html). Similarly, to evaluate 

industries in NAICS Sector 11 that are 

also not covered by the Economic 

Census and CBP, SBA evaluated a 

similar special tabulation based on the 

2012 Census of Agriculture 

(www.nass.usda.gov) from the National 

Agricultural Statistics Service (NASS). 

Besides the Economic Census, 

Agricultural Census and CBP 

tabulations, SBA also evaluates relevant 

industry data from other sources when 

necessary, especially for industries that 

are not covered by the Economic Census 

or CBP. These include the Quarterly 

Census of Employment and Wages 

(QCEW, also known as ES–202 data) 

(www.bls.gov/cew/) and Business 

Employment Dynamics (BED) data 

(www.bls.gov/bdm/) from the U.S. 

Bureau of Labor Statistics. Similarly, to 

evaluate certain financial industries that 

have assets-based size standards, SBA 

examines the data from the Statistics on 

Depository Institutions (SDI) database 

(www5.fdic.gov/sdi/main.asp) of the 

Federal Depository Insurance 

Corporation (FDIC). Finally, to evaluate 

the capacity component of the 

Petroleum Refiners (NAICS 324110) size 

standard, SBA evaluates the petroleum 

production data from the Energy 

Information Administration 

(www.eia.gov). 

To calculate average assets, SBA used 

sales to total assets ratios from the Risk 

Management Association’s Annual 

eStatement Studies, 2016–2018 (https:// 

rmau.org). To evaluate Federal 

contracting trends, SBA examined the 

data on Federal prime contract awards 


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from the Federal Procurement Data 

System—Next Generation (FPDS–NG) 

(www.fpds.gov) for fiscal years 2016– 

2018. To assess the impact on financial 

assistance to small businesses, SBA 

examined its internal data on 7(a) and 

504 loan programs for fiscal years 2016– 

2018. For some portion of impact 

analysis, SBA also evaluated the data 

from the System of Award Management 

(www.sam.gov). Data sources and 

estimation procedures SBA uses in its 

size standards analysis are documented 

in detail in SBA’s Methodology, which 

is available at www.sba.gov/size. 

Dominance in Field of Operation 

Section 3(a) of the Small Business Act 

(15 U.S.C. 632(a)) defines a small 

business concern as one that is: (1) 

Independently owned and operated; (2) 

not dominant in its field of operation; 

and (3) within a specific small business 

definition or size standard established 

by SBA Administrator. SBA considers 

as part of its evaluation whether a 

business concern at a proposed size 

standard would be dominant in its field 

of operation. For this, SBA generally 

examines the industry’s market share of 

firms at the proposed or revised size 

standard as well as the distribution of 

firms by size. Market share and size 

distribution may indicate whether a 

firm can exercise a major controlling 

influence on a national basis in an 

industry where a significant number of 

business concerns are engaged. If a 

contemplated size standard includes a 

dominant firm, SBA will consider a 

lower size standard to exclude the 

dominant firm from being defined as 

small. 

Selection of Size Standards 

In the 2009 Methodology SBA applied 

to the first 5-year comprehensive review 

of size standards, SBA adopted a fixed 

number of size standards levels as part 

of its effort to simplify size standards. In 

response to public comments to the 

2009 Methodology white paper, and the 

2013 amendment to the Small Business 

Act (section 3(a)(8)) under section 1661 

of the National Defense Authorization 

Act for Fiscal Year 2013 (‘‘NDAA 2013’’) 

(Pub. L. 112–239, January 2, 2013), in 

the revised Methodology, SBA relaxed 

the limitation on the number of small 

business size standards. Specifically, 

section 1661 of NDAA 2013 states ‘‘SBA 

cannot limit the number of size 

standards, and shall assign the 

appropriate size standard to each 

industry identified by NAICS.’’ 

In the revised Methodology, SBA 

calculates a separate size standard for 

each NAICS industry. However, to 

account for errors and limitations 

associated with various data SBA 

evaluates in the size standards analysis, 

SBA rounds the calculated size standard 

value for a receipts-based size standard 

to the nearest $500,000, except for 

agricultural industries in Subsectors 111 

and 112 for which the calculated size 

standards will be rounded to the nearest 

$250,000. This rounding procedure is 

applied both in calculating a size 

standard for each of the 5 primary 

factors and in calculating the overall 

size standard for the industry. 

As a policy decision, SBA continues 

to maintain the minimum and 

maximum levels for both receipts and 

employee-based size standards. 

Accordingly, SBA will not generally 

propose or adopt a size standard that is 

either below the minimum level or 

above the maximum, even though the 

calculations yield values below the 

minimum or above the maximum. The 

minimum size standard reflects the size 

an established small business should be 

to have adequate capabilities and 

resources to be able to compete for and 

perform Federal contracts (but does not 

account for small businesses that are 

newly formed or just starting 

operations). On the other hand, the 

maximum size standard represents the 

level above which businesses, if 

qualified as small, would outcompete 

much smaller businesses when 

accessing Federal assistance. 

With respect to receipts-based size 

standards, SBA has established $6 

million and $41.5 million, respectively, 

as the minimum and maximum size 

standard levels (except for most 

agricultural industries in NAICS 

Subsectors 111 and 112). These levels 

reflect the current minimum of $6.0 

million and the current maximum of 

$41.5 million. The industry data 

suggests that $6 million minimum and 

$41.5 million maximum size standards 

would be too high for agricultural 

industries. Accordingly, SBA has 

established $1 million as the minimum 

size standard and $5 million as the 

maximum size standard for industries in 

Subsector 111 (Crop Production) and 

Subsector 112 (Animal Production and 

Aquaculture). 

Evaluation of Industry Factors 

As mentioned earlier, to assess the 

appropriateness of the current size 

standards SBA evaluates the structure of 

each industry in terms of 4 economic 

characteristics or factors, namely 

average firm size, average assets size as 

a proxy for startup costs and entry 

barriers, the 4-firm concentration ratio 

as a measure of industry competition, 

and size distribution of firms using the 

Gini coefficient. For each size standard 

type (i.e., receipts-based or employeebased) SBA ranks industries both in 

terms of each of the 4 industry factors 

and in terms of the existing size 

standard and computes the 20th 

percentile and 80th percentile values for 

both. SBA then evaluates each industry 

by comparing its value for each industry 

factor to the 20th percentile and 80th 

percentile values for the corresponding 

factor for industries under a particular 

type of size standard. 

If the characteristics of an industry 

under review within a particular size 

standard type are similar to the average 

characteristics of industries within the 

same size standard type in the 20th 

percentile, SBA will consider adopting 

as an appropriate size standard for that 

industry the 20th percentile value of 

size standards for those industries. For 

each size standard type, if the industry’s 

characteristics are similar to the average 

characteristics of industries in the 80th 

percentile, SBA will assign a size 

standard that corresponds to the 80th 

percentile in the size standard rankings 

of industries. A separate size standard is 

established for each factor based on the 

amount of differences between the 

factor value for an industry under a 

particular size standard type and 20th 

percentile and 80th percentile values for 

the corresponding factor for all 

industries in the same type. 

Specifically, the actual level of the new 

size standard for each industry factor is 

derived by a linear interpolation using 

the 20th percentile and 80th percentile 

values of that factor and corresponding 

percentiles of size standards. Each 

calculated size standard is bounded 

between the minimum and maximum 

size standards levels, as discussed 

before. As noted earlier, the calculated 

value for a receipts-based size standard 

for each industry factor is rounded to 

the nearest $500,000, except for 

industries in Subsectors 111 and 112 for 

which a calculated size standard is 

rounded to the nearest $250,000. 

Table 2, 20th and 80th Percentiles of 

Industry Factors for Receipts-based Size 

Standards, shows the 20th percentile 

and 80th percentile values for average 

firm size (simple and weighted), average 

assets size, 4-firm concentration ratio, 

and Gini coefficient for industries with 

receipts-based size standards. 


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Federal Register / Vol. 85, No. 229 / Friday, November 27, 2020 / Proposed Rules 76395 

TABLE 2—20TH AND 80TH PERCENTILES OF INDUSTRY FACTORS FOR RECEIPTS-BASED SIZE STANDARDS

Industries/percentiles 

Simple 

average 

receipts size 

($ million) 

Weighted 

average 

receipts size 

($ million) 

Average 

assets size 

($ million) 

4-firm 

concentration 

ratio 

(%) 

Gini coefficient 

Industries, excluding Subsectors 111 and 112 

20th percentile ..................................................................... 0.83 19.42 0.34 7.9 0.686 

80th percentile ..................................................................... 7.52 830.65 5.19 42.4 0.834 

Industries in Subsectors 111 and 112 

20th percentile ..................................................................... 0.06 1.48 0.07 1.7 0.608 

80th percentile ..................................................................... 0.83 13.32 0.88 12.3 0.908 

Estimation of Size Standards Based on 

Industry Factors 

An estimated size standard supported 

by each industry factor is derived by 

comparing its value for a specific 

industry to the 20th percentile and 80th 

percentile values for that factor. If an 

industry’s value for a particular factor is 

near the 20th percentile value in the 

distribution, the supported size 

standard will be one that is close to the 

20th percentile value of size standards 

for industries in the size standards 

group, which is $8.0 million. If a factor 

for an industry is close to the 80th 

percentile value of that factor, it would 

support a size standard that is close to 

the 80th percentile value in the 

distribution of size standards, which is 

$35.0 million. For a factor that is within, 

above, or below the 20–80th percentile 

range, the size standard is calculated 

using linear interpolation based on the 

20th percentile and 80th percentile 

values for that factor and the 20th 

percentile and 80th percentile values of 

size standards. 

For example, if an industry’s simple 

average receipts are $1.9 million, that 

would support a size standard of $11.5 

million. According to Table 2, the 20th 

percentile and 80th percentile values of 

average receipts are $0.83 million and 

$7.52 million, respectively. The $1.9 

million is 15.9% between the 20th 

percentile value ($0.83 million) and the 

80th percentile value ($7.52 million) of 

simple average receipts (($1.9 

million¥$0.83 million) ÷ ($7.52 

million¥$0.83 million) = 0.159 or 

15.9%). Applying this percentage to the 

difference between the 20th percentile 

value ($8 million) and 80th percentile 

($35.0 million) value of size standards 

and then adding the result to the 20th 

percentile size standard value ($8.0 

million) yields a calculated size 

standard value of $12.32 million 

([{$35.0 million¥$8.0 million} * 0.159] 

+ $8.0 million = $11.49 million). The 

final step is to round the calculated 

$11.49 million size standard to the 

nearest $500,000, which in this example 

yields $11.5 million. This procedure is 

applied to calculate size standards 

supported by other industry factors. 

Detailed formulas involved in these 

calculations are presented in SBA’s 

Methodology,’’ which is available on its 

website at www.sba.gov/size. 

Derivation of Size Standards Based on 

Federal Contracting Factor 

Besides industry structure, SBA also 

evaluates Federal contracting data to 

assess the success of small businesses in 

getting Federal contracts under the 

existing size standards. For each 

industry with $20 million or more in 

annual Federal contract dollars, SBA 

evaluates the small business share of 

total Federal contract dollars relative to 

the small business share of total 

industry receipts. All other factors being 

equal, if the share of Federal contracting 

dollars awarded to small businesses in 

an industry is significantly less than the 

small business share of that industry’s 

total receipts, a justification would exist 

for considering a size standard higher 

than the current size standard. 

Conversely, if the small business share 

of Federal contracting activity is near or 

above the small business share in total 

industry receipts, this will support the 

current size standard. 

SBA increases the existing size 

standards by certain percentages when 

the small business share of total 

industry receipts exceeds the small 

business share of total Federal contract 

dollars by 10 or more percentage points. 

Proposed percentage increases generally 

reflect receipts levels needed to bring 

the small business share of Federal 

contracts on par with the small business 

share of industry receipts. These 

proposed percentage increases for 

receipts-based size standards are given 

in Table 3, Proposed Adjustments to 

Size Standards Based on Federal 

Contracting Factor. 

TABLE 3—PROPOSED ADJUSTMENTS TO SIZE STANDARDS BASED ON FEDERAL CONTRACTING FACTOR

Size standards 

Percentage difference between the small business 

shares of total Federal contract dollars in an 

industry and of total industry receipts 

>¥10% ¥10% to ¥30% <¥30% 

Receipts-based standards: 

<$15 million ......................................................................................................... No change ........... Increase 30% ..... Increase 60%. 

$15 million to <$25 million ................................................................................... No change ........... Increase 20% ..... Increase 40%. 

$25 million to <$41.5 million ................................................................................ No change ........... Increase 15% ..... Increase 25%. 

For example, if an industry with the 

current size standard of $8.0 million 

had an average of $50 million in Federal 

contracting dollars, of which 15% went 

to small businesses, and if that small 

businesses accounted for 40% of total 

receipts of that industry, the small 

business share of total Federal contract 

dollars would be 25 percentage points 

less than the small business share of 

total industry receipts (40%¥15%). 

According to the above rule, the new 


jbell on DSKJLSW7X2PROD with PROPOSALS4
76396 Federal Register / Vol. 85, No. 229 / Friday, November 27, 2020 / Proposed Rules 

size standard for the Federal contracting 

factor for that industry would be set by 

multiplying the current $8.0 million 

standard by 1.3 (i.e., 30% increase) and 

then by rounding the result to the 

nearest $500,000, yielding a size 

standard of $10.5 million. 

SBA evaluated the small business 

share of total Federal contract dollars for 

the 54 industries covered by this 

proposed rule—13 in Sector 61, 26 in 

Sector 62, 2 in Sector 71, 2 in Sector 72, 

and 11 in Sector 81—that had $20 

million or more in average annual 

Federal contract dollars during fiscal 

years 2016–2018. The Federal 

contracting factor was significant (i.e., 

the difference between the small 

business share of total industry receipts 

and small business share of Federal 

contracting dollars was 10 percentage 

points or more) in 29 of these industries, 

prompting an upward adjustment of 

their existing size standards based on 

that factor. For the remaining 25 

industries that averaged $20 million or 

more in average annual contract dollars, 

the Federal contracting factor was not 

significant, and the existing size 

standard was applied for that factor. For 

industries with less than $20 million in 

average annual contract dollars no size 

standard was calculated for the Federal 

contracting factor. 

Derivation of Overall Industry Size 

Standard 

The SBA’s Methodology presented 

above results in 5 separate size 

standards based on evaluation of the 5 

primary factors (i.e., 4 industry factors 

and one Federal contracting factor). SBA 

typically derives an industry’s overall 

size standard by assigning equal weights 

to size standards supported by each of 

these 5 factors. However, if necessary, 

SBA’s Methodology would allow 

assigning different weights to some of 

these factors in response to its policy 

decisions and other considerations. For 

detailed calculations, see SBA’s 

Methodology, available on its website at 

www.sba.gov/size. 

Calculated Size Standards Based on 

Industry and Federal Contracting 

Factors 

Table 4, Size Standards Supported by 

Each Factor for Each Industry 

(Receipts), below, shows the results of 

analyses of industry and Federal 

contracting factors for each industry and 

subindustry (exception) covered by this 

proposed rule. NAICS industries in 

columns 2, 3, 4, 5, 6, 7, and 8 show 2 

numbers. The upper number is the 

value for the industry or Federal 

contracting factor shown on the top of 

the column and the lower number is the 

size standard supported by that factor. 

Column 9 shows a calculated new size 

standard for each industry. This is the 

average of the size standards supported 

by each factor (the size standard for 

average firm size is an average of size 

standards supported by simple average 

firm size and weighted average firm 

size), rounded to the nearest $500,000 

for non-agriculture industries and 

rounded to the nearest $250,000 for 

agriculture industries. Analytical details 

involved in the averaging procedure are 

described in SBA’s Methodology, which 

is available on its website at 

www.sba.gov/size. For comparison with 

the calculated new size standards, the 

current size standards are in column 10 

of Table 4. 

TABLE 4—SIZE STANDARDS SUPPORTED BY EACH FACTOR FOR EACH INDUSTRY (Receipts) 

[Upper value = calculated factor, lower value = size standard supported] 

NAICS code 

NAICS industry title Type 

Simple 

average 

firm size 

($ million) 

Weighted 

average 

firm size 

($ million) 

Average 

assets size 

($ million) 

Four-firm 

ratio 

% 

Gini 

coefficient 

Federal 

contract 

factor 

(%) 

Calculated 

size 

standard 

($ million) 

Current size 

standard 

($ million) 

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) 

611110 Elementary and Secondary Schools ................. Factor ............

Size Std. ........

$4.0 

20.5 

$31.8 

8.5 

$6.6 

41.5 

2.0 

$6.0 

0.683 

$7.5 

¥48.4 

$19.0 $17.5 $12.0 

611210 Junior Colleges .................................................. Factor ............

Size Std. ........

18.2 

41.5 

291.6 

17.0 

30.3 

41.5 

27.7 

$23.5 

0.779 

$25.0 

39.0 

$22.0 28.5 22.0 

611310 Colleges, Universities, and Professional 

Schools.

Factor ............

Size Std. ........

97.7 

41.5 

1,801.8 

41.5 

244.1 

41.5 

9.8 

$9.5 

0.802 

$29.0 

¥1.2 

$30.0 30.5 30.0 

611410 Business and Secretarial Schools ..................... Factor ............

Size Std. ........

2.0 

13.0 

14.1 

8.0 

0.8 

10.5 

38.7 

$32.0 

0.747 

$19.0 

....................

18.0 8.0 

611420 Computer Training ............................................. Factor ............

Size Std. ........

1.3 

9.5 

27.3 

8.5 

0.5 

8.5 

18.8 

$16.5 

0.774 

$24.0 

3.8 

$12.0 14.0 12.0 

611430 Professional and Management Development 

Training.

Factor ............

Size Std. ........

1.2 

9.5 

25.6 

8.0 

0.6 

9.5 

7.8 

$8.0 

0.762 

$22.0 

¥17.1 

$15.5 13.0 12.0 

611511 Cosmetology and Barber Schools ..................... Factor ............

Size Std. ........

1.4 

10.0 

28.9 

8.5 

1.1 

12.5 

19.9 

$17.5 

0.678 

$6.5 

....................

11.5 8.0 

611512 Flight Training .................................................... Factor ............

Size Std. ........

3.2 

17.5 

311.3 

17.5 

2.0 

17.5 

53.2 

$41.5 

0.831 

$34.5 

¥3.7 

$30.0 28.0 30.0 

611513 Apprenticeship Training ..................................... Factor ............

Size Std. ........

1.2 

9.5 

8.9 

7.5 

0.7 

10.0 

11.4 

$10.5 

0.683 

$7.5 

¥57.1 

$13.0 10.0 8.0 

611519 Other Technical and Trade Schools ................. Factor ............

Size Std. ........

2.3 

14.0 

105.2 

11.0 

1.6 

15.0 

18.0 

$16.0 

0.815 

$31.5 

¥9.9 

$16.5 18.5 16.5 

Exception, Job Corps Centers .......................................... Factor ............

Size Std. ........

166.5 

41.5 

1,031.7 

41.5 

116.2 

41.5 

83.5 

$41.5 

0.686 

$19.0 

20.3 

$41.5 37.0 41.5 

611610 Fine Arts Schools .............................................. Factor ............

Size Std. ........

0.3 

6.0 

2.1 

7.5 

0.4 

8.0 

2.2 

$6.0 

0.593 

$6.0 

....................

7.0 8.0 

611620 Sports and Recreation Instruction ..................... Factor ............

Size Std. ........

0.4 

6.0 

12.9 

8.0 

0.1 

7.0 

7.7 

$8.0 

0.616 

$6.0 

....................

7.0 8.0 

611630 Language Schools ............................................. Factor ............

Size Std. ........

1.1 

9.0 

64.3 

9.5 

0.5 

9.0 

35.4 

$29.5 

0.804 

$29.5 

19.9 

$12.0 18.0 12.0 

611691 Exam Preparation and Tutoring ........................ Factor ............

Size Std. ........

0.6 

7.0 

33.5 

8.5 

0.3 

7.5 

13.6 

$12.5 

0.724 

$15.0 

¥36.1 

$13.0 11.0 8.0 

611692 Automobile Driving Schools .............................. Factor ............

Size Std. ........

0.3 

6.0 

4.2 

7.5 

0.2 

7.0 

13.5 

$12.5 

0.639 

$6.0 

¥50.3 

$13.0 9.0 8.0 

611699 All Other Miscellaneous Schools and Instruction.Factor ............

Size Std. ........

0.7 

7.5 

64.0 

9.5 

0.6 

9.5 

23.6 

$20.5 

0.760 

$21.5 

¥5.5 

$12.0 14.5 12.0 

611710 Educational Support Services ........................... Factor ............

Size Std. ........

1.9 

12.0 

308.3 

17.5 

1.6 

15.0 

28.7 

$24.5 

0.829 

$34.0 

¥1.7 

$16.5 21.0 16.5 

621111 Offices of Physicians (except Mental Health 

Specialists).

Factor ............

Size Std. ........

2.3 

14.0 

523.8 

25.0 

0.4 

8.0 

5.5 

$6.0 

0.739 

$17.5 

¥37.6 

$19.0 14.0 12.0 

621112 Offices of Physicians, Mental Health Specialists.Factor ............

Size Std. ........

0.5 

6.5 

4.2 

7.5 

0.1 

6.5 

3.7 

$6.0 

0.583 

$6.0 

¥12.3 

$15.5 8.0 12.0 

621210 Offices of Dentists ............................................. Factor ............

Size Std. ........

0.8 

8.0 

19.1 

8.0 

0.3 

7.5 

2.0 

$6.0 

0.482 

$6.0 

¥22.5 

$10.5 

7.5 8.0 

621310 Offices of Chiropractors ..................................... Factor ............

Size Std. ........

0.3 

6.0 

1.0 

7.5 

0.1 

6.5 

0.8 

$6.0 

0.469 

$6.0 

.................... 6.5 8.0 


jbell on DSKJLSW7X2PROD with PROPOSALS4
Federal Register / Vol. 85, No. 229 / Friday, November 27, 2020 / Proposed Rules 76397 

TABLE 4—SIZE STANDARDS SUPPORTED BY EACH FACTOR FOR EACH INDUSTRY (Receipts)—Continued 

[Upper value = calculated factor, lower value = size standard supported] 

NAICS code 

NAICS industry title Type 

Simple 

average 

firm size 

($ million) 

Weighted 

average 

firm size 

($ million) 

Average 

assets size 

($ million) 

Four-firm 

ratio 

% 

Gini 

coefficient 

Federal 

contract 

factor 

(%) 

Calculated 

size 

standard 

($ million) 

Current size 

standard 

($ million) 

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) 

621320 Offices of Optometrists ...................................... Factor ............

Size Std. ........

0.6 

7.0 

2.7 

7.5 

0.1 

7.0 

1.4 

$6.0 

0.502 

$6.0 

.................... 6.5 8.0 

621330 Offices of Mental Health Practitioners (except 

Physicians).

Factor ............

Size Std. ........

0.4 

6.0 

5.5 

7.5 

0.1 

6.5 

3.2 

$6.0 

0.681 

$7.0 

14.5 

$8.0 

7.0 8.0 

621340 Offices of Physical, Occupational and Speech 

Therapists, and Audiologists.

Factor ............

Size Std. ........

1.0 

8.5 

152.5 

12.5 

0.2 

7.0 

13.4 

$12.5 

0.726 

$15.5 

¥25.2 

$10.5 

11.0 8.0 

621391 Offices of Podiatrists ......................................... Factor ............

Size Std. ........

0.5 

7.0 

1.5 

7.5 

0.1 

6.5 

1.2 

$6.0 

0.492 

$6.0 

.................... 6.5 8.0 

621399 Offices of All Other Miscellaneous Health Practitioners.Factor ............

Size Std. ........

0.4 

6.5 

111.1 

11.0 

0.1 

6.5 

16.1 

$14.5 

0.681 

$7.0 

¥8.5 

$8.0 

9.0 8.0 

621410 Family Planning Centers ................................... Factor ............

Size Std. ........

1.6 

11.0 

32.9 

8.5 

1.1 

12.5 

18.0 

$16.0 

0.793 

$27.5 

.................... 16.5 12.0 

621420 Outpatient Mental Health and Substance 

Abuse Centers.

Factor ............

Size Std. ........

3.0 

16.5 

19.7 

8.0 

1.7 

16.0 

3.4 

$6.0 

0.728 

$15.5 

¥13.9 

$20.0 

14.0 16.5 

621491 HMO Medical Centers ....................................... Factor ............

Size Std. ........

410.2 

41.5 

3,312.1 

41.5 

157.8 

41.5 

93.6 

$41.5 

0.817 

$32.0 

.................... 39.0 35.0 

621492 Kidney Dialysis Centers .................................... Factor ............

Size Std. ........

37.2 

41.5 

5,760.6 

41.5 

18.6 

41.5 

86.2 

$41.5 

0.870 

$41.5 

¥6.1 

$41.5 

41.5 41.5 

621493 Freestanding Ambulatory Surgical and Emergency Centers.Factor ............

Size Std. ........

5.3 

26.0 

198.9 

14.0 

2.1 

18.0 

16.3 

$14.5 

0.693 

$9.5 

.................... 15.5 16.5 

621498 All Other Outpatient Care Centers .................... Factor ............

Size Std. ........

6.6 

31.5 

208.7 

14.5 

3.5 

25.5 

9.5 

$9.5 

0.801 

$29.0 

¥13.4 

$26.5 

22.5 22.0 

621511 Medical Laboratories ......................................... Factor ............

Size Std. ........

9.7 

41.5 

2,287.8 

41.5 

4.1 

28.5 

42.4 

$35.0 

0.842 

$36.5 

¥14.2 

$40.5 

36.5 35.0 

621512 Diagnostic Imaging Centers .............................. Factor ............

Size Std. ........

3.4 

18.5 

56.0 

9.0 

1.5 

14.5 

7.4 

$7.5 

0.759 

$21.5 

32.3 

$16.5 

15.0 16.5 

621610 Home Health Care Services .............................. Factor ............

Size Std. ........

3.0 

17.0 

249.7 

15.5 

0.9 

11.5 

9.4 

$9.0 

0.796 

$28.0 

17.9 

$16.5 

16.5 16.5 

621910 Ambulance Services .......................................... Factor ............

Size Std. ........

3.9 

20.5 

337.1 

18.5 

1.8 

16.0 

29.1 

$24.5 

0.777 

$24.5 

¥6.5 

$16.5 

20.0 16.5 

621991 Blood and Organ Banks .................................... Factor ............

Size Std. ........

30.7 

41.5 

607.1 

27.5 

27.9 

41.5 

34.6 

$29.0 

0.796 

$28.0 

¥14.6 

$40.5 

34.5 35.0 

621999 All Other Miscellaneous Ambulatory Health 

Care Services.

Factor ............

Size Std. ........

2.7 

15.5 

119.6 

11.5 

1.4 

13.5 

18.3 

$16.0 

0.814 

$31.0 

29.4 

$16.5 

18.0 16.5 

622110 General Medical and Surgical Hospitals ........... Factor ............

Size Std. ........

288.5 

41.5 

3,522.1 

41.5 

262.2 

41.5 

8.8 

$8.5 

0.733 

$16.5 

62.0 

$41.5 

30.0 41.5 

622210 Psychiatric and Substance Abuse Hospitals ..... Factor ............

Size Std. ........

49.7 

41.5 

414.3 

21.0 

33.2 

41.5 

17.2 

$15.5 

0.546 

$6.0 

.................... 23.5 41.5 

622310 Specialty (except Psychiatric and Substance 

Abuse) Hospitals.

Factor ............

Size Std. ........

113.3 

41.5 

1,124.0 

41.5 

81.0 

41.5 

27.2 

$23.0 

0.713 

$13.0 

.................... 30.0 41.5 

623110 Nursing Care Facilities (Skilled Nursing Facilities).Factor ............

Size Std. ........

12.7 

41.5 

512.2 

24.5 

8.5 

41.5 

11.2 

$10.5 

0.694 

$9.5 

¥2.8 

$30.0 

25.0 30.0 

623210 Residential Intellectual and Developmental Disability Facilities.Factor ............

Size Std. ........

3.5 

19.0 

85.6 

10.0 

2.3 

19.0 

9.9 

$9.5 

0.749 

$19.5 

.................... 15.5 16.5 

623220 Residential Mental Health and Substance 

Abuse Facilities.

Factor ............

Size Std. ........

3.2 

17.5 

52.7 

9.0 

2.3 

19.0 

8.9 

$9.0 

0.701 

$11.0 

¥40.4 

$23.0 

15.0 16.5 

623311 Continuing Care Retirement Communities ........ Factor ............

Size Std. ........

7.9 

36.5 

99.3 

10.5 

19.9 

41.5 

8.5 

$8.5 

0.733 

$16.5 

.................... 22.5 30.0 

623312 Assisted Living Facilities for the Elderly ............ Factor ............

Size Std. ........

1.8 

12.0 

389.5 

20.5 

2.6 

20.5 

22.7 

$19.5 

0.779 

$25.0 

.................... 20.5 12.0 

623990 Other Residential Care Facilities ....................... Factor ............

Size Std. ........

2.6 

15.0 

24.0 

8.0 

2.0 

17.5 

6.4 

$7.0 

0.730 

$16.0 

¥31.9 

$19.0 

14.0 12.0 

624110 Child and Youth Services .................................. Factor ............

Size Std. ........

1.5 

11.0 

23.1 

8.0 

1.1 

12.0 

4.5 

$6.0 

0.759 

$21.5 

¥42.9 

$19.0 

13.5 12.0 

624120 Services for the Elderly and Persons with Disabilities.Factor ............

Size Std. ........

1.7 

11.5 

45.3 

9.0 

1.1 

12.0 

3.5 

$6.0 

0.761 

$21.5 

¥27.5 

$15.5 

13.0 12.0 

624190 Other Individual and Family Services ............... Factor ............

Size Std. ........

1.4 

10.5 

83.1 

10.0 

1.1 

12.0 

6.9 

$7.0 

0.777 

$24.5 

¥20.5 

$15.5 

14.0 12.0 

624210 Community Food Services ................................ Factor ............

Size Std. ........

2.6 

15.0 

38.6 

8.5 

2.2 

18.0 

6.0 

$6.5 

0.816 

$31.5 

.................... 17.0 12.0 

624221 Temporary Shelters ........................................... Factor ............

Size Std. ........

1.4 

10.0 

11.0 

7.5 

2.0 

17.0 

5.9 

$6.5 

0.623 

$6.0 

¥55.9 

$19.0 

11.5 12.0 

624229 Other Community Housing Services ................. Factor ............

Size Std. ........

1.8 

12.0 

48.0 

9.0 

3.6 

26.0 

14.1 

$13.0 

0.692 

$9.0 

¥54.1 

$23.0 

16.5 6.5 

624230 Emergency and Other Relief Services .............. Factor ............

Size Std. ........

13.9 

41.5 

478.8 

23.5 

13.9 

41.5 

37.9 

$31.5 

0.878 

$41.5 

23.8 

$35.0 

36.5 35.0 

624310 Vocational Rehabilitation Services .................... Factor ............

Size Std. ........

2.9 

16.5 

48.1 

9.0 

1.8 

16.5 

8.3 

$8.5 

0.728 

$15.5 

24.9 

$12.0 

13.0 12.0 

624410 Child Day Care Services ................................... Factor ............

Size Std. ........

0.5 

7.0 

93.8 

10.5 

0.2 

7.0 

8.4 

$8.5 

0.687 

$8.5 

.................... 8.5 8.0 

711110 Theater Companies and Dinner Theaters ......... Factor ............

Size Std. ........

2.2 

13.5 

106.8 

11.0 

3.2 

23.5 

19.7 

$17.5 

0.791 

$27.0 

.................... 20.0 22.0 

711120 Dance Companies ............................................. Factor ............

Size Std. ........

1.4 

10.0 

15.6 

8.0 

0.7 

10.0 

24.7 

$21.0 

0.771 

$23.5 

.................... 16.0 12.0 

711130 Musical Groups and Artists ............................... Factor ............

Size Std. ........

1.1 

9.0 

20.6 

8.0 

1.0 

12.0 

7.4 

$7.5 

0.772 

$23.5 

.................... 13.0 12.0 

711190 Other Performing Arts Companies .................... Factor ............

Size Std. ........

3.9 

20.5 

454.6 

22.5 

2.1 

17.5 

71.4 

$41.5 

0.850 

$38.0 

.................... 29.5 30.0 

711211 Sports Teams and Clubs ................................... Factor ............

Size Std. ........

25.9 

41.5 

218.1 

14.5 

21.6 

41.5 

8.2 

$8.0 

0.858 

$39.5 

.................... 29.5 41.5 

711212 Racetracks ......................................................... Factor ............

Size Std. ........

12.8 

41.5 

256.3 

16.0 

10.7 

41.5 

26.0 

$22.0 

0.865 

$40.5 

.................... 33.5 41.5 

711219 Other Spectator Sports ...................................... Factor ............

Size Std. ........

1.3 

9.5 

43.9 

9.0 

0.9 

11.0 

18.8 

$16.5 

0.761 

$21.5 

.................... 14.5 12.0 

711310 Promoters of Performing Arts, Sports, and 

Similar Events with Facilities.

Factor ............

Size Std. ........

3.9 

20.5 

173.1 

13.0 

3.6 

26.0 

21.5 

$18.5 

0.815 

$31.5 

.................... 23.5 35.0 

711320 Promoters of Performing Arts, Sports, and 

Similar Events without Facilities.

Factor ............

Size Std. ........

2.1 

13.0 

274.6 

16.5 

0.9 

11.0 

29.3 

$25.0 

0.791 

$27.0 

.................... 19.5 16.5 


jbell on DSKJLSW7X2PROD with PROPOSALS4
76398 Federal Register / Vol. 85, No. 229 / Friday, November 27, 2020 / Proposed Rules 

TABLE 4—SIZE STANDARDS SUPPORTED BY EACH FACTOR FOR EACH INDUSTRY (Receipts)—Continued 

[Upper value = calculated factor, lower value = size standard supported] 

NAICS code 

NAICS industry title Type 

Simple 

average 

firm size 

($ million) 

Weighted 

average 

firm size 

($ million) 

Average 

assets size 

($ million) 

Four-firm 

ratio 

% 

Gini 

coefficient 

Federal 

contract 

factor 

(%) 

Calculated 

size 

standard 

($ million) 

Current size 

standard 

($ million) 

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) 

711410 Agents and Managers for Artists, Athletes, Entertainers, and Other Public Figures.Factor ............

Size Std. ........

1.6 

11.0 

94.9 

10.5 

0.7 

10.0 

22.3 

$19.5 

0.761 

$21.5 

.................... 15.5 12.0 

711510 Independent Artists, Writers, and Performers ... Factor ............

Size Std. ........

0.7 

7.5 

9.5 

7.5 

0.2 

7.5 

2.0 

$6.0 

0.704 

$11.5 

10.3 

$8.0 

8.0 8.0 

712110 Museums ........................................................... Factor ............

Size Std. ........

1.9 

12.5 

58.9 

9.5 

6.3 

41.5 

10.9 

$10.5 

0.811 

$31.0 

¥16.8 

$34.5 

25.5 30.0 

712120 Historical Sites ................................................... Factor ............

Size Std. ........

0.7 

7.5 

7.5 

7.5 

0.9 

11.0 

15.1 

$13.5 

0.716 

$13.5 

.................... 11.5 8.0 

712130 Zoos and Botanical Gardens ............................. Factor ............

Size Std. ........

5.3 

26.0 

52.7 

9.0 

10.7 

41.5 

17.5 

$15.5 

0.778 

$24.5 

.................... 25.0 30.0 

712190 Nature Parks and Other Similar Institutions ...... Factor ............

Size Std. ........

1.5 

10.5 

19.2 

8.0 

1.8 

16.0 

26.1 

$22.5 

0.748 

$19.5 

.................... 17.0 8.0 

713110 Amusement and Theme Parks .......................... Factor ............

Size Std. ........

34.9 

41.5 

2,658.3 

41.5 

29.1 

41.5 

72.1 

$41.5 

0.877 

$41.5 

.................... 41.5 41.5 

713120 Amusement Arcades ......................................... Factor ............

Size Std. ........

0.7 

7.5 

7.4 

7.5 

0.5 

9.0 

9.5 

$9.5 

0.658 

$6.0 

.................... 8.0 8.0 

713210 Casinos (except Casino Hotels) ........................ Factor ............

Size Std. ........

69.1 

41.5 

319.9 

18.0 

57.6 

41.5 

19.4 

$17.0 

0.700 

$10.5 

.................... 25.0 30.0 

713290 Other Gambling Industries ................................ Factor ............

Size Std. ........

5.0 

24.5 

191.4 

13.5 

4.5 

31.5 

21.3 

$18.5 

0.815 

$31.5 

.................... 25.0 35.0 

713910 Golf Courses and Country Clubs ...................... Factor ............

Size Std. ........

1.9 

12.5 

35.5 

8.5 

2.8 

21.5 

6.3 

$6.5 

0.664 

$6.0 

.................... 11.0 16.5 

713920 Skiing Facilities .................................................. Factor ............

Size Std. ........

6.5 

31.0 

160.1 

12.5 

7.2 

41.5 

39.6 

$33.0 

0.792 

$27.5 

.................... 31.0 30.0 

713930 Marinas .............................................................. Factor ............

Size Std. ........

1.1 

9.0 

7.3 

7.5 

1.8 

16.0 

5.7 

$6.5 

0.612 

$6.0 

.................... 9.5 8.0 

713940 Fitness and Recreational Sports Centers ......... Factor ............

Size Std. ........

1.0 

8.5 

220.5 

14.5 

0.9 

11.0 

17.4 

$15.5 

0.772 

$23.5 

.................... 15.5 8.0 

713950 Bowling Centers ................................................ Factor ............

Size Std. ........

0.9 

8.0 

65.9 

9.5 

0.7 

10.0 

22.7 

$19.5 

0.630 

$6.0 

.................... 11.0 8.0 

713990 All Other Amusement and Recreation Industries.Factor ............

Size Std. ........

0.5 

7.0 

6.5 

7.5 

0.4 

8.5 

3.4 

$6.0 

0.658 

$6.0 

.................... 7.0 8.0 

721110 Hotels (except Casino Hotels) and Motels ........ Factor ............

Size Std. ........

3.5 

18.5 

1,805.2 

41.5 

7.0 

41.5 

19.7 

$17.5 

0.792 

$27.5 

7.4 

$35.0 

30.5 35.0 

721120 Casino Hotels .................................................... Factor ............

Size Std. ........

241.7 

41.5 

2,353.8 

41.5 

241.7 

41.5 

34.3 

$28.5 

0.708 

$12.0 

.................... 31.0 35.0 

721191 Bed-and-Breakfast Inns ..................................... Factor ............

Size Std. ........

0.4 

6.0 

1.4 

7.5 

0.2 

7.5 

3.9 

$6.0 

0.558 

$6.0 

.................... 6.5 8.0 

721199 All Other Traveler Accommodation ................... Factor ............

Size Std. ........

0.5 

6.5 

4.2 

7.5 

0.3 

7.5 

11.2 

$10.5 

0.624 

$6.0 

.................... 8.0 8.0 

721211 RV (Recreational Vehicle) Parks and Campgrounds.Factor ............

Size Std. ........

0.6 

7.0 

10.3 

7.5 

0.9 

11.5 

10.4 

$10.0 

0.613 

$6.0 

.................... 9.0 38.0 

721214 Recreational and Vacation Camps (except 

Campgrounds).

Factor ............

Size Std. ........

0.9 

8.5 

5.1 

7.5 

1.0 

12.0 

5.5 

$6.0 

0.624 

$6.0 

.................... 8.0 8.0 

721310 Rooming and Boarding Houses, Dormitories, 

and Workers’ Camps.

Factor ............

Size Std. ........

0.7 

7.5 

22.8 

8.0 

2.3 

18.5 

21.0 

$18.0 

0.639 

$6.0 

.................... 12.5 8.0 

722310 Food Service Contractors .................................. Factor ............

Size Std. ........

12.2 

41.5 

4,854.8 

41.5 

3.4 

25.0 

66.6 

$41.5 

0.882 

$41.5 

11.5 

$41.5 

38.0 41.5 

722320 Caterers ............................................................. Factor ............

Size Std. ........

0.8 

7.5 

5.2 

7.5 

0.2 

7.0 

1.8 

$6.0 

0.676 

$6.0 

.................... 6.5 8.0 

722330 Mobile Food Services ........................................ Factor ............

Size Std. ........

0.2 

6.0 

1.9 

7.5 

0.1 

6.5 

6.8 

$7.0 

0.668 

$6.0 

.................... 6.5 .8.0 

722410 Drinking Places (Alcoholic Beverages) ............. Factor ............

Size Std. ........

0.5 

6.5 

6.6 

7.5 

0.2 

7.0 

2.5 

$6.0 

0.598 

$6.0 

.................... 6.5 8.0 

722511 Full-Service Restaurants ................................... Factor ............

Size Std. ........

1.1 

9.0 

562.0 

26.0 

0.3 

7.5 

7.9 

$8.0 

0.668 

$6.0 

.................... 10.0 8.0 

722513 Limited-Service Restaurants ............................. Factor ............

Size Std. ........

1.3 

10.0 

293.4 

17.0 

0.4 

8.5 

6.2 

$6.5 

0.731 

$16.0 

.................... 11.0 12.0 

722514 Cafeterias, Grill Buffets, and Buffets ................. Factor ............

Size Std. ........

1.4 

10.0 

208.6 

14.5 

0.4 

8.5 

29.5 

$25.0 

0.731 

$16.5 

.................... 15.5 30.0 

722515 Snack and Nonalcoholic Beverage Bars ........... Factor ............

Size Std. ........

0.8 

8.0 

2,361.1 

41.5 

0.3 

8.0 

35.9 

$30.0 

0.732 

$16.5 

.................... 20.0 8.0 

811111 General Automotive Repair ............................... Factor ............

Size Std. ........

0.5 

7.0 

8.3 

7.5 

0.1 

7.0 

2.0 

$6.0 

0.540 

$6.0 

¥79.9 

$13.0 

8.0 8.0 

811112 Automotive Exhaust System Repair .................. Factor ............

Size Std. ........

0.4 

6.0 

4.2 

7.5 

0.1 

6.5 

8.9 

$8.5 

0.512 

$6.0 

.................... 7.0 8.0 

811113 Automotive Transmission Repair ...................... Factor ............

Size Std. ........

0.5 

6.5 

3.6 

7.5 

0.1 

6.5 

5.0 

$6.0 

0.488 

$6.0 

.................... 6.5 8.0 

811118 Other Automotive Mechanical and Electrical 

Repair and Maintenance.

Factor ............

Size Std. ........

0.5 

6.5 

8.5 

7.5 

0.2 

7.0 

10.6 

$10.0 

0.589 

$6.0 

.................... 7.5 8.0 

811121 Automotive Body, Paint, and Interior Repair 

and Maintenance.

Factor ............

Size Std. ........

0.9 

8.0 

21.6 

8.0 

0.2 

7.0 

4.5 

$6.0 

0.617 

$6.0 

.................... 7.0 8.0 

811122 Automotive Glass Replacement Shops ............. Factor ............

Size Std. ........

0.7 

7.5 

333.2 

18.5 

0.3 

7.5 

35.5 

$29.5 

0.701 

$11.0 

.................... 15.5 12.0 

811191 Automotive Oil Change and Lubrication Shops Factor ............

Size Std. ........

1.0 

8.5 

49.6 

9.0 

0.4 

8.5 

16.1 

$14.5 

0.663 

$6.0 

.................... 9.5 8.0 

811192 Car Washes ....................................................... Factor ............

Size Std. ........

0.5 

7.0 

17.8 

8.0 

0.7 

10.0 

8.2 

$8.0 

0.646 

$6.0 

.................... 8.0 8.0 

811198 All Other Automotive Repair and Maintenance Factor ............

Size Std. ........

0.5 

6.5 

17.0 

8.0 

0.2 

7.0 

17.5 

$15.5 

0.666 

$6.0 

.................... 9.0 8.0 

811211 Consumer Electronics Repair and Maintenance Factor ............

Size Std. ........

1.0 

8.5 

191.4 

13.5 

0.4 

8.0 

50.4 

$41.5 

0.802 

$29.0 

.................... 22.5 8.0 

811212 Computer and Office Machine Repair and 

Maintenance.

Factor ............

Size Std. ........

1.0 

8.5 

50.5 

9.0 

0.4 

8.0 

14.1 

$13.0 

0.790 

$27.0 

15.8 

$30.0 

17.5 30.0 

811213 Communication Equipment Repair and Maintenance.Factor ............

Size Std. ........

1.9 

12.5 

158.3 

12.5 

0.7 

9.5 

38.4 

$32.0 

0.791 

$27.0 

¥27.9 

$15.5 

19.5 12.0 

811219 Other Electronic and Precision Equipment Repair and Maintenance.Factor ............

Size Std. ........

2.3 

14.0 

265.7 

16.0 

0.8 

10.5 

35.1 

$29.5 

0.795 

$28.0 

¥19.2 

$26.5 

22.0 22.0 


jbell on DSKJLSW7X2PROD with PROPOSALS4
Federal Register / Vol. 85, No. 229 / Friday, November 27, 2020 / Proposed Rules 76399 

TABLE 4—SIZE STANDARDS SUPPORTED BY EACH FACTOR FOR EACH INDUSTRY (Receipts)—Continued 

[Upper value = calculated factor, lower value = size standard supported] 

NAICS code 

NAICS industry title Type 

Simple 

average 

firm size 

($ million) 

Weighted 

average 

firm size 

($ million) 

Average 

assets size 

($ million) 

Four-firm ratio 

% 

Gini coefficient 

Federal 

contract 

factor 

(%) 

Calculated size standard 

($ million) 

Current size 

standard 

($ million) 

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) 

811310 Commercial and Industrial Machinery and 

Equipment (except Automotive and Electronic) Repair 

and Maintenance.

Factor ............

Size Std. ........

1.6 

11.0 

63.8 

9.5 

0.6 

9.5 

4.9 

$6.0 

0.750 

$19.5 

¥10.7 

$10.5 

11.0 8.0 

811411 Home and Garden Equipment Repair and 

Maintenance.

Factor ............

Size Std. ........

0.3 

6.0 

2.4 

7.5 

0.1 

6.5 

9.2 

$9.0 

0.557 

$6.0 

.................... 7.0 8.0 

811412 Appliance Repair and Maintenance .................. Factor ............

Size Std. ........

0.5 

6.5 

137.5 

12.0 

0.2 

7.0 

31.6 

$26.5 

0.670 

$6.0 

.................... 12.5 16.5 

811420 Reupholstery and Furniture Repair ................... Factor ............

Size Std. ........

0.3 

6.0 

1.1 

7.5 

0.1 

6.5 

3.6 

$6.0 

0.555 

$6.0 

.................... 6.5 8.0 

811430 Footwear and Leather Goods Repair ................ Factor ............

Size Std. ........

0.2 

6.0 

1.0 

7.5 

0.1 

6.5 

10.4 

$10.0 

0.521 

$6.0 

.................... 7.5 8.0 

811490 Other Personal and Household Goods Repair 

and Maintenance.

Factor ............

Size Std. ........

0.3 

6.0 

2.4 

7.5 

0.1 

6.5 

2.9 

$6.0 

0.607 

$6.0 

.................... 6.5 8.0 

812111 Barber Shops ..................................................... Factor ............

Size Std. ........

0.2 

6.0 

7.3 

7.5 

0.0 

6.5 

15.6 

$14.0 

0.612 

$6.0 

.................... 8.5 8.0 

812112 Beauty Salons ................................................... Factor ............

Size Std. ........

0.3 

6.0 

162.0 

12.5 

0.1 

6.5 

12.3 

$11.5 

0.653 

$6.0 

.................... 8.5 8.0 

812113 Nail Salons ........................................................ Factor ............

Size Std. ........

0.2 

6.0 

0.4 

7.5 

0.0 

6.5 

0.7 

$6.0 

0.480 

$6.0 

.................... 6.5 8.0 

812191 Diet and Weight Reducing Centers ................... Factor ............

Size Std. ........

1.5 

11.0 

355.8 

19.0 

0.4 

8.5 

61.1 

$41.5 

0.814 

$31.5 

.................... 24.0 22.0 

812199 Other Personal Care Services .......................... Factor ............

Size Std. ........

0.3 

6.0 

6.5 

7.5 

0.1 

6.5 

5.5 

$6.0 

0.660 

$6.0 

.................... 6.5 8.0 

812210 Funeral Homes and Funeral Services .............. Factor ............

Size Std. ........

1.1 

9.5 

205.9 

14.0 

0.9 

11.0 

15.7 

$14.0 

0.550 

$6.0 

.................... 11.0 8.0 

812220 Cemeteries and Crematories ............................ Factor ............

Size Std. ........

0.8 

8.0 

121.2 

11.5 

1.2 

12.5 

30.1 

$25.5 

0.786 

$26.0 

.................... 18.5 22.0 

812310 Coin-Operated Laundries and Drycleaners ....... Factor ............

Size Std. ........

0.4 

6.0 

87.4 

10.5 

0.2 

7.5 

28.5 

$24.0 

0.626 

$6.0 

.................... 11.5 8.0 

812320 Dry cleaning and Laundry Services (except 

Coin-Operated).

Factor ............

Size Std. ........

0.4 

6.0 

2.7 

7.5 

0.2 

7.0 

1.5 

$6.0 

0.564 

$6.0 

¥20.0 

$8.0 

7.0 6.0 

812331 Linen Supply ...................................................... Factor ............

Size Std. ........

8.7 

39.5 

374.0 

20.0 

4.3 

30.0 

46.4 

$38.0 

0.808 

$30.0 

.................... 32.0 35.0 

812332 Industrial Launderers ......................................... Factor ............

Size Std. ........

16.8 

41.5 

1,478.3 

41.5 

9.3 

41.5 

72.2 

$41.5 

0.839 

$36.0 

32.8 

$41.5 

40.5 41.5 

812910 Pet Care (except Veterinary) Services .............. Factor ............

Size Std. ........

0.2 

6.0 

2.3 

7.5 

0.1 

6.5 

3.8 

$6.0 

0.575 

$6.0 

.................... 6.5 8.0 

812921 Photofinishing Laboratories (except One-Hour) Factor ............

Size Std. ........

2.6 

15.0 

299.5 

17.5 

0.8 

10.5 

64.4 

$41.5 

0.833 

$34.5 

.................... 26.0 22.0 

812922 One-Hour Photofinishing ................................... Factor ............

Size Std. ........

0.3 

6.0 

10.2 

7.5 

0.1 

6.5 

50.1 

$41.0 

0.690 

$9.0 

.................... 16.0 16.5 

812930 Parking Lots and Garages ................................ Factor ............

Size Std. ........

2.6 

15.0 

211.8 

14.5 

1.6 

15.0 

29.2 

$24.5 

0.811 

$30.5 

9.7 

$41.5 

25.5 41.5 

812990 All Other Personal Services .............................. Factor ............

Size Std. ........

0.6 

7.0 

85.4 

10.0 

0.2 

7.0 

21.5 

$18.5 

0.745 

$19.0 

¥56.8 

$13.0 

13.0 8.0 

813110 Religious Organizations ..................................... Factor ............

Size Std. ........

0.7 

7.5 

59.2 

9.5 

2.3 

19.0 

3.2 

$6.0 

0.706 

$11.5 

.................... 11.5 8.0 

813211 Grantmaking Foundations ................................. Factor ............

Size Std. ........

5.6 

27.5 

815.3 

34.5 

18.8 

41.5 

.................... 0.821 

$32.5 

.................... 35.0 35.0 

813212 Voluntary Health Organizations ......................... Factor ............

Size Std. ........

5.9 

28.5 

386.9 

20.0 

3.9 

28.0 

23.5 

$20.0 

0.841 

$36.0 

.................... 27.0 30.0 

813219 Other Grantmaking and Giving Services .......... Factor ............

Size Std. ........

3.5 

19.0 

97.1 

10.5 

5.0 

34.0 

12.2 

$11.5 

0.807 

$30.0 

.................... 22.5 41.5 

813311 Human Rights Organizations ............................ Factor ............

Size Std. ........

2.7 

15.5 

352.9 

19.0 

3.4 

25.0 

35.1 

$29.5 

0.822 

$33.0 

¥33.1 

$37.5 

28.5 30.0 

813312 Environment, Conservation and Wildlife Organizations.Factor ............

Size Std. ........

1.6 

11.0 

131.6 

11.5 

2.2 

18.5 

16.4 

$14.5 

0.774 

$24.0 

.................... 17.0 16.5 

813319 Other Social Advocacy Organizations ............... Factor ............

Size Std. ........

1.4 

10.0 

92.8 

10.5 

1.4 

13.5 

17.5 

$15.5 

0.776 

$24.5 

.................... 16.0 8.0 

813410 Civic and Social Organizations ......................... Factor ............

Size Std. ........

0.6 

7.0 

12.5 

8.0 

1.1 

12.0 

3.0 

$6.0 

0.684 

$8.0 

.................... 8.5 8.0 

813910 Business Associations ....................................... Factor ............

Size Std. ........

1.5 

10.5 

46.1 

9.0 

1.5 

14.5 

5.1 

$6.0 

0.772 

$23.5 

.................... 13.5 8.0 

813920 Professional Organizations ................................ Factor ............

Size Std. ........

2.8 

16.0 

92.6 

10.5 

4.0 

28.5 

9.5 

$9.0 

0.792 

$27.5 

¥39.7 

$23.0 

20.5 16.5 

813930 Labor Unions and Similar Labor Organizations Factor ............

Size Std. ........

1.2 

9.5 

41.2 

8.5 

1.5 

14.5 

5.1 

$6.0 

0.797 

$28.0 

.................... 14.5 8.0 

813940 Political Organizations ....................................... Factor ............

Size Std. ........

0.8 

8.0 

19.6 

8.0 

0.7 

10.0 

14.0 

$12.5 

0.753 

$20.0 

.................... 12.5 8.0 

813990 Other Similar Organizations (except Business, 

Professional, Labor, and Political Organizations).

Factor ............

Size Std. ........

1.1 

9.0 

103.8 

11.0 

1.1 

12.0 

10.6 

$10.0 

0.729 

$16.0 

.................... 12.0 8.0 

Evaluation of Size Standards for 

Subindustry Categories or ‘‘Exceptions’’ 

In accordance with SBA’s approach to 

evaluating size standards for 

subindustry categories (or 

‘‘exceptions’’), SBA has evaluated 1 

exception covered by this rule using the 

procedures described in the revised 

SBA’s Methodology. The results of that 

analysis are discussed in the following 

subsection. 

Exception to NAICS 611519: Job Corps 

Centers 

The current size standard for Federal 

contracts for Job Corps Centers 

(exception to NAICS 611519, Other 

Technical and Trade Schools) is $41.5 

million in average annual receipts. For 

Federal procurement programs, this size 

standard applies to Federal contracts 

that meet specific criteria. The criteria 

required of a Jobs Corps Center contract 

or SBA-recognized operator are detailed 

in Footnote 16 to SBA’s table of size 

standards (13 CFR 121.201): ‘‘For 


jbell on DSKJLSW7X2PROD with PROPOSALS4
76400 Federal Register / Vol. 85, No. 229 / Friday, November 27, 2020 / Proposed Rules 

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.’’ 

As noted previously, the data from the 

Economic Census special tabulation are 

limited to the 6-digit NAICS industry 

level and hence do not provide data to 

assess economic characteristics at the 

sub-industry level. For example, the 

Economic Census data for NAICS 

611519 are aggregates of both Other 

Technical and Trade Schools and the 

more specialized establishments under 

the Job Corps exception. The lack of 

relevant data at the sub-industry level is 

a challenge to determining whether the 

size standard for the exception should 

be revised or left unchanged. Thus, the 

results based on the Economic Census 

data alone may not accurately reflect the 

characteristics of businesses providing 

specialized services included under the 

exception. 

To determine whether the Agency 

should propose revising the exception 

under NAICS 611519, SBA analyzed 

data from the U.S. Department of Labor 

(DOL) website which includes a listing 

of Job Corps centers and their operators 

(available at https://www.dol.gov/ 

agencies/eta/jobcorps/contact). SBA 

found that there were 23 nongovernmental operators listed on the 

DOL website. SBA also evaluated the 

data from FPDS–NG and SAM. From 

FPDS–NG, SBA first identified firms 

that have a principal NAICS code of 

611519. SBA then identified Product 

and Service Codes (PSCs) that 

correspond to the Job Corps Center 

exception by filtering the data for 

contracts awarded to private firms 

providing job corps services. SBA 

identified 7 PSCs from this search, 

namely: M1CZ—Operation Of Other 

Educational Buildings, U006— 

Education/Training- Vocational/ 

Technical, M139—Operation of Govt 

Other Educational Buildings, U099— 

Education/Training- Other, U009— 

Education/Training- General, 7610— 

Books And Pamphlets and U008— 

Education/Training- Training/ 

Curriculum Development. Using this 

method, SBA identified 35 firms 

(including the firms listed on the DOL 

website) that had a principal NAICS 

code of 611519 and were active in 

Federal contracting involving the 

identified PSCs. For fiscal years 2016– 

2018, the total average contract dollars 

obligated under these PSCs was $436.3 

million. However, since the additional 

11 operators from FPDS–NG were not 

included in the list of operators from the 

DOL website, SBA did not include them 

in its analysis of industry and Federal 

procurement factors for this NAICS 

exception. The average total contract 

dollars obligated under the identified 

PSCs to the list of operators from only 

the DOL website was $401.4 million, 

which represents 92% of the total 

dollars obligated to Jobs Corps Centers. 

SBA’s analysis did not include firms 

that were considered outliers based on 

net de-obligations for each year of the 

analysis period and those with 

extremely large operating revenues. 

The results from SBA’s analysis are 

presented in Table 4 of this proposed 

rule. The analysis supports decreasing 

the current size standard to $37.0 

million. However, for reasons discussed 

below in the special considerations 

section, SBA proposes to retain the 

$41.5 million size standard. 

Summary of Calculated Size Standards 

Of the 144 industries and one 

subindustry (i.e. exception) reviewed in 

this proposed rule, the results from 

analyses of the latest available data on 

the 5 primary factors from Table 4, Size 

Standards Supported by Each Factor for 

Each Industry (millions of dollars), 

above, would support increasing size 

standards for 70 industries, decreasing 

size standards for 63 industries, and 

maintaining size standards for 12 

industries. Table 5, Summary of 

Calculated Size Standards, summarizes 

these results by NAICS sector. 

TABLE 5—SUMMARY OF CALCULATED SIZE STANDARDS

NAICS sector Sector name 

Number of 

size standards 

reviewed 

Number of 

size standards 

increased 

Number of 

size standards 

decreased 

Number of 

size standards 

unchanged 

61 ......................... Education Services ........................................................ 18 14 4 0 

62 ......................... Health Care and Social Assistance ............................... 39 18 18 3 

71 ......................... Arts, Entertainment and Recreation .............................. 25 11 11 3 

72 ......................... Accommodation and Food Services ............................. 15 4 9 2 

81 ......................... Other Services ............................................................... 48 23 21 4 

All Sectors .... ........................................................................................ 145 70 63 12 

Evaluation of SBA Loan Data 

Before proposing or deciding on an 

industry’s size standard revision, SBA 

also considers the impact of size 

standards revisions on SBA’s loan 

programs. Accordingly, SBA examined 

its internal 7(a) and 504 loan data for 

fiscal years 2016–2018 to assess whether 

the calculated size standards in Table 4 

(above) need further adjustments to 

ensure credit opportunities for small 

businesses through those programs. For 

the industries reviewed in this rule, the 

data shows that it is mostly businesses 

much smaller than the current or 

proposed size standards that receive 

SBA’s 7(a) and 504 loans. For example, 

for industries covered by this rule, more 

than 99.3% of 7(a) and 504 loans in 

fiscal years 2016–2018 went to 

businesses below the current or 

proposed size standards. 

Proposed Changes to Size Standards 

Based on the analytical results in 

Table 4 and considerations of impacts of 

calculated size standards in terms of 

access by currently small businesses to 

SBA’s loans, as discussed above, of a 

total of 145 industries or subindustries 

(exceptions) with receipts-based size 

standards in Sectors 61, 62, 71, 72 and 

81 that are covered by this rule, and 

considering the current situation due to 

the COVID–19 related national 

emergency and its impacts on small 

businesses and the overall economy, 

SBA proposes to increase size standards 

for 70 industries, and retain the current 

size standards for the remaining 75 

industries. 


jbell on DSKJLSW7X2PROD with PROPOSALS4
Federal Register / Vol. 85, No. 229 / Friday, November 27, 2020 / Proposed Rules 76401 

1Board of Governors of the Federal Reserve 

System (June 2020), Monetary Policy Report, p. 24 

(see https://www.federalreserve.gov/ 

monetarypolicy/files/20200612_mprfullreport.pdf) 

and U.S. Census Bureau, see https://

portal.census.gov/pulse/data. The latest is a recent 

survey created by the Census Bureau to provide 

high-frequency, detailed information on 

participation in small business-specific initiatives 

such as the PPP. 

Special Considerations 

On March 13, 2020, the ongoing 

Coronavirus Disease 2019 (COVID–19) 

was declared a pandemic of enough 

severity and magnitude to warrant an 

emergency declaration for all states, 

territories, and the District of Columbia. 

With the COVID–19 emergency, many 

small businesses nationwide are 

experiencing economic hardship as a 

direct result of the Federal, State, and 

local public health measures that are 

being taken to minimize the public’s 

exposure to the virus. These measures, 

some of which are Governmentmandated, are being implemented 

nationwide and include the closures of 

restaurants, bars, and gyms. In addition, 

based on the advice of public health 

officials, other measures, such as 

keeping a safe distance from others or 

even stay-at-home orders, are being 

implemented, resulting in a dramatic 

decrease in economic activity as the 

public avoids malls, retail stores, and 

other businesses. 

The Coronavirus Aid, Relief, and 

Economic Security Act (the CARES Act 

or the Act) (Pub. L. 116–136) was signed 

on March 27, 2020, to provide 

emergency assistance and health care 

response for individuals, families, and 

businesses affected by the coronavirus 

pandemic. Section 1102 of the Act 

temporarily permits SBA to guarantee 

100% of 7(a) loans under a new program 

titled the Paycheck Protection Program 

(PPP). Section 1106 of the Act provides 

for forgiveness of up to the full principal 

amount of qualifying loans guaranteed 

under the PPP. The PPP and loan 

forgiveness are intended to provide 

economic relief to small businesses 

nationwide adversely impacted under 

the COVID–19. On April 24, 2020, 

additional funding for the CARES Act, 

including for the PPP, was provided. 

The Agency is following closely the 

development of the pandemic and the 

economic situation and recovery. The 

consequence of the initial response of 

the public to the COVID–19 pandemic 

as well as the different measures taken 

by the Government to contain it (e.g. 

stay at home orders, social distancing, 

etc.) have resulted in the present 

economic decline. A variety of 

economic indicators such as the Gross 

Domestic Product (GDP) and the 

unemployment rate shows that this 

recession is significantly worse than any 

other recession since World War II. The 

GDP decreased nearly 5%, and the 

personal consumption in goods and 

services decreased 6.9% in the first 

quarter of 2020. The Bureau of 

Economic Analysis (BEA) third estimate 

for the second quarter of 2020 shows 

that the GDP decreased 31.4%, and the 

personal consumption in goods and 

services decreased 33.2%; In August 

2020, personal income decreased 2.7%, 

after having decreased by a lower 

percentage in June (1.2%) and slightly 

increased in July 2020 (0.5%). In 

September 2020, the unemployment rate 

declined to 7.9% from August 2020, 

when the unemployment rate was 8.4%. 

After reaching 14.7% in April 2020, the 

unemployment rate has been decreasing 

from May to September 2020, but still 

it is greater than in February 2020 when 

it was 3.5%. For the month of 

September 2020, non-farm payroll 

increased 661,000 from August 2020, 

but the decrease in employment since 

February 2020 is about 10.5 million. 

Specifically, for the sectors evaluated in 

this proposed rule, in September 2020 

the unemployment rate for Education 

and Health Services industries was 

5.1%, the Leisure and Hospitality 

industries showed an unemployment 

rate of 19.0% and the Other Services 

sector, In September 2019, the 

unemployment rates for these sectors 

were 2.2%, 4.8% and 3.2%, 

respectively. The latest Federal Reserve 

Board’s Monetary Policy Report shows 

that in general the most impacted firms 

in these sectors are the small 

businesses.1

Accordingly, in view of above impacts 

on small businesses from the COVID–19 

pandemic and Federal Government 

efforts to provide relief to small 

businesses and support to the overall 

economy, SBA proposes to adopt 

increases to size standards for 70 

industries and retain the current size 

standards for 63 industries for which 

analytical results suggested their size 

standards could be lowered. 

The proposed size standards are 

presented in Table 6, Proposed Size 

Standards Revisions. Also presented in 

Table 6 are current and calculated size 

standards for comparison. 

TABLE 6—PROPOSED SIZE STANDARDS REVISIONS

NAICS code NAICS industry title 

Calculated 

size standard 

($ million) 

Proposed size 

standard 

($ million) 

Current size 

standard 

($ million) 

611110 ....................... Elementary and Secondary Schools .................................................. $17.5 $17.5 $12.0 

611210 ....................... Junior Colleges ................................................................................... 28.5 28.5 22.0 

611310 ....................... Colleges, Universities, and Professional Schools .............................. 30.5 30.5 30.0 

611410 ....................... Business and Secretarial Schools ...................................................... 18.0 18.0 8.0 

611420 ....................... Computer Training .............................................................................. 14.0 14.0 12.0 

611430 ....................... Professional and Management Development Training ...................... 13.0 13.0 12.0 

611511 ....................... Cosmetology and Barber Schools ...................................................... 11.5 11.5 8.0 

611512 ....................... Flight Training ..................................................................................... 28.0 30.0 30.0 

611513 ....................... Apprenticeship Training ...................................................................... 10.0 10.0 8.0 

611519 ....................... Other Technical and Trade Schools ................................................... 18.5 18.5 16.5

Exception 611519 ...... Job Corps Centers .............................................................................. 37.0 41.5 41.5 

611610 ....................... Fine Arts Schools ................................................................................ 7.0 8.0 8.0 

611620 ....................... Sports and Recreation Instruction ...................................................... 7.0 8.0 8.0

611630 ....................... Language Schools .............................................................................. 18.0 18.0 12.0 

611691 ....................... Exam Preparation and Tutoring .......................................................... 11.0 11.0 8.0 

611692 ....................... Automobile Driving Schools ................................................................ 9.0 9.0 8.0 

611699 ....................... All Other Miscellaneous Schools and Instruction ............................... 14.5 14.5 12.0 

611710 ....................... Educational Support Services ............................................................. 21.0 21.0 16.5 

621111 ....................... Offices of Physicians (except Mental Health Specialists) .................. 14.0 14.0 12.0 

621112 ....................... Offices of Physicians, Mental Health Specialists ............................... 8.0 12.0 12.0 


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76402 Federal Register / Vol. 85, No. 229 / Friday, November 27, 2020 / Proposed Rules 

TABLE 6—PROPOSED SIZE STANDARDS REVISIONS—Continued 

NAICS code NAICS industry title 

Calculated 

size standard 

($ million) 

Proposed size 

standard 

($ million) 

Current size 

standard 

($ million) 

621210 ....................... Offices of Dentists ............................................................................... 7.5 8.0 8.0 

621310 ....................... Offices of Chiropractors ...................................................................... 6.5 8.0 8.0 

621320 ....................... Offices of Optometrists ....................................................................... 6.5 8.0 8.0 

621330 ....................... Offices of Mental Health Practitioners (except Physicians) ............... 7.0 8.0 8.0 

621340 ....................... Offices of Physical, Occupational and Speech Therapists, and Audiologists.11.0 11.0 8.0 

621391 ....................... Offices of Podiatrists ........................................................................... 6.5 8.0 8.0 

621399 ....................... Offices of All Other Miscellaneous Health Practitioners ..................... 9.0 9.0 8.0 

621410 ....................... Family Planning Centers ..................................................................... 16.5 16.5 12.0 

621420 ....................... Outpatient Mental Health and Substance Abuse Centers ................. 14.0 16.5 16.5 

621491 ....................... HMO Medical Centers ........................................................................ 39.0 39.0 35.0 

621492 ....................... Kidney Dialysis Centers ...................................................................... 41.5 41.5 41.5 

621493 ....................... Freestanding Ambulatory Surgical and Emergency Centers ............. 15.5 16.5 16.5 

621498 ....................... All Other Outpatient Care Centers ..................................................... 22.5 22.5 22.0 

621511 ....................... Medical Laboratories ........................................................................... 36.5 36.5 35.0 

621512 ....................... Diagnostic Imaging Centers ................................................................ 15.0 16.5 16.5 

621610 ....................... Home Health Care Services ............................................................... 16.5 16.5 16.5 

621910 ....................... Ambulance Services ........................................................................... 20.0 20.0 16.5 

621991 ....................... Blood and Organ Banks ..................................................................... 34.5 35.0 35.0 

621999 ....................... All Other Miscellaneous Ambulatory Health Care Services ............... 18.0 18.0 16.5 

622110 ....................... General Medical and Surgical Hospitals ............................................ 30.0 41.5 41.5 

622210 ....................... Psychiatric and Substance Abuse Hospitals ...................................... 23.5 41.5 41.5 

622310 ....................... Specialty (except Psychiatric and Substance Abuse) Hospitals ........ 30.0 41.5 41.5 

623110 ....................... Nursing Care Facilities (Skilled Nursing Facilities) ............................. 25.0 30.0 30.0 

623210 ....................... Residential Intellectual and Developmental Disability Facilities ......... 15.5 16.5 16.5 

623220 ....................... Residential Mental Health and Substance Abuse Facilities ............... 15.0 16.5 16.5 

623311 ....................... Continuing Care Retirement Communities ......................................... 22.5 30.0 30.0 

623312 ....................... Assisted Living Facilities for the Elderly ............................................. 20.5 20.5 12.0 

623990 ....................... Other Residential Care Facilities ........................................................ 14.0 14.0 12.0 

624110 ....................... Child and Youth Services ................................................................... 13.5 13.5 12.0 

624120 ....................... Services for the Elderly and Persons with Disabilities ....................... 13.0 13.0 12.0 

624190 ....................... Other Individual and Family Services ................................................. 14.0 14.0 12.0 

624210 ....................... Community Food Services .................................................................. 17.0 17.0 12.0 

624221 ....................... Temporary Shelters ............................................................................ 11.5 12.0 12.0 

624229 ....................... Other Community Housing Services .................................................. 16.5 16.5 16.5 

624230 ....................... Emergency and Other Relief Services ............................................... 36.5 36.5 35.0 

624310 ....................... Vocational Rehabilitation Services ..................................................... 13.0 13.0 12.0 

624410 ....................... Child Day Care Services .................................................................... 8.5 8.5 8.0 

711110 ....................... Theater Companies and Dinner Theaters .......................................... 20.0 22.0 22.0 

711120 ....................... Dance Companies .............................................................................. 16.0 16.0 12.0 

711130 ....................... Musical Groups and Artists ................................................................. 13.0 13.0 12.0 

711190 ....................... Other Performing Arts Companies ..................................................... 29.5 30.0 30.0

711211 ....................... Sports Teams and Clubs .................................................................... 29.5 41.5 41.5 

711212 ....................... Racetracks .......................................................................................... 33.5 41.5 41.5 

711219 ....................... Other Spectator Sports ....................................................................... 14.5 14.5 12.0 

711310 ....................... Promoters of Performing Arts, Sports, and Similar Events with Facilities.23.5 35.0 35.0 

711320 ....................... Promoters of Performing Arts, Sports, and Similar Events without 

Facilities.

19.5 19.5 16.5 

711410 ....................... Agents and Managers for Artists, Athletes, Entertainers, and Other 

Public Figures.

15.5 15.5 12.0 

711510 ....................... Independent Artists, Writers, and Performers .................................... 8.0 8.0 8.0 

712110 ....................... Museums ............................................................................................. 25.5 30.0 30.0 

712120 ....................... Historical Sites .................................................................................... 11.5 11.5 8.0 

712130 ....................... Zoos and Botanical Gardens .............................................................. 25.0 30.0 30.0 

712190 ....................... Nature Parks and Other Similar Institutions ....................................... 17.0 17.0 8.0 

713110 ....................... Amusement and Theme Parks ........................................................... 41.5 41.5 41.5

713120 ....................... Amusement Arcades ........................................................................... 8.0 8.0 8.0 

713210 ....................... Casinos (except Casino Hotels) ......................................................... 25.0 30.0 30.0 

713290 ....................... Other Gambling Industries .................................................................. 25.0 35.0 35.0 

713910 ....................... Golf Courses and Country Clubs ........................................................ 11.0 16.5 16.5 

713920 ....................... Skiing Facilities ................................................................................... 31.0 31.0 30.0 

713930 ....................... Marinas ............................................................................................... 9.5 9.5 8.0 

713940 ....................... Fitness and Recreational Sports Centers ........................................... 15.5 15.5 8.0 

713950 ....................... Bowling Centers .................................................................................. 11.0 11.0 8.0 

713990 ....................... All Other Amusement and Recreation Industries ............................... 7.0 8.0 8.0 

721110 ....................... Hotels (except Casino Hotels) and Motels ......................................... 30.5 35.0 35.0 

721120 ....................... Casino Hotels ...................................................................................... 31.0 35.0 35.0 

721191 ....................... Bed-and-Breakfast Inns ...................................................................... 6.5 8.0 8.0 

721199 ....................... All Other Traveler Accommodation ..................................................... 8.0 8.0 8.0 


jbell on DSKJLSW7X2PROD with PROPOSALS4
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TABLE 6—PROPOSED SIZE STANDARDS REVISIONS—Continued 

NAICS code NAICS industry title 

Calculated 

size standard 

($ million) 

Proposed size 

standard 

($ million) 

Current size 

standard 

($ million) 

721211 ....................... RV (Recreational Vehicle) Parks and Campgrounds ......................... 9.0 9.0 8.0 

721214 ....................... Recreational and Vacation Camps (except Campgrounds) ............... 8.0 8.0 8.0 

721310 ....................... Rooming and Boarding Houses, Dormitories, and Workers’ Camps 12.5 12.5 8.0 

722310 ....................... Food Service Contractors ................................................................... 38.0 41.5 41.5 

722320 ....................... Caterers .............................................................................................. 6.5 8.0 8.0 

722330 ....................... Mobile Food Services ......................................................................... 6.5 8.0 8.0 

722410 ....................... Drinking Places (Alcoholic Beverages) ............................................... 6.5 8.0 8.0 

722511 ....................... Full-Service Restaurants ..................................................................... 10.0 10.0 8.0 

722513 ....................... Limited-Service Restaurants ............................................................... 11.0 12.0 12.0 

722514 ....................... Cafeterias, Grill Buffets, and Buffets .................................................. 15.5 30.0 30.0 

722515 ....................... Snack and Nonalcoholic Beverage Bars ............................................ 20.0 20.0 8.0 

811111 ....................... General Automotive Repair ................................................................ 8.0 8.0 8.0 

811112 ....................... Automotive Exhaust System Repair ................................................... 7.0 8.0 8.0 

811113 ....................... Automotive Transmission Repair ........................................................ 6.5 8.0 8.0 

811118 ....................... Other Automotive Mechanical and Electrical Repair and Maintenance.7.5 8.0 8.0 

811121 ....................... Automotive Body, Paint, and Interior Repair and Maintenance ......... 7.0 8.0 8.0 

811122 ....................... Automotive Glass Replacement Shops .............................................. 15.5 15.5 12.0 

811191 ....................... Automotive Oil Change and Lubrication Shops ................................. 9.5 9.5 8.0 

811192 ....................... Car Washes ........................................................................................ 8.0 8.0 8.0 

811198 ....................... All Other Automotive Repair and Maintenance .................................. 9.0 9.0 8.0 

811211 ....................... Consumer Electronics Repair and Maintenance ................................ 22.5 22.5 8.0 

811212 ....................... Computer and Office Machine Repair and Maintenance ................... 17.5 30.0 30.0 

811213 ....................... Communication Equipment Repair and Maintenance ........................ 19.5 19.5 12.0 

811219 ....................... Other Electronic and Precision Equipment Repair and Maintenance 22.0 22.0 22.0 

811310 ....................... Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance.11.0 11.0 8.0 

811411 ....................... Home and Garden Equipment Repair and Maintenance ................... 7.0 8.0 8.0 

811412 ....................... Appliance Repair and Maintenance .................................................... 12.5 16.5 16.5

811420 ....................... Reupholstery and Furniture Repair .................................................... 6.5 8.0 8.0 

811430 ....................... Footwear and Leather Goods Repair ................................................. 7.5 8.0 8.0 

811490 ....................... Other Personal and Household Goods Repair and Maintenance ...... 6.5 8.0 8.0 

812111 ....................... Barber Shops ...................................................................................... 8.5 8.5 8.0 

812112 ....................... Beauty Salons ..................................................................................... 8.5 8.5 8.0 

812113 ....................... Nail Salons .......................................................................................... 6.5 8.0 8.0 

812191 ....................... Diet and Weight Reducing Centers .................................................... 24.0 24.0 22.0

812199 ....................... Other Personal Care Services ............................................................ 6.5 8.0 8.0 

812210 ....................... Funeral Homes and Funeral Services ................................................ 11.0 11.0 8.0 

812220 ....................... Cemeteries and Crematories .............................................................. 18.5 22.0 22.0 

812310 ....................... Coin-Operated Laundries and Drycleaners ........................................ 11.5 11.5 8.0 

812320 ....................... Drycleaning and Laundry Services (except Coin-Operated) .............. 7.0 7.0 6.0 

812331 ....................... Linen Supply ....................................................................................... 32.0 35.0 35.0 

812332 ....................... Industrial Launderers .......................................................................... 40.5 41.5 41.5 

812910 ....................... Pet Care (except Veterinary) Services ............................................... 6.5 8.0 8.0 

812921 ....................... Photofinishing Laboratories (except One-Hour) ................................. 26.0 26.0 22.0 

812922 ....................... One-Hour Photofinishing ..................................................................... 16.0 16.5 16.5 

812930 ....................... Parking Lots and Garages .................................................................. 25.5 41.5 41.5 

812990 ....................... All Other Personal Services ................................................................ 13.0 13.0 8.0 

813110 ....................... Religious Organizations ...................................................................... 11.5 11.5 8.0 

813211 ....................... Grantmaking Foundations ................................................................... 35.0 35.0 35.0 

813212 ....................... Voluntary Health Organizations .......................................................... 27.0 30.0 30.0 

813219 ....................... Other Grantmaking and Giving Services ............................................ 22.5 41.5 41.5 

813311 ....................... Human Rights Organizations .............................................................. 28.5 30.0 30.0 

813312 ....................... Environment, Conservation and Wildlife Organizations ..................... 17.0 17.0 16.5 

813319 ....................... Other Social Advocacy Organizations ................................................ 16.0 16.0 8.0 

813410 ....................... Civic and Social Organizations ........................................................... 8.5 8.5 8.0 

813910 ....................... Business Associations ........................................................................ 13.5 13.5 8.0 

813920 ....................... Professional Organizations ................................................................. 20.5 20.5 16.5 

813930 ....................... Labor Unions and Similar Labor Organizations ................................. 14.5 14.5 8.0 

813940 ....................... Political Organizations ........................................................................ 12.5 12.5 8.0 

813990 ....................... Other Similar Organizations (except Business, Professional, Labor, 

and Political Organizations).

12.0 12.0 8.0 

Table 7, Summary of Proposed Size 

Standards Revisions by Sector, below, 

summarizes the proposed changes to 

size standards by NAICS sector. 


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TABLE 7—SUMMARY OF PROPOSED SIZE STANDARDS REVISIONS BY SECTOR

NAICS sector Sector name Size standards 

increased 

Size standards 

lowered 

Size standards 

maintained 

61 ............................... Education Services ............................................................................. 14 0 4 

62 ............................... Health Care and Social Assistance .................................................... 18 0 21 

71 ............................... Arts, Entertainment and Recreation ................................................... 11 0 14 

72 ............................... Accommodation and Food Services ................................................... 4 0 11 

81 ............................... Other Services .................................................................................... 23 0 25 

All Sectors ........... ............................................................................................................. 70 0 75 

Evaluation of Dominance in Field of 

Operation 

SBA has determined that for the 

industries which it has evaluated in this 

proposed rule, no individual firm at or 

below the proposed size standard would 

be large enough to dominate its field of 

operation. At the proposed size 

standards levels, if adopted, the small 

business share of total industry receipts 

among those industries would be, on 

average, 0.63%, varying from 0.003% to 

22.3%. These market shares effectively 

preclude a firm at or below the 

proposed size standards from exerting 

control on any of the industries. 

Alternatives Considered 

By law, SBA is required to develop 

numerical size standards for 

establishing eligibility for Federal small 

business assistance programs and to 

review every 5 years all size standards 

and make necessary adjustments to 

reflect the current industry structure 

and Federal market conditions. Other 

than varying the levels of size standards 

by industry and changing the measures 

of size standards (e.g., using annual 

receipts vs. the number of employees), 

no practical alternatives exist to the 

systems of numerical size standards. 

The proposal is to increase size 

standards where the data suggested 

increases are warranted, and to retain, 

in response to COVID–19 emergency 

and resultant economic impacts on 

small businesses, all current size 

standards where the data suggested 

lowering is appropriate. 

Nonetheless, SBA considered 2 other 

alternatives. Alternative option one was 

to propose changes exactly as suggested 

by the analytical results. Alternative 

option two was to retain all current size 

standards. 

Alternative option one would cause a 

substantial number of currently small 

businesses to lose their small business 

status and hence to lose their access to 

Federal small business assistance, 

especially small business set-aside 

contracts and SBA’s financial assistance 

in some cases. 

During the first 5-year review of size 

standards, some commenters had 

expressed concerns about the SBA’s 

policy of not lowering size standards 

based on the analytical results. In 

response to these comments, SBA 

considered as part of option one (i.e. to 

adopt changes exactly as suggested by 

the analytical results) to mitigate the 

impact of the decreases to size 

standards. The mitigation would 

provide additional adjustments to the 

calculated sizes after evaluation of the 

impact of the potential reductions on 

small business access to Federal 

contracting and loans. However, due to 

the global COVID–19 pandemic 

resulting in high levels of risk and 

dramatic reductions in economic 

activity of unprecedented nature, SBA is 

not considering any mitigation to 

decreases in size standards as part of 

option one. SBA will adopt this 

approach temporarily and may 

reevaluate this approach as the 

economic situation evolves. Under 

option two, given the current COVID–19 

pandemic, SBA considered retaining the 

current level of all size standards even 

though the current analysis may suggest 

changing them. SBA considers that the 

option of retaining all size standards at 

this moment provides the opportunity 

to reassess the economic situation once 

the economic recovery starts. Under this 

option, as the current situation 

develops, SBA will be able to assess 

new data available on economic 

indicators, federal procurement, and 

SBA loans as well, before adopting 

changes to size standards. However, 

SBA is not adopting option two because 

the Regulatory Impact Analysis shows 

that retaining all size standards at their 

current levels is more onerous for the 

small businesses than the option of 

adopting 70 increases and retaining 75 

size standards. SBA may reevaluate this 

approach as the current economic 

situation evolves. 

Request for Comments 

SBA invites public comments on this 

proposed rule, especially on the 

following issues: 

1. SBA seeks feedback on whether 

SBA’s proposal to increase 70 size 

standards and retain 75 size standards is 

appropriate given the results from the 

latest available industry and Federal 

contracting data of each industry and 

subindustry (exception) reviewed in this 

proposed rule, along with ongoing 

uncertainty and dramatic contraction in 

economic activity due to the global 

COVID–19 pandemic. SBA also seeks 

suggestions, along with supporting facts 

and analysis, for alternative size 

standards, if they would be more 

appropriate than the proposed size 

standards. 

2. SBA also seeks comments on 

whether SBA should not lower any size 

standards in view of the COVID–19 

pandemic and its adverse impacts on 

small businesses as well as on the 

overall economic situation when 

analytical results suggest some size 

standards could be lowered. SBA 

believes that lowering size standards 

under the current economic 

environment would run counter to what 

Congress and Federal Government are 

doing to aid and provide relief to the 

nation’s small businesses impacted by 

the COVID–19 pandemic. 

3. Given the uncertainty produced by 

the global COVID–19 pandemic and the 

economic consequences, SBA would 

like to receive comments from the 

public on the possibility of lowering 

size standards while mitigating the 

consequences of the lower standards, 

instead of not lowering any size 

standards. 

4. In calculating the overall industry 

size standard, SBA has assigned equal 

weight to each of the 5 primary factors 

in all industries and subindustries 

covered by this proposed rule. SBA 

seeks feedback on whether it should 

assign equal weight to each factor or on 

whether it should give more weight to 

one or more factors for certain 

industries or subindustries. 

Recommendations to weigh some 

factors differently than others should 

include suggested weights for each 

factor along with supporting facts and 

analysis. 


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5. Finally, SBA seeks comments on 

data sources it used to examine industry 

and Federal market conditions, as well 

as suggestions on relevant alternative 

data sources that the Agency should 

evaluate in reviewing or modifying size 

standards for industries covered by this 

proposed rule. 

Public comments on the above issues 

are very valuable to SBA for validating 

its proposed size standards revisions in 

this proposed rule. Commenters 

addressing size standards for a specific 

industry or a group of industries should 

include relevant data and/or other 

information supporting their comments. 

If comments relate to the application of 

size standards for Federal procurement 

programs, SBA suggests that 

commenters provide information on the 

size of contracts in their industries, the 

size of businesses that can undertake the 

contracts, start-up costs, equipment and 

other asset requirements, the amount of 

subcontracting, other direct and indirect 

costs associated with the contracts, the 

use of mandatory sources of supply for 

products and services, and the degree to 

which contractors can mark up those 

costs. 

Compliance With Executive Orders 

12866 and 13771, the Regulatory 

Flexibility Act (5 U.S.C. 601–612), 

Executive Orders 13563, 12988, and 

13132, and the Paperwork Reduction 

Act (44 U.S.C. Ch. 35) 

Executive Order 12866 

The Office of Management and Budget 

(OMB) has determined that this 

proposed rule is a significant regulatory 

action for purposes of Executive Order 

12866. Accordingly, in the next section 

SBA provides a Regulatory Impact 

Analysis of this proposed rule, 

including: (1) A statement of the need 

for the proposed action, (2) an 

examination of alternative approaches, 

and (3) an evaluation of the benefits and 

costs—both quantitative and 

qualitative—of the proposed action and 

the alternatives considered. However, 

this rule is not a ‘‘major rule’’ under the 

Congressional Review Act, 5 U.S.C. 800. 

Regulatory Impact Analysis 

1. What is a need for this regulatory 

action? 

Under the Small Business Act (Act) 

(15 U.S.C. 632(a)), SBA’s Administrator 

is responsible for establishing small 

business size definitions (or ‘‘size 

standards’’) and ensuring that such 

definitions vary from industry to 

industry to reflect differences among 

various industries. The Jobs Act requires 

SBA to review every 5 years all size 

standards and make necessary 

adjustments to reflect current industry 

and Federal market conditions. This 

proposed rule is part of the second 5- 

year review of size standards in 

accordance with the Jobs Act. The first 

5-year review of size standards was 

completed in early 2016. Such periodic 

reviews of size standards provide SBA 

with an opportunity to incorporate 

ongoing changes to industry structure 

and Federal market environment into 

size standards and to evaluate the 

impacts of prior revisions to size 

standards on small businesses. This also 

provides SBA with an opportunity to 

seek and incorporate public input to the 

size standards review and analysis. SBA 

believes that proposed size standards 

revisions for industries being reviewed 

in this rule will make size standards 

more reflective of the current economic 

characteristics of businesses in those 

industries and the latest trends in 

Federal marketplace. 

SBA’s mission is to aid and assist 

small businesses through a variety of 

financial, procurement, business 

development and counseling, and 

disaster assistance programs. To 

determine the actual intended 

beneficiaries of these programs, SBA 

establishes numerical size standards by 

industry to identify businesses that are 

deemed small. 

The proposed revisions to the existing 

size standards for 70 industries in 

NAICS Sectors 61, 62, 71, 72 and 81 are 

consistent with SBA’s statutory 

mandates to help small businesses grow 

and create jobs and to review and adjust 

size standards every 5 years. This 

regulatory action promotes the 

Administration’s goals and objectives as 

well as meets the SBA’s statutory 

responsibility. One of SBA’s goals in 

support of promoting the 

Administration’s objectives is to help 

small businesses succeed through fair 

and equitable access to capital and 

credit, Federal Government contracts 

and purchases, and management and 

technical assistance. Reviewing and 

modifying size standards, when 

appropriate, ensures that intended 

beneficiaries are able to access Federal 

small business programs that are 

designed to assist them to become 

competitive and create jobs. 

2. What are the potential benefits and 

costs of this regulatory action? 

OMB directs agencies to establish an 

appropriate baseline to evaluate any 

benefits, costs, or transfer impacts of 

regulatory actions and alternative 

approaches considered. The baseline 

should represent the agency’s best 

assessment of what the world would 

look like absent the regulatory action. 

For a new regulatory action 

promulgating modifications to an 

existing regulation (such as modifying 

the existing size standards), a baseline 

assuming no change to the regulation 

(i.e., making no changes to current size 

standards) generally provides an 

appropriate benchmark for evaluating 

benefits, costs, or transfer impacts of 

proposed regulatory changes and their 

alternatives. 

Proposed Changes to Size Standards 

Based on the results from analyses of 

latest industry and Federal contracting 

data, as well as consideration of impact 

of size standards changes on small 

businesses and significant adverse 

impacts of the COVID–19 pandemic on 

small businesses and the overall 

economic activity, of the total of 145 

industries in Sectors 61, 62, 71, 72 and 

81 that have receipts-based size 

standards, SBA proposes to increase 

size standards for 70 industries, and 

maintain current size standards for the 

remaining 75 industries. 

The Baseline 

For purposes of this regulatory action, 

the baseline represents maintaining the 

‘‘status quo,’’ i.e., making no changes to 

the current size standards. Using the 

number of small businesses and levels 

of benefits (such as set-aside contracts, 

SBA’s loans, disaster assistance, etc.) 

they receive under the current size 

standards as a baseline, one can 

examine the potential benefits, costs 

and transfer impacts of proposed 

changes to size standards on small 

businesses and on the overall economy. 

Based on the 2012 Economic Census 

(the latest available), of a total of about 

2.0 million businesses in industries in 

Sectors 61, 62, 71, 72, and 81, 98% are 

considered small under the current size 

standards. That percentage varies from 

95.9% in Sector 61 to 98.8% in Sectors 

72 and 81. Based on the data from 

FPDS–NG for fiscal years 2016–2018, 

about 26,174 unique firms in those 

industries received at least one Federal 

contract during that period, of which 

78.2% were small under the current size 

standards. A total of $15.2 billion in 

average annual contract dollars were 

awarded to businesses in those 

industries during the period of 

evaluation, and 30.7% of the dollars 

awarded went to small businesses. For 

these sectors, providing contract dollars 

to small business through set-asides is 

quite important. From the total small 

business contract dollars awarded 

during the period considered, 65.0% 

were awarded through various small 

business set-aside programs and 35.0% 

were awarded through non-set aside 


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contracts. Based on the SBA’s internal 

data on its loan programs for fiscal years 

2016–2018, small businesses in those 

industries received, on an annual basis, 

a total of 25,070 7(a) and 504 loans in 

that period, totaling about $12.9 billion, 

of which 83.2% was issued through the 

7(a) program and 16.8% was issued 

through the 504/CDC program. During 

fiscal years 2016–2018, small businesses 

in those industries also received 1,612 

loans through the SBA’s Economic 

Injury Disaster Loan (EIDL) program, 

totaling about $186 million on an 

annual basis. Table 8, Baseline for All 

Industries, below, provides these 

baseline results by sector. 

TABLE 8—BASELINE FOR ALL INDUSTRIES

Sector 61 Sector 62 Sector 71 Sector 72 Sector 81 Total 

Baseline All Industries (current size standards) .............. 18 39 25 15 48 145 

Total firms (Economic Census) ....................................... 84,084 653,143 114,926 496,856 667,318 2,016,327 

Total small firms under current size standards (Economic Census) ............................................................. 80,620 632,077 112,612 490,773 659,559 1,975,640 

Small firms as % of total firms ......................................... 95.9 96.8 98.0 98.8 98.8 98.0 

Total contract dollars ($ million) (FPDS–NG FY2016– 

2018) ............................................................................ $3,548.9 $8,474.5 $157.4 $785.2 $2,848.9 $15,814.9 

Total small business contract dollars under current 

standards ($ million) (FPDS–NG FY2016–2018) ........ $1,257.0 $2,335.5 $114.7 $356.9 $784.6 $4,848.7 

Small business dollars as % of total dollars (FPDS–NG 

FY2016–2018) .............................................................. 35.4 27.6 72.9 45.5 27.5 30.7 

Total No. of unique firms getting contracts (FPDS–NG 

FY2016–2018) .............................................................. 4,425 6,853 1,128 3,733 10,786 26,174 

Total No. of unique small firms getting small business 

contracts (FPDS–NG FY2016–2018) ........................... 3,514 5,758 1,023 3,088 7,476 20,475 

Small business firms as % of total firms ......................... 79.4 84.0 90.7 82.7 69.3 78.2 

No. of 7(a) and 504/CDC loans (FY2016–2018) ............. 993 6,251 2,280 9,313 6,233 25,070 

Amount of 7(a) and 504 loans ($ million) (FY2016– 

2018) ............................................................................ $371.8 $3,324.0 $1,104.6 $5,826.6 $2,301.6 $12,928.7 

No. of EIDL loans (FY2016–2018) .................................. 68 376 140 382 646 1,612 

Amount of EIDL loans ($ million) (FY2016–2018) .......... $6.1 $41.7 $17.8 $48.7 $72.0 $186.4 

Increases to Size Standards 

As stated above, of 145 receipts-based 

size standards in Sectors 61, 62, 71, 72 

and 81 that are reviewed in this rule, 

based on the results from analyses of 

latest industry and Federal market data 

as well as impacts of size standards 

changes on small businesses, in this 

rule, SBA proposes to increase 70 size 

standards. Below are descriptions of the 

benefits, costs and transfer impacts of 

these proposed increases to size 

standards. 

Benefits of Increases to Size Standards 

The most significant benefit to 

businesses from proposed increases to 

size standards is gaining eligibility for 

Federal small business assistance 

programs or retaining that eligibility for 

a longer period. These include SBA’s 

business loan programs, EIDL program, 

and Federal procurement programs 

intended for small businesses. Federal 

procurement programs provide targeted, 

set-aside opportunities for small 

businesses under the SBA’s various 

business development and contracting 

programs. These include the 8(a)/BD 

(business development) Program, the 

Small Disadvantaged Businesses (SDB) 

Program, the Historically Underutilized 

Business Zones (HUBZone) Program, 

the Women-Owned Small Businesses 

(WOSB) Program, the Economically 

Disadvantaged Women-Owned Small 

Businesses (EDWOSB) Program, and the 

Service-Disabled Veteran-Owned Small 

Businesses (SDVOSB) Program. 

Besides set-aside contracting and 

financial assistance discussed above, 

small businesses also benefit through 

reduced fees, less paperwork, and fewer 

compliance requirements that are 

available to small businesses through 

the Federal Government. However, SBA 

has no data to estimate the number of 

small businesses receiving such 

benefits. 

Based on the 2012 Economic Census 

(latest available), SBA estimates that in 

70 industries in NAICS Sectors 61, 62, 

71, 72 and 81 for which it has proposed 

to increase size standards, more than 

4,708 firms (see Table 9, below), not 

small under the current size standards, 

will become small under the proposed 

size standards increases and therefore 

become eligible for these programs. That 

represents about 0.4% of all firms 

classified as small under the current 

size standards in industries for which 

SBA has proposed increasing size 

standards. If adopted, proposed size 

standards would result in an increase to 

the small business share of total receipts 

in those industries from 37.4% to 

38.5%. 

With more businesses qualifying as 

small under the proposed increases to 

size standards, Federal agencies will 

have a larger pool of small businesses 

from which to draw for their small 

business procurement programs. 

Growing small businesses that are close 

to exceeding the current size standards 

will be able to retain their small 

business status for a longer period under 

the higher size standards, thereby 

enabling them to continue to benefit 

from the small business programs. 

Based on the FPDS–NG data for fiscal 

years 2016–2018, SBA estimates that 

about 233 firms that are active in 

Federal contracting in those industries 

would gain small business status under 

the proposed size standards. Based on 

the same data, SBA estimates that those 

newly-qualified small businesses under 

the proposed increases to size 

standards, if adopted, could receive 

Federal small business contracts totaling 

about $47.0 million annually. That 

represents a 1.9% increase to small 

business dollars from the sector 

baseline. 

The added competition from more 

businesses qualifying as small can result 

in lower prices to the Government for 

procurements set aside or reserved for 

small businesses, but SBA cannot 

quantify this impact. Costs could be 

higher when full and open contracts are 

awarded to HUBZone businesses that 

receive price evaluation preferences. 

However, with agencies likely setting 

aside more contracts for small 

businesses in response to the 

availability of a larger pool of small 


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businesses under the proposed increases 

to size standards, HUBZone firms might 

actually end up getting more set-aside 

contracts and fewer full and open 

contracts, thereby resulting in some cost 

savings to agencies. While SBA cannot 

estimate such costs savings as it is 

impossible to determine the number and 

value of unrestricted contracts to be 

otherwise awarded to HUBZone firms 

will be awarded as set-asides, such cost 

savings are likely to be relatively small 

as only a small fraction of full and open 

contracts are awarded to HUBZone 

businesses. 

Under SBA’s 7(a) and 504 loan 

programs, based on the data for fiscal 

years 2016–2018, SBA estimates up to 

about 54 of SBA’s 7(a) and 504 loans 

totaling about $23.0 million could be 

made to these newly-qualified small 

businesses in those industries under the 

proposed size standards. That 

represents a 0.4% increase to the loan 

amount compared to the baseline for all 

industries covered by this proposed 

rule. 

Newly-qualified small businesses will 

also benefit from the SBA’s EIDL 

program. Since the benefit provided 

through this program is contingent on 

the occurrence and severity of a disaster 

in the future, SBA cannot make a 

meaningful estimate of this impact. 

However, based on the historical trends 

of the EIDL data, SBA estimates that, on 

an annual basis, the newly defined 

small businesses under the proposed 

increases to size standards, if adopted, 

could receive six (6) EIDL loans, totaling 

about $0.7 million. Additionally, the 

newly-defined small businesses would 

also benefit through reduced fees, less 

paperwork, and fewer compliance 

requirements that are available to small 

businesses through the Federal 

Government, but SBA has no data to 

quantify this impact. Table 9, Impacts of 

Proposed Increases to Size Standards, 

provides these results by NAICS sector. 

TABLE 9—IMPACTS OF PROPOSED INCREASES TO SIZE STANDARDS

Sector 61 Sector 62 Sector 71 Sector 72 Sector 81 Total 

No. of industries with proposed increases to size standards ............................................................................... 14 18 11 4 23 70 

Total current small businesses in industries with Proposed increases to size standards (Economic Census 

2012) ............................................................................ 53,788 350,287 47,893 243,299 428,410 1,123,676 

Additional firms qualifying as small under proposed 

standards (2012 Economic Census) ............................ 707.9 1464.4 264.9 599.3 1671.3 4,708 

Percentage of additional firms qualifying as small relative to current small businesses in industries with 

proposed increases to size standards ......................... 1.32 0.42 0.55 0.25 0.39 0.42 

No. of current unique small firms getting small business 

contracts in industries with proposed increases to 

size standards (FPDS–NG FY2016–2018) 1 ................ 3,365 3,482 395 722 3,300 11,080 

Additional small business firms getting small business 

status (FPDS–NG FY2016–2018) ................................ 33 30 8 1 168 233 

% increase to small businesses relative to current 

unique small firms getting small business contracts in 

industries with proposed increases to size standards 

(FPDS–NG FY2016–2018) 1 ........................................ 0.98 0.86 2.03 0.14 5.09 2.10 

Total small business contract dollars under current 

standards in industries with proposed increases to 

size standards ($ million) (FPDS–NG FY2016–2018) $1,091.7 $1,094.3 $26.6 $12.4 $233.0 $2,458.0 

Estimated small business dollars available to newlyqualified small firms (Using avg dollars obligated to 

SBs) ($ million) FPDS–NG FY 2016–2018) 1 .............. $19.4 $14.8 $0.9 $0.0 $11.8 $47.0 

% increase to small business dollars relative to total 

small business contract dollars under current standards in industries with proposed increases to size 

standards ...................................................................... 1.78 1.35 3.28 0.31 5.08 1.91 

Total no. of 7(a) and 504 loans to small business in industries with proposed increases to size standards 

(FY2016–2018) ............................................................. 565 3,209 1,502 4,437 2,856 12,569 

Total amount of 7(a) and 504 loans to small businesses 

in industries with proposed increases to size standards ($ million) (FY2016–2018) ................................... $208.0 $1,827.2 $652.6 $1,688.3 $943.1 $5,319.3 

Estimated no. of 7(a) and 504 loans to newly-qualified 

small firms .................................................................... 8 14 9 11 12 54 

Estimated 7(a) and 504 loan amount to newly-qualified 

small firms ($ million) ................................................... $2.9 $8.0 $3.9 $4.2 $4.0 $23.0 

% increase to 7(a) and 504 loan amount relative to the 

total amount of 7(a) and 504 loans in industries with 

proposed increases to size standards ......................... 1.4% 0.4% 0.6% 0.2% 0.4% 0.4% 

Total no. of EIDL loans to small businesses in industries with proposed increases to size standards 

(FY2016–2018) ............................................................. 49 213 51 197 423 933 

Total amount of EIDL loans to small businesses in industries with proposed increases to size standards ($ 

million) (FY2016–2018) ................................................ $5.0 $20.8 $6.2 $23.8 $56.9 $112.7 

Estimated no. of EIDL loans to newly-qualified small 

firms .............................................................................. 1 1 1 1 2 6 

Estimated EIDL loan amount to newly-qualified small 

firms ($ million) ............................................................. $0.10 $0.10 $0.12 $0.12 $0.27 $0.71 


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2For a clarification of what the FAR’s annual 

representation in SAM requirement is, see number 

3 under the Initial Regulatory Flexibility Analysis 

section on page 92. 

TABLE 9—IMPACTS OF PROPOSED INCREASES TO SIZE STANDARDS—Continued 

Sector 61 Sector 62 Sector 71 Sector 72 Sector 81 Total 

% increase to EIDL loan amount relative to the total 

amount of EIDL loans in industries with proposed increases to size standards ............................................ 2.0% 0.5% 2.0% 0.5% 0.5% 0.6% 

1Additional dollars are calculated multiplying average small business dollars obligated per DUNS times change in number of firms. Numbers of 

firms are calculated using the SBA current size standard, not the contracting officer’s size designation. 2Total impact represents total unique number of firms impacted to avoid double counting as some firms are participating in more than one 

industry. 

Costs of Increases to Size Standards 

Besides having to register in SAM to 

be able to participate in Federal 

contracting and update the SAM profile 

annually,2 small businesses incur no 

direct costs to gain or retain their small 

business status as a result of increases 

to size standards. All businesses willing 

to do business with Federal Government 

must register in SAM and update their 

SAM profiles annually, regardless of 

their size status. SBA believes that a 

vast majority of businesses that are 

willing to participate in Federal 

contracting are already registered in 

SAM and update their SAM profiles 

annually. More importantly, this 

proposed rule does not establish the 

new size standards for the very first 

time; rather it intends to modify the 

existing size standards in accordance 

with a statutory requirement and the 

latest data and other relevant factors. 

To the extent that the newly-qualified 

small businesses could become active in 

Federal procurement, the proposed 

increases to size standards, if adopted, 

may entail some additional 

administrative costs to the Government 

as a result of more businesses qualifying 

as small for Federal small business 

programs. For example, there will be 

more firms seeking SBA’s loans, more 

firms eligible for enrollment in the 

Dynamic Small Business Search (DSBS) 

database or in certify.sba.gov, more 

firms seeking certification as 8(a)/BD or 

HUBZone firms or qualifying for small 

business, SDB, WOSB, EDWOSB, and 

SDVOSB status, and more firms 

applying for SBA’s 8(a)/BD and all small 

business mentor-prote ́ge ́ programs. With 

an expanded pool of small businesses, 

it is likely that Federal agencies would 

set aside more contracts for small 

businesses under the proposed increases 

to size standards. One may surmise that 

this might result in a higher number of 

small business size protests and 

additional processing costs to agencies. 

However, the SBA’s historical data on 

size protests shows that the number of 

size protests decreased following the 

increases to receipts-based size 

standards as part of the first 5-year 

review of size standards. Specifically, 

on an annual basis, the number of size 

protests fell from about 600 during fiscal 

years 2011–2013 (review of most 

receipts-based size standards was 

completed by the end of FY 2013), as 

compared to about 500 during fiscal 

years 2014–2016 when size standards 

increases were in effect. That represents 

a 17% decline. Among those newlydefined small businesses seeking SBA’s 

loans, there could be some additional 

costs associated with verification of 

their small business status. However, 

small business lenders have an option of 

using the tangible net worth and net 

income based alternative size standard 

instead of using the industry-based size 

standards to establish eligibility for 

SBA’s loans. For these reasons, SBA 

believes that these added administrative 

costs will be minor because necessary 

mechanisms are already in place to 

handle these added requirements. 

Additionally, some Federal contracts 

may possibly have higher costs. With a 

greater number of businesses defined as 

small due to the proposed increases to 

size standards, Federal agencies may 

choose to set aside more contracts for 

competition among small businesses 

only instead of using a full and open 

competition. The movement of contracts 

from unrestricted competition to small 

business set-aside contracts might result 

in competition among fewer total 

bidders, although there will be more 

small businesses eligible to submit 

offers under the proposed size 

standards. However, the additional costs 

associated with fewer bidders are 

expected to be minor since, by law, 

procurements may be set aside for small 

businesses under the 8(a)/BD, SDB, 

HUBZone, WOSB, EDWOSB, or 

SDVOSB programs only if awards are 

expected to be made at fair and 

reasonable prices. 

Costs may also be higher when full 

and open contracts are awarded to 

HUBZone businesses that receive price 

evaluation preferences. However, with 

agencies likely setting aside more 

contracts for small businesses in 

response to the availability of a larger 

pool of small businesses under the 

proposed increases to size standards, 

HUBZone firms might actually end up 

getting fewer full and open contracts, 

thereby resulting in some cost savings to 

agencies. However, such cost savings 

are likely to be minimal as only a small 

fraction of unrestricted contracts are 

awarded to HUBZone businesses. 

Transfer Impacts of Increases to Size 

Standards 

The proposed increases to size 

standards, if adopted, may result in 

some redistribution of Federal contracts 

between the newly qualified small 

businesses and large businesses and 

between the newly-qualified small 

businesses and small businesses under 

the current standards. However, it 

would have no impact on the overall 

economic activity since total Federal 

contract dollars available for businesses 

to compete for will not change with 

changes to size standards. While SBA 

cannot quantify with certainty the 

actual outcome of the gains and losses 

from the redistribution of contracts 

among different groups of businesses, it 

can identify several probable impacts in 

qualitative terms. With the availability 

of a larger pool of small businesses 

under the proposed increases to size 

standards, some unrestricted Federal 

contracts which would otherwise be 

awarded to large businesses may be set 

aside for small businesses. As a result, 

large businesses may lose some Federal 

contracting opportunities. Similarly, 

some small businesses under the current 

size standards may obtain fewer setaside contracts due to the increased 

competition from larger businesses 

qualifying as small under the proposed 

increases to size standards. This impact 

may be offset by a greater number of 

procurements being set aside for all 

small businesses. With larger businesses 

qualifying as small under the higher size 

standards, smaller small businesses 

could face some disadvantage in 

competing for set aside contracts against 

their larger counterparts. However, SBA 

cannot quantify these impacts. 


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3. What alternatives have been 

considered? 

Under OMB Circular A–4, SBA is 

required to consider regulatory 

alternatives to the proposed changes in 

the proposed rule. In this section, SBA 

describes and analyzes 2 such 

alternatives to the proposed rule. 

Alternative Option One to the proposed 

rule, a more stringent alternative to the 

proposed rule, would propose adopting 

size standards based solely on the 

analytical results. In other words, the 

size standards of 70 industries for which 

the analytical results suggest raising size 

standards would be raised. However, 

the size standards of 63 industries for 

which the analytical results suggest 

lowering size standards would be 

maintained. Alternative Option Two 

would propose retaining all size 

standards for all industries, given the 

uncertainty generated by the ongoing 

COVID–19 pandemic. Below, SBA 

discusses and presents the net impacts 

of each option. 

Alternative Option One: Consider 

Adopting All Calculated Size Standards 

As discussed elsewhere in this 

proposed rule, Alternative Option One 

would cause a substantial number of 

currently small businesses to lose their 

small business status and hence to lose 

their access to Federal small business 

assistance, especially small business setaside contracts and SBA’s financial 

assistance in some cases. SBA could 

adopt one or more of the following three 

actions with respect to adopting size 

standards for which the analytical 

results suggest a decrease is appropriate: 

(1) To accept decreases in size standards 

as suggested by the analytical results, (2) 

to decrease size standards by a smaller 

amount than the calculated threshold, 

and (3) to retain the size standards at 

their current levels. Actions 2 and 3 

would mitigate the impacts of a 

decrease to size standards. 

SBA has adopted action 3 in previous 

size reviews. For example, in response 

to the 2008 Financial Crisis and 

economic conditions that followed, SBA 

adopted a general policy in the first 5- 

year comprehensive size standards 

review to not lower any size standard 

(except to exclude one or more 

dominant firms) even when the 

analytical results suggested the size 

standard should be lowered. Currently, 

because of the economic challenges 

presented by the COVID–19 pandemic 

and the measures taken to protect public 

health, SBA has decided to adopt same 

general policy of not lowering size 

standards in the ongoing second 5-year 

comprehensive size standards review as 

well. 

The primary benefit of adopting all 

changes in size standards as suggested 

by the analytical results is that SBA’s 

procurement, management, technical 

and financial assistance resources 

would be targeted to the most 

appropriate beneficiaries of such 

programs according to the analytical 

results. Adopting the size standards 

suggested by the analytical results 

would also promote consistency with 

analytical results in SBA’s exercise of its 

authority to determine size standards. 

SBA seeks public comment on the 

impact of adopting the size standard as 

suggested by the analytical results. 

We have discussed already the 

benefits and costs of increasing 70 size 

standards. Below we discuss the 

benefits and costs of decreasing 63 size 

standards. 

Benefits of Decreases to Size Standards 

The most significant benefit to 

businesses from decreases to size 

standards when the SBA’s analysis 

suggests such decreases is to ensure that 

size standards are more reflective of 

latest industry structure and Federal 

market trends and that Federal small 

business assistance is more effectively 

targeted to its intended beneficiaries. 

These include SBA’s loan programs, 

EIDL program, and Federal procurement 

programs intended for small businesses. 

Federal procurement programs provide 

targeted, set-aside opportunities for 

small businesses under SBA’s business 

development programs, such as small 

business, 8(a)/BD, SDB HUBZone, 

WOSB, EDWOSB, and SDVOSB 

programs. The adoption of smaller size 

standards when the results support 

them diminishes the risk of awarding 

contracts to firms which are not small 

anymore. 

Decreasing size standards may reduce 

the administrative costs of the 

Government, because the risk of 

awarding contracts to other than small 

businesses may diminish when the size 

standards reflect better the structure of 

the market. The risks of providing SBA’s 

loans to firms that are not needing them 

the most, or allowing firms that are not 

eligible for small business set-asides or 

to participate on the SBA procurement 

programs will provide for a better 

chance for smaller firms to grow and 

benefit from the opportunities available 

in the Federal market, and strengthen 

the small business industrial base for 

the Federal Government. 

Costs of Decreases to Size Standards 

With fewer businesses qualifying as 

small under the decreases to size 

standards, Federal agencies will have a 

smaller pool of small businesses from 

which to draw for their small business 

procurement programs. For example, in 

Option One, during fiscal years 2016– 

2018, agencies awarded, on an annual 

basis, about $2,004 million in small 

business contracts in those 63 industries 

for which this Option considered 

decreasing size standards. Table 10 

below shows that lowering 63 size 

standards would reduce Federal 

contract dollars awarded to small 

businesses by $76.4 million or about 

3.8% relative to the baseline level. 

Nevertheless, since Federal agencies are 

still required to meet the statutory small 

business contracting goal of 23%, actual 

impacts on the overall set aside activity 

is likely to be smaller as agencies are 

likely to award more set aside contracts 

to small businesses that continue to 

remain small under the reduced size 

standards. 

With fewer businesses qualifying as 

small, the decreased competition can 

also result in higher prices to the 

Government for procurements set aside 

or reserved for small businesses, but 

SBA cannot quantify this impact. 

However, SBA estimates an almost null 

impact or non-significant reduction in 

dollars obligated to small businesses, if 

mitigation measures are adopted. 

Decreases to size standards would have 

a very minor impact on small businesses 

applying for SBA’s 7(a) and 504 loans 

because a vast majority of such loans are 

issued to businesses that are far below 

the reduced size standards. For 

example, based on the loan data for 

fiscal years 2016–2018, Option One 

estimates that about 26 SBA’s 7(a) and 

504 loans with total amounts of $19.8 

million could not be made to those 

small businesses that would lose 

eligibility under the reduced size 

standards (before mitigation). That 

represents about a 0.3% decrease of the 

loan amounts compared to the baseline. 

Table 10 Impacts of Decreases to Size 

Standards Under Alternative Option 

One, below, shows these results by 

sector. However, the actual impact 

could be much less as businesses losing 

small business eligibility under the 

decreases to industry-based size 

standards could still qualify for SBA’s 

loans under the tangible net worth and 

net income-based alternative size 

standard. 

Businesses losing small business 

status would also be impacted in terms 

of access to loans through the SBA’s 

EIDL program. However, SBA expects 

such impact to be minimal as only a 

small number of businesses in those 

industries received such loans during 

fiscal years 2016–2018. Since this 


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program is contingent on the occurrence 

and severity of a disaster in the future, 

SBA cannot make a meaningful estimate 

of this impact. 

Small businesses becoming other than 

small if size standards were decreased 

might lose benefits through reduced 

fees, less paperwork, and fewer 

compliance requirements that are 

available to small businesses through 

Federal Government, but SBA has no 

data to quantify this impact. However, 

if agencies determine that SBA’s size 

standards do not adequately serve such 

purposes, they can establish a different 

size standard with an approval from 

SBA if they are required to use SBA’s 

size standards for their programs. 

TABLE 10—IMPACTS OF DECREASES TO SIZE STANDARDS UNDER ALTERNATIVE OPTION ONE

Sector 61 Sector 62 Sector 71 Sector 72 Sector 81 Total 

No. of industries for which SBA considered decreasing 

size standards (2012 Economic Census) .................... 4 18 11 9 21 63 

Total current small businesses in industries for which 

SBA considered decreasing size standards (EC 2012) 26,832 257,179 39,737 243,637 129,388 696,774 

Estimated no. of firms losing small status for which SBA 

considered decreasing size standards (2012 Economic Census) ............................................................. 21 828 259 399 211 1,718 

% of Firms losing small status relative to current small 

businesses in industries for which SBA considered 

decreasing size standards ........................................... 0.08 0.32 0.65 0.16 0.16 0.25 

No. of current unique small firms getting small business 

contracts in industries for which SBA considered decreasing size standards (FPDS–NG FY2016–2018) 1 167 2,300 290 2,351 2,541 7,611 

Estimated number of small business firms that would 

have lost small business status in the decreases that 

SBA considered ............................................................ 1 45 3 31 105 183 

% decrease to small business firms relative to current 

unique small firms getting small business contracts in 

industries for which SBA considered decreasing size 

standards (FPDS–NG FY2016–2018) 1 ................. 0.60 1.96 1.03 1.32 4.13 2.40 

Total small business contract dollars under current size 

standards in industries for which SBA considered decreasing size standards ($ million) (FPDS–NG 

FY2016–2018) .............................................................. $165.2 $1,190.7 $19.4 $343.5 $284.9 $2,003.8 

Estimated small business dollars not available to firms 

losing small business status (Using avg dollars obligated to SBs) ($ million) 1 (FPDS–NG FY 2016– 

2018) ............................................................................ $0.1 $52.8 $0.2 $2.6 $20.8 $76.4 

% decrease to small business dollars relative to total 

small business contract dollars under current size 

standards in industries for which SBA considered decreasing size standards ............................................... 0.04 4.43 1.02 0.75 7.30 3.81 

Total no. of 7(a) and 504 loans to small businesses in 

industries for which SBA considered decreasing size 

standards (FY2016–2018) ............................................ 428 2,604 593 4,835 1,899 10,359 

Total amount of 7(a) and 504 loans to small businesses 

in industries for which SBA considered decreasing 

size standards ($ million) (FY2016–2018) ................... $163.8 $1,317.2 $375.7 $4,119.1 $566.6 $6,542.3 

Estimated no. of 7(a) and 504 loans not available to 

firms that would have lost small business status ........ 1 9 4 8 4 26 

Estimated 7(a) and 504 loan amount not available to 

firms that would have lost small status ($ million) ....... $0.4 $4.6 $6.8 $6.8 $1.2 $19.8 

% decrease to 7(a) and 504 loan amount relative to the 

total amount of 7(a) and 504 loans in industries for 

which SBA considered decreasing size standards ...... 0.2% 0.3% 1.8% 0.2% 0.2% 0.3% 

Total no. of EIDL loans to small businesses in industries for which SBA considered decreasing size 

standards (FY2016–2018) ............................................ 19 142 64 171 133 529 

Total amount of EIDL loans to small businesses in industries for which SBA considered decreasing size 

standards ($ million) (FY2016–2018) ........................... $1.1 $18.4 $10.3 $22.5 $8.9 $61.2 

Estimated no. of EIDL loans not available to firms that 

would have lost small business status ......................... 1 1 1 1 1 5 

Estimated EIDL loan amount not available to firms that 

would have lost small business status ($ million) ........ $0.06 $0.13 $0.16 $0.13 $0.07 $0.55 

% decrease to EIDL loan amount relative to the baseline ................................................................................ 5.3% 0.7% 1.6% 0.6% 0.8% 0.9% 

1Additional dollars are calculated multiplying average small business dollars obligated per DUNS times change in number of firms. 2Total impact represents total unique industries impacted to avoid double counting as some industries have large firms gaining small business 

status and small firms extending small business status. 


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Transfer Impacts of Decreases to Size 

Standards 

If the size standards were decreased 

under Alternative Option One, it may 

result in a redistribution of Federal 

contracts between small businesses 

losing the small business status and 

large businesses and between small 

businesses losing the small business 

status and small businesses remaining 

small under the reduced size standards. 

However, as under the proposed 

increases to size standards, it would 

have no impact on the overall economic 

activity since total Federal contract 

dollars available for businesses to 

compete for will stay the same. While 

SBA cannot estimate with certainty the 

actual outcome of the gains and losses 

among different groups of businesses 

from contract redistribution resulting 

from decreases to size standards, it can 

identify several probable impacts. With 

a smaller pool of small businesses under 

the decreases to size standards, some 

set-aside Federal contracts to be 

otherwise awarded to small businesses 

may be competed in unrestricted basis. 

As a result, large businesses may have 

more Federal contracting opportunities. 

However, because agencies are still 

required by law to award 23 percent of 

dollars to small businesses, SBA expects 

the movement of set-aside contracts to 

unrestricted competition to be limited. 

For the same reason, small businesses 

remaining small under the reduced size 

standards are likely to obtain more set 

aside contracts due to the reduced 

competition from fewer businesses 

qualifying as small under the decreases 

to size standards. With some larger 

small businesses losing small business 

status under the decreases to size 

standards, smaller small businesses 

would likely become more competitive 

in obtaining set aside contracts. 

However, SBA cannot quantify these 

impacts. 

Net Impact of Alternative Option One 

To estimate the net impacts of 

Alternative Option One, SBA followed 

the same methodology used to evaluate 

the impacts of the proposed size 

standards (see Table 9 above). However, 

under Alternative Option One, SBA 

used the calculated size standards 

instead of the proposed ones to 

determine the impacts of changes to 

current thresholds. The impact of the 

increases of the calculated size 

standards were already shown in Table 

9 above. Table 10 (above) and Table 11, 

Net Impacts of Size Standards Changes 

under Alternative Option One, below, 

present the impact of the decreases of 

size standards and the net impact of 

adopting the calculated results under 

Alternative Option One, respectively. 

Based on the 2012 Economic Census, 

SBA estimates that in 132 industries in 

NAICS Sectors 61, 62, 71, 72 and 81 for 

which the analytical results suggested to 

change size standards, about 2,990 firms 

(see Table 11, below), would become 

small under the Option One. That 

represents about 0.2 percent of all firms 

classified as small under the current 

size standards. 

Based on the FPDS–NG data for fiscal 

years 2016–2018, SBA estimates that 

about 38 active firms in Federal 

contracting in those industries would 

gain small business status under Option 

One. This represents an increase of 

about 0.2% of the total number of small 

businesses participating in Federal 

contracting under the current size 

standards. Based on the same data, SBA 

estimates that about $29.5 million of 

Federal procurement dollars would not 

be available to firms losing their small 

status. This represents a decrease of 

0.7% from the baseline for all industries 

covered by this proposed rule. 

Based on the SBA’s loan data for 

fiscal years 2016–2018, the total number 

of 7(a) and 504 loans may experience an 

overall increase by about 28 loans, and 

the loan amounts by about $3.2 million. 

This represents a 0.02% increase in the 

loan amounts relative to the baseline for 

all industries covered by this proposed 

rule. 

Firms’ participation under the SBA’s 

EIDL program will be affected as well. 

Since the benefit provided through this 

program is contingent on the occurrence 

and severity of a disaster in the future, 

SBA cannot make a meaningful estimate 

of this impact. However, based on the 

historical trends of the EIDL data, SBA 

estimates that, on an annual basis, the 

net impact of the Option One is 1 

additional loan, and an additional loan 

amount of about $0.16 million relative 

to the baseline for all industries covered 

by this proposed rule. Table 11, below, 

provides these results by NAICS sector. 

TABLE 11—NET IMPACTS OF SIZE STANDARDS CHANGES UNDER ALTERNATIVE OPTION ONE

Sector 61 Sector 62 Sector 71 Sector 72 Sector 81 Total 

No. of industries with proposed changes to size standards ............................................................................... 17 36 22 13 44 132 

Total no. of small business under the current size 

standards (2012 Economic Census) ............................ 80,620 607,466 87,630 486,936 557,798 1,820,450 

Additional firms qualifying as small under proposed size 

standards (2012 Economic Census) ............................ 687 636 6 200 1,460 2,990 

% of additional firms qualifying as small relative to total 

current small businesses .............................................. 0.85 0.10 0.01 0.04 0.26 0.16 

No. of current unique small firms getting small business 

contracts (FPDS–NG FY2016–2018) 1 ........................ 3,514 5,566 672 3,069 5,672 18,184 

Additional small firms getting small business status 

(FPDS–NG FY2016–2018) .......................................... 32 ¥14 5 ¥30 50 38 

% increase to small firms relative to current unique 

small firms getting small business contracts (FPDS– 

NG FY2016–2018) 1 ..................................................... 0.91 ¥0.25 0.74 ¥0.98 0.88 0.21 

Total small business small business contract dollars 

under current size standards ($ million) (FPDS–NG 

FY2016–2018) .............................................................. $1,257.0 $2,285.1 $46.1 $355.9 $517.9 $4,461.8 

Estimated small business dollars available to newlyqualified small firms ($ million) (FPDS–NG FY 2016– 

2018) 1 .......................................................................... $19.3 ¥$38.0 $0.7 ¥$2.6 ¥$9.0 ¥$29.5 

% increase to dollars relative to total small business 

contract dollars under current size standards .............. 1.54 ¥1.66 1.47 ¥0.72 ¥1.73 ¥0.66 

Total no. of 7(a) and 504 loans to small businesses 

(FY2016–2018) ............................................................. 993 6,251 2,280 9,313 6,233 25,070 


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TABLE 11—NET IMPACTS OF SIZE STANDARDS CHANGES UNDER ALTERNATIVE OPTION ONE—Continued 

Sector 61 Sector 62 Sector 71 Sector 72 Sector 81 Total 

Total amount of 7(a) and 504 loans to small businesses 

(FY2016–2018) ............................................................. $371.8 $3,324.0 $1,104.6 $5,826.6 $2,301.6 $12,928.7 

Estimated no. of additional 7(a) and 504 loans to newlyqualified small firms ...................................................... 7 5 5 3 8 28 

Estimated additional 7(a) and 504 loan amount to 

newly-qualified small firms ($ million) .......................... $2.6 $3.4 ¥$2.9 ¥$2.6 $2.8 $3.2 

% increase to 7(a)and 504 loan amount relative to the 

total amount of 7(a) and 504 loans to small businesses .......................................................................... 0.7% 0.1% ¥0.3% 0.0% 0.1% 0.02% 

Total no. of EIDL loans to small businesses (FY2016– 

2018) ............................................................................ 68 376 140 382 646 1,612 

Total amount of EIDL loans to small businesses 

(FY2016–2018) ............................................................. $6.1 $41.7 $17.8 $48.7 $72.0 $186.4 

Estimated no. of additional EIDL loans to newly-qualified small firms ............................................................. 0 0 0 0 1 1 

Estimated additional EIDL loan amount to newly-qualified small firms ($ million) ............................................ $0.04 -$0.03 -$0.04 -$0.01 $0.20 $0.16 

% increase to EIDL loan amount relative to the total 

amount of EIDL loans to small businesses ................. 0.7% -0.1% -0.2% 0.0% 0.3% 0.1% 

1Additional dollars are calculated multiplying average small business dollars obligated per DUNS times change in number of firms. 2Total impact represents total unique industries impacted to avoid double counting as some industries have large firms gaining small business 

status and small firms extending small business status. 

Alternative Option Two: To Retain All 

Current Size Standards 

Under this option, given the current 

COVID–19 pandemic, as discussed 

elsewhere, SBA considered retaining the 

current levels of all size standards even 

though the analytical results may 

suggest changing them. SBA considers 

that the option of retaining all size 

standards at this moment provides the 

opportunity to reassess the economic 

situation once the economic recovery 

starts. Under this option, as the current 

situation develops, SBA will be able to 

assess new data available on economic 

indicators, federal procurement, and 

SBA loans as well. SBA estimates a net 

impact of zero for this option, when 

compared to the baseline. However, if 

we compare the proposal of increasing 

70 size standards and retaining 75 with 

this alternative approach, the benefits 

for small businesses of adopting the 

proposal will not be attained, because of 

which SBA is not proposing the 

Alternative Option Two. 

Executive Order 13771 

SBA has determined, subject to the 

approval of the Office of Information 

and Regulatory Affairs (OIRA) of the 

Office of Management and Budget 

(OMB), that this proposed rule is not 

subject to the requirements of Executive 

Order 13771, because most of the rule’s 

impacts are income transfers between 

small and other than small businesses. 

According to the Executive Order 13771 

guidance in OMB M–17–21, dated April 

5, 2017 (E.O. 13771 Guidance), 

‘‘transfers’’ are not covered by Executive 

Order 13771. The E.O. 13771 Guidance 

also states that ‘‘in some cases, [transfer 

rules] may impose requirements apart 

from transfers, or transfers may distort 

markets causing inefficiencies. In those 

cases, the actions would need to be 

offset to the extent they impose more 

than de minimis costs.’’ SBA estimates 

that this rulemaking would impose only 

de minimis costs on small businesses 

and would result in negligible 

compliance costs. Thus, SBA has 

determined that this rulemaking is 

exempt from the requirements of 

Executive Order 13771. Details on the 

estimated costs of this proposed rule 

can be found in the Regulatory Impact 

Analysis above. 

Regulatory Flexibility Act 

According to the Regulatory 

Flexibility Act (RFA), 5 U.S.C. 601–612, 

when an agency issues a rulemaking, it 

must prepare a regulatory flexibility 

analysis to address the impact of the 

rule on small entities. 

This proposed rule, if adopted, may 

have a significant impact on a 

substantial number of small businesses 

in the industries covered by this 

proposed rule. As described above, this 

rule may affect small businesses seeking 

Federal contracts, loans under SBA’s 

7(a), 504 and Economic Injury Disaster 

Loan Programs, and assistance under 

other Federal small business programs. 

Initial Regulatory Flexibility Analysis 

Immediately below, SBA sets forth an 

initial regulatory flexibility analysis 

(IRFA) of this proposed rule addressing 

the following questions: (1) What are the 

need for and objective of the rule?; (2) 

What are SBA’s description and 

estimate of the number of small 

businesses to which the rule will 

apply?; (3) What are the projected 

reporting, record keeping, and other 

compliance requirements of the rule?; 

(4) What are the relevant Federal rules 

that may duplicate, overlap, or conflict 

with the rule?; and (5) What alternatives 

will allow the Agency to accomplish its 

regulatory objectives while minimizing 

the impact on small businesses? 

1. What are the need for and objective 

of the rule? 

Changes in industry structure, 

technological changes, productivity 

growth, mergers and acquisitions, and 

updated industry definitions have 

changed the structure of many the 

industries covered by this proposed 

rule. Such changes can be enough to 

support revisions to current size 

standards for some industries. Based on 

the analysis of the latest data available, 

SBA believes that the revised standards 

in this proposed rule more 

appropriately reflect the size of 

businesses that need Federal assistance. 

The 2010 Jobs Act also requires SBA to 

review all size standards and make 

necessary adjustments to reflect market 

conditions. 

2. What are SBA’s description and 

estimate of the number of small 

businesses to which the rule will apply? 

Based on data from the 2012 

Economic Census, SBA estimates that 

there are about 1.1 million small firms 

covered by this rulemaking under 

industries with proposed changes to 

size standards. If the proposed rule is 

adopted in its present form, SBA 


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Federal Register / Vol. 85, No. 229 / Friday, November 27, 2020 / Proposed Rules 76413 

estimates that an additional 4,708 

businesses will become small. 

3.What are the projected reporting, 

record keeping and other compliance 

requirements of the rule? 

The proposed size standard changes 

impose no additional reporting or 

record keeping requirements on small 

businesses. However, qualifying for 

Federal procurement and a number of 

other programs requires that businesses 

register in SAM and self-certify that 

they are small in that system frequently 

enough to ensure that their SAM 

registration is current, accurate, and 

complete with the submission of an 

offer for every new contract (FAR 

52.204–7 and 52.204–8). For existing 

contracts, small business contractors are 

generally required to update their SAM 

registration at least annually (FAR 

52.204–13). Therefore, businesses 

opting to participate in those programs 

must comply with SAM requirements. 

There are no costs associated with SAM 

registration or certification. Changing 

size standards alters the access to SBA’s 

programs that assist small businesses 

but does not impose a regulatory burden 

because they neither regulate nor 

control business behavior. 

4. What are the relevant Federal rules, 

which may duplicate, overlap or conflict 

with the rule? 

Under section 3(a)(2)(C) of the Small 

Business Act, 15 U.S.C. 632(a)(2)(c), 

Federal agencies must use SBA’s size 

standards to define a small business, 

unless specifically authorized by statute 

to do otherwise. In 1995, SBA published 

in the Federal Register a list of statutory 

and regulatory size standards that 

identified the application of SBA’s size 

standards as well as other size standards 

used by Federal agencies (60 FR 57988 

(November 24, 1995)). SBA is not aware 

of any Federal rule that would duplicate 

or conflict with establishing size 

standards. 

However, the Small Business Act and 

SBA’s regulations allow Federal 

agencies to develop different size 

standards if they believe that SBA’s size 

standards are not appropriate for their 

programs, with the approval of SBA’s 

Administrator (13 CFR 121.903). The 

Regulatory Flexibility Act authorizes an 

Agency to establish an alternative small 

business definition, after consultation 

with the Office of Advocacy of the U.S. 

Small Business Administration (5 U.S.C. 

601(3)). 

5. What alternatives will allow the 

Agency to accomplish its regulatory 

objectives while minimizing the impact 

on small entities? 

By law, SBA is required to develop 

numerical size standards for 

establishing eligibility for Federal small 

business assistance programs. Other 

than varying size standards by industry 

and changing the size measures, no 

practical alternative exists to the 

systems of numerical size standards. 

However, SBA considered two 

alternatives to its proposal to increase 

70 size standards and maintain 75 size 

standards at their current levels. The 

first alternative SBA considered was 

adopting size standards based solely on 

the analytical results. In other words, 

the size standards of 70 industries for 

which the analytical results suggest 

raising size standards would be raised. 

However, the size standards of 63 

industries for which the analytical 

results suggest lowering size standards 

would be lowered. This would cause a 

significant number of small businesses 

to lose their small business status. 

Under the second alternative, in view of 

the COVID–19 pandemic, SBA 

considered retaining all size standards 

at the current levels, even though the 

analytical results may suggest increasing 

70 and decreasing 63 size standards. 

Retaining all size standards at their 

current levels would be more onerous 

for the small businesses than the option 

of adopting 70 increases and retaining 

the rest of size standards. 

Executive Order 13563 

Executive Order 13563 emphasizes 

the importance of quantifying both costs 

and benefits, reducing costs, 

harmonizing rules, and promoting 

flexibility. A description of the need for 

this regulatory action and benefits and 

costs associated with this action 

including possible distributional 

impacts that relate to Executive Order 

13563 is included above in the 

Regulatory Impact Analysis under 

Executive Order 12866. Additionally, 

Executive Order 13563, section 6, calls 

for retrospective analyses of existing 

rules. 

The review of size standards in the 

industries covered by this proposed rule 

is consistent with section 6 of Executive 

Order 13563 and the 2010 Jobs Act 

which requires SBA to review all size 

standards and make necessary 

adjustments to reflect market 

conditions. Specifically, the 2010 Jobs 

Act requires SBA to review at least onethird of all size standards during every 

18-month period from the date of its 

enactment (September 27, 2010) and to 

review all size standards not less 

frequently than once every 5 years, 

thereafter. SBA had already launched a 

comprehensive review of size standards 

in 2007. In accordance with the Jobs 

Act, SBA completed the comprehensive 

review of the small business size 

standard for each industry, except those 

for agricultural enterprises previously 

set by Congress, and made appropriate 

adjustments to size standards for a 

number of industries to reflect current 

Federal and industry market conditions. 

The first comprehensive review was 

completed in 2015. Prior to 2007, the 

last time SBA conducted a 

comprehensive review of all size 

standards was during the late 1970s and 

early 1980s. 

SBA issued a White Paper entitled 

‘‘Size Standards Methodology’’ and 

published a notice in the April 11, 2019, 

edition of the Federal Register (84 FR 

14587) to advise the public that the 

document is available for public review 

and comments. The ‘‘Size Standards 

Methodology’’ White Paper explains 

how SBA establishes, reviews, and 

modifies its receipts-based and 

employee-based small business size 

standards. SBA gave appropriate 

consideration to all input, suggestions, 

recommendations, and relevant 

information obtained from industry 

groups, individual businesses, and 

Federal agencies in developing size 

standards for those industries covered 

by this proposed rule. 

Executive Order 12988 

This action meets applicable 

standards set forth in sections 3(a) and 

3(b)(2) of Executive Order 12988, Civil 

Justice Reform, to minimize litigation, 

eliminate ambiguity, and reduce 

burden. The action does not have 

retroactive or preemptive effect. 

Executive Order 13132 

For purposes of Executive Order 

13132, SBA has determined that this 

proposed rule will not have substantial, 

direct effects on the States, on the 

relationship between the National 

Government and the States, or on the 

distribution of power and 

responsibilities among the various 

levels of government. Therefore, SBA 

has determined that this proposed rule 

has no federalism implications 

warranting preparation of a federalism 

assessment. 

Paperwork Reduction Act 

For the purpose of the Paperwork 

Reduction Act, 44 U.S.C. Ch. 35, SBA 

has determined that this rule will not 

impose any new reporting or record 

keeping requirements. 


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76414 Federal Register / Vol. 85, No. 229 / Friday, November 27, 2020 / Proposed Rules 

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 13 

CFR part 121 as follows: 

PART 121—SMALL BUSINESS SIZE 

REGULATIONS 

■ 1. The authority citation for part 121 

continues to read as follows: 

Authority: 15 U.S.C. 632, 634(b)(6), 

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

Section 1114. 

■ 2. In § 121.201, amend the table 

‘‘Small Business Size Standards by 

NAICS Industry’’ by revising entries 

‘‘611110’’, ‘‘611210’’, ‘‘611310’’, 

‘‘611410’’, ‘‘611420’’, ‘‘611430’’, 

‘‘611511’’, ‘‘611513’’, ‘‘611519’’, 

‘‘611630’’, ‘‘611691’’, ‘‘611692’’, 

‘‘611699’’, ‘‘611710’’, ‘‘621111’’, 

‘‘621340’’, ‘‘621399’’, ‘‘621410’’, 

‘‘621491’’, ‘‘621498’’, ‘‘621511’’, 

‘‘621910’’, ‘‘621999’’, ‘‘623312’’, 

‘‘623990’’, ‘‘624110’’, ‘‘624120’’, 

‘‘624190’’, ‘‘624210’’, ‘‘624230’’, 

‘‘624310’’, ‘‘624410’’, ‘‘711120’’, 

‘‘711130’’, ‘‘711219’’, ‘‘711320’’, 

‘‘711410’’, ‘‘712120’’, ‘‘712190’’, 

‘‘713920’’, ‘‘713930’’, ‘‘713940’’, 

‘‘713950’’, ‘‘721211’’, ‘‘721310’’, 

‘‘722511’’, ‘‘722515’’, ‘‘811122’’, 

‘‘811191’’, ‘‘811198’’, ‘‘811211’’, 

‘‘811213’’, ‘‘811310’’, ‘‘812111’’, 

‘‘812112’’, ‘‘812191’’, ‘‘812210’’, 

‘‘812310’’, ‘‘812320’’, ‘‘812921’’, 

‘‘812990’’, ‘‘813110’’, ‘‘813312’’, 

‘‘813319’’, ‘‘813410’’, ‘‘813910’’, 

‘‘813920’’, ‘‘813930’’, ‘‘813940’’, and 

‘‘813990’’ to read as follows: 

§ 121.201 What size standards has SBA 

identified by North American Industry 

Classification System codes? 

* * * * * 

SMALL BUSINESS SIZE STANDARDS BY NAICS INDUSTRY

NAICS codes NAICS U.S. industry title 

Size 

standards 

in millions 

of dollars 

Size 

standards 

in number 

of employees 

*******

Sector 61—Educational Services 

Subsector 611—Educational Services 

611110 .............. Elementary and Secondary Schools ........................................................................................ $17.5 ........................

611210 .............. Junior Colleges ........................................................................................................................ 28.5 ........................

611310 .............. Colleges, Universities and Professional Schools .................................................................... 30.5 ........................

611410 .............. Business and Secretarial Schools ........................................................................................... 18.0 ........................

611420 .............. Computer Training ................................................................................................................... 14.0 ........................

611430 .............. Professional and Management Development Training ............................................................ 13.0 ........................

611511 .............. Cosmetology and Barber Schools ........................................................................................... 11.5 ........................

* * * * * * * 

611513 .............. Apprenticeship Training ........................................................................................................... 10.0 ........................

611519 .............. Other Technical and Trade Schools ........................................................................................ 18.5 ........................

Except ............... Job Corps Centers16 ................................................................................................................ 16 41.5 ........................

* * * * * * * 

611630 .............. Language Schools ................................................................................................................... 18.0 ........................

611691 .............. Exam Preparation and Tutoring ............................................................................................... 11.0 ........................

611692 .............. Automobile Driving Schools ..................................................................................................... 9.0 ........................

611699 .............. All Other Miscellaneous Schools and Instruction .................................................................... 14.5 ........................

611710 .............. Educational Support Services .................................................................................................. $21.0 ........................

Sector 62—Health Care and Social Assistance 

Subsector 621—Ambulatory Health Care Services 

621111 .............. Offices of Physicians (except Mental Health Specialists) ....................................................... 14.0 ........................

* * * * * * * 

621340 .............. Offices of Physical, Occupational and Speech Therapists and Audiologists .......................... 11.0 ........................

* * * * * * * 

621399 .............. Offices of All Other Miscellaneous Health Practitioners .......................................................... 9.0 ........................

621410 .............. Family Planning Centers .......................................................................................................... 16.5 ........................

*******

621491 .............. HMO Medical Centers .............................................................................................................. 39.0 ........................

*******

621498 .............. All Other Outpatient Care Centers ........................................................................................... 22.5 ........................

621511 .............. Medical Laboratories ................................................................................................................ $36.5 ........................

*******

621910 .............. Ambulance Services ................................................................................................................ 20.0 ........................


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SMALL BUSINESS SIZE STANDARDS BY NAICS INDUSTRY—Continued 

NAICS codes NAICS U.S. industry title 

Size 

standards 

in millions 

of dollars 

Size 

standards 

in number 

of employees 

*******

621999 .............. All Other Miscellaneous Ambulatory Health Care Services .................................................... 18.0 ........................

* * * * * * * 

Subsector 623—Nursing and Residential Care Facilities 

*******

623312 .............. Assisted Living Facilities for the Elderly .................................................................................. 20.5 ........................

623990 .............. Other Residential Care Facilities ............................................................................................. 14.0 ........................

Subsector 624—Social Assistance 

624110 .............. Child and Youth Services ........................................................................................................ 13.5 ........................

624120 .............. Services for the Elderly and Persons with Disabilities ............................................................ 13.0 ........................

624190 .............. Other Individual and Family Services ...................................................................................... 14.0 ........................

624210 .............. Community Food Services ....................................................................................................... 17.0 ........................

*******

624230 .............. Emergency and Other Relief Services .................................................................................... 36.5 ........................

624310 .............. Vocational Rehabilitation Services ........................................................................................... 13.0 ........................

624410 .............. Child Day Care Services .......................................................................................................... 8.5 ........................

Sector 71—Arts, Entertainment and Recreation 

Subsector 711—Performing Arts, Spectator Sports and Related Industries 

*******

711120 .............. Dance Companies .................................................................................................................... 16.0 ........................

711130 .............. Musical Groups and Artists ...................................................................................................... 13.0 ........................

*******

711219 .............. Other Spectator Sports ............................................................................................................ 14.5 ........................

*******

711320 .............. Promoters of Performing Arts, Sports and Similar Events without Facilities .......................... 19.5 ........................

711410 .............. Agents and Managers for Artists, Athletes, Entertainers and Other Public Figures ............... $15.5 ........................

*******

Subsector 712—Museums, Historical Sites and Similar Institutions 

*******

712120 .............. Historical Sites ......................................................................................................................... 11.5 ........................

*******

712190 .............. Nature Parks and Other Similar Institutions ............................................................................ 17.0 ........................

Subsector 713—Amusement, Gambling and Recreation Industries 

*******

713920 .............. Skiing Facilities ........................................................................................................................ 31.0 ........................

713930 .............. Marinas ..................................................................................................................................... 9.5 ........................

713940 .............. Fitness and Recreational Sports Centers ................................................................................ 15.5 ........................

713950 .............. Bowling Centers ....................................................................................................................... 11.0 ........................

*******

Sector 72—Accommodation and Food Services 

Subsector 721—Accommodation 

*******

721211 .............. RV (Recreational Vehicle) Parks and Campgrounds .............................................................. 9.0 ........................


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76416 Federal Register / Vol. 85, No. 229 / Friday, November 27, 2020 / Proposed Rules 

SMALL BUSINESS SIZE STANDARDS BY NAICS INDUSTRY—Continued 

NAICS codes NAICS U.S. industry title 

Size 

standards 

in millions 

of dollars 

Size 

standards 

in number 

of employees 

*******

721310 .............. Rooming and Boarding Houses, Dormitories, and Workers’ Camps ...................................... 12.5 ........................

Subsector 722—Food Services and Drinking Places 

*******

722511 .............. Full-Service Restaurants .......................................................................................................... 10.0 ........................

* * * * * * * 

722515 .............. Snack and Nonalcoholic Beverage Bars ................................................................................. 20.0 ........................

Sector 81—Other Services 

Subsector 811—Repair and Maintenance 

*******

811122 .............. Automotive Glass Replacement Shops ................................................................................... 15.5 ........................

811191 .............. Automotive Oil Change and Lubrication Shops ....................................................................... 9.5 ........................

* * * * * * * 

811198 .............. All Other Automotive Repair and Maintenance ....................................................................... 9.0 ........................

811211 .............. Consumer Electronics Repair and Maintenance ..................................................................... 22.5 ........................

* * * * * * * 

811213 .............. Communication Equipment Repair and Maintenance ............................................................. 19.5 ........................

* * * * * * * 

811310 .............. Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) 

Repair and Maintenance.

11.0 ........................

* * * * * * * 

Subsector 812—Personal and Laundry Services 

812111 .............. Barber Shops ........................................................................................................................... 8.5 ........................

812112 .............. Beauty Salons .......................................................................................................................... 8.5 ........................

*******

812191 .............. Diet and Weight Reducing Centers ......................................................................................... 24.0 ........................

*******

812210 .............. Funeral Homes and Funeral Services ..................................................................................... 11.0 ........................

*******

812310 .............. Coin-Operated Laundries and Drycleaners ............................................................................. 11.5 ........................

812320 .............. Dry cleaning and Laundry Services (except Coin-Operated) .................................................. 7.0 ........................

*******

812921 .............. Photofinishing Laboratories (except One-Hour) ...................................................................... 26.0 ........................

*******

812990 .............. All Other Personal Services ..................................................................................................... 13.0 ........................

Subsector 813—Religious, Grantmaking, Civic, Professional and Similar Organizations 

813110 .............. Religious Organizations ........................................................................................................... 11.5 ........................

* * * * * * * 

813312 .............. Environment, Conservation and Wildlife Organizations .......................................................... 17.0 ........................

813319 .............. Other Social Advocacy Organizations ..................................................................................... 16.0 ........................

813410 .............. Civic and Social Organizations ................................................................................................ 8.5 ........................

813910 .............. Business Associations ............................................................................................................. 13.5 ........................

813920 .............. Professional Organizations ...................................................................................................... 20.5 ........................

813930 .............. Labor Unions and Similar Labor Organizations ....................................................................... 14.5 ........................

813940 .............. Political Organizations .............................................................................................................. 12.5 ........................

813990 .............. Other Similar Organizations (except Business, Professional, Labor, and Political Organizations).12.0 ........................


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Federal Register / Vol. 85, No. 229 / Friday, November 27, 2020 / Proposed Rules 76417 

SMALL BUSINESS SIZE STANDARDS BY NAICS INDUSTRY—Continued 

NAICS codes NAICS U.S. industry title 

Size 

standards 

in millions 

of dollars 

Size 

standards 

in number 

of employees 

*******

Footnotes 

16. NAICS code 611519—Job Corps Centers. For classifying a Federal procurement, the purpose of the solicitation must be for the management and operation of a U.S. Department of Labor Job Corps Center. The activities involved include admissions activities, life skills training, educational activities, comprehensive career preparation activities, career development activities, career transition activities, as well as the management and support functions and services needed to operate and maintain the facility. For SBA assistance as a small business concern, other 

than for Federal Government procurements, a concern must be primarily engaged in providing the services to operate and maintain Federal Job 

Corps Centers. 

* * * * * 

Jovita Carranza, 

Administrator. 

[FR Doc. 2020–26312 Filed 11–25–20; 8:45 am] 

BILLING CODE 8026–03–P 


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