### § 120.1900 documents at such times, in such forms, and accompanied by such reporting data, as required by SBA, the SBA Office ofthe Inspector General, or other authorized government personnel upon request orupon arequest by their duly authorized representatives to ensure compliance with the requirements of this Subpart and to evaluate the impact of the SISMBD Loan Program. SBA or other authorized government personnel and their duly authorized representatives, shall have full and free access to SISMBD offices and facilities and all books, documents, records, and financial statements relating to the use of SISMBD Loan proceeds during normal business hours and may copy such documents as they deem appropriate.

(c) Retention ofrecords.A recipient of an SISMBD Loan shall comply with all SBA mandated record retention requirements.

(d) Review. (1) At least annually, SBA will review the SBA Secondary Market activity ofan SISMBD Loan recipient.

(2) A loan recipient shall submit areport of SBA Secondary Market activity, SISMBD Loan usage and updated financial statements within 45 days after the end of each calendar quarter, or within some other period after the end of each calendar quarter as may be agreed to in the Loan Agreements with information requested by SBA.

(3) A recipient shall submit a report within 60 daysafter the end ofeach

Federal fiscal year, or by such alternative deadline as may be agreed to in the Loan Agreements or as required by the Recovery Act on: information on the number of Guaranteed Portions it purchased from SBA Lenders; information describing the manner in which SISMBD Loan proceeds were used. SBA will use such information to verify that loan proceeds were used in a manner consistent with the Loan Agreements, the Recovery Act and these regulations; certification that an SISMBD continues to meet the eligibility requirements described in Section 120.1820 of this Subpart; and its most recent audited financial statements prepared by an independent certified public accountant. Such statements shall coverthe operations ofthe recipi

### 13 CFR Ch. 1(1-1-15 Edition) ent's most recently completed fiscal year.

(4) SBA may make reports described in paragraph (d)(2) and (d)(3) of this section available for public inspection.

(e) Reporting requirements. SISMBD Loan recipients will have reporting requirements related to section 1512 of the Recovery Act. SBA will provide additional separate guidance on the Recovery Act reporting requirements. §120.1900 When does the Secondary Market LendingAuthority Program end? The last date on which a loan under this program can be approved is February 16, 2011, unless Congress extends the SISMBD Loan Program. All loan applications must be received at SBA no later than January 31, 2011. Loans must be paid in full by no later than February 16, 2013.



### PART 121-SMALL BUSINESS SIZE REGULATIONS SubpartA-Size EligibilityProvisionsand Standards PROVISIONS OF GENERAL APPLICABILITY Sec. 121.101 What are SBAsize standards? 121.102 How does SBA establish size standards? 121.103 How does SBA determine affiliation? 121.104 How does SBA calculate annual re- ceipts? 121.105 How does SBA define "business concern or concern"? 121.106 How does SBA calculate number of employees? 121.107 How does SBA determine a concern's "primaryindustry"? 121.108 What are the requirements for representing small business size status, and what arethe penalties formisrepresentation? 121.109 What must a concern do in order to be identified as a small business concern in anyFederal procurement databases? SIZE STANDARDS USED To DEFINE SMALL BUSINESS CONCERNS 121.201 What size standards has SBA identified by North American Industry Classification System codes? SIZE ELIGIBILITY REQUIREMENTS FOR SBA FINANCIAL ASSISTANCE 121.301 What size standards are applicable tofinancial assistance programs?

### Small BusinessAdministration 121.302 When does SBA determine the size status ofan applicant? 121.303 What size procedures are used by SBA before it makes a formal size determination? 121.304 What are the size requirements for refinancing an existing SBAloan? 121.305 What size eligibility requirements exist for obtaining financial assistance relating toparticular procurements?

SIZE ELIGIBILITY REQUIREMENTS FOR GOVERNMENT PROCUREMENT 121.401 What procurement programs are subject to size determinations? 121.402 What size standards are applicable to Federal Government Contracting programs? 121.403 Are SBA size determinations and NAICS code designations binding on parties? 121.404 When is the size status of a business concern determined? 121.405 May a business concern self-certify its small business size status? 121.406 How does a small business concern qualify to provide manufactured products or other supply items under a small business set-aside, service-disabled veteran-owned small business set-aside, WOSB or EDWOSB set-aside, or 8(a) contract? 121.407 What are the size procedures for multiple item procurements? 121.408 What are the size procedures for SBA's Certificate of Competency Program? 121.409 What size standard applies in an unrestricted procurement for Certificate of Competency purposes? 121.410 What are the size standards for SBA's Section 8(d) Subcontracting Program? 121.411 What are the size procedures for SBA's Section 8(d) Subcontracting Program? 121.412 What are the size procedures for partial small business set-asides? 121.413 [Reserved]

SIZE ELIGIBILITYREQUIREMENTS FOR SALES ORLEASE OFGOVERNMENT PROPERTY 121.501 What programs for sales or leases of Government property are subject to size determinations? 121.502 What size standards are applicable to programs for sales or leases ofGovernment property? 121.503 Are SBA size determinationsbinding on parties? 121.504 When does SBA determine the size status ofabusiness concern? 121.505 What is the effect of a self-certification? 121.506 What definitions are important for sales or leases ofGovernment-owned timber? 121.507 What are the size standards and other requirements for the purchase of Government-owned timber (other than Special Salvage Timber)? 121.508 What are the size standards and other requirements for the purchase of Government-owned Special Salvage Timber? 121.509 What is the size standard for leasing of Government landfor coal mining? 121.510 What is the size standard for leasing of Government land for uranium mining? 121.511 What is the size standard for buying Government-owned petroleum? 121.512 What is the size standard for stockpile purchases? SIZE ELIGIBILITYREQUIREMENTS FORTHE 8(a) BUSINESS DEVELOPMENT PROGRAM 121.601 What is a small business for purposes of admission to SBA's 8(a) Business Development program? 121.602 At what point in time must a 8(a) BD applicant be small? 121.603 How does SBA determine whether a Participant is small for a particular 8(a) BD subcontract? 121.604 Are 8(a) BD Participants considered small for purposes of other SBA assistance? SIZE AND ELIGIBILITY REQUIREMENTS FOR THE

SMALL BUSINESS INNOVATION RESEARCH (SBIR) AND SMALL BUSINESS TECHNOLOGY TRANSFER (STTR)PROGRAMS 121.701 What SBIR and STTR programs are subject to size and eligibility determinations and what definitions are important? 121.702 What size and eligibility standards are applicable to the SBIR and STTR programs? 121.703 Are formal size determinations binding on parties? 121.704 When does SBA determine the size and eligibility status of a business concern? 121.705 Must a business concern self-certify its sizeand eligibility status? SIZE ELIGIBILITYREQUIREMENTS FOR PAYING REDUCED PATENT FEES 121.801 May patent fees be reduced if a concern is small? 121.802 What size standards are applicable to reduced patent feesprograms? 121.803 Are formal size determinations binding on parties? 121.804 When does SBA determine the size status ofabusiness concern? 121.805 May a business concern self-certify its size status? 

### Pt. 121

### §121.101
SIZE ELIGIBILITY REQUIREMENTS FOR COMPLIANCE WITH PROGRAMS OF OTHERAGENCIES 121.901 Can other Government agencies obtain SBA size determinations? 121.902 What size standards are applicable to programs ofother agencies? 121.903 How may an agency use size standards for its programs that are different than those established by SEA? 121.904 When does SBA determine the size status ofabusiness concern? PROCEDURES FOR SIZE PROTESTS AND REQUESTS FOR FORMAL SIZE DETERMINATIONS 121.1001 Who mayinitiate a size protest or a request for formal size determination? 121.1002 Who makes a formal size determination? 121.1003 Where shoulda size protest befiled? 121.1004 What time limits apply to size protests? 121.1005 How must a protest be filed with the contracting officer? 121.1006 When will a size protest be referred to an SBA Government Contracting Area Office? 121.1007 Must a protest of size status relate to a particular procurement and be specific? 121.1008 What occurs after SBA receives a size protest or request for a formal size determination? 121.1009 What are the procedures for making the size determination? 121.1010 How does a concern become recertified as a smallbusiness? APPEALS OF SIZE DETERMINATIONS AND NAICS CODE DESIGNATIONS 121.1101 Are formal size determinations subject to appeal? 121.1102 Are NAICS code designations subject to appeal? 121.1103 What are the procedures for appealing a NAICS code or size standard designation? Subpart B-OtherApplicable Provisions WAIVERS OF THE NONMANUFACTURER RULE

FOR CLASSES OF PRODUCTS AND INDIVIDUAL CONTRACTS 121.1201 What is the Nonmanufacturer Rule? 121.1202 When will a waiver of the Nonmanufacturer Rule be granted for a class ofproducts? 121.1203 When will a waiver of the Nonmanufacturer Rule be granted for an individual contract? 121.1204 What are the procedures for requesting and granting waivers? 121.1205 How is a list of previously granted class waivers obtained? AUTHORITY: 15 U.S.C. 632, 634(b)(6), 662, and 694a(9). 

### 13 CFR Ch. 1(1-1-15 Edition)
SOURCE: 61 FR 3286, Jan. 31, 1996, unless otherwise noted.

EDITORIAL NOTE: Nomenclature changes to part 121 appear at 72 FR 50039 and 50040, Aug. 30, 2007. 

## SubpartA-Size Eligibility ProvisionsandStandards PROVISIONS OF GENERAL APPLICABILITY § 121.101 What are SBA size standards?

(a) SBA's size standards define whether a business entity is small and, thus, eligible for Government programs and preferences reserved for "small business" concerns. Size standards have been established for types ofeconomic activity, or industry, generally under the North American Industry Classification System (NAICS).

(b) NAICS is described in the North American Industry Classification Manual United States, which is available from the National Technical Information Service, 5285 Port Royal Road, Springfield, VA 22161; by calling 1(800) 553 6847 or 1(703) 605 6000; or via the Internet at http://www.ntis.gov/products/ naics.aspx. The manual includes definitions for each industry, tables showing relationships between 1997 NAICS and 1987 SICs, and a comprehensive index. NAICS assigns codes to all economic activity within twenty broad sectors. Section 121.201 provides a full table of small business size standards matched to the U.S. NAICS industry codes. A full table matching a size standard with each NAICS Industry or U.S. Industry code is also published annually by SBA in the FEDERAL REGISTER. [65 FR 30840, May 15, 2000, as amended at 67 FR 52602, Aug. 13, 2002; 74 FR 46313, Sept. 9, 2009] § 121.102 How does SBA establish size standards? (a) SBA considers economic characteristics comprising the structure ofan industry, including degree of competition, average firm size, start-up costs and entry barriers, and distribution of firms by size. It also considers technological changes, competition from other industries, growth trends, historical activity within an industry, unique factors occurring in the industry which may distinguish small firms

### Small BusinessAdministration from other firms, and the objectives of its programs and the impact on those programs ofdifferent size standard levels.

(b) As part of its review of a size standard, SBA will investigate if any concern at orbelow a particular standard would be dominant in the industry. SBA will take into consideration market share ofa concern and other appropriate factors which may allow a concern to exercise amajor controlling influence on a national basis in which a number of business concerns are engaged. Size standards seek to ensure that a concern that meets a specific size standard is not dominant in its field ofoperation.

(c) As part ofits review ofsize standards, SBA's Office of Size Standards will examine the impact ofinflation on monetary-based size standards (e.g., receipts, netincome, assets) at least once every five years and submit a report to the Administrator or designee. If SBA finds that inflation has significantly eroded the value ofthe monetary-based size standards, it will issue a proposed rule to increase size standards.

(d) Please address any requests to change existing size standards orestablish new ones for emerging industries to the Division Chief, Office of Size Standards, Small Business Administration, 409 3rd Street, SW., Washington, DC20416. [61 FR 3286, Jan. 31, 1996, as amended at 67 FR 3045, Jan.23,2002] §121.103 How does SBA determine affiliation? (a) GeneralPrinciplesofAffiliation. (1) Concerns and entities are affiliates of each other when one controls or has the power to control the other, or a third party or parties controls or has the power to control both. It does not matter whether control is exercised, so long as thepower to control exists.

(2) SBA considers factors such as ownership, management, previous relationships with or ties to another concern, and contractual relationships, in determining whether affiliation exists.

(3) Control may be affirmative or negative. Negative control includes, but is not limited to, instances where a minority shareholder has the ability, under the concern's charter, by-laws, 

### § 121.103

or shareholder's agreement, to prevent a quorum or otherwise block action by the board of directors or shareholders.

(4) Affiliation may be found where an individual, concern, or entity exercises control indirectly through a third party.

(5) In determining whether affiliation exists, SBA will consider the totality of the circumstances, and may find affiliation even though no single factor is sufficient to constitute affiliation.

(6) In determining the concern's size, SBA counts thereceipts, employees, or other measure of size of the concern whose size is at issue and all of its domestic and foreign affiliates, regardless of whether the affiliates are organized for profit.

(7) For SBA's SmallBusiness Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs, the bases for affiliation are set forth in §121.702.

(b) Exceptions to affiliation coverage. (1) Business concerns owned in whole or substantial part by investment companies licensed, ordevelopment companies qualifying, under the Small Business Investment Act of 1958, as amended, are not considered affiliates ofsuch investment companies or development companies.

(2)(i) Business concerns owned and controlled by Indian Tribes, Alaska Native Corporations (ANCs) organized pursuant to the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.), Native Hawaiian Organizations (NHOs), Community Development Corporations (CDCs) authorized by 42 U.S.C. 9805, or wholly-owned entities ofIndian Tribes, ANCs, NHOs, or CDCs are not considered affiliates ofsuch entities.

(ii) Business concerns owned and controlled by Indian Tribes, ANCs, NHOs, CDCs, or wholly-owned entities of Indian Tribes, ANCs, NHOs, or CDCs are not considered to be affiliated with other concerns owned by these entities because of their common ownership or common management. In addition, affiliation will not be found based upon the performance of common administrative services, such as bookkeeping and payroll, so long as adequate payment is provided for those services. Affiliation may be found for other reasons.

### § 121.103 (3) Business concerns which are part of an SBA approved pool of concerns for ajoint program ofresearch and development or for defense production as authorized by the Small Business Act are not affiliates of one another because ofthepool.

(4) Business concerns which lease employees from concerns primarily engaged in leasing employees to other businesses or which enter into a co-employer arrangement with a Professional Employer Organization (PEO) are not affiliated with the leasing company or PEO solely on the basis of a leasing agreement.

(5) For financial, management or technical assistance under the Small Business Investment Act of 1958, as amended, (an applicant is not affiliated with the investors listed in paragraphs (b)(5) (i) through (vi) ofthis section.

(i) Venture capital operating companies, as defined in the U.S. Department of Labor regulations found at 29 CFR 2510.3-101(d);

(ii) Employee benefit or pension plans established and maintained by the Federal government or any state, or their political subdivisions, or any agency or instrumentality thereof, for the benefit ofemployees;

(iii) Employee benefit or pension plans within the meaning of the Employee Retirement Income Security Act of1974, as amended (29 U.S.C. 1001, etseq.);

(iv) Charitable trusts, foundations, endowments, or similar organizations exempt from Federal income taxation under section 501(c) of the Internal Revenue Code of 1986, as amended (26 U.S.C. 501(c));

(v) Investment companies registered under the Investment Company Act of 1940, as amended (1940 Act) (15 U.S.C. 80a-1, etseq.);and

(vi) Investment companies, as defined under the 1940 Act, which are not registered under the 1940Act because they are beneficially owned by less than 100 persons, if the company's sales literature or organizational documents indicate that its principal purpose is investment in securities rather than the operation of commercial enterprises.

(6) An 8(a) BD Participant that has an SBA-approved mentor/protege 

### 13 CFR Ch. 1(1-1-15 Edition) agreement is not affiliated with a mentor firm solely because the protege firm receives assistance from the mentor under the agreement. Similarly, a prot6g6 firm is not affiliated with its mentor solely because the protege firm receives assistance from the mentor under a Federal Mentor-Protege program where an exception to affiliation is specifically authorized by statute or by SBA under the procedures set forth in §121.903. Affiliation may be found in either case for otherreasons.

(7) The member shareholders of a small agricultural cooperative, as defined in the Agricultural Marketing Act (12 U.S.C. 1141j), are not considered affiliated with the cooperative by virtue oftheir membership in the cooperative.

(8) These exceptions to affiliation and any others set forth in §121.702 apply for purposes of SBA's SBIR and STTR programs.

(9) In the case of a solicitation ofoffers for a bundled contract with a reserve (as defined in §125.1), a small business concern prime contractor may enter into a Small Business Teaming Arrangement with one or more other small business concerns and submit an offer as a small business for a Federal procurement without regard to affiliation, so long as each team member is small under the size standard corresponding to the NAICS code assigned to the contract and there is a written, signed teaming orjoint venture agreement amongst the small business concerns. See §125.1 for the definition of Small Business Teaming Arrangement. With respect to Small Business Teaming Arrangements that are joint ventures, see §121.103(h) for specific requirements and limitations.

(c) Affiliation based on stock ownership. (1) A person (including any individual, concern or other entity) that owns, or has the power to control, 50 percent or more of a concern's voting stock, or ablock ofvoting stock which is large compared to other outstanding blocks of voting stock, controls or has the power tocontrol the concern.

(2) If two or more persons (including any individual, concern or other entity) each owns, controls, or has the power to control lessthan 50 percent of

### Small BusinessAdministration

a concern's voting stock, and such minority holdings are equal or approximately equal in size, and the aggregate of these minority holdings is large as compared with any other stock holding, SBA presumes that each such person controls or has the power to control the concern whose size is at issue. This presumption may berebutted by a showing that such control or power to control does not in fact exist.

(3) If a concern's voting stock is widely held and no single block of stock is large as compared with all other stock holdings, the concern's Board of Directors and CEO or President will be deemed to have the power to control the concern in the absence ofevidence to the contrary.

(d) Affiliation arisingunder stock options, convertible securities, and agreements to merge. (1) In determining size, SBA considers stock options, convertible securities, and agreements to merge (including agreements in principle) to have a present effect on the power to control a concern. SBA treats such options, convertible securities, and agreements as though the rights granted have been exercised.

(2) Agreements to open or continue negotiations towards the possibility of a merger or a sale of stock at some later date are not considered "agreements in principle" and are thus not given present effect.

(3) Options, convertible securities, and agreements that are subject to conditions precedent which are incapable of fulfillment, speculative, conjectural, or unenforceable under state or Federal law, or where the probability of the transaction (or exercise of the rights) occurring is shown to be extremely remote, are not given present effect.

(4) An individual, concern or other entity that controls one or more other concerns cannot use options, convertible securities, oragreements toappear to terminate such control before actually doing so. SBA will not give present effect to individuals', concerns' or other entities' ability to divest all or part of their ownership interest in order to avoid afinding ofaffiliation.

(e) Affiliation based on common management.Affiliation arises where one or more officers, directors, managing 

### § 121.103 members, or partners who control the board of directors and/or management ofone concern also control theboard of directors or management of one or more other concerns.

(f) Affiliationbasedonidentityofinterest. Affiliation may arise among two or more persons with an identity ofinterest. Individuals or firms that have identical or substantially identical business or economic interests (such as family members, individuals or firms with common investments, or firms that are economically dependent through contractual or other relationships) maybe treated as one party with such interests aggregated. Where SBA determines that such interests should be aggregated, an individual or firm may rebut that determination with evidence showing that the interests deemed to be one are in fact separate.

(g) Affiliationbasedon the newly organizedconcernrule.Affiliation may arise where former officers, directors, principal stockholders, managing members, or key employees ofone concern organize a new concern in the same or related industry or field ofoperation, and serve as the new concern's officers, directors, principal stockholders, managing members, or key employees, and the one concern is furnishing or will furnish the new concern with contracts, financial or technical assistance, indemnification on bid or performance bonds, and/or other facilities, whether for a fee or otherwise. A concern may rebut such an affiliation determination by demonstrating a clear line of fracture between the two concerns. A "key employee" is an employee who, because of his/her position in the concern, has a critical influence in or substantive control over the operations ormanagement ofthe concern.

(h) Affiliation based onjoint ventures. Ajoint venture is an association of individuals and/or concerns with interests in any degree or proportion consorting to engage in and carry out no more than three specific or limitedpurpose business ventures for joint profit over atwo yearperiod, forwhich purpose they combine their efforts, property, money, skill, or knowledge, but not on a continuing or permanent basis for conducting business generally. This means that a specific joint

### § 121.103
venture entity generally may not be awarded more than three contracts over a two year period, starting from the date of the award of the first contract, without thepartners to the joint venture being deemed affiliated for all purposes. Once ajoint venture receives one contract, SBA will determine compliance with the three awards in two years rule for future awards as of the date of initial offer including price. As such, an individual joint venture may be awarded more than three contracts without SBA finding general affiliation between the joint venture partners where the joint venture had received two or fewer contracts as ofthe date it submitted one or more additional offers which thereafter result in one or more additional contract awards. The same two (or more) entities may create additional joint ventures, and each new joint venture entity may be awarded up to three contracts in accordance with this section. At some point, however, such a longstanding inter-relationship or contractual dependence between the same joint venture partners will lead to a finding of general affiliation between and among them. For purposes ofthis provision and in order to facilitate tracking of the number of contract awards made to a joint venture, ajoint venture mustbe in writing and must do business under its own name, and it may (butneed not) be in the form ofa separate legal entity, and if it is a separate legal entity it may (but need not) be populated (i.e., have its own separate employees). SBA may also determine that the relationship between a prime contractor and its subcontractor is a joint venture, and that affiliation between the two exists, pursuant to paragraph (h)(4) of this section.

ExampleI toparagraph(h)introductorytext. Joint Venture AB has received two con- tracts. OnApril 2,Joint Venture AB submits an offer for Solicitation 1.On June 6, Joint Venture AB submits an offerfor Solicitation 2. On July 13, Joint Venture AB submits an offer for Solicitation 3.In September, Joint Venture AB isfound to be the apparent suc- cessful offeror for all three solicitations. Even though the award of the three con- tracts would give Joint Venture AB a total of five contract awards, it could receive those awards without causing general affiliation between itsjoint venture partners be

### 13 CFR Ch. 1(1-1-15 Edition)

cause JointVenture AB had notyet received three contract awards as ofthe dates ofthe offers foreach ofthree solicitations at issue.

Example2 toparagraph(h)introductorytext. Joint Venture XYreceives a contract on December 19, year 1.It may receive two additional contracts through December 19, year 3.On August 6,year 2,XYreceives a second contract. It receives no other contract awards through December 19, year 3and has submitted no additional offers prior to December 19, year 3. Because two years have passed since the date of the first contract award, after December 19, year 3,XY cannot receive anadditional contract award. Theindividual partiesto XYmust form anewjoint venture ifthey want to seek andbe awarded additional contracts asajointventure.

Example3toparagraph(h)introductorytext. Joint Venture XYreceives a contract on December 19, year 1.OnMay 22, year 2,XYsubmits an offer for Solicitation 1. On June 10, year 2,XY submits an offer for Solicitation 2. On June 19, year 2,XY receives a second contract responding to Solicitation 1.XY is not awarded a contract responding to Solicitation 2.On December 15, year 3,XYsubmits an offer for Solicitation 3.In January, XYis found to be the apparent successful offeror for Solicitation 3.XYis eligible for the con- tract award because compliance with the three awards intwo years ruleis determined as of the date ofthe initial offer including price, XY submitted itsoffer prior to December 19, year 3,andXYhad notreceived three contract awards prior to its offer on December 15.

(1) Parties to a joint venture are affiliates if any one of them seeks SBA financial assistance for use in connection with the joint venture.

(2) Except as provided in paragraph (h)(3) of this section, concerns submitting offers on aparticular procurement or property sale asjoint venturers are affiliated with each other with regard to theperformance ofthat contract.

(3) Exception to affiliationfor certain jointventures. (i) Ajoint venture oftwo or more business concerns may submit an offer as a small business for a Federal procurement without regard to affiliation under paragraph (h) of this section solong as each concern is small under the size standard corresponding to the NAICS code assigned to the contract,provided:

(A) The procurement qualifies as a bundled or consolidated requirement, at any dollar value, within the meaning of§125.2(d) ofthis chapter; or

(B) The procurement is other than bundled or consolidated requirement

### Small BusinessAdministration within the meaning of §125.2(d) of this chapter, and:

(1) For a procurement having a receipts based size standard, the dollar value ofthe procurement, including options, exceeds half the size standard corresponding to the NAICS code assigned to the contract; or

(2) For a procurement having an employee-based size standard, the dollar value ofthe procurement, including options, exceeds $10 million.

(ii) A joint venture of at least one 8(a) Participant and one or more other business concerns may submit an offer for a competitive 8(a) procurement without regard to affiliation under paragraph (h)of this section so long as the requirements of §124.513(b)(1) of this chapter are met.

(iii) Two firmsapproved by SBA to be a mentor and prot6g6 under §124.520 of these regulations mayjoint venture as a small business for any Federal government prime contract or subcontract, provided theprot6g6 qualifies as small for the size standard corresponding to the NAICS code assigned to the procurement and, for purposes of 8(a) sole source requirements, has not reached the dollar limit set forth in §124.519 ofthese regulations. If theprocurement is to be awarded through the 8(a) BD program, SBA must approve the joint venture pursuant to §124.513. If the procurement is to be awarded other than through the 8(a) BD program (e.g., small business set aside, HUBZone set aside), SBA need not approve the joint venture prior to award, but if the size status of the joint venture is protested, the provisions of §§124.513(c) and (d) will apply. This means that the joint venture must meet the requirements of §§124.513(c) and (d) in order to receive the exception to affiliation authorized by this paragraph. In either case, after contract performance is complete, the 8(a) partner to the joint venture must submit a report to its servicing SBA district office explaining how the applicable performance of work requirements were met for the contract.

(4) A contractor and its ostensible subcontractor are treated asjoint venturers, and therefore affiliates, for size determination purposes. An ostensible subcontractor is a subcontractor that 

### § 121.104 performs primary and vital requirements of a contract, or of an order under a multiple award schedule contract, or a subcontractor upon which the prime contractor is unusually reliant. All aspects of the relationship between the prime and subcontractor are considered, including, but not limited to, the terms of the proposal (such as contract management, technical responsibilities, and the percentage of subcontracted work), agreements between the prime and subcontractor (such as bonding assistance or the teaming agreement), and whether the subcontractor is the incumbent contractor and is ineligible to submit a proposal because it exceeds the applicable size standard for that solicitation.

(5) For size purposes, a concern must include in itsreceipts its proportionate share ofjoint venture receipts, and in its total number of employees its proportionate share of joint venture employees.

(i) Affiliationbasedonfranchiseandlicense agreements. The restraints imposed on a franchisee or licensee by its franchise or license agreement relating to standardized quality, advertising, accounting format and other similar provisions, generally will not be considered in determining whether the franchisor or licensor is affiliated with the franchisee or licensee provided the franchisee or licensee has the right to profit from its efforts and bears the risk ofloss commensurate with ownership. Affiliation may arise, however, through other means, such as common ownership, common management or excessive restrictions upon the sale ofthe franchise interest. [61 FR 3286, Jan. 31, 1996, as amended at 62 FR 26381, May 14, 1997; 63 FR 35738, June 30, 1998; 64 FR 57370, Oct. 25, 1999; 65 FR 30840, May 15, 2000; 65 FR 35812, June 6,2000; 65 FR 45833, July 26, 2000; 69 FR 29201, May 21, 2004; 70 FR 51248, Aug.30, 2005; 76 FR8251, Feb. 11, 2011; 77 FR 76224, Dec. 27, 2012; 78 FR 61130, Oct. 2, 2013] §121.104 How does SBA calculate annualreceipts? (a) Receiptsmeans "total income" (or in the case of a sole proprietorship, "gross income") plus "cost of goods sold" as these terms are defined andreported on Internal Revenue Service

### § 121.104 (IRS) tax return forms (such as Form 1120 for corporations; Form 1120S and Schedule K for S corporations; Form 1120, Form 1065 or Form 1040 for LLCs; Form 1065 and Schedule K for partnerships; Form 1040, Schedule F for farms; Form 1040, Schedule C for other sole proprietorships). Receipts do not include net capital gains or losses; taxes collected for and remitted to a taxing authority if included in gross or total income, such as sales or other taxes collected from customers and excluding taxes levied on the concern or its employees; proceeds from transactions between a concern and its domestic or foreign affiliates; and amounts collected for another by a travel agent, real estate agent, advertising agent, conference management service provider, freight forwarder or customs broker. For size determination purposes, the only exclusions from receipts are those specifically provided for in this paragraph. All other items, such as subcontractor costs, reimbursements for purchases a contractor makes at a customer's request, and employee-based costs such as payroll taxes, may not be excluded from receipts.

(1) The Federal income tax return and any amendments filed with the IRS on orbefore the date ofself-certification must be used to determine the size status of a concern. SBA will not use tax returns or amendments filed with the IRS after the initiation of a size determination.

(2) When a concern has not filed a Federal income tax return with the IRS for a fiscal year which must be included in the period of measurement, SBA will calculate the concern's annual receipts for that year using any other available information, such as the concern's regular books ofaccount, audited financial statements, or information contained in an affidavit by a person with personal knowledge of the facts.

(b) Completedfiscalyearmeans a taxable year including any short year. "Taxable year" and "short year" have the meanings attributed to them by the IRS.

(c) Periodofmeasurement.(1) Annual receipts of a concern that has been in business for three or more completed 

### 13 CFR Ch. 1(1-1-15 Edition) fiscal years means the totalreceipts of the concern over its most recently completed three fiscal years divided by three.

(2) Annual receipts of a concern which has been in business for less than three complete fiscal years means the total receipts for the period the concern has been in business divided by the number of weeks in business, multiplied by 52.

(3) Where a concern has been in business three or more complete fiscal years but has a short year as one ofthe years within its period of measurement, annual receipts means the total receipts for the short year and the two full fiscal years divided by the total number ofweeks in the short year and the two full fiscal years, multiplied by 52.

(d) Annualreceiptsofaffiliates.(1) The average annual receipts size of a business concern with affiliates is calculated by adding the average annual receipts of the business concern with the average annual receipts of each affiliate.

(2) If a concern has acquired an affiliate or been acquired as an affiliate during the applicable period of measurement or before the date on which it self-certified as small, the annual receipts used in determining size status includes the receipts ofthe acquired or acquiring concern. Furthermore, this aggregation applies for the entire period of measurement, not just the period after the affiliation arose.

(3) If the business concern oran affiliate has been in business for a period of less than three years, the receipts for the fiscal year with less than a 12 month period are annualized in accordance with paragraph (c)(2) of this section. Receipts are determined for the concern and its affiliates in accordance with paragraph (c) ofthis section even though this may result in using a different period of measurement to calculate anaffiliate's annualreceipts.

(4) The annual receipts of a former affiliate are not included if affiliation ceased before the date used for determining size. This exclusion of annual receipts of a former affiliate applies during the entire period of measurement, rather than only for the period after which affiliation ceased.

### Small BusinessAdministration (e) Unless otherwise defined in this section, all terms shall have the meaning attributed tothem by the IRS. [61 FR 3286, Jan. 31, 1996, as amended at 65 FR 48604, Aug. 9, 2000; 69 FR 29203, May 21, 2004] §121.105 How does SBA define "business concern orconcern"? (a)(1) Except for small agricultural cooperatives, a business concern eligible for assistance from SBA as a small business is a business entity organized for profit, with a place of business located in the United States, and which operates primarily within the United States or which makes a significant contribution to the U.S. economy through payment of taxes or use of American products, materials or labor.

(2) A small agricultural cooperative is an association (corporate or otherwise) acting pursuant to the provisions of the Agricultural Marketing Act (12 U.S.C.A. 1141j) whose size does not exceed the size standard established by SBA for other similar agricultural small business concerns. A small agricultural cooperative's member shareholders are not considered to be affiliates of the cooperative by virtue of their membership in the cooperative. However, a business concern orcooperative that does not qualify as small under this part may not be a member ofa small agricultural cooperative.

(b) A business concern may be in the legal form of an individual proprietorship, partnership, limited liability company, corporation, joint venture, association, trust or cooperative, except that where the form is ajointventure there can be no more than 49 percent participation by foreign business entities in thejoint venture.

(c) A firm will not be treated as a separate business concern if a substantial portion of its assets and/or liabilities are the same as those of a predecessor entity. In such a case, the annual receipts and employees of the predecessor will be taken into account in determining size. [61 FR 3286, Jan. 31, 1996, as amended at 70 FR 51248, Aug.30, 2005] §121.106 How does SBA calculate number ofemployees? (a) In determining a concern's number ofemployees, SBA counts all individuals employed on a full-time, parttime, or other basis. This includes employees obtained from a temporary employee agency, professional employee organization or leasing concern. SBA will consider the totality of the circumstances, including criteria used by the IRS for Federal income tax purposes, in determining whether individuals are employees ofaconcern. Volunteers (i.e., individuals who receive no compensation, including no in-kind compensation, for work performed) are not considered employees.

(b) Where the size standard is number of employees, the method for determining a concern's size includes the following principles:

(1) The average number of employees of the concern is used (including the employees of its domestic and foreign affiliates) based upon numbers of employees for each of the pay periods for the preceding completed 12 calendar months.

(2) Part-time and temporary employees are counted the same as full-time employees.

(3) If a concern has not been in business for 12 months, the average number ofemployees is used for each ofthepay periods during which it has been in business.

(4)(i) The average number ofemployees ofabusiness concern with affiliates is calculated by adding the average number of employees of the business concern with the average number of employees of each affiliate. If a concern has acquired an affiliate or been acquired as an affiliate during the applicable period of measurement or before the date on which it self-certified as small, the employees counted in determining size status include the employees of the acquired or acquiring concern. Furthermore, this aggregation applies for the entire period of measurement, not just the period after the affiliation arose.

(ii) The employees of a former affiliate are not counted if affiliation ceased before the date used for determining size. This exclusion ofemployees of a former affiliate applies during 

### § 121.106

### § 121.107 the entire period of measurement, rather than only for the period after which affiliation ceased. [61 FR 3286, Jan. 31, 1996, as amended at 69 FR 29203, May21, 2004] §121.107 How does SBA determine a concern's "primaryindustry"? In determining the primary industry in which a concern or a concern combined with its affiliates is engaged, SBA considers the distribution of receipts, employees and costs of doing business among the different industries in which business operations occurred for the most recently completed fiscal year. SBA may also consider other factors, such as the distribution of patents, contract awards, and assets. §121.108 What are the requirements forrepresenting small business size status, and what are the penalties formisrepresentation? (a) Presumption ofLoss Based on the Total Amount Expended. In every contract, subcontract, cooperative agreement, cooperative research and development agreement, or grant which is set aside, reserved, or otherwise classified as intended for award to small business concerns, there shall be a presumption of loss to the United States based on the total amount expended on the contract, subcontract, cooperative agreement, cooperative research and development agreement, or grant whenever it is established that a business concern other than a small business concern willfully sought and received the award by misrepresentation.

(b) Deemed Certifications. The following actions shall be deemed affirmative, willful and intentional certifications of small business size and status:

(1) Submission of a bid, proposal, application or offer for a Federal grant, contract, subcontract, cooperative agreement, or cooperative research and development agreement reserved, set aside, or otherwise classified as intended for award to small business concerns.

(2) Submission of a bid, proposal, application or offer for a Federal grant, contract, subcontract, cooperative agreement or cooperative research and development agreement which in any 

### 13 CFR Ch. 1(1-1-15 Edition) way encourages a Federal agency to classify thebid or proposal, if awarded, as an award to a small business concern.

(3) Registration on any Federal electronic database for the purpose of being considered for award ofa Federal grant, contract, subcontract, cooperative agreement, or cooperative research and development agreement, as a small business concern.

(c) SignatureRequirement.Each offer, proposal, bid, or application for a Federal contract, subcontract, or grant shall contain a certification concerning the small business size and status of a business concern seeking the Federal contract, subcontract orgrant. An authorized official must sign the certification on the same page containing the size status claimed by the concern.

(d) LimitationofLiability.Paragraphs (a) through (c) of this section may be determined not to apply in the case of unintentional errors, technical malfunctions, and other similar situations that demonstrate that a misrepresentation of size was not affirmative, intentional, willful or actionable under the False Claims Act, 31 U.S.C. §§3729, et seq. A prime contractor acting in good faith should notbe held liable for misrepresentations made by its subcontractors regarding the subcontractors' size. Relevant factors to consider in making this determination may include the firm's internal management procedures governing size representation or certification, the clarity or ambiguity ofthe representation or certification requirement, and the efforts made to correct an incorrect or invalid representation or certification in a timely manner. An individual or firm may not be held liable where government personnel have erroneously identified a concern as small without any representation or certification having been made by the concern and where such identification is made without the knowledge ofthe individual orfirm.

(e) Penalties forMisrepresentation. (1) Suspension ordebarment.The SBA suspension and debarment official or the agency suspension and debarment official may suspend or debar a person or concern for misrepresenting a firm's

### Small BusinessAdministration size status pursuant to the procedures set forth in 48CFR subpart9.4.

(2) CivilPenalties.Persons or concerns are subject to severe penalties under the False Claims Act, 31 U.S.C. 3729 3733, and under the Program Fraud Civil Remedies Act, 331 U.S.C. 3801 3812, and any other applieable laws.

(3) CriminalPenalties.Persons or concerns are subject to severe criminal penalties for knowingly misrepresenting the small business size status of a concern in connection with procurement programs pursuantto section 16(d) of the Small Business Act, 15 U.S.C. 645(d), as amended, 18 U.S.C. 1001, 18 U.S.C. 287, and any other applicable laws. Persons or concerns are subject to criminal penalties for knowingly making false statements or misrepresentations to SBA for the purpose of influencing any actions of SBA pursuant to section 16(a) of the Small Business Act, 15 U.S.C. 645(a), as amended, including failure to correct "continuing representations" that are no longer true. [78FR 38816, June28, 2013] §121.109 What must a concern do in order to be identified as a small business concern in any Federal procurementdatabases? (a) In order tobe identified as asmall business concern in the System for 

### §121.201 Award Management (SAM) database (or any successor thereto), a concern must certify its size in connection with specific size standards at least annually.

(b) If a firm identified as a small business concern in SAM fails to certify its size within one year of a size certification, the firmwill notbe listed as a small business concern in SAM, unless and until the firm recertifies its size. [78FR 38817, June28, 2013] SIZE STANDARDS USED To DEFINE SMALL BUSINESS CONCERNS §121.201 What size standardshas SBA identified by North American IndustryClassification System codes? The size standards described in this section apply to all SBA programs unless otherwise specified in this part. The size standards themselves are expressed either in number of employees or annual receipts in millions of dollars, unless otherwise specified. The number of employees or annual receipts indicates the maximum allowed for a concern and its affiliates to be considered small.

SMALL BUSINESS SIZE STANDARDS BY NAICS INDUSTRY Size standards Size standards NAICS codes NAICS U.S. industry title in millions of in number of dollars employees Sector 11-Agriculture, Forestry, Fishingand Hunting Subsector 111-Crop Production 111110 ....................... 111120 ....................... 111130 ....................... 111140 ....................... 111150 ....................... 111160 ....................... 111191 ....................... 111199 ....................... 111211 ....................... 111219 ....................... 111310 ....................... 111320 ....................... 111331 ....................... 111332 ....................... 111333 ....................... 111334 ....................... 111335 ....................... 111336 ....................... 111339 ....................... 111411 ....................... 111419 ....................... Soybean Farming ................................................................................. Oilseed (exceptSoybean) Farming ...................................................... Dry Peaand Bean Farming .................................................................. Wheat Farming ..................................................................................... Corn Farming ........................................................................................ Rice Farming ........................................................................................ Oilseed and Grain Combination Farming ............................................. All Other Grain Farming ....................................................................... Potato Farming ..................................................................................... Other Vegetable (except Potato) and Melon Farming ......................... Orange Groves..................................................................................... Citrus (except Orange) Groves ............................................................. Apple Orchards ..................................................................................... Grape Vineyards ................................................................................... Strawberry Farming .............................................................................. Berry (exceptStrawberry) Farming ...................................................... Tree Nut Farming ................................................................................. Fruit and Tree Nut Combination Farming ............................................. Other Noncitrus Fruit Farming .............................................................. Mushroom Production ........................................................................... Other Food Crops Grown Under Cover ............................................... ........................

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

### §121.201 13 CFRCh. 1(1-1-15 Edition) SMALL BUSINESS SIZE STANDARDS BY NAICS INDUSTRY-Continued Size standards Size standards NAICS codes NAICS U.S. industry title in millions of in number of dollars employees 111421

....................... Nursery and Tree Production

............................................................... $0.75 ........................ 111422

....................... Floriculture Production

.......................................................................... $0.75 ........................ 111910
....................... Tobacco Farming
.................................................................................. $0.75 ........................ 111920

....................... Cotton Farming . ..................... ..... ................................. $0.75 ........................ 111930
....................... Sugarcane Farming
.............................................................................. $0.75 ........................ 111940
....................... Hay Farming
.................................................................................. ...... $0.75 ........................ 111991
....................... Sugar BeetFarming
............................................................................. $0.75 ........................ 111992

....................... Peanut Farming

..... ut.Farming...................
................................ $0.75 ........................ 111998

....................... All Other Miscellaneous Crop Farming

................................................. $0.75 ........................ Subsector 112-Animal Production and Aquaculture 112111

....................... Beef Cattle Ranching and Farming

...................................................... $0.75 ........................ 112112

....................... Cattle Feedlots

.............................................................................. ....... $7.5 112120

....................... Dairy Cattle and Milk Production

.......................................................... $0.75 ........................ 112210
....................... Hog and Pig Farming
........................................................................... $0.75 ........................ 112310

....................... Chicken Egg Production

....................................................................... $15.0 112320

....................... Broilers and Other MeatTypeChicken Production

............................. $0.75 ........................ 112330

....................... Turkey Production

................................................................................. $0.75 ........................ 112340

....................... Poultry Hatcheries

................................................................................. $0.75 ........................ 112390

....................... Other Poultry Production

...................................................................... $0.75 ........................ 112410
....................... Sheep Farming
...... . ... . . ................... ................................. $0.75 ........................ 112420

....................... Goat Farming

.................................................................................... $0.75 ........................ 112511

....................... Finfish Farming and Fish Hatcheries

.................................................... $0.75 ........................ 112512

....................... Shellfish Farming

.................................................................................. $0.75 ........................ 112519
....................... Other Aquaculture
................................................................................. $0.75 ........................ 112910

....................... Apiculture .......................................................................... ................... $0.75 ........................ 112920

....................... Horse and Other Equine Production

.................................................... $0.75 ........................ 112930

....................... Fur-Bearing Animal and Rabbit Production

.......................................... $0.75 ........................ 112990

....................... All Other AnimalProduction

................................................................. $0.75 ........................ Subsector 113-Forestry and Logging 113110

....................... Timber TractOperations

....................................................................... $11.0 113210

....................... Forest Nurseries and Gathering of Forest Products

............................ $11.0 113310 ....................... Logging................................................................................................. ........................ 500 Subsector 114-Fishing, Hunting andTrapping 114111

....................... Finfish Fishing

...................................................................................... $20.5 114112

....................... Shellfish Fishing

.................................................................................... $5.5 114119

....................... Other Marine Fishing

............................................................................ $7.5 114210

....................... Hunting andTrapping

........................................................................... $5.5 Subsector 115-Support Activitiesfor Agricultureand Forestry 115111

....................... Cotton Ginning

.................................................................................. $11.0 115112

....................... Soil Preparation, Planting, and Cultivating

........................................... $7.5 115113

....................... Crop Harvesting, Primarilyby Machine

................................................ $7.5 115114

....................... Postharvest Crop Activities (exceptCotton Ginning)

........................... $27.5 115115

....................... Farm Labor Contractorsand Crew Leaders

......................................... $15.0 115116

....................... Farm Management Services

................................................................. $7.5 115210

....................... Support Activities forAnimal Production

.............................................. $7.5 115310

....................... Support Activities for Forestry

.............................................................. $7.5 Except,

....................... Forest Fire Suppression 17

........................... ......................................... $19.0 17 Except,

....................... Fuels Management Services 17

...................... ...................................... $19.0 17 Sector 21-Mining,Quarrying, andOil and Gas Extraction Subsector211-Oil and Gas Extraction 211111 ....................... Crude Petroleum and Natural GasExtraction 500................................ ...... .................. S 211112

....................... Natural Gas Liquid Extraction ............................................................... ........................ 500 Subsector212-Mining (except Oil and Gas) 212111

....................... Bituminous Coal and Lignite Surface Mining ....................................... ........................ 500 212112

....................... Bituminous Coal Underground Mining .................................................. ........................ 500 212113

....................... Anthracite M ining

.............................................................................. ..................... 500 212210 ....................... Iron Ore M ining ..................................................................................... 5........................ 500 212221

....................... Gold OreM ining

.............................................................................. ..................... 500

### Small BusinessAdministration SMALL BUSINESS SIZE STANDARDS BY NAICS INDUSTRY-Continued 

### §121.201

Size standards Size standards NAICS codes NAICS U.S. industry title in millions of in number of dollars employees 212222 ....................... Silv erOre M ining .................................................................................. 5........................ 500 212231

....................... Lead Ore and ZincOre Mining ............................................................. ........................ 500 212234

....................... Copper Ore and Nickel Ore Mining ...................................................... ........................ 500 212291

....................... Uranium-Radium-Vanadium Ore Mining ............................................... ........................ 500 212299

....................... All Other MetalOre Mining ................................................................... ........................ 500 212311

....................... Dimension Stone Mining and Quarrying .............................................. ........................ 500 212312

....................... Crushed and Broken Limestone Mining and Quarrying

............................................. 500 212313

....................... Crushed and Broken Granite Mining and Quarrying ............................ ........................ 500 212319

....................... Other Crushed and Broken Stone Mining and Quarrying ................. ........................ 500 212321

....................... Construction Sand and Gravel Mining ................................................. ........................ 500 212322

....................... Industrial Sand Mining .......................................................................... . ........ ........... 500 212324

....................... Kaolin and Ball Clay Mining ................................................................. ........................ 500 212325

....................... Clay and Ceramic and Refractory Minerals Mining .............................. ........................ 500 212391

....................... Potash, Soda, and Borate Mineral Mining ........................................... ........................ 500 212392

....................... Phosphate R ock Mining ........................................................................ ........................ 500 212393

....................... Other Chemical and Fertilizer Mineral Mining ...................................... ........................ 500 212399

....................... All Other NonmetallicMineral Mining ................................................... ........................ 500 Subsector 213-SupportActivities for Mining 213111

....................... DrillingOiland Gas W ells .................................................................... ........................ o5 213112

....................... Support Activities for Oiland Gas Operations

..................................... $38.5 213113

....................... Support Activities for Coal Mining

........................................................ $20.5 213114

....................... Support Activities for Metal Mining

....................................................... $20.5 213115

....................... Support Activities for Nonmetallic Minerals (except Fuels) .................. $7.5 Sector 22-Utilities Subsector221-Utilities 221111

....................... Hydroelectric Power Generation ........................................................... ........................ 50 221112

....................... Fossil Fuel ElectricPowerGeneration ................................................. ........................ 750 221113

....................... Nuclear Electric Power Generation

...................................................... ........................ 750 221114

....................... Solar Electric Power Generation

.......................................................... ........................ 250 221115

....................... Wind Electric Power Generation

.......................................................... ........................ 250 221116

....................... Geothermal Electric Power Generation

................................................ ........................ 250 221117

....................... Biomass Electric Power Generation ..................................................... ........................ 250 221118

....................... Other Electric Power Generation

.......................................................... ........................ 250 221121

....................... Electric Bulk PowerTransmission and Control .................................... ........................ 50 221122

....................... Electric Power Distribution .................................................................... ................. ..... 1,000 221210

....................... N atural Gas Distribution ....................................................................... ........................ 50 221310

....................... Water Supply and Irrigation Systems

................................................... $27.5 221320

....................... SewageTreatment Facilities

................................................................ $20 .5 221330

....................... Steam and Air-Conditioning Supply

..................................................... $15.0 Sector 23-Construction Subsector236-Construction of Buildings 236115

....................... New Single-family Housing Construction (Except For-Sale Builders) $36.5 236116

....................... New Multifamily Housing Construction (except For-Sale Builders) $36.5 236117

....................... New Housing For-Sale Builders

........................................................... $36.5 236118

....................... R esidential R emodelers

........................................................................ $36.5 236210

....................... Industrial Building Construction

............................................................ $36.5 236220

....................... Commercial and Institutional Building Construction

............................. $36.5 Subsector237-Heavy and Civil Engineering Construction 237110

....................... Water and Sewer Line and Related StructuresConstruction .............. $36.5 237120

....................... Oil and Gas Pipeline and Related Structures Construction ................. $36.5 237130

....................... Power and Communication Line and Related StructuresConstruction $36.5 237210

....................... Land Subdivision

...... Subdivision...................

............................... $27.5 237310

....................... Highway, Street,and Bridge Construction

........................................... $36.5 237990

....................... Other Heavy and Civil EngineeringConstruction

................................. $36.5 Except,

....................... Dredging and SurfaceCleanup Activities2

........................................... $27.52 Subsector 238-SpecialtyTrade Contractors $15.0 $15.0 $15.0 238110

....................... Poured Concrete Foundation and Structure Contractors ..................... 238120

....................... Structural Steeland Precast Concrete Contractors ............................. 238130

....................... Framing Contractors .............................................................................

### §121.201 13 CFR Ch. 1(1-1-15 Edition) SMALL BUSINESS SIZE STANDARDS BY NAICS INDUSTRY-Continued Size standards Size standards NAICS codes NAICS U.S. industry title in millions of in number of dollars employees 238140

....................... Masonry Contractors

............................................................................. $15.0 238150

....................... Glassand Glazing Contractors

............................................................. $15.0 238160

....................... R oofing Contractors

.............................................................................. $15.0 238170

....................... Siding Contractors

................................................................................ $15.0 238190

....................... Other Foundation, Structure, and Building Exterior Contractors .......... $15.0 238210

....................... Electrical Contractors and Other Wiring Installation Contractors $15.0 238220

....................... Plumbing, Heating, and Air-Conditioning Contractors

.......................... $15.0 238290

....................... Other Building Equipment Contractors

................................................. $15.0 238310

....................... Drywall and InsulationContractors

....................................................... $15.0 238320

....................... Painting andWall Covering Contractors

.............................................. $15.0 238330

....................... Flooring Contractors

............................................................................. $15.0 238340

....................... Tile andTerrazzo Contractors

.............................................................. $15.0 238350

....................... Finish Carpentry Contractors

................................................................ $15.0 238390

....................... Other Building FinishingContractors

.................................................... $15.0 238910

....................... Site Preparation Contractors

................................................................ $15.0 238990

....................... All Other SpecialtyTrade Contractors

.................................................. $15.0 Except . ...................... Building and PropertySpecialtyTrade Services 13

....... ....................... $15.013 Sectors 31-33-Manufacturing Subsector311-Food Manufacturing 311111 ....................... 311119 ....................... 311211 ....................... 311212 ....................... 311213 ....................... 311221 ....................... 311224 ....................... 311225 ....................... 311230 ....................... 311313 ....................... 311314 ....................... 311340 ....................... 311351 ....................... 311352 ....................... 311411 ....................... 311412 ....................... 311421 ....................... 311422 ....................... 311423 ....................... 311511 ....................... 311512 ....................... 311513 ....................... 311514 ....................... 311520 ....................... 311611 ....................... 311612 ....................... 311613 ....................... 311615 ....................... 311710 ....................... 311811 ....................... 311812 ....................... 311813 ....................... 311821 ....................... 311824 ....................... 311830 ....................... 311911 ....................... 311919 ....................... 311920 ....................... 311930 ....................... 311941 ....................... 311942 ....................... 311991 ....................... 311999 ....................... Dog and Cat Food Manufacturing ........................................................ Other Animal Food Manufacturing ........................................................ Flour Milling ........................................................................................... Rice Milling ........................................................................................... Malt M anufacturing ............................................................................... Wet Corn Milling ................................................................................... Soybean and Other Oilseed Processing .............................................. Fats and OilsRefining and Blending .................................................... Breakfast Cereal Manufacturing ........................................................... Beet Sugar M anufacturing .................................................................... Cane Sugar Manufacturing ................................................................... Nonchocolate Confectionery Manufacturing ......................................... Chocolate and Confectionery Manufacturing from Cacao Beans. Confectionery Manufacturing from Purchased Chocolate
.................... Frozen Fruit, Juiceand Vegetable Manufacturing ............................... Frozen Specialty Food Manufacturing .................................................. Fruit and Vegetable Canning3.............................................................. Specialty Canning ................................................................................. Dried and Dehydrated Food Manufacturing ......................................... Fluid Milk Manufacturing ....................................................................... Creamery Butter Manufacturing ............................................................ Cheese Manufacturing .......................................................................... Dry, Condensed, and Evaporated Dairy Product Manufacturing. Ice Cream and Frozen Dessert M anufacturing .................................... Animal (exceptPoultry) Slaughtering ................................................... Meat Processed from Carcasses ................................................... Rendering and Meat Byproduct Processing ......................................... Poultry Processing ................................................................................ Seafood Product Preparation and Packaging ...................................... Retail Bakeries .. ................................. .............................................. Commercial Bakeries ............................................................................ Frozen Cakes, Pies,and Other Pastries Manufacturing ...................... Cookie and Cracker Manufacturing ...................................................... Dry Pasta, Dough, and Flour Mixes Manufacturing from Purchased

Flour. Tortilla Manufacturing ........................................................................... Roasted Nutsand Peanut Butter Manufacturing ................................. Other Snack Food Manufacturing ........................................................ Coffee and TeaManufacturing ............................................................. Flavoring Syrup and Concentrate Manufacturing ................................. Mayonnaise, Dressing and Other Prepared Sauce Manufacturing. Spice and Extract Manufacturing ......................................................... Perishable Prepared Food Manufacturing ............................................ All Other Miscellaneous Food Manufacturing ...................................... Subsector312-Beverage andTobacco Product Manufacturing 312111 ....................... Soft DrinkManufacturing ...................................................................... ........................ 312112 ....................... Bottled Water Manufacturing ................................................................ ........................ ........................

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

### Small BusinessAdministration SMALL BUSINESS SIZE STANDARDS BY NAICS INDUSTRY-Continued 

### §121.201

Size standards Size standards NAICS codes NAICS U.S. industry title in millions of in number of dollars employees 312113

....................... Ice M anufacturing

............................................................................. ................. .... . 500 312120 ....................... Breweries .............................................................................................. 5........................ 500 312130 ....................... W ineries ................................................................................................ 5........................ 500 312140 ....................... Distilleries .............................................................................................. ........................ 750 312230

....................... Tobacco Manufacturing ........................................................................ ........................ 1,000 Subsector 313-Textile Mills 313110

....................... Fiber, Yarn, and Thread Mills ............................................................... ........................ 500 313210

....................... Broadwoven Fabric Mills ....................................................................... ........................ 1,000 313220

....................... Narrow Fabric Mills and Schiffli Machine Embroidery .......................... ....................... 500 313230

....................... Nonwoven Fabric Mills .......................................................................... ........................ 500 313240 ....................... Knit FabricM ills .................................................................................... 5........................ 500 313310

....................... Textile and Fabric Finishing Mills ......................................................... ........................ 1,000 313320

....................... Fabric Coating M ills .............................................................................. ........................ 1,000

Subsector 314-Textile Product Mills 314110

....................... Carpet and Rug Mills ............................................................................ ........................ 500 314120

....................... Curtain and Linen Mills ......................................................................... ........................ 500 314910

....................... Textile Bag and Canvas Mills ............................................................... ........................ 500 314994

....................... Rope, Cordage, Twine,Tire Cord, andTire Fabric Mills

.............................................. 1,000 314999

....................... All Other MiscellaneousTextile ProductMills ...................................... ........................ Soo Subsector315-Apparel Manufacturing 315110

....................... Hosiery and Sock Mills ......................................................................... ........................ 500 315190

....................... Other Apparel Knitting Mills .................................................................. ........................ 500 315210

....................... Cutand Sew Apparel Contractors ........................................................ ........................ 500 315220

....................... Men's and Boys' Cut and Sew Apparel Manufacturing ....................... ...................... 500 315240

....................... Women's, Girls', and Infants' Cut and Sew Apparel Manufacturing

.... ........................ 500 315280

....................... Other Cutand Sew Apparel Manufacturing ......................................... ........................ 500 315990

....................... Apparel Accessoriesand OtherApparel Manufacturing ...................... ...................... 500 Subsector 316-Leather and Allied Product Manufacturing 316110

....................... Leather and Hide Tanningand Finishing ............................................. ........................ 500 316210

....................... Footwear Manufacturing ....................................................................... ........................ 1,000 316992

....................... Women's Handbag and Purse Manufacturing ...................................... ........................ 500 316998

....................... All Other Leather Good and Allied Product Manufacturing ............. . .. ...................... 500 Subsector 321-Wood Product Manufacturing 321113 ....................... Sawmills ................................................................................................ 5........................ 500 321114

....................... Wood Preservation ............................................................................... .................. .... . 500 321211

....................... Hardwood Veneer and Plywood Manufacturing ................................... ........................ 500 321212

....................... Softwood Veneerand Plywood Manufacturing .................................... ........................ 500 321213

....................... Engineered Wood M ember (exceptTruss) Manufacturing ............... ........................ 500 321214

....................... Truss Manufacturing

................................................................................. ............. 500 321219

....................... Reconstituted Wood Product Manufacturing ........................................ ........................ 500 321911

....................... WoodWindowand Door Manufacturing .............................................. ........................ 500 321912

....................... CutStock, Resawing Lumber, and Planing ......................................... ........................ 500 321918

....................... Other Millwork (including Flooring) ....................................................... ........................ 500 321920

....................... Wood Container and Pallet Manufacturing .......................................... ........................ 500 321991

....................... Manufactured Home (Mobile Home) M anufacturing ............................ ........................ 500 321992

....................... Prefabricated W ood Building Manufacturing ........................................ ........................ 500 321999

....................... All Other MiscellaneousWood Product Manufacturing ........................ ....................... I. 500 Subsector322-Paper Manufacturing 322110 ....................... Pulp M ills ....................................................................................................................... 750 322121

....................... Paper (except Newsprint) Mills ............................................................. ........................ 750 322122 ....................... NewsprintM ills ...................................................................................... ........................ 750 322130 ....................... Paperboard M ills............................................................................................................ 750 322211

....................... Corrugated and Solid FiberBox Manufacturing ................................... ........................ 500 322212

....................... Folding Paperboard Box M anufacturing ............................................... ........................ 750 322219

....................... Other Paperboard Container M anufacturing

........................................ ........................ 750 322220

....................... Paper Bag and Coated and Treated Paper Manufacturing ............ ... ...................... 500 322230
....................... Stationery Product Manufacturing ........................................................ ........................ 500 322291

....................... Sanitary Paper Product Manufacturing ................................................ ........................ 500 322299

....................... All Other Converted Paper ProductManufacturing .............................. ........................ I. 500

### §121.201 13 CFR Ch. 1(1-1-15 Edition) SMALL BUSINESS SIZE STANDARDS BY NAICS INDUSTRY-Continued Size standards Size standards NAICS codes NAICS U.S. industry title in millions of in number of dollars employees Subsector 323-Printingand Related Support Activities 323111

....................... Commercial Printing (exceptScreen and Books) ................................ ........................ 50 323113

....................... Commercial Screen Printing ................................................................. ........................ 50 323117 ....................... Books Printing ....................................................................................... 5........................ Soo 323120

....................... Support Activitiesfor Printing ............................................................... ........................ 50 Subsector324-Petroleum and Coal Products Manufacturing 324110

....................... Petroleum R efineries4

........................................ ................................... ........................ 41,500 324121

....................... Asphalt Paving Mixtureand Block Manufacturing ................................ ........................ 50 324122

....................... Asphalt Shingleand Coating Materials Manufacturing

........................ ........................ 750 324191

....................... Petroleum Lubricating Oiland Grease Manufacturing

................................................ o5 324199

....................... All Other Petroleum and Coal Products Manufacturing

............................................. o5 Subsector325-Chemical Manufacturing 325110

....................... Petrochemical Manufacturing ............................................................... ........................ 1,000 325120

....................... Industrial Gas Manufacturing ................................................................ ........................ 1,000 325130

....................... Synthetic Dye and Pigment Manufacturing .......................................... ........................ 1,000 325180

....................... Other Basic InorganicChemical Manufacturing

............................................................ 1,000 325193

....................... Ethyl Alcohol Manufacturing ................................................................. ........................ 1,000 325194

....................... CyclicCrude, Intermediate, and Gum and Wood Chemical Manufac . ....................... 750 turing. 325199

....................... All Other BasicOrganic Chemical Manufacturing

......................................................... 1,000 325211

....................... Plastics Material and Resin Manufacturing

.......................................... ........................ 750 325212

....................... Synthetic Rubber M anufacturing .......................................................... ........................ 1,000 325220

....................... Artificial and Synthetic Fibers and Filaments Manufacturing ............... ........................ 1,000 325311

....................... Nitrogenous Fertilizer M anufacturing .................................................... ........................ 1,000 325312

....................... Phosphatic Fertilizer Manufacturing ..................................................... ........................ o5 325314

....................... Fertilizer (Mixing Only) Manufacturing .................................................. ........................ o5 325320

....................... Pesticide and OtherAgricultural Chemical Manufacturing

....................................... 500 325411
....................... Medicinal and Botanical Manufacturing

................................................ ........................ 750 325412

....................... Pharmaceutical Preparation Manufacturing

.......................................... ........................ 750 325413

....................... In-Vitro Diagnostic Substance Manufacturing ...................................... ........................ 500 325414

....................... Biological Product (exceptDiagnostic) Manufacturing

................................................ 500 325510

....................... Paint and Coating M anufacturing ......................................................... ........................ 500 325520

....................... Adhesive Manufacturing ....................................................................... ........................ 500 325611

....................... Soap and Other Detergent Manufacturing ........................................... ........................ 750 325612

....................... Polish and Other Sanitation Good Manufacturing ................................ ........................ 500 325613

....................... Surface ActiveAgent Manufacturing .................................................... ........................ 500 325620

....................... Toilet Preparation Manufacturing .......................................................... ........................ 500 325910

....................... Printing Ink M anufacturing .................................................................... ........................ 500 325920

....................... Explosives Manufacturing ..................................................................... ........................ 750 325991

....................... Custom Compounding of Purchased Resins ....................................... ........................ 500 325992

....................... Photographic Film, Paper, Plate and Chemical Manufacturing ........... ....................... 500 325998

....................... All Other Miscellaneous Chemical Productand Preparation Manufac . ....................... 500 turing. Subsector326-Plastics and Rubber Products Manufacturing 326111 ....................... 326112 ....................... 326113 ....................... 326121 ....................... 326122 ....................... 326130 ....................... 326140 ....................... 326150 ....................... 326160 ....................... 326191 ....................... 326199 ....................... 326211 ....................... 326212 ....................... 326220 ....................... 326291 ....................... Plastics Bag and Pouch Manufacturing ............................................... Plastics Packaging Film and Sheet(including Laminated) Manufacturing. Unlaminated Plastics Film and Sheet (except Packaging) Manufacturing. Unlaminated Plastics ProfileShape Manufacturing ............................. Plastics Pipe and Pipe Fitting Manufacturing ....................................... Laminated Plastics Plate, Sheet (except Packaging), and Shape

Manufacturing. Polystyrene Foam Product Manufacturing ........................................... Urethane and Other Foam Product (except Polystyrene) Manufacturing. Plastics Bottle Manufacturing ............................................................... Plastics Plumbing Fixture Manufacturing ............................................. All Other Plastics Product Manufacturing ............................................. Tire Manufacturing (exceptRetreading)5

.................. ........................... Tire R etreading ..................................................................................... Rubber and Plastics Hoses and Belting Manufacturing ....................... Rubber Product Manufacturingfor Mechanical Use ............................ 500 500 500 500 500 500 500 500 500 500 750 51,000

500 500 500 ........................

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

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

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

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

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

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

### Small BusinessAdministration SMALL BUSINESS SIZE STANDARDS BY NAICS INDUSTRY-Continued 

### §121.201

Size standards Size standards NAICS codes NAICS U.S. industry title in millions of in number of dollars employees 326299 ....................... All Other Rubber Product Manufacturing 5.............................................0........................ S0 Subsector 327-Nonmetallic Mineral Product Manufacturing 327110

....................... Pottery, Ceramics, and Plumbing Fixture Manufacturing

........... ........................ 750 327120

....................... Clay Building Material and Refractories Manufacturing

....................... ........................ 750 327211

....................... Flat Glass M anufacturing ...................................................................... ........................ 1,000 327212

....................... Other Pressed and Blown Glass and Glassware Manufacturing

......... ........................ 750 327213

....................... GlassContainer Manufacturing

............................................................ ........................ 750 327215

....................... Glass Product Manufacturing Made of Purchased Glass ................. ........................ 500 327310

....................... Cement Manufacturing ......................................................................... ........................ 750 327320

....................... Ready-Mix Concrete Manufacturing ..................................................... ........................ 500 327331

....................... Concrete Blockand Brick Manufacturing ............................................. ........................ 500 327332

....................... Concrete Pipe Manufacturing ............................................................... ........................ 500 327390

....................... Other Concrete ProductManufacturing ................................................ ........................ 500 327410

....................... Lime Manufacturing

.................................................................................................... 500 327420

....................... Gypsum Product Manufacturing ........................................................... ........................ 1,000 327910

....................... Abrasive ProductManufacturing .......................................................... ........................ 500 327991

....................... Cut Stone and Stone Product Manufacturing ...................................... ........................ 500 327992

....................... Ground orTreated Mineral and Earth Manufacturing

.................................................. 500 327993

....................... Mineral Wool M anufacturing ................................................................. ........................ 750 327999

....................... All Other Miscellaneous Nonmetallic Mineral Product Manufacturing ........................ 500 Subsector 331-Primary Metal Manufacturing 331110

....................... Iron and Steel Mills and Ferroalloy Manufacturing

........................................................ 1,000 331210

....................... Iron and Steel Pipe and Tube Manufacturing from Purchased Steel .. ........................ 1,000 331221

....................... Rolled Steel Shape Manufacturing ....................................................... ........................ 1,000 331222 ....................... SteelWireDrawing ............................................................................... . ........................ 1,000 331313

....................... Alumina Refining and PrimaryAluminum Production

................................................... 1,000 331314

....................... Secondary Smelting and Alloying ofAluminum

................................... ........................ 750 331315

....................... Aluminum Sheet, Plate and Foil Manufacturing

.......................................... 750 331318

....................... Other Aluminum Rolling, Drawing, and Extruding

................................ ........................ 750 331410

....................... Nonferrous Metal (exceptAluminum) Smelting and Refining

....................................... 1,000 331420

....................... Copper Rolling, Drawing, Extruding, and Alloying

........................................................ 1,000 331491

....................... Nonferrous Metal (except Copper and Aluminum) Rolling, Drawing ........................ 750 and Extruding. 331492

....................... Secondary Smelting, Refining, and Alloying of Nonferrous Metal (ex . ....................... 750 ceptCopper and Aluminum). 331511 ....................... Iron Foundries ....................................................................................... ........................ 500 331512

....................... Steel Investment Foundries .................................................................. ........................ 500 331513

....................... Steel Foundries (exceptInvestment) .................................................... ........................ 500 331523

....................... Nonferrous Metal Die-Casting Foundries ............................................. ........................ 500 331524

....................... Aluminum Foundries (exceptDie-Casting) ........................................... ........................ 500 331529

....................... Other Nonferrous Metal Foundries (except Die-Casting) .................. ........................ I

. 500 Subsector332-Fabricated Metal Product Manufacturing 332111 ....................... 332112 ....................... 332114 ....................... 332117 ....................... 332119 ....................... 332215 ....................... 332216 ....................... 332311 ....................... 332312 ....................... 332313 ....................... 332321 ....................... 332322 ....................... 332323 ....................... 332410 ....................... 332420 ....................... 332431 ....................... 332439 ....................... 332510 ....................... 332613 ....................... 332618 ....................... 332710 ....................... Iron and Steel Forging .......................................................................... Nonferrous Forging ............................................................................... Custom Roll Forming ............................................................................ Powder Metallurgy Part Manufacturing ................................................ Metal Crown, Closure, and Other Metal Stamping (except Automotive). Metal Kitchen Cookware, Utensil, Cutlery, and Flatware (except Precious) Manufacturing. Saw Blade and Handtool Manufacturing .............................................. Prefabricated Metal Building and Component Manufacturing .............. Fabricated Structural Metal Manufacturing ........................................... Plate Work Manufacturing .................................................................... Metal Windowand Door Manufacturing ............................................... Sheet MetalWork Manufacturing ......................................................... Ornamental and Architectural MetalWork Manufacturing ................... Power Boiler and Heat Exchanger Manufacturing ............................... Metal Tank (Heavy Gauge) Manufacturing .......................................... Metal Can Manufacturing ..................................................................... Other Metal Container Manufacturing .................................................. Hardware Manufacturing ....................................................................... Spring Manufacturing ............................................................................ Other Fabricated Wire Product Manufacturing ..................................... Machine Shops ..................................................................................... ........................

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

### 13 CFR Ch. 1(1-1-15 Edition) SMALL BUSINESS SIZE STANDARDS BY NAICS INDUSTRY-Continued Size standards Size standards NAICS codes NAICS U.S. industry title in millions of in number of dollars employees 332721

....................... Precision Turned Product Manufacturing ............................................. ........................ 500 332722

....................... Bolt, Nut, Screw, Rivetand Washer Manufacturing ............................. ........................ 500 332811 ....................... M etalH eatTreating .............................................................................. . ........................ 750 332812

....................... Metal Coating, Engraving (except Jewelryand Silverware), and Allied ........................ 500 Servicesto Manufacturers. 332813

....................... Electroplating, Plating, Polishing, Anodizing and Coloring

............ ......................... 500 332911

....................... Industrial Valve Manufacturing ............................................................. ........................ 500 332912

....................... Fluid Power Valve and Hose Fitting Manufacturing ............................. ........................ 500 332913

....................... Plumbing Fixture Fitting and Trim Manufacturing ................................ ........................ 500 332919

....................... Other Metal Valve and Pipe Fitting Manufacturing .............................. ........................ 500 332991

....................... Ball and Roller Bearing Manufacturing ................................................. ........................ 750 332992

....................... Small Arms Ammunition Manufacturing ............................................... ........................ 1,000 332993

....................... Ammunition (exceptSmall Arms) Manufacturing

.......................................................... 1,500 332994

....................... Small Arms, Ordnance, and Ordnance Accessories Manufacturing

............................. 1,000 332996

....................... Fabricated Pipe and Pipe Fitting Manufacturing .................................. ........................ 500 332999

....................... All Other Miscellaneous Fabricated Metal Product Manufacturing

.... ........................ 750 Subsector 333-Machinery Manufacturing6
333111 ....................... 333112 ....................... 333120 ....................... 333131 ....................... 333132 ....................... 333241 ....................... 333242 ....................... 333243 ....................... 333244 ....................... 333249 ....................... 333314 ....................... 333316 ....................... 333318 ....................... 333413 ....................... 333414 ....................... 333415 ....................... 333511 ....................... 333514 ....................... 333515 ....................... 333517 ....................... 333519 ....................... 333611 ....................... 333612 ....................... 333613 ....................... 333618 ....................... 333911 ....................... 333912 ....................... 333913 ....................... 333921 ....................... 333922 ....................... 333923 ....................... 333924 ....................... 333991 ....................... 333992 ....................... 333993 ....................... 333994 ....................... 333995 ....................... 333996 ....................... 333997 ....................... 333999 ....................... Farm Machinery and Equipment Manufacturing .................................. Lawn and Garden Tractor and Home Lawn and Garden Equipment

Manufacturing. Construction Machinery Manufacturing ................................................ Mining Machineryand Equipment Manufacturing ................................ Oil and Gas Field Machineryand Equipment Manufacturing .............. Food Product Machinery Manufacturing ............................................... SemiconductorMachinery Manufacturing ............................................ Sawmill, Woodworking, and Paper Machinery Manufacturing ............. Printing Machineryand Equipment Manufacturing ............................... Other Industrial Machinery Manufacturing ............................................ Optical Instrument and Lens Manufacturing ......................................... Photographicand Photocopying Equipment Manufacturing ................ Other Commercial and Service Industry Machinery Manufacturing. Industrial and Commercial Fan and Blower and Air Purification

Equipment Manufacturing. Heating Equipment (exceptWarm Air Furnaces) Manufacturing. Air-Conditioning and Warm Air Heating Equipment and Commercial

and Industrial Refrigeration Equipment Manufacturing. Industrial M old M anufacturing ............................................................... Special Die and Tool, Die Set, Jig and Fixture Manufacturing ............ Cutting Tool and MachineTool Accessory Manufacturing .................. Machine Tool M anufacturing ................................................................ Rolling Milland Other Metalworking Machinery Manufacturing ........... Turbineand Turbine Generator Set Unit Manufacturing ...................... Speed Changer, Industrial High- Speed Drive and Gear Manufacturing. Mechanical PowerTransmission Equipment Manufacturing ................ Other Engine Equipment Manufacturing .............................................. Pump and Pumping Equipment Manufacturing .................................... Air and GasCompressor Manufacturing .............................................. Measuring and Dispensing Pump Manufacturing ................................. Elevator and Moving Stairway Manufacturing ...................................... Conveyor and Conveying Equipment Manufacturing ........................... Overhead Traveling Crane, Hoist and Monorail System Manufacturing. Industrial Truck, Tractor, Trailer and Stacker Machinery Manufacturing. Power-Driven Hand Tool Manufacturing .............................................. Welding and Soldering Equipment Manufacturing ............................... Packaging Machinery Manufacturing .................................................... Industrial Process Furnace and Oven Manufacturing .......................... Fluid Power Cylinder and Actuator Manufacturing ............................... Fluid Power Pump and Motor Manufacturing ....................................... Scale and Balance Manufacturing ........................................................ All Other Miscellaneous General Purpose Machinery Manufacturing .. 

### §121.201

Subsector 334-Computer and Electronic Product Manufacturing6 334111 ....................... Electronic Com puter Manufacturing ..................................................... ........................ 334112 ....................... Computer Storage Device Manufacturing ............................................ ........................ ........................

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

### Small BusinessAdministration 

### §121.201 SMALL BUSINESS SIZE STANDARDS BY NAICS INDUSTRY-Continued Size standards Size standards NAICS codes NAICS U.S. industry title in millions of in number of dollars employees 334118

....................... Computer Terminal and Other Computer Peripheral Equipment Man . ....................... 1,000 ufacturing. 334210
....................... TelephoneApparatus Manufacturing ................................................... ........................ 1,000 334220

....................... Radio and Television Broadcasting and Wireless Communications ........................ 750 Equipment Manufacturing. 334290

....................... Other Communications Equipment Manufacturing

........................................ 750 334310

....................... Audio and Video Equipment Manufacturing ......................................... ........................ 750 334412

....................... Bare Printed Circuit Board Manufacturing ............................................ ........................ 500 334413

....................... Semiconductor and Related Device Manufacturing ............................. ........................ 500 334416

....................... Capacitor, Resistor, Coil, Transformer, and Other Inductor Manufac- ........................ 500 turing. 334417

...................... Electronic Connector Manufacturing

.......................................................................... 500 334418

....................... Printed Circuit Assembly (Electronic Assembly) Manufacturing .......... ...................... 500 334419

....................... Other Electronic Component Manufacturing

........................................ ........................ 750 334510

....................... Electromedical and Electrotherapeutic Apparatus Manufacturing ........ ..................... 500 334511

....................... Search, Detection, Navigation, Guidance, Aeronautical, and Nautical ........................ 750 System and Instrument Manufacturing. 334512

....................... Automatic Environmental Control Manufacturing for Residential . ....................... 500 Commercial and Appliance Use. 334513

....................... Instruments and Related Products Manufacturing forMeasuring, Dis- ........................ 500 playing, and Controlling Industrial Process Variables. 334514

....................... Totalizing Fluid Meter and Counting Device Manufacturing ........... ........................ 500 334515

....................... Instrument Manufacturing for Measuring and Testing Electricity and ........................ 500 Electrical Signals. 334516

....................... Analytical Laboratory Instrument Manufacturing .................................. ........................ 500 334517

....................... Irradiation ApparatusManufacturing ..................................................... ........................ 500 334519

....................... Other Measuring and Controlling Device Manufacturing ..................... ...................... 500 334613

....................... Blank Magnetic and Optical Recording Media Manufacturing

...................................... 1,000 334614

....................... Software and Other Prerecorded Compact Disc, Tape, and Record ........................ 750 Reproducing. Subsector 335-ElectricalEquipment, Appliance and Component Manufacturing6 335110

....................... Electric Lamp Bulb and Part Manufacturing

.................... ........................ 1,000 335121

....................... Residential Electric Lighting Fixture Manufacturing ............................. ........................ 500 335122

....................... Commercial, Industrial and Institutional Electric Lighting Fixture Man- ........................ 500 ufacturing. 335129

....................... Other Lighting Equipment Manufacturing ............................................. ........................ 500 335210

....................... Small Electrical Appliance Manufacturing

............................................ ........................ 750 335221 ....................... Household Cooking Appliance Manufacturing ............................................................... 750 335222

....................... Household Refrigerator and Home Freezer Manufacturing ................. ........................ 1,000 335224

....................... Household Laundry Equipment Manufacturing

............................................................. 1,000 335228

....................... Other Major Household ApplianceManufacturing

....................................................... 500 335311

....................... Power, Distribution and SpecialtyTransformer Manufacturing

............ ........................ 750 335312

....................... Motor and Generator Manufacturing .................................................... ........................ 1,000 335313

....................... Switchgear and Switchboard Apparatus Manufacturing

............ ........................ 750 335314

....................... Relay and Industrial Control Manufacturing ......................................... ........................ 750 335911

....................... Storage Battery Manufacturing ............................................................. ........................ 500 335912

....................... Primary Battery Manufacturing ............................................................. ........................ 1,000 335921

....................... Fiber Optic Cable M anufacturing .......................................................... ........................ 1,000 335929

....................... Other Communication and Energy WireManufacturing

................................................ 1,000 335931

....................... Current-Carrying Wiring Device Manufacturing .................................... ........................ 500 335932

....................... Noncurrent-Carrying Wiring Device Manufacturing .............................. ........................ 500 335991

....................... Carbon and Graphite Product Manufacturing

...................................... ........................ 750 335999
....................... All Other Miscellaneous Electrical Equipment and Component Manu . ....................... 500

facturing. Subsector336--Transportation Equipment Manufacturing 6
336111 ....................... 336112 ....................... 336120 ....................... 336211 ....................... 336212 ....................... 336213 ....................... 336214 ....................... 336310 ....................... 336320 ....................... 336330 ....................... 336340 ....................... Automobile Manufacturing .................................................................... Light Truckand Utility Vehicle Manufacturing ...................................... Heavy Duty Truck Manufacturing ......................................................... Motor Vehicle Body Manufacturing ...................................................... TruckTrailer Manufacturing .................................................................. Motor Home Manufacturing .................................................................. Travel Trailer and Camper Manufacturing

........................... Motor Vehicle Gasoline Engineand Engine Parts Manufacturing. Motor Vehicle Electrical and Electronic Equipment Manufacturing. Motor Vehicle Steering and SuspensionComponents (exceptSpring)

Manufacturing. Motor Vehicle Brake System Manufacturing ........................................ ........................

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

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

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

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

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

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

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

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

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

### §121.201 13 CFR Ch. 1(1-1-15 Edition) SMALL BUSINESS SIZE STANDARDS BY NAICS INDUSTRY-Continued Size standards Size standards NAICS codes NAICS U.S. industry title in millions of in number of dollars employees 336350

....................... Motor Vehicle Transmission and Power Train Parts Manufacturing

.... ........................ 750 336360

....................... Motor Vehicle Seating and InteriorTrim Manufacturing ....................... ...................... 500 336370

....................... Motor Vehicle Metal Stamping ............................................................. ........................ 500 336390

....................... Other Motor Vehicle Parts Manufacturing

............................................ ........................ 750 336411

....................... Aircraft Manufacturing ........................................................................... ........................ 1,500 336412

....................... Aircraft Engine and Engine Parts Manufacturing

.......................................................... 1,000 336413

....................... Other Aircraft Part and Auxiliary Equipment Manufacturing 7

......

......... ........................ 71,000 336414

....................... Guided Missile and Space Vehicle Manufacturing

........................................................ 1,000 336415

....................... Guided Missile and Space Vehicle Propulsion Unit and Propulsion ........................ 1,000 Unit Parts Manufacturing. 336419

....................... Other Guided Missileand Space Vehicle Parts and Auxiliary Equip . ....................... 1,000 ment Manufacturing. 336510

....................... Railroad Rolling Stock Manufacturing .................................................. ........................ 1,000 336611

....................... Ship Building and R epairing ................................................................. ........................ 1,000 336612 ....................... Boat Build ing ......................................................................................... 5........................ 500 336991

....................... Motorcycle, Bicycle and Parts Manufacturing ...................................... ........................ 500 336992

....................... Military Armored Vehicle,Tank and TankComponent Manufacturing ........................ 1,000 336999

....................... All Other Transportation Equipment Manufacturing ............................. ........................ 500 Subsector 337-Furniture and Related ProductManufacturing 337110

....................... Wood Kitchen Cabinet and CounterTopManufacturing ..................... ...................... 500 337121

....................... Upholstered Household Furniture Manufacturing ................................. ........................ 500 337122

....................... Nonupholstered Wood Household Furniture Manufacturing ........... ........................ 500 337124

....................... Metal Household Furniture Manufacturing ........................................... ........................ 500 337125

....................... Household Furniture (exceptWood and Metal) Manufacturing ........... ....................... 500 337127

....................... Institutional Furniture Manufacturing .................................................... ........................ 500 337211

....................... Wood Office Furniture Manufacturing ................................................... ........................ 500 337212

....................... Custom ArchitecturalWoodworkand MillworkManufacturing ............. ....................... 500 337214

....................... Office Furniture (Except Wood) Manufacturing .................................... ........................ 500 337215

....................... Showcase, Partition, Shelving, and Locker Manufacturing ............. ......................... 500 337910

....................... Mattress Manufacturing ........................................................................ ........................ 500 337920

....................... Blind and Shade Manufacturing ........................................................... ........................ 500 Subsector 339-Miscellaneous Manufacturing 339112

....................... Surgical and Medical Instrument Manufacturing .................................. ........................ 50 339113

....................... Surgical Applianceand Supplies Manufacturing .................................. ........................ 50 339114

....................... Dental Equipmentand Supplies Manufacturing ................................... ........................ o5 339115

....................... Ophthalmic GoodsManufacturing ........................................................ ........................ o5 339116

....................... Dental Laboratories

.................................................................................................... 50 339910

....................... Jewelryand Silverware Manufacturing ................................................. 500 339920

....................... Sporting and Athletic Goods Manufacturing ......................................... ........................ 50 339930

....................... Doll, Toy, and Game Manufacturing .................................................... ........................ 500 339940

....................... Office Supplies (except Paper) Manufacturing ..................................... ........................ 500 339950

....................... Sign Manufacturing

............................................................................ ................. .... . 500 339991

....................... Gasket, Packing, and Sealing Device Manufacturing

.................................................. 500 339992

....................... Musical Instrument Manufacturing ........................................................ ........................ 500 339993

....................... Fastener, Button, Needle and Pin Manufacturing ................................ ........................ 500 339994

....................... Broom, Brush and Mop Manufacturing ................................................ ........................ 500 339995

....................... Burial Casket Manufacturing ................................................................. ........................ 500 339999

....................... All Other Miscellaneous Manufacturing ................................................ ........................ 500 Sector42-WholesaleTrade (TheseNAICS codes shallnot be used toclassify Government acquisitionsforsupplies. Theyalso shall not be usedby Federal

Government contractorswhen subcontracting fortheacquisition for supplies.Theapplicable manufacturing NAICS code shall be used to classify acquisitions forsupplies. A Wholesale Trade or Retail Trade business concern submitting an offer or a quote on a supplyacquisition is categorized as a nonmanufacturer and deemed small ifit has500 orfewer employees and meets the requirementsof 13 CFR 121.406.) Subsector423-Merchant Wholesalers,Durable Goods 423110

....................... Automobile and Other Motor Vehicle Merchant Wholesalers .............. 423120

....................... Motor Vehicle Supplies and New Parts Merchant Wholesalers ........... 423130

....................... Tireand Tube Merchant Wholesalers .................................................. 423140

....................... Motor Vehicle Parts (Used) Merchant Wholesalers ............................. 423210

....................... Furniture Merchant Wholesalers........................................................... 423220

....................... Home Furnishing Merchant Wholesalers ............................................. 423310

....................... Lumber, Plywood, Millwork, and Wood Panel Merchant Wholesalers ........................

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

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

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

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

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

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

### Small BusinessAdministration SMALL BUSINESS SIZE STANDARDS BY NAICS INDUSTRY-Continued 

### §121.201

Size standards Size standards NAICS codes NAICS U.S. industry title in millions of in number of dollars employees 423320 ....................... 423330 ....................... 423390 ....................... 423410 ....................... 423420 ....................... 423430 ....................... 423440 ....................... 423450 ....................... 423460 ....................... 423490 ....................... 423510 ....................... 423520 ....................... 423610 ....................... 423620 ....................... 423690 ....................... 423710 ....................... 423720 ....................... 423730 ....................... 423740 ....................... 423810 ....................... 423820 ....................... 423830 ....................... 423840 ....................... 423850 ....................... 423860 ....................... 423910 ....................... 423920 ....................... 423930 ....................... 423940 ....................... 423990 .......................

424110 ....................... 424120 ....................... 424130 ....................... 424210 ....................... 424310 ....................... 424320 ....................... 424330 ....................... 424340 ....................... 424410 ....................... 424420 ....................... 424430 ....................... 424440 ....................... 424450 ....................... 424460 ....................... 424470 ....................... 424480 ....................... 424490 ....................... 424510 ....................... 424520 ....................... 424590 ....................... 424610 ....................... 424690 ....................... 424710 ....................... Brick, Stone, and Related Construction Material Merchant Wholesalers. Roofing, Siding, and Insulation Material Merchant Wholesalers .......... Other Construction Material Merchant Wholesalers ............................. Photographic Equipmentand Supplies MerchantWholesalers ........... Office Equipment MerchantWholesalers ............................................. Computer and Computer Peripheral Equipment and Software MerchantWholesalers. Other Commercial Equipment Merchant Wholesalers ......................... Medical, Dental, and Hospital Equipment and Supplies Merchant

Wholesalers. Ophthalmic GoodsMerchant Wholesalers ........................................... Other Professional Equipment and Supplies Merchant Wholesalers .. Metal Service Centers and Other Metal MerchantWholesalers .......... Coal and Other Mineraland Ore Merchant Wholesalers ..................... Electrical Apparatus and Equipment, Wiring Supplies, and Related

Equipment Merchant Wholesalers. Household Appliances, Electric Housewares, and Consumer Electronics MerchantWholesalers. Other Electronic Partsand Equipment Merchant Wholesalers ............ Hardware Merchant Wholesalers ......................................................... Plumbing and Heating Equipment and Supplies (Hydronics) MerchantWholesalers. Warm Air Heating and Air-Conditioning Equipment and Supplies

Merchant Wholesalers. Refrigeration Equipmentand Supplies Merchant Wholesalers ............ Construction and Mining (except Oil Well) Machinery and Equipment

Merchant Wholesalers. Farm and Garden Machinery and Equipment MerchantWholesalers Industrial Machineryand Equipment Merchant Wholesalers ............... Industrial Supplies MerchantWholesalers ........................................... Service Establishment Equipment and Supplies Merchant Wholesalers. Transportation Equipment and Supplies (except Motor Vehicle) MerchantWholesalers. Sporting and Recreational Goods and Supplies Merchant Wholesalers. Toyand HobbyGoods and Supplies Merchant Wholesalers .............. Recyclable Material Merchant Wholesalers ......................................... Jewelry, Watch, Precious Stone, and Precious Metal Merchant

Wholesalers. Other Miscellaneous Durable Goods Merchant Wholesalers .............. Subsector 424-Merchant Wholesalers, Nondurable Goods Printing and Writing Paper Merchant Wholesalers .............................. Stationary and Office Supplies Merchant Wholesalers ........................ Industrial and Personal Service Paper Merchant Wholesalers ............ Drugs and Druggists' Sundries MerchantWholesalers ........................ Piece Goods, Notions, and Other Dry Goods MerchantWholesalers Men's and Boys' Clothing and Furnishings Merchant Wholesalers. Women's, Children's, and Infants' Clothing and Accessories MerchantWholesalers. Footwear Merchant Wholesalers .......................................................... General Line Grocery Merchant Wholesalers ...................................... Packaged Frozen Food Merchant Wholesalers ................................... Dairy Product (except Dried orCanned) Merchant Wholesalers. Poultry and Poultry Product Merchant Wholesalers ............................. Confectionery Merchant Wholesalers ................................................... Fish and Seafood MerchantWholesalers ............................................ Meat and Meat Product MerchantWholesalers ................................... Fresh Fruitand Vegetable MerchantWholesalers ............................... Other Grocery and Related Products Merchant Wholesalers .............. Grain and Field Bean Merchant Wholesalers ...................................... Livestock Merchant Wholesalers .......................................................... Other Farm Product Raw Material Merchant Wholesalers .................. Plastics Materials and Basic Forms and Shapes Merchant Wholesalers. Other Chemical and Allied Products MerchantWholesalers ............... Petroleum BulkStations and Terminals ............................................... ........................

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

### §121.201 13 CFRCh. 1(1-1-15 Edition) SMALL BUSINESS SIZE STANDARDS BY NAICS INDUSTRY-Continued Size standards Size standards NAICS codes NAICS U.S. industry title in millions of in number of dollars employees 424720

....................... Petroleum and Petroleum Products Merchant Wholesalers (except ........................ 100 Bulk Stationsand Terminals). 424810

....................... Beer and Ale MerchantWholesalers

.................................................... ........................ 100 424820

....................... Wine and Distilled Alcoholic Beverage MerchantWholesalers

............ ........................ 100 424910

....................... Farm Supplies Merchant Wholesalers

.................................................. ........................ 100 424920

....................... Book, Periodical,and Newspaper MerchantWholesalers

................... ........................ 100 424930

....................... Flower, Nursery Stock, and Florists'Supplies Merchant Wholesalers ........................ 100 424940

....................... Tobacco and Tobacco Product Merchant Wholesalers

....................... ........................ 100 424950

....................... Paint, Varnish, and Supplies MerchantWholesalers

........................... ........................ 100 424990

....................... Other Miscellaneous Nondurable Goods MerchantWholesalers

..... ........................ 100 Subsector425-Wholesale Electronic Markets andAgents andBrokers 425110 ....................... Business to Business ElectronicMarkets ............................................. . ........... 100 425120

....................... Wholesale Trade Agents and Brokers

................................................. ........................ 100 Sector 44-45-Retail Trade (TheseNAICS codes shallnot be used toclassify Government acquisitionsforsupplies. Theyalso shall not be usedby Federal

Government contractorswhen subcontracting fortheacquisition for supplies.Theapplicable manufacturing NAICS code shall be used to classify acquisitions forsupplies. A Wholesale Trade or Retail Trade business concern submitting an offer or a quote on a supplyacquisition is categorized as a nonmanufacturer and deemed small ifit has500 orfewer employees and meets the requirementsof 13 CFR 121.406.) Subsector 441-Motor Vehicle and Parts Dealers 441110 ....................... N ew CarD ealers .................................................................................. . ........................ 200 44 1120

....................... U sed Car D ealers

................................................................................. $25.0 441210

....................... Recreational Vehicle Dealers

............................................................... $32.5 441222

....................... Boat Dealers

..................................................................................... $32.5 441228

....................... Motorcycle, ATV, and All Other Motor Vehicle Dealers ....................... $32.5 441310

....................... Automotive Parts and AccessoriesStores

........................................... $15.0 441320

....................... Tire Dealers

...................................................................................... $15.0 Subsector 442-Furniture and Home Furnishings Stores 442110

....................... Furniture Stores .................................................................................... $20.5 442210

....................... Floor Covering Stores

........................................................................... $7.5 442291

....................... WindowTreatment Stores

.................................................................... $7.5 442299

....................... All Other Home Furnishings Stores

...................................................... $20.5 Subsector 443-Electronics and Appliance Stores 443141 ....................... Household Appliance Stores ................................................................ $11.0 443142

....................... ElectronicsStores

................................................................................. $32.5 Subsector 444-Building Materialand Garden Equipment and Supplies Dealers 444110

....................... Home Centers

.................................................................................... $38.5 444120

....................... Paint and Wallpaper Stores

.................................................................. $27.5 444130

....................... H ardware Stores

................................................................................... $7.5 444190

....................... Other Building Material Dealers

............................................................ $20.5 444210

....................... Outdoor Power Equipment Stores

........................................................ $7.5 444220

....................... Nurseryand Garden Centers

............................................................... $11.0 Subsector 445-Foodand Beverage Stores 445110

....................... Supermarkets and Other Grocery (exceptConvenience) Stores $32.5 445120

....................... Convenience Stores

............................................................................. $29.5 445210

....................... Meat Markets

................................................................................ ....... $7.5 445220

....................... Fish and Seafood Markets

................................................................... $7.5 445230

....................... Fruit and Vegetable Markets

................................................................ $7.5 445291

....................... Baked Goods Stores

............................................................................ $7.5 445292

....................... Confectionery and Nut Stores

.............................................................. $7.5 445299

....................... All Other Specialty Food Stores

........................................................... $7.5 445310
....................... Beer, Wine and Liquor Stores

.............................................................. $7.5 Subsector 446-Healthand Personal Care Stores 446110

....................... Pharmaciesand Drug Stores ............................................................... 446120 ....................... Cosmetics, Beauty Supplies and PerfumeStores ............................... $27.5 $27.5

### Small BusinessAdministration SMALL BUSINESS SIZE STANDARDS BY NAICS INDUSTRY-Continued 

### §121.201

Size standards Size standards NAICS codes NAICS U.S. industry title in millions of in number of dollars employees 446130

....................... Optical Goods Stores

........................................................................... $20.5 446191

....................... Food (Health) Supplement Stores

........................................................ $15.0 446199

....................... All Other Health and Personal Care Stores

......................................... $7.5 Subsector447-Gasoline Stations 447110 ....................... Gasoline Stationswith Convenience Stores ........................................ $29.5 447190

....................... Other Gasoline Stations

....................................................................... $15.0 Subsector448-Clothing andClothing Accessories Stores 448110

....................... Men's ClothingStores

.......................................................................... $11.0 448120

....................... Women's ClothingStores

..................................................................... $27.5 448130

....................... Children's and Infants' Clothing Stores

................................................ $32.5 448140

....................... Family Clothing Stores

......................................................................... $38 .5 448150

....................... ClothingAccessoriesStores

................................................................. $15.0 448190
....................... Other Clothing Stores

........................................................................... $20.5 448210
....................... Shoe Stores

.................................................................................... .... $27.5 448310

....................... JewelryStores

.................................................................................. $15.0 448320

....................... Luggage and Leather Goods Stores

.................................................... $27.5 Subsector451-Sporting Good, Hobby, Book andMusic Stores 451110

....................... Sporting Goods Stores

......................................................................... $15.0 451120

....................... Hobby, Toyand Game Stores

.............................................................. $27.5 451130

....................... Sewing, Needlework and Piece Goods Stores

.................................... $27.5 451140

....................... Musical Instrument and Supplies Stores

.............................................. $11.0 451211
....................... Book Stores

...................................................................................... $27.5 451212

....................... News Dealers and Newsstands

............................................................ $7.5 Subsector452-General Merchandise Stores 452111

....................... Department Stores (except Discount Department Stores) ................... $32.5 452112

....................... Discount Department Stores

................................................................. $29.5 452910

....................... Warehouse Clubsand Superstores

..................................................... $29.5 452990

....................... All Other General Merchandise Stores

................................................ $32.5 Subsector453-Miscellaneous Store Retailers 453110

....................... Florists .................................................................................................. $7.5 453210

....................... Office Supplies and Stationery Stores

................................................. $32.5 453220

....................... Gift, Novelty and Souvenir Stores

........................................................ $7.5 453310

....................... Used MerchandiseStores

.................................................................... $7.5 453910

....................... Pet and Pet Supplies Stores

................................................................ $20.5 453920

....................... Art D ealers ............................................................................................ $7.5 453930

....................... Manufactured (Mobile) Home Dealers

.................................................. $15.0 453991
....................... Tobacco Stores

............................................................................. ..... $7.5 453998

....................... All Other Miscellaneous Store Retailers (exceptTobacco Stores) $7.5 Subsector454-Nonstore Retailers 454111

....................... ElectronicShopping

.............................................................................. $32.5 454112

....................... ElectronicAuctions

............................................................................... $38 .5 454113

....................... Mail-Order H ouses ................................................................................ $38 .5 454210

....................... Vending Machine Operators

................................................................. $11.0 454310 ....................... FuelD ealers ......................................................................................... 5........................ s0 454390

....................... Other Direct Selling Establishments

..................................................... $7.5 Sectors 48-49-Transportation andWarehousing Subsector 481-Air Transportation 481111

....................... Scheduled PassengerAirTransportation ............................................. ........................ 1,500 481112

....................... Scheduled FreightAirTransportation ................................................... ........................ 1,500 481211

....................... Nonscheduled Chartered Passenger AirTransportation

............................................... 1,500 Except,

....................... Offshore Marine AirTransportationServices

....................................... $30.5 481212

....................... Nonscheduled Chartered Freight AirTransportation

..................................................... 1,500 Except,

....................... Offshore Marine AirTransportationServices

....................................... $30.5 481219

....................... Other Nonscheduled AirTransportation

............................................... $15.0

### §121.201 13 CFRCh. 1(1-1-15 Edition) SMALL BUSINESS SIZE STANDARDS BY NAICS INDUSTRY-Continued Size standards Size standards NAICS codes NAICS U.S. industry title in millions of in number of dollars employees Subsector482-Rail Transportation 482111 ....................... Line-Haul R ailroads ...................................................... ........................ 1,500 482112

....................... Short Line Railroads

..................................................................................................... 500 Subsector 483-WaterTransportation15
483111
....................... Deep Sea Freight Transportation ......................................................... ........................ 500 483112
....................... Deep Sea Passenger Transportation ................................................... ........................ 500 483113
....................... Coastal and Great Lakes FreightTransportation ................................. ........................ 500 483114
....................... Coastal and Great Lakes PassengerTransportation
................................................... 500 483211
....................... Inland Water FreightTransportation ..................................................... ........................ 500 483212
....................... Inland Water PassengerTransportation ............................................... ........................ 500 Subsector 484-TruckTransportation 484110
....................... General FreightTrucking, Local
........................................................... $27.5 484121
....................... General FreightTrucking, Long-Distance,Truckload
........................... $27.5 484122
....................... General FreightTrucking, Long-Distance, Less ThanTruckload $27.5 484210
....................... Used Household and OfficeGoods Moving
......................................... $27.5 484220
....................... Specialized Freight (exceptUsed Goods)Trucking, Local .................. $27.5 484230
....................... Specialized Freight (exceptUsed Goods)Trucking, Long-Distance $27.5 Subsector485-Transit andGround PassengerTransportation 485111
....................... Mixed Mode Transit Systems ............................................................... $15.0 485112
....................... Commuter R ail Systems ....................................................................... $15.0 485113
....................... Bus and Other Motor VehicleTransit Systems

.................................... $15.0 485119
....................... Other UrbanTransit Systems ............................................................... $15.0 485210
....................... Interurban and Rural BusTransportation
............................................. $15.0 485310
....................... TaxiService

...................................................................................... $15.0 485320
....................... LimousineService
................................................................................. $15.0 485410
....................... School and Employee BusTransportation
........................................... $15.0 485510
....................... Charter Bus Industry
............................................................................. $15.0 485991
....................... Special NeedsTransportation
.............................................................. $15.0 485999
....................... All Other Transitand Ground Passenger Transportation ..................... $15.0 Subsector486-Pipeline Transportation 486110
....................... PipelineTransportation of CrudeOil .................................................... ........................ 1,500 486210
....................... PipelineTransportation of Natural Gas

................................................ $27.5 486910
....................... PipelineTransportation of Refined Petroleum Products
............................................... 1,500 486990
....................... All Other PipelineTransportation
.......................................................... $37.50 Subsector487-Scenicand Sightseeing Transportation 487110
....................... Scenic and SightseeingTransportation, Land
............................ $7.5 487210
....................... Scenic and SightseeingTransportation, Water

......... .................... $7.5 487990
....................... Scenic and SightseeingTransportation, Other

.................................... $7.5 Subsector488-Support Activitiesfor Transportation 488111
....................... AirTrafficControl
.................................................................................. $32.5 488119
....................... Other Airport Operations
....................................................................... $32.5 488190
....................... Other Support Activitiesfor AirTransportation
.................................... $32.5 488210
....................... Support Activities for RailTransportation
............................................. $15.0 488310
....................... Port and Harbor Operations
................................................................. $38.5 488320
....................... Marine Cargo H andling
......................................................................... $38.5 488330
....................... Navigational ServicestoShipping

........................................................ $38.5 488390
....................... Other Support Activitiesfor Water Transportation
............................... $38.5 488410
....................... MotorVehicleTowing
........................................................................... $7.5 488490
....................... Other Support Activitiesfor Road Transportation
................................ $7.5 488510
....................... Freight TransportationArrangement 10

................. ................................ $15.01° Except, ....................... Non-Vessel Owning Common Carriers and Household Goods For- $27.5

warders. 488991
....................... Packing and Crating
............................................................................. $27.5 488999
....................... All Other Support ActivitiesforTransportation
..................................... $7.5 Subsector491-Postal Service 491110 ....................... IPostal Service.. ..................................................................................... $7.5

### Small BusinessAdministration SMALL BUSINESS SIZE STANDARDS BY NAICS INDUSTRY-Continued 

### §121.201

Size standards Size standards NAICS codes NAICS U.S. industry title in millions of in number of dollars employees Subsector492-Couriers and Messengers 492110 ....................... Couriers and Express DeliveryServices .............................................. ........................ 1,500 492210

....................... Local Messengers and Local Delivery

.................................................. $27.5 Subsector493-Warehousing andStorage 493110

....................... General Warehousing and Storage

...................................................... $27.5 493120

....................... Refrigerated Warehousing and Storage

............................................... $27.5 493130

....................... Farm Product Warehousing and Storage

............................................. $27.5 493190

....................... Other Warehousing and Storage

.......................................................... $27.5 Sector 51-Information Subsector511-Publishing Industries(except Internet) 511110

....................... N ewspaperPublishers .......................................................................... ........................ 500 511120

....................... Periodical Publishers ............................................................................ ........................ o5 511130 ....................... BookPublishers .................................................................................... 5........................ 500 511140

....................... Directoryand Mailing List Publishers ................................................... ........................ 500 511191

....................... Greeting Card Publishers ..................................................................... ........................ 500 511199

....................... A llOtherPublishers .............................................................................. . ........................ 500 511210

....................... Software Publishers

.............................................................................. $38.5 Subsector512-Motion Picture and Sound Recording Industries 512110

....................... Motion Picture and Video Production

................................................... $32.5 512120

....................... Motion Picture and Video Distribution

.................................................. $32.0 512131

....................... Motion PictureTheaters (exceptDrive-Ins)

.......................................... $38.5 512132

....................... Drive-In Motion Picture Theaters

.......................................................... $7.5 512191

....................... Teleproduction and Other Postproduction Services

............................. $32.0 512199

....................... Other Motion Picture and Video Industries

.......................................... $20.5 512210

....................... R ecord Production

................................................................................ $7.5 512220

....................... Integrated Record Production/Distribution

............................................ ........................ 750 512230 ....................... M usic Publishers ................................................................................... 5........................ 500 512240

....................... Sound R ecording Studios

..................................................................... $7.5 512290

....................... Other Sound Recording Industries

....................................................... $11.0 Subsector515-Broadcasting (except Internet) 515111

....................... Radio Networks

................................................................................. $32.5 515112

....................... Radio Stations

..... tions...................

................................. $38.5 515120

....................... Television Broadcasting

........................................................................ $38.5 515210

....................... Cable and Other Subscription Programming

........................................ $38.5 Subsector517-Telecommunications 517110

....................... WiredTelecommunications Carriers ..................................................... ........................ 1,500 517210

....................... WirelessTelecommunications Carriers (exceptSatellite)

............................................. 1,500 517410

....................... SatelliteTelecommunications

............................................................... $32.5 517911

....................... Telecommunications R esellers ............................................................. ........................ 1,500 517919

....................... All Other Telecommunications

.............................................................. $32.5 Subsector518-Data Processing, Hosting, and Related Services 518210 ....................... Data Processing, Hosting, and Related Services ................................ $325 Subsector519-Other Information Services 519110

....................... N ews Syndicates

.................................................................................. $27.5 519120

....................... Libraries and Archives

.......................................................................... $15.0 519130

....................... Internet Publishingand Broadcasting and Web Search Portals .......... ...................... 500 519190

....................... All Other Information Services

.............................................................. $27.5 Sector52-Finance and Insurance Subsector522-Credit Intermediation and RelatedActivities$550 million in assets8 $550 million in assets8 522110

....................... Commercial Banking 8................................. .......................................... 522120

....................... Savings Institutions8

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

### §121.201 13 CFRCh. 1(1-1-15 Edition) SMALL BUSINESS SIZE STANDARDS BY NAICS INDUSTRY-Continued Size standards Size standards NAICS codes NAICS U.S. industry title in millions of in number of dollars employees 522130

....................... Credit Unions8

......................................... ............................................. $550 million in assets8 522190

....................... Other Depository Credit Intermediation8

..................... ......................... $550 million in assets8 522210

....................... CreditCard Issuing8

..................................... ........................................ $550 million in assets8 522220

....................... SalesFinancing

.................................................................................... $38.5 522291

....................... Consumer Lending

............................................................................... $38.5 522292

....................... R eal E state Credit

................................................................................ $38.5 522293
....................... International Trade Financing
............................................................... $38.5 522294

....................... Secondary Market Financing

................................................................ $38.5 522298

....................... All Other Nondepository Credit Intermediation

..................................... $38.5 522310

....................... Mortgage and Nonmortgage Loan Brokers

.......................................... $7.5 522320

....................... Financial Transactions Processing, Reserve, and Clearinghouse Ac- $38.5 tivities. 522390

....................... Other Activities RelatedtoCredit Intermediation

................................. $20.5 Subsector523-Securities, Commodity Contracts,and Other Financial Investments and RelatedActivities 523110

....................... Investment Banking and Securities Dealing

......................................... $38.5 523120

....................... Securities Brokerage

............................................................................ $38.5 523130

....................... Commodity Contracts Dealing

.............................................................. $38.5 523140

....................... Commodity Contracts Brokerage

.......................................................... $38.5 523210

....................... Securitiesand Commodity Exchanges

................................................. $38.5 523910

....................... Miscellaneous Intermediation

............................................................... $38.5 523920

....................... Portfolio Management

........................................................................... $38.5 523930

....................... InvestmentAdvice

................................................................................. $38.5 523991

....................... Trust, Fiduciary and Custody Activities

................................................ $38.5 523999

....................... Miscellaneous Financial Investment Activities

...................................... $38.5 Subsector 524-Insurance Carriers and Related Activities 524113

....................... Direct Life Insurance Carriers

............................................................... $38.5 524114

....................... Direct Health and Medical Insurance Carriers

..................................... $38.5 524126

....................... Direct Propertyand Casualty Insurance Carriers
................................. ........................ 1,500 524127

....................... DirectTitleInsurance Carriers

.............................................................. $38.5 524128

....................... Other Direct Insurance (except Life, Health and Medical) Carriers $38.5 524130

....................... R einsurance Carriers

............................................................................ $38.5 524210
....................... Insurance Agencies and Brokerages

................................................... $7.5 52429 1

....................... Cla imsAdjusting

................................................................................... $20.5 524292 ....................... Third Party Administration of Insurance and Pension Funds .............. $32.5 524298

....................... All Other Insurance Related Activities

.................................................. $15.0 Subsector 525-Funds,Trusts andOther FinancialVehicles 525110

....................... Pension Funds

............................................................................... ...... $32.5 525120

....................... Health and Welfare Funds

.................................................................... $32.5 525190
....................... Other Insurance Funds
......................................................................... $32.5 525910

....................... Open-End Investment Funds

................................................................ $32.5 525920

....................... Trusts, Estates,and Agency Accounts

................................................ $32.5 525990

....................... Other Financial Vehicles

....................................................................... $32.5 Sector 53-Real Estateand Rental and Leasing Subsector 531-Real Estate 531110

....................... Lessors of Residential Buildings and Dwellings 9

........ ......................... $27.59 531120

....................... Lessors of Nonresidential Buildings (except Miniwarehouses) 9 $27.59 531130

....................... Lessors of Miniwarehouses and SelfStorage Units9

.......................... $27.59 531190

....................... Lessors ofOther Real Estate Property9

............... ............................... $27.59 531210

....................... Offices of Real Estate Agents and Brokers 1 0

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

. $7.510 531311

....................... Residential Property M anagers ............................................................ $7.5 531312

....................... Nonresidential PropertyManagers

....................................................... $7.5 531320

....................... Offices of Real Estate Appraisers

........................................................ $7.5 531390

....................... Other Activities Relatedto Real Estate

................................................ $7.5 Subsector 532-Rental and Leasing Services $38.5 $38.5 $38.5 532111

....................... Passenger Car Rental

........................................ .............. 532112

....................... Passenger Car Leasing

...................................... .............. 532120

....................... Truck, UtilityTrailer, and RV (Recreational Vehicle) Rental and Leasing.

### Small BusinessAdministration SMALL BUSINESS SIZE STANDARDS BY NAICS INDUSTRY-Continued 

### §121.201

Size standards Size standards NAICS codes NAICS U.S. industry title in millions of in number of dollars employees 532210

....................... Consumer Electronicsand Appliances Rental

..................................... $38.5 532220

....................... Formal Wearand Costume Rental

....................................................... $20.5 532230

....................... VideoTape and Disc Rental

................................................................ $27.5 532291

....................... Home Health Equipment Rental

........................................................... $32.5 532292

....................... Recreational Goods Rental

.................................................................. $7.5 532299

....................... All Other Consumer Goods Rental

....................................................... $7.5 532310

....................... General R ental Centers

........................................................................ $7.5 532411

....................... Commercial Air, Rail, and Water Transportation Equipment Rental $32.5 and Leasing. 532412

....................... Construction, Mining and Forestry Machinery and Equipment Rental $32.5 and Leasing. 532420

....................... Office Machineryand Equipment Rental and Leasing

......................... $32.5 532490

....................... Other Commercial and Industrial Machinery and Equipment Rental $32.5 and Leasing. Subsector533-Lessors of Nonfinancial Intangible Assets (except CopyrightedWorks) 533110 ....................... Lessors of Nonfinancial Intangible Assets (except Copyrighted $38.5 Works). Sector 54-Professional, ScientificandTechnical Services Subsector 541-Professional, ScientificandTechnical Services 541110 ....................... 541191 ....................... 541199 ....................... 541211 ....................... 541213 ....................... 541214 ....................... 541219 ....................... 541310 ....................... 541320 ....................... 541330 ....................... Except ....................... Except ....................... Except ....................... 541340 ....................... 541350 ....................... 541360 ....................... 541370 ....................... 541380 ....................... 541410 ....................... 541420 ....................... 541430 ....................... 541490 ....................... 541511 ....................... 541512 ....................... 541513 ....................... 541519 ....................... Except ....................... 541611 ....................... 541612 ....................... 541613 ....................... 541614 ....................... 541618 ....................... 541620 ....................... 541690 ....................... 541711 ....................... 541712 ....................... Except ....................... Except ....................... Except ....................... 541720 ....................... 541810 ....................... 541820 ....................... 541830 ....................... Offices of Lawyers ................................................................................ TitleAbstract and Settlement Offices ................................................... All Other Legal Services ....................................................................... Offices ofCertified Public Accountants ................................................ Tax Preparation Services ..................................................................... PayrollServices .................................................................................... Other Accounting Services ................................................................... ArchitecturalServices ........................................................................... Landscape Architectural Services ........................................................ Engineering Services ............................................................................ Military and Aerospace Equipmentand MilitaryWeapons ................... Contracts and Subcontracts for Engineering Services Awarded

Under the National Energy Policy Actof 1992. Marine Engineeringand NavalArchitecture ......................................... Drafting Services ................................................................................... Building Inspection Services ................................................................. Geophysical Surveying and Mapping Services .................................... Surveying and Mapping (except Geophysical)Services
...................... Testing Laboratories ............................................................................. Interior D esign Services ....................................................................... Industrial D esign Services .................................................................... Graphic Design Services ...................................................................... Other Specialized Design Services ...................................................... Custom Computer Programming Services ........................................... Computer Systems Design Services .................................................... Computer FacilitiesManagement Services .......................................... Other Computer Related Services ........................................................ Information TechnologyValueAdded Resellers 18

......... ..................... Administrative Management and General Management Consulting

Services. Human Resources Consulting Services ............................................... Marketing Consulting Services ............................................................. Process, Physical Distribution and LogisticsConsulting Services. Other Management Consulting Services .............................................. Environmental Consulting Services ...................................................... Other Scientific and Technical Consulting Services ............................. Research and Development in Biotechnology.11 Research and Development inthe Physical, Engineering, and Life

Sciences (exceptBiotechnology).11 Aircraft ................................................................................................... Aircraft Parts, and Auxiliary Equipment, and Aircraft Engine Parts. Space Vehicles and Guided Missiles, their Propulsion Units, their

Propulsion UnitsParts, and theirAuxiliary Equipment and Parts. Research and Development intheSocial Sciences and Humanities Advertising Agencies10......................................................................... Public R elations A gencies .................................................................... Media Buying Agencies ........................................................................ $11.0 $11.0 $11.0 $20.5 $20.5 $20.5 $20.5 $7.5 $7.5 $15.0 $38.5 $38.5 $38.5 $7.5 $7.5 $15.0 $15.0 $15.0 $7.5 $7.5 $7.5 $7.5 $27.5 $27.5 $27.5 $27.5 $15.0 $15.0 $15.0 $15.0 $15.0 $15.0 $15.0

$20.5 $15.0 l o 0 $15.0 $15.0

### §121.201 13 CFRCh. 1(1-1-15 Edition) SMALL BUSINESS SIZE STANDARDS BY NAICS INDUSTRY-Continued Size standards Size standards NAICS codes NAICS U.S. industry title in millions of in number of dollars employees 541840

....................... Media Representatives

......................................................................... $15.0 541850

....................... Outdoor Advertising

.............................................................................. $15.0 541860

....................... Direct MailAdvertising

.......................................................................... $15.0 541870

....................... Advertising Material Distribution Services

............................................ $15.0 541890

....................... Other Services Relatedto Advertising

................................................. $15.0 541910

....................... Marketing Research and Public Opinion Polling

.................................. $15.0 541921
....................... Photography Studios, Portrait
............................................................... $7.5 541922

....................... Commercial Photography

..................................................................... $7.5 541930

....................... Translation and Interpretation Services

................................................ $7.5 541940

....................... Veterinary Services

............................................................................... $7.5 541990

....................... All Other Professional, Scientificand Technical Services .................... $15.0 Sector55-Management ofCompanies and Enterprises Subsector551-Management ofCompanies and Enterprises 551111 ....................... Offices of Bank Holding Companies .................................................... $20.5 551112

....................... Offices ofOther Holding Companies

.................................................... $20 .5 Sector 56-Administrative and Support,Waste Management and Remediation Services Subsector561-Administrative andSupport Services 561110

....................... Office Administrative Services

.............................................................. $7.5 561210

....................... Facilities Support Services1 2

........................ ........................................ $38.512 561311

....................... Employment Placement Agencies

........................................................ $27.5 561312

....................... Executive Search Services

................................................................... $27.5 561320

....................... Temporary Help Services

..................................................................... $27.5 561330

....................... Professional Employer Organizations

................................................... $27.5 561410

....................... Document Preparation Services

........................................................... $15.0 561421

....................... TelephoneAnswering Services

............................................................ $15.0 561422

....................... Telemarketing Bureaus and Other contact Centers

............................. $15.0 561431

....................... Private Mail Centers

............................................................................. $15.0 561439

....................... Other Business ServiceCenters (includingCopy Shops) .................... $15.0 561440

....................... Collection Agencies

.............................................................................. $15.0 561450
....................... Credit Bureaus ............................ .................................................... $15.0 561491

....................... Repossession Services

......................................................................... $15.0 561492

....................... Court Reporting and Stenotype Services

............................................. $15.0 561499

....................... All Other Business Support Services

................................................... $15.0 561510

....................... Travel Agencies10

................................................ ................................ $20.510 561520

....................... TourOperators 10

.................................................................. ............... $20.5 10 561591

....................... Convention and VisitorsBureaus

......................................................... $20.5 561599

....................... All Other Travel Arrangement and Reservation Services .................... $20.5 561611

....................... Investigation Services

........................................................................... $20.5 561612

....................... Security Guards and Patrol Services

................................................... $20.5 561613

....................... Armored Car Services

.......................................................................... $20.5 561621

....................... Security Systems Services (except Locksmiths)

.................................. $20.5 561622
....................... Locksmiths
.......................................................................................... $20.5 561710

....................... Exterminating and Pest Control Services

............................................. $11.0 561720

....................... Janitorial Services

................................................................................. $18.0 561730

....................... Landscaping Services

........................................................................... $7.5 561740

....................... Carpet and Upholstery Cleaning Services

........................................... $5.5 561790

....................... Other Servicesto Buildings and Dwellings

.......................................... $7.5 561910

....................... Packaging and Labeling Services

........................................................ $11.0 561920

....................... Convention andTrade ShowOrganizers 1 0

............ ............................. $11.0 10 561990

....................... All Other Support Services

................................................................... $11.0 Subsector562-Waste Management and RemediationServices 562111

....................... Solid WasteCollection

.......................................................................... $38.5 562112

....................... Hazardous WasteCollection

................................................................ $38.5 562119

....................... Other WasteCollection

......................................................................... $38.5 562211

....................... Hazardous WasteTreatmentand Disposal

.......................................... $38.5 562212

....................... Solid Waste Landfill

.............................................................................. $38.5 562213

....................... Solid WasteCombustors and Incinerators

........................................... $38.5 562219

....................... Other Nonhazardous WasteTreatmentand Disposal

......................... $38.5 562910

....................... Remediation Services

........................................................................... $20.5 Except,

....................... Environmental Remediation Services14

......................... ...................... ........................ 500 14 562920

....................... Materials Recovery Facilities

................................................................ $20 .5 562991

....................... Septic Tankand Related Services

....................................................... $7.5 562998

....................... All Other MiscellaneousWaste ManagementServices ....................... $7.5

### Small BusinessAdministration SMALL BUSINESS SIZE STANDARDS BY NAICS INDUSTRY-Continued 

### §121.201

Size standards Size standards NAICS codes NAICS U.S. industry title in millions of in number of dollars employees Sector 61-Educational Services Subsector 611-Educational Services 611110

....................... Elementary and SecondarySchools

.................................................... $11.0 611210

....................... JuniorColleges

................................................................................. $20.5 611310

....................... Colleges, Universities and Professional Schools

................................. $27.5 611410

....................... Business and Secretarial Schools

........................................................ $7.5 611420

....................... ComputerTraining

................................................................................ $11.0 611430

....................... Professional and Management Development Training ........................ $11.0 611511

....................... Cosmetology and Barber Schools

........................................................ $7.5 611512

....................... FlightTraining

................................................................................... $27.5 611513

....................... ApprenticeshipTraining

........................................................................ $7.5 611519

....................... Other Technical and Trade Schools

..................................................... $15.0 Except, ....................... Job Corps Centers 16

............................... ...... ..... . . . . ............................. $38.516 611610

....................... Fine Arts S chools

................................................................................. $7.5 611620

....................... Sportsand Recreation Instruction

........................................................ $7.5 611630
....................... Language Schools
................................................................................ $11.0 611691

....................... Exam Preparation andTutoring

........................................................... $7.5 611692

....................... Automobile Driving Schools

.................................................................. $7.5 611699

....................... All Other Miscellaneous Schoolsand Instruction

................................. $11.0 611710

....................... Educational Support Services

............................................................... $15.0 Sector62-Health Care and SocialAssistance Subsector621--Ambulatory Health Care Services 621111

....................... Offices of Physicians (exceptMental Health Specialists) .................... $11.0 621112

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

................................. $11.0 621210

....................... Offices of D entists

................................................................................ $7.5 621310

....................... Offices ofChiropractors

........................................................................ $7.5 621320

....................... Offices ofOptometrists

......................................................................... $7.5 621330

....................... Offices of Mental Health Practitioners (exceptPhysicians) ................. $7.5 621340

....................... Offices of Physical, Occupational and SpeechTherapists and Audiol- $7.5 ogists. 621391

....................... Offices of Podiatrists

............................................................................. $7.5 621399

....................... Offices ofAllOther Miscellaneous Health Practitioners....................... $7.5 621410

....................... Family Planning Centers

....................................................................... $11.0 621420

....................... Outpatient Mental Health and Substance AbuseCenters ................... $15.0 621491

....................... HMOMedical Centers

.......................................................................... $32.5 621492

....................... Kidney DialysisCenters

........................................................................ $38.5 621493

....................... Freestanding Ambulatory Surgicaland Emergency Centers ............... $15.0 621498

....................... All Other OutpatientCare Centers

....................................................... $20.5 621511

....................... Medical Laboratories

............................................................................ $32.5 621512

....................... DiagnosticImagingCenters

.................................................................. $15.0 621610

....................... Home Health CareServices

................................................................. $15.0 621910

....................... Ambulance Services

............................................................................. $15.0 621991

....................... Blood and Organ Banks

....................................................................... $32.5 621999

....................... All Other Miscellaneous Ambulatory Health CareServices ................. $15.0 Subsector622-Hospitals 622110

....................... General Medical and Surgical Hospitals

................................ $38.5 622210

....................... Psychiatric and SubstanceAbuse Hospitals

............................ $38.5 622310

....................... Specialty (exceptPsychiatric and Substance Abuse) Hospitals .......... $38.5 Subsector623-Nursing and ResidentialCare Facilities 623110

....................... Nursing Care Facilities (Skilled Nursing Facilities)

............................... $27.5 623210

....................... Residential Intellectual and Developmental Disability Facilities........... $15.0 623220

....................... Residential Mental Health and SubstanceAbuse Facilities ................. $15.0 623311

....................... Continuing Care Retirement Communities

........................................... $27.5 623312

....................... Assisted Living Facilitiesforthe Elderly

............................................... $11.0 623990

....................... Other Residential Care Facilities

.......................................................... $11.0 Subsector624-Social Assistance $11.0 $11.0 $11.0 $11.0 624110

....................... Child and Youth Services ..................................................................... 624120

....................... Servicesforthe Elderly and Personswith Disabilities ......................... 624190

....................... Other Individual and FamilyServices ................................................... 624210

....................... Community FoodServices ....................................................................

### §121.201 13 CFRCh. 1(1-1-15 Edition) SMALL BUSINESS SIZE STANDARDS BY NAICS INDUSTRY-Continued Size standards Size standards NAICS codes NAICS U.S. industry title in millions of in number of dollars employees 62422 1

....................... Temporary Shelters

.............................................................................. $11.0 624229

....................... Other Community HousingServices

.................................................... $15.0 624230

....................... Emergency and Other ReliefServices

................................................. $32.5 624310 ....................... Vocational Rehabilitation Services ....................................................... $11.0 624410

....................... Child D ayCareServices

...................................................................... $7.5 Sector71-Arts, Entertainment and Recreation Subsector711-Performing Arts, Spectator Sports and Related Industries 711110

....................... Theater Companies and Dinner Theaters

............................................ $20.5 711120

....................... D ance Companies

................................................................................ $11.0 711130

....................... Musical Groups and Artists

.................................................................. $11.0 711190

....................... Other Performing Arts Companies

....................................................... $27.5 711211

....................... SportsTeams and Clubs

...................................................................... $38.5 711212
....................... Race Tracks
.................................................................................... ..... $38.5 711219

....................... Other Spectator Sports

......................................................................... $11.0 711310

....................... Promoters of Performing Arts, Sports and Similar Events with Facili- $32.5 ties. 711320

....................... Promoters of Performing Arts, Sports and Similar Events without Fa- $15.0 cilities. 711410

....................... Agents and Managers for Artists, Athletes, Entertainers and Other $11.0 Public Figures. 711510

....................... Independent Artists, Writers,and Performers

...................................... $7.5 Subsector712-Museums, Historical Sitesand Similar Institutions 712110

....................... Museums ............................................................................................. $27.5 712120

....................... Historical Sites

.............................................................................. ....... $7.5 712130

....................... Zoos and Botanical Gardens

................................................................ $27.5 712190

....................... Nature Parksand OtherSimilar Institutions

......................................... $7.5 Subsector713-Amusement, Gambling and Recreation Industries 713110

....................... Amusement and Theme Parks

............................................................. $38.5 713120

....................... AmusementArcades

............................................................................ $7.5 713210

....................... Casinos (except CasinoHotels)

........................................................... $27.5 713290

....................... Other Gambling Industries

.................................................................... $32.5 713910

....................... GolfCourses and Country Clubs

......................................................... $15.0 713920

....................... Skiing Facilities

................................................................................. $27.5 713930

....................... Marinas .................................................................. .......................... $7.5 713940

....................... Fitness and Recreational SportsCenters

............................................. $7.5 713950

....................... Bowling Centers .................................................................................... $7.5 713990

....................... All Other Amusement and Recreation Industries

................................. $7.5 Sector 72-Accommodation andFood Services Subsector 721 -Accommodation 721110

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

........................................... $32.5 721120

....................... Casino Hotels

................................................................................... $32.5 721191

....................... Bed-and-Breakfast Inns

........................................................................ $7.5 721199

....................... All Other TravelerAccommodation

....................................................... $7.5 721211

....................... RV (Recreational Vehicle) Parksand Campgrounds

........................... $7.5 721214

....................... Recreational and Vacation Camps (except Campgrounds) ................. $7.5 721310

....................... Rooming and Boarding Houses

........................................................... $7.5 Subsector722-Food Services and Drinking Places 722310

....................... Food Service Contractors

..................................................................... $38.5 722320

....................... Caterers ...................................................................... ....................... $7.5 722330

....................... Mobile Food Services

........................................................................... $7.5 722410

....................... Drinking Places (Alcoholic Beverages)

................................................. $7.5 722511

....................... Full-Service R estaurants

....................................................................... $7.5 722513

....................... Limited-Service Restaurants

................................................................. $11.0 722514

....................... Cafeterias, Grill Buffets, and Buffets

.................................................... $27.5 722515

....................... Snack and Nonalcoholic Beverage Bars

.............................................. $7.5

### Small BusinessAdministration SMALL BUSINESS SIZE STANDARDS BY NAICS INDUSTRY-Continued 

### §121.201

Size standards Size standards NAICS codes NAICS U.S. industry title in millions of in number of dollars employees Sector 81-Other Services(Except PublicAdministration) Subsector811-Repair and Maintenance 811111

....................... GeneralAutomotive R epair

.................................................................. $7.5 811112

....................... Automotive Exhaust System Repair

..................................................... $7.5 811113

....................... Automotive Transmission Repair

.......................................................... $7.5 811118

....................... Other Automotive Mechanical and Electrical Repair and Maintenance $7.5 811121

....................... Automotive Body, Paintand Interior Repair and Maintenance ............ $7.5 811122

....................... Automotive Glass Replacement Shops

................................................ $11.0 811191

....................... Automotive Oil Change and Lubrication Shops

................................... $7.5 811192
....................... CarWashes
................................................................................... .... $7.5 811198

....................... All Other Automotive Repairand Maintenance

.................................... $7.5 811211

....................... Consumer Electronics Repair and Maintenance

.................................. $7.5 811212

....................... Computer and Office Machine Repairand Maintenance ..................... $27.5 811213

....................... Communication Equipment Repairand Maintenance

.......................... $11.0 811219

....................... Other Electronic and Precision Equipment Repair and Maintenance .. $20.5 811310

....................... Commercial and Industrial Machinery and Equipment (except Auto- $7.5 motive and Electronic) Repair and Maintenance. 811411

....................... Home and Garden Equipment Repairand Maintenance ..................... $7.5 811412

....................... Appliance Repairand Maintenance ..................................................... $15.0 811420

....................... Reupholstery and Furniture Repair

...................................................... $7.5 811430

....................... Footwear and Leather Goods Repair

................................................... $7.5 811490

....................... Other Personal and Household Goods Repairand Maintenance $7.5 Subsector812-Personal and Laundry Services 812111
....................... Barber Shops

................................................................................ ....... $7.5 812112

....................... Beauty Salons

............................................................................... ..... $7.5 812113

....................... N ail Salons ............................................................................................ $7.5 812191

....................... Diet and Weight Reducing Centers

...................................................... $20.5 812199

....................... Other Personal Care Services

.............................................................. $7.5 812210

....................... Funeral Homesand Funeral Services

.................................................. $7.5 812220

....................... Cemeteries and Crematories

................................................................ $20.5 812310

....................... Coin-Operated Laundries and Drycleaners

.......................................... $7.5 812320

....................... Drycleaning and Laundry Services (exceptCoin-Operated) ................ $5.5 812331

....................... Linen Supply

..................................................................................... $32.5 812332

....................... Industrial Launderers

............................................................................ $38.5 812910

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

................................................. $7.5 812921

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

................................... $20.5 812922

....................... One-Hour Photofinishing

....................................................................... $15.0 812930

....................... Parking Lotsand Garages .................................................................... $38.5 812990

....................... All Other Personal Services

.................................................................. $7.5 Subsector813-Religious, Grantmaking,Civic, Professional and Similar Organizations 813110

....................... R eligious Organizations

........................................................................ $7.5 813211

....................... Grantmaking Foundations

.................................................................... $32.5 813212

....................... Voluntary Health Organizations

............................................................ $27.5 813219

....................... Other Grantmaking and Giving Services

.............................................. $38.5 813311

....................... Human RightsOrganizations

................................................................ $27.5 813312

....................... Environment, Conservation and WildlifeOrganizations ....................... $15.0 813319

....................... Other Social Advocacy Organizations

.................................................. $7.5 813410 ....................... Civicand Social Organizations ............................................................. $7.5 813910

....................... Business A ssociations

.......................................................................... $7.5 813920

....................... Professional Organizations

................................................................... $15.0 813930

....................... Labor Unionsand Similar Labor Organizations

................................... $7.5 813940

....................... Political Organizations

.......................................................................... $7.5 813990

....................... Other Similar Organizations (except Business, Professional, Labor, $7.5 and Political Organizations). Sector 92-PublicAdministration 19 (Small business size standards are not established forthis sector. Establishments inthe Public Administration sector are Federal, state, and local government agencies which administer and oversee government programs and activitiesthat are not performed byprivate establishments.)

### §121.201
Footnotes 1. [Reserved] 2. NAICS code 237990 Dredging: To be considered small for purposes of Government procurement, a firm mustperform atleast40 percent ofthe volume dredged with its own equipment or equipment owned by another small dredging concern.

3. NAICS code 311421 For purposes of Government procurement for food canning and preserving, the standard of500 employees excludes agricultural labor as defined in 3306(k) of the Internal Revenue Code, 26 U.S.C. 3306(k).

4. NAICS code 324110 For purposes of Government procurement, the petroleum refiner must be a concern that has no more than 1,500 employees nor more than 125,000barrels per calendar day total Operable Atmospheric Crude Oil Distillation capacity. Capacity includes owned or leased facilities as well as facilities under a processing agreement or an arrangement such as an exchange agreement or a throughput. The total product to be delivered under the contract must be at least 90 percent refined by the successful bidder from either crude oil orbona fide feedstocks.

5. NAICS code326211 For Government procurement, a firm is small for bidding on a contract for pneumatic tires within Census Classification codes 30111 and 30112, provided that:

(a) The value oftires within Census Classification codes 30111 and 30112 which it manufactured in the United States during the previous calendar year is more than 50 percent of the value ofits total worldwide manufacture,

(b) The value of pneumatic tires within Census Classification codes 30111 and 30112 comprising its total worldwide manufacture during the preceding calendar year was less than 5 percent ofthe value of all such tires manufactured in the United States during that period, and

(c) The value of the principal product which it manufactured or otherwise produced, or sold worldwide during the preceding calendar year is less than 10 percent ofthe total value ofsuch products manufactured or otherwise produced or sold in the United States during that period.

6. NAICS Subsectors 333, 334, 335 and 336 For rebuilding machinery or equipment on a factory basis, or equivalent, use the NAICS code for a newly manufactured product. Concerns performing major rebuilding or overhaul activities do not necessarily have to meet the criteria for being a "manufacturer" although the activities may be classified under a manufacturing NAICS code. Ordinary repair services or preservation are not considered rebuilding.

7. NAICS code336413 Contracts for the rebuilding or overhaul of aircraft ground sup

### 13 CFR Ch. 1(1-1-15 Edition) port equipment on a contract basis are classified underNAICS code 336413.

8. NAICS Codes 522110, 522120, 522130, 522190, and 522210 A financial institution's assets are determined by averaging the assets reported on its four quarterly financial statements for the preceding year. "Assets" for the purposes ofthis size standard means the assets defined according to the Federal Financial Institutions Examination Council 041 call report form for NAICS codes 522110, 522120, 522190, and 522210 and the National Credit Union Administration 5300 call report form for NAICS code 522130.

9. NAICS codes 531110, 531120, 531130, and 531190 Leasing ofBuilding Space to the Federal Government by Owners: For Government procurement, a size standard of $38.5 million in gross receipts applies to the owners ofbuilding space leased to the Federal Government. The standard does not apply to an agent.

10. NAICS codes 488510 (part)531210, 541810, 561510, 561520, and 561920 As measured by total revenues, but excluding funds received in trust for an unaffiliated third party, such as bookings or sales subject to commissions. The commissions received are included as revenues.

11. NAICS codes 541711 and 541712 For research and development contracts requiring the delivery of a manufactured product, the appropriate size standardis that ofthe manufacturing industry.

(a) "Research and Development" means laboratory or other physical research anddevelopment. It does not include economic, educational, engineering, operations, systems, or other nonphysical research; or computer programming, data processing, commercial and/or medical laboratory testing.

(b) For purposes of the Small Business Innovation Research (SBIR) and the Small Business Technology Transfer (STTR) Programs only, a different definition has been established by law.See §121.702 ofthese regulations.

(c) "Research andDevelopment" for guided missiles and space vehicles includes evaluations and simulation, and other services requiring thorough knowledge of complete missiles and spacecraft.

12. NAICS code 561210 Facilities Support Services:

(a) If one or more activities of Facilities Support Services as defined in paragraph (b) (below in this footnote) can be identified with a specific industry and that industry accounts for 50% or more ofthe value of an entire procurement, then the proper classification of the procurement is that of the specific industry, not Facilities Support Services.

(b) "Facilities Support Services" requires the performance of three or more separate

### Small BusinessAdministration activities in the areas of services or specialty trade contractors industries. If services are performed, these service activities must each be in a separate NAICS industry. If the procurement requires the use of specialty trade contractors (plumbing, painting, plastering, carpentry, etc.), all such specialty trade contractors activities are considered a single activity and classified as "Building and Property Specialty Trade Services." Since "Building and Property Specialty Trade Services" is only one activity, two additional activities of separate NAICS industries are required for a procurement to be classified as "Facilities Support Services."

13. NAICS code 238990 Building and Property Specialty Trade Services: If a procurement requires the use ofmultiple specialty trade contractors (i.e., plumbing, painting, plastering, carpentry, etc.), and no specialty trade accounts for 50% or more ofthe value of the procurement, all such specialty trade contractors activities are considered a single activity and classified as Building and Property Specialty Trade Services.

14. NAICS 562910 Environmental Remediation Services:

(a) For SBA assistance as a small business concern in the industry of Environmental Remediation Services, other than for Government procurement, a concern mustbe engaged primarily in furnishing a range of services for the remediation of a contaminated environment to an acceptable condition including, but not limited to, preliminary assessment, site inspection, testing, remedial investigation, feasibility studies, remedial design, containment, remedial action, removal of contaminated materials, storage of contaminated materials and security and site closeouts. If one of such activities accounts for 50percent or more ofa concern's totalrevenues, employees, or other related factors, the concern's primary industry is that ofthe particular industry andnot the Environmental Remediation Services Industry.

(b) For purposes of classifying a Government procurement as Environmental Remediation Services, the general purpose ofthe procurement must be to restore or directly support the restoration of a contaminated environment (such as, preliminary assessment, site inspection, testing, remedial investigation, feasibility studies, remedial design, remediation services, containment, removal of contaminated materials, storage of contaminated materials or security and site closeouts), although the general purpose of the procurement need not necessarily include remedial actions. Also, the procurement must be composed ofactivities in three or more separate industries with separate NAICS codes or, in some instances (e.g., engineering), smaller sub-components of NAICS codes with separate, distinct size 

### §121.201 standards. These activities may include, but are not limited to, separate activities in industries such as: Heavy Construction; Specialty Trade Contractors; Engineering Services; Architectural Services; Management Consulting Services; Hazardous and Other Waste Collection; Remediation Services, Testing Laboratories; and Research and Development in the Physical, Engineering and Life Sciences. If any activity in the procurement can be identified with a separate NAICS code, or component of a code with a separate distinct size standard, and that industry accounts for 50 percent or more ofthe value of the entire procurement, then the proper size standard is the one for that particular industry, and not the Environmental Remediation Service size standard.

15. Subsector 483 Water Transportation Offshore Marine Services: The applicable size standard shall be $30.5 million for firms furnishing specific transportation services to concerns engaged in offshore oil and/or natural gas exploration, drilling production, or marine research; such services encompass passenger and freight transportation, anchor handling, and related logistical services to and from the work site orat sea.

16. NAICS codes 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 ofLabor Job Corps Center. The activities involved include admissions activities, life skills training, educational activities, comprehensive career preparation activities, career development activities, career transition activities, as well as the management and support functions and services needed to operate and maintain the facility. For SBA assistance as a small business concern, other than for Federal Government procurements, a concern must be primarily engaged in providing the services to operate and maintain Federal Job Corps Centers.

17. NAICS code 115310 (Support Activities for Forestry) Forest Fire Suppression and Fuels Management Services are two components of Support Activities for Forestry. Forest Fire Suppression includes establishments which provide services to fight forest fires. These firms usually have fire-fighting crews and equipment. Fuels Management Services firms provide services to clear land ofhazardous materials that wouldfuel forest fires. The treatments used by these firms may include prescribed fire, mechanical removal, establishing fuel breaks, thinning, pruning, andpiling.

18. NAICS code 541519 An Information Technology Value Added Reseller provides a total solution to information technology acquisitions by providing multi-vendor hardware and software along with significant services. Significant value added services

### § 121.301 consist of, but are not limited to, configuration consulting and design, systems integration, installation ofmulti-vendor computer equipment, customization of hardware or software, training, product technical support, maintenance, and enduser support. For purposes of Government procurement, an information technology procurement classified under this industry category must consist of at least 15% and not more than 50% ofvalue added services as measuredby the total price less the cost ofinformation technology hardware, computer software, and profit. If the contract consists of less than 15% ofvalue added services, then it must be classified under a NAICS manufacturing industry. If the contract consists of more than 50% of value added services, then it mustbe classified under the NAICS industry that best describes the predominate service of the procurement. To qualify as an Information Technology Value Added Reseller for purposes of SBA assistance, other than for Government procurement, a concern must be primarily engaged in providing information technology equipment and computer software and provide value added services which account for at least 15% ofits receipts but not more than 50% ofitsreceipts.

19. NAICS Sector 92 Small business size standards are not established for this sector. Establishments in the Public Administration sector are Federal, State, and local government agencies which administer and oversee government programs and activities that are not performed by private establishments. Concerns performing operational services for the administration ofa government program are classifiedunder theNAICS private sector industry based on the activities performed. Similarly, procurements for these types of services are classified under the NAICS private sector industry that best describes the activities to be performed. For example, if a government agency issues a procurement for law enforcement services, the requirement would be classified using one of the NAICS industry codes under 56161, Investigation, Guard, andArmored Car Services. [65FR 30840, May 15, 2000]

EDITORIAL NOTES: 1. For FEDERAL REGISTER citations affecting §121.201, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and atwww.fdsys.gov.

1. At 73FR 12870, Mar. 11, 2008, §121.201 was amended; however, several amendments could not be incorporated due to inaccurate amendatory instruction. 

### 13 CFR Ch. 1(1-1-15 Edition)
SIZE ELIGIBILITY REQUIREMENTS FOR SBA FINANCIAL ASSISTANCE § 121.301 What size standards are applicable to financial assistance programs? (a) For Business Loans (other than for 7(a) Business Loans for the period beginning May 5, 2009 and ending on September 30, 2010) and for Disaster Loans (other than physical disaster loans), an applicant business concern must satisfy two criteria:

(1) The size of the applicant alone (without affiliates) must not exceed the size standard designated for the industry in which the applicant is primarily engaged; and

(2) The size ofthe applicant combined with its affiliates must not exceed the size standard designated for either the primary industry of the applicant alone or the primary industry of the applicant and its affiliates, which ever is higher. These size standards are set forth in §121.201.

(b) For Development Company programs and, for the period beginning May 5, 2009 and ending on September 30, 2010, for 7(a) Business Loans, an applicant must meet one ofthe following standards:

(1) The same standards applicable under paragraph (a) of this section; or

(2) Including its affiliates, tangible net worth not in excess of $8.5 million, and average net income after Federal income taxes (excluding any carry-over losses) for the preceding two completed fiscal years not in excess of $3.0 million. If the applicant is not required by law to pay Federal income taxes at the enterprise level, but is required to pass income through to its shareholders, partners, beneficiaries, or other equitable owners, the applicant's "net income after Federal income taxes" will be its net income reduced by an amount computed as follows:

(i) If the applicant is not required by law to pay State (and local, if any) income taxes at the enterprise level, multiply its net income by the marginal State income tax rate (or by the combined State and local income tax rates, as applicable) that would have applied if it were a taxable corporation.

### Small BusinessAdministration (ii) Multiply the applicant's net income, less any deduction for State and local income taxes calculated under paragraph (b)(2)(i) of this section, by the marginal Federal income tax rate that would have applied if the applicant were a taxable corporation.

(iii) Sum the results obtained in paragraphs (b)(2)(i) and (b)(2)(ii) ofthis section.

(c) For the Small Business Investment Company (SBIC) program, an applicant must meet one ofthe following standards:

(1) The same standards applicable under paragraph (a) of this section; or

(2) Including its affiliates, tangible net worth not in excess of$19.5 million, and average net income after Federal income taxes (excluding any carry-over losses) for the preceding two completed fiscal years not in excess of $6.5 million. If the applicant is not required by law to pay Federal income taxes at the enterprise level, but is required topass income through to its shareholders, partners, beneficiaries, or other equitable owners, the applicant's "net income after Federal income taxes" will be its net income reduced by an amount computed as follows:

(i) If the applicant is not required by law to pay State (and local, if any) income taxes at the enterprise level, multiply its net income by the marginal State income tax rate (or by the combined State and local income tax rates, as applicable) that would have applied if it were a taxable corporation.

(ii) Multiply the applicant's net income, less any deduction for State and local income taxes calculated under paragraph (c)(2)(i) of this section, by the marginal Federal income tax rate that would have applied if the applicant were a taxable corporation.

(iii) Add theresults obtained in paragraphs (c)(2)(i) and (c)(2)(ii) ofthis section.

(d) For Surety Bond Guarantee assistance a business concern, combined with its affiliates, must meet the size standard for the primary industry in which such business concern, combined with its affiliates, is engaged.

(e) The applicable size standards for purposes of SBA's financial assistance programs, excluding the Surety Bond 

### § 121.302 Guarantee assistance program, are increased by 25% whenever the applicant agrees to use all ofthe financial assistance within a labor surplus area. Labor surplus areas are listedmonthly in the Department of Labor publication "Area Trends in Employment and Unemployment." [61 FR 3286, Jan. 31, 1996, as amended at 66 FR 30648, June 7, 2001; 67 FR 3056, Jan. 23, 2002; 69 FR 29204, May 21, 2004; 70 FR 69047, 69052, Nov. 14, 2005; 70 FR 72594, Dec. 6,2005; 71 FR 62208, Oct. 24,2006; 73 FR41254, July 18, 2008; 74 FR 20580, May 5, 2009; 74 FR 36110, July 22, 2009; 75FR 48550, Aug. 11, 2010; 79FR 33669, June 12, 2014; 79 FR 71296, Dec. 2,2014] §121.302 When does SBA determine thesize status ofanapplicant? (a) The size status ofan applicant for SBA financial assistance is determined as ofthe date the application for financial assistance is accepted for processing by SBA, except for applications under the Preferred Lenders Program (PLP), the Disaster Loan program, the SBIC program, and the New Markets Venture Capital (NMCV) program.

(b) For the Preferred Lenders program, size is determined as of the date ofapproval ofthe loan by the Preferred Lender.

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

(d) For financial assistance from an SBIC lieensee or an NMVC eompany, size is determined as ofthe date a concern's application is accepted for processing by the SBIC or the NMVC company.

(e) Changes in size after the applicable date when size is determined will

### § 121.303
not disqualify an applicant for assistance. [61 FR 3286, Jan. 31, 1996, as amended at 64 FR 48276, Sept. 3, 1999; 67 FR 11880, Mar. 15, 2002; 67 FR 62337, Oct. 7, 2002; 69 FR 29204, May 21, 2004; 70 FR 72594, Dec. 6,2005; 73 FR 41254, July 18, 2008; 75 FR48550, Aug. 11, 2010; 79 FR33669, June 12,2014] §121.303 What size procedures are used by SBA before it makes a formal size determination? (a) A concern that submits an application for financial assistance is deemed to have certified that it is small under the applicable size standard. SBA may question the concern's status based on information supplied in the application or from any other source.

(b) A small business investment company, a development company, asurety bond company, or a preferred lender may accept as true the size information provided by an applicant, unless credible evidence to the contrary is apparent.

(c) Size is initially considered by the individual with final financial assistance authority. This is not a formal size determination. A formal determination may be requested prior to a denial ofeligibility based on size.

(d) An applicant may request a formal size determination when assistance has been denied for size ineligibility. Except for disaster loan eligibility, arequest for a formal size determination must be made to the Government Contracting Area Director serving the area in which the headquarters of the applicant is located, regardless of the location of the parent company or affiliates. For disaster loan assistance, the request for a size determination must be made to the AreaDirector for the Disaster Area Office which denied the assistance.

(e) There are no time limitations for making aformal size determination for purposes of financial assistance. The official making the formal size determination must provide a copy of the determination to the applicant, to the requesting SBA official, and to other interested SBA program officials. 

### 13 CFR Ch. 1(1-1-15 Edition) §121.304 What are the size requirements for refinancing an existing SBAloan? (a) A concern that applies to refinance an existing SBA loan or guarantee will be considered small for the refinancing even though its size has increased since the date of the original financing to exceed its applicable size standard, provided that:

(1) The increase in size is due to natural growth (as distinguished from merger, acquisition or similar management action); and

(2) SBA determines that refinancing is necessary to protect the Government's financial interest.

(b) If a concern's size has increased other than by natural growth, the concern and its affiliates must be small at the time the application for refinancing is accepted for processing by SBA. §121.305 What size eligibility requirements exist for obtaining financial assistance relating to particular procurements? A concern qualified as small for a particular procurement, including an 8(a) subcontract, is small for financial assistance directly and primarily relating to the performance of the particular procurement.

SIZE ELIGIBILITY REQUIREMENTS FOR GOVERNMENT PROCUREMENT §121.401 What procurement programs are subjectto size determinations? The rules set forth in §§ 121.401 through 121.413 apply to all Federal procurement programs forwhich status as a small business is required or advantageous, including the small business set-aside program, SBA's Certificate of Competency program, SBA's 8(a) Business Development program, SBA's HUBZone program, the Women Owned Small Business (WOSB) Federal Contract Program, SBA's Service-Disabled Veteran-Owned Small Business program, the Small Business Subcontracting program, and the Federal Small Disadvantaged Business (SDB) program. [75FR 62280, Oct. 7,2010]

### Small BusinessAdministration §121.402 What size standards are applicable to Federal Government Contractingprograms? (a) A concern must not exceed the size standard for the NAICS code specified in the solicitation. The contracting officer must specify the size standard in effect on the date the solicitation is issued. If SBA amends the size standard and it becomes effective before the date initial offers (including price) are due, the contracting officer may amend the solicitation and use the new size standard.

(b) The procuring agency contracting officer, or authorized representative, designates the proper NAICS code and corresponding size standard in a solicitation, selecting the single NAICS code which best describes the principal purpose ofthe product or service being acquired. Except for multiple award contracts as set forth in paragraph (c) of this section, every solicitation, including a request for quotations, must contain only one NAICS code and only one corresponding size standard.

(1) Primary consideration is given to the industry descriptions in the U.S. NAICS Manual, the product or service description in the solicitation and any attachments to it, the relative value and importance of the components of the procurement making up the end item being procured, and the function of the goods or services being purchased.

(2) A procurement is usually classified according to the component which accounts for the greatest percentage of contract value. Acquisitions for supplies must be classified under the appropriate manufacturing or supply NAICS code, not under a Wholesale Trade or Retail Trade NAICS code. A concern that submits an offer or quote for a contract, order, or subcontract where the NAICS code assigned to the contract, order, or subcontract is one for supplies, and furnishes a product it did not itselfmanufacture or produce, is categorized as a nonmanufacturer and deemed small if it has 500 or fewer employees and meets the requirements of§121.406(b).

(c) MultipleAward Contracts(see definition at §125.1).

(1) For a Multiple Award Contract, the contracting officer must: 

### § 121.402 (i) Assign the solicitation a single NAICS code and corresponding size standard which best describes the principal purpose of the acquisition as set forth in paragraph (b) of this section, only if the NAICS code will also best describe the principal purpose of each order to be placed under the Multiple Award Contract. If a service NAICS code has been assigned to the Multiple Award Contract, then a service NAICS code must be assigned to the solicitation for the order, including an order for services that also requires some supplies; or

(ii) Divide the solicitation into discrete categories (such as Contract Line Item Numbers (CLINs), Special Item Numbers (SINs), Sectors, Functional Areas (FAs), or the equivalent), and assign each discrete category the single NAICS code and corresponding size standard that best describes the principal purpose of the goods or services to be acquired under that category (CLIN, SIN, Sector, FA or equivalent) as set forth in paragraph (b) ofthis section. A concern must meet the applicable size standard for each category (CLIN, SIN, Sector, FA or equivalent) for which it seeks an award as a small business concern.

(2)(i) The contracting officer must assign asingle NAICS code for each order issued against a Multiple Award Contract. When placing an order under a Multiple Award Contract with multiple NAICS codes, the contracting officer must assign the NAICS code and corresponding size standard that best describes the principle purpose of each order. In cases like the GSA Schedule, where an agency can issue an order against multiple SINs with different NAICS codes, the contracting officer must select the single NAICS code that bestrepresents the acquisition.

(ii) With respect to an order issued against a multiple award contract, an agency will receive small business credit for goaling only if the business concern awarded the order has represented its status as small for the underlying multiple award contract for the same NAICS code as that assigned to the order, provided recertification has not been required or occurred for the contract ororder.

### § 121.403 (d) The NAICS code assigned to aprocurement and its corresponding size standard is final unless timely appealed to SBA's Office ofHearings and Appeals (OHA), or unless SBA assigns an NAICS code or size standard as provided in paragraph (d) ofthis section.

(e) An unelear, ineomplete or missing NAICS code designation or size standard in the solicitation may be clarified, completed or supplied by SBA in connection with a formal size determination or size appeal.

(f) Any offeror or other interested party adversely affected by an NAICS code designation or size standard designation may appeal the designations to OHA under part 134 of this chapter. [61 FR 3286, Jan. 31, 1996, as amended at 65 FR 30863, May 15, 2000; 69 FR 29205, May 21, 2004; 75 FR61604, Oct. 6,2010; 76 FR5683, Feb. 2,2011; 76 FR 8252, Feb. 11, 2011; 78 FR 61130, Oct. 2,2013] §121.403 Are SBA size determinations and NAICS code designations bindingon parties? Formal size determinations and NAICS code designations made by authorized SBA officials are binding upon the parties. Opinions otherwise provided by SBA officials to contracting officers or others are advisory in nature, and are notbinding or appealable. [61 FR 3286, Jan. 31, 1996, as amended at 65 FR 30863, May 15, 2000] §121.404 When is the size status of a business concern determined? (a) SBA determines the size status of a concern, including its affiliates, as of the date the concern submits a written self-certification that it is small to the procuring activity as part ofits initial offer (or other formal response to a solicitation), which includes price.

(1) With respect to Multiple Award Contracts and orders issued against a Multiple Award Contract:

(i) SBA determines size atthe time of initial offer (or other formal response to a solicitation), which includes price, for a Multiple Award Contract based upon the size standard set forth in the solicitation for the Multiple Award Contract if a single NAICS codes is assigned as set forth in §121.402(c)(i)(A). If a business is small at the time of offer for the Multiple Award Contract, 

### 13 CFR Ch. 1(1-1-15 Edition) it is small foreach orderissued against the contract, unless a contracting officer requests a new size certification in connection with aspecific order.

(ii) SBA determines size at the time of initial offer (or other formal response to a solicitation), which includes price, for a Multiple Award Contract based upon the size standard set forth for each discrete category (e.g., CLIN, SIN, Sector, FA or equivalent) for which a business concern submits an offer and represents it is small for the Multiple Award Contract as set forth in §121.402(c)(i)(B). If the business concern submits an offer for the entire Multiple Award Contract, SBA will determine whether it meets the size standard for each discrete category (CLIN, SIN, Sector, FA or equivalent). If a business is small at the time of offer for a discrete category on the Multiple Award Contract, it is small for each order issued against that category with the same NAICS code and corresponding size standard, unless a contracting officer requests a new size certification in connection with a specific order.

(iii) SBA will determine size at the time ofinitial offer (or other formal response to a solicitation), which includes price, for an order issued against a Multiple Award Contract if the contracting officer requests anew size certification for the order.

(2) With respect to "Agreements" including Blanket Purchase Agreements (BPAs) (except for BPAs issued against a GSA Schedule Contract), Basic Agreements, Basic Ordering Agreements, or any other Agreement that a contracting officer sets aside or reserves awards to any type of small business, a concern must qualify as small at the time of its initial offer (or other formal response to a solicitation), which includes price, for the Agreement. Because an Agreement is not a contract, the concern must also qualify as small for each order issued pursuant to the Agreement in order to be considered small for the order and for an agency toreceive small business goaling creditfor the order.

(b) Aconcern applying to be certified as a Participant in SBA's 8(a) Business Development program (under part 124, subpart A, of this chapter), as a small

### Small BusinessAdministration disadvantaged business (under part 124, subpart B, of this chapter), or as a HUBZone small business (under part 126 of this chapter) must qualify as a small business for its primary industry classification as of the date of its application and, where applicable, the date the SBA program office requests a formal size determination in connection with a concern that otherwise appears eligible for program certification.

(c) The size status ofan applicant for a Certificate of Competency (COC) relating to an unrestricted procurement is determined as ofthe date ofthe concern's application forthe COC.

(d) Size status forpurposes ofcompliance with the nonmanufacturer rule set forth in §121.406(b)(1) and the ostensible subcontractor rule set forth in §121.103(h)(4) is determined as of the date of the final proposal revision for negotiated acquisitions and final bid for sealed bidding.

(e) For subcontracting purposes, a concern must qualify as small as ofthe date thatit certifies that it is small for the subcontract. The applicable size standard is that which is set forth in §121.410 and which is in effect at the time the concern self-certifies that it is small for the subcontract.

(f) For purposes of architect-engineering or two-step sealed bidding procurements, a concern must qualify as small as of the date that it certifies that it is small as part ofits initialbid or proposal (which may or may not include price).

(g) A concern that represents itselfas a small business and qualifies as small at the time ofits initial offer (or other formal response to a solicitation), which includes price, is considered to be a small business throughout the life of that contract. This means that if a business concern is small atthe time of initial offer for a Multiple Award Contract (see §121.1042(c) for designation of NAICS codes on aMultiple Award Contract), then it will be considered small for each order issued against the contract with the same NAICS code and size standard, unless acontracting officer requests a new size certification in connection with aspecific order. Where a concern grows tobe other than small, the procuring agency may exercise op- 

### § 121.404 tions and still count the award as an award to a small business. However, the following exceptions apply:

(1) Within 30 days ofan approved contract novation, a contractor must recertify its small business size status to the procuring agency, or inform the procuring agency that it is other than small. If the contractor is other than small, the agency can no longer count the options or orders issued pursuant to the contract, from that point forward, towards its small business goals.

(2)(i) In the case ofa merger oracquisition, where contract novation is not required, the contractor must, within 30 days of the transaction becoming final, recertify its small business size status to the procuring agency, or inform the procuring agency that it is other than small. If the contractor is other than small, the agency can no longer count the options or orders issued pursuant to the contract, from that point forward, towards its small business goals. The agency and the contractor must immediately revise all applicable Federal contract databases to reflectthe new size status.

(ii) Recertification is required: (A) When a concern acquires or is acquired by another concern;

(B) From both the acquired concern and the acquiring concern if each has been awarded a contract as a small business; and

(C) From ajoint venture when an acquired concern, acquiring concern, or merged concern is a participant in a joint venture that has been awarded a contract or order asa small business.

(3) For the purposes of contracts (including Multiple Award Contracts) with durations ofmore than five years (including options), a contracting officer must request that a business concern recertify its small business size status no more than 120 days prior to the end of the fifth year of the contract, and no more than 120 days prior to exercising any option thereafter. If the contractor certifies that it is other than small, the agency can no longer count the options or orders issued pursuant to the contract towards its small business prime contracting goals. The agency and the contractor must immediately revise all applicable Federal

### § 121.405
contract databases to reflect the new size status.

(i) A business concern that certified itself as other than small, either initially or prior to an option being exercised, may recertify itself as small for a subsequent option period if it meets the applicable size standard.

(ii) Re-certification does not change the terms and conditions of the contract. The limitations on subcontracting, non-manufacturer and subcontracting plan requirements in effect at the time of contract award remain in effect throughout the life ofthe contract. However, a contracting officer may require a subcontracting plan if a prime contractor's size status changes from small to other than small as aresult ofa size recertification.

(iii) A request for a size re-certification shall include the size standard in effect at the time ofre-certification that corresponds to the NAICS code that that was initially assigned to the contract.

(iv) A contracting officer must assign a NAICS code and size standard toeach order under a long-term contract. The NAICS code and size standard assigned to an order must correspond to a NAICS code and size standard assigned to the underlying long-term contract and must be assigned in accordance with §§121.402(b) and (c). A concern will be considered small for that order only if it certified itself as small under the same orlower size standard.

(v) Where the contracting officer explicitly requires concerns to recertify their size status in response to asolicitation foran order, SBA will determine size as of the date the concern submits its self-representation as part of its response to the solicitation for the order.

(4) The requirements in paragraphs (g)(1), (2), and (3) of this section apply to Multiple Award Contracts. However, if the Multiple Award Contract was set-aside for small businesses, partially set-aside for small businesses, or reserved for small business, then in the case of a contract novation, or merger or acquisition where no novation is required, where the resulting contractor is now other than small, the agency cannot count any new orders issued pursuant to the contract, from that point forward, towards its small busi

### 13 CFR Ch. 1(1-1-15 Edition)

ness goals. This includes set-asides, partial set-asides, and reserves for 8(a) BD Participants, HUBZone SBCs, SDVO SBCs, and ED/WOSBs.

(5) If during contract performance a subcontractor performs primary and vital requirements of a contract, the contractor and its ostensible subcontractor will be treated as joint venturers. See §121.103(h)(4). If the two firms exceed the applicable size standard in the aggregate, the contractor cannot continue to certify as small for that contract or for any task order under that contract.

(h) Afollow-on orrenewal contract is a new contracting action. As such, size is determined as of the date the concern submits a written self-certification that it is small to theprocuring agency as part of its initial offer including price for the follow-on or renewal contract. [69 FR 29205, May 21, 2004, as amended at 71 FR 19813, Apr. 18, 2006; 71 FR 66443, Nov. 15, 2006; 76 FR5683, Feb.2,2011; 76 FR 8252, Feb. 11, 2011; 78FR 42403, July 16, 2013; 78FR38817, June 28, 2013; 78FR 61131, Oct.2,2013]

EDITORIAL NOTE: At 78 FR 61131, Oct. 2, 2013, §121.404(b) was amended by removing "date ofcertification by SBA" and adding in its place "date the Director of the Division of Program Certification and Eligibility or the Associate AdministratorforBusiness Development requests a formal size determination in connection with a concern that is otherwise eligible for program certification."; however, the amendment could not be incorporated because those words do not exist inthe paragraph. §121.405 May a business concern selfcertify its small business size status? (a) A concern must self-certify it is small under the size standard specified in the solicitation, or as clarified, completed or supplied by SBA pursuant to §121.402(d).

(b) A contracting officer may accept a concern's self-certification as true for the particular procurement involved in the absence of a written protest by other offerors or other credible information which causes the contracting officer or SBA to question the size ofthe concern.

(c) Procedures for protesting the selfcertification of an offeror are set forth in §§121.1001 through 121.1009.

### Small BusinessAdministration §121.406 How does a small business concern qualify to provide manu- factured products or other supply items under a small business setaside, service-disabled veteranowned small business set-aside, WOSB orEDWOSB set-aside, or8(a) contract? (a) General. In order to qualify as a small business concern for a small business set-aside, service-disabled veteran-owned small business set-aside, WOSB or EDWOSB set-aside, 8(a) contract, partial set-aside, reserve, or setaside of orders against a multiple award contract to provide manufactured products or other supply items, an offeror must either:

(1) Be the manufacturer or producer ofthe end itembeingprocured (and the end item mustbe manufactured orproduced in the United States); or

(2) Comply with the requirements of paragraph (b), (c) or (d) of this section as a nonmanufacturer, a kit assembler or a supplier under Simplified Acquisition Procedures.

(b) Nonmanufacturers.(1) A firm may qualify as a small business concern for a requirement to provide manufactured products or other supply items as a nonmanufacturer if it:

(i) Does not exceed 500 employees; (ii) Is primarily engaged in theretail or wholesale trade and normally sells the type ofitem being supplied;

(iii) Takes ownership orpossession of the item(s) with its personnel, equipment or facilities in a manner consistent with industrypractice; and

(iv) Will supply the end item of a small business manufacturer, processor or producer made in the United States, or obtains a waiver of such requirement pursuant to paragraph (b)(5) of this section.

(2) For size purposes, there can be only one manufacturer of the end item being acquired. The manufacturer is the concern which, with its own facilities, performs the primary activities in transforming inorganic or organic substances, including the assembly of parts and components, into the end item being acquired. The end item must possess characteristics which, as a result of mechanical, chemical or human action, it didnot possess before the original substances, parts or components were assembled or trans- 

### § 121.406 formed. The end item may be finished and ready for utilization or consumption, or it may be semifinished asa raw material tobe used in further manufacturing. Firms which perform only minimal operations upon the item being procured do not qualify asmanufacturers of the end item. Firms that add substances, parts, or components to an existing end item to modify its performance will not be considered the end item manufacturer where those identical modifications can be performed by and are available from the manufacturer ofthe existing end item:

(i) SBA will evaluate the following factors in determining whether a concern is the manufacturer of the end item:

(A) The proportion of total value in the end item added by the efforts ofthe concern, excluding costs of overhead, testing, quality control, and profit;

(B) The importance of the elements added by the concern to the function of the end item, regardless of their relative value; and

(C) The concern's technical capabilities; plant, facilities and equipment; production or assembly line processes; packaging and boxing operations; labeling ofproducts; and product warranties.

(ii) Firms that provide computer and other information technology equipment primarily consisting of component parts (such as motherboards, video cards, network cards, memory, power supplies, storage devices, and similar items) who install components totaling less than 50% of the value of the end item are generally not considered the manufacturer ofthe end item.

(3) The nonmanufacturer rule applies only to procurements that have been assigned a manufacturing or supply NAICS code. The nonmanufacturer rule does not apply to contracts that have been assigned a service, construction, or specialty trade construction NAICS code.

(4) The nonmanufacturer rule applies only to the supply component of a requirement classified as a manufacturing or supply contract. If a requirement is classified asa service contract, but also has a supply component, the nonmanufacturer rule does not apply

### § 121.407
to the supply component of the requirement.

ExampleI toparagraph(b)(4). A procuring agency seeks to acquire computer integration and maintenance services. Included within that requirement, the agency also seeks to acquire some computer hardware. If the procuring agency determines that the principal nature ofthe procurement is serv- ices andclassifies the procurement as aservices procurement, the nonmanufacturer rule does not apply to the computer hardware portion ofthe requirement. Thismeans that while a contractor mustmeet the applicable performance of work requirement set forth in §125.6 for the services portion of the con- tract, the contractor doesnothave to supply the computer hardware of a small business manufacturer.

Example 2 to paragraph(b)(4). A procuring agency seeks to acquire computer hardware, as well as computer integration and mainte- nance services. If the procuring agency determines that the principal nature of the procurement is for supplies and classifies the procurement as a supply procurement, the nonmanufacturer rule applies to the com- puter hardware portion ofthe requirement. A firm seekingto qualifyas a small business nonmanufacturer must supply the computer hardware manufactured by a small business. Because the requirement is classified as a supply contract, the contractor does not have to meet the performance of work re- quirement setforth in §125.6for the services portion ofthecontract.

(5) The Administrator or designee may waive therequirement set forth in paragraph (b)(1)(iii) of this section under the following two circumstances:

(i) The contracting officer has determined that no small business manufacturer or processor reasonably can be expected to offer a product meeting the specifications (includingperiod for performance) required by a particular solicitation and SBA reviews and accepts that determination; or

(ii) SBA determines that no small business manufacturer or processor of the product or class of products is available to participate in the Federal procurement market.

(6) The two waiver possibilities identified in paragraph (b)(5) ofthis section are called "individual" and "class" waivers respectively, and the procedures for requesting and granting them are contained in §121.1204.

(7) Any SBA waiver of the nonmanufacturer rule has no effect on requirements external to the Small Business 

### 13 CFR Ch. 1(1-1-15 Edition) Act which involve domestic sources of supply, such as the Buy American Act.

(c) Kit assemblers.(1) Where the manufactured item being acquired is a kit of supplies or other goods provided by an offeror for a special purpose, the offeror cannot exceed 500 employees, and 50 percent of the total value of the components of the kit must be manufactured by business concerns in the United States which are small under the size standards for the NAICS codes of the components being assembled. The offeror need not itselfbe the manufacturer of any of the items assembled.

(2) Where the Government has specified an item for the kit which is not produced by U.S. small business concerns, such item shall be excluded from the calculation of total value in paragraph (c)(1) ofthis section.

(d) Simplified Acquisition Procedures and Orders Set-Aside Against Full and Openly Competed Multiple Award Contracts. Where the procurement of supplies or manufactured items is processed under Simplified Acquisition Procedures as defined in FAR 13.101 (48 CFR 13.101), or an order for supplies or manufactured items is set-aside against a full and openly competed multiple award contract, and the anticipated cost will not exceed $25,000, the offeror does not have to supply the end product of a small business concern. However, the product acquired must be manufactured or produced in the United States, and the small business offeror must meet the requirements of paragraph (b)(1)(i) through(b)(1)(iv) of this section. The offeror need not itself be the manufacturer ofany ofthe items acquired.

(e) These requirements do not apply to small business concern subcontractors. [61 FR 3286, Jan. 31, 1996; 61 FR 7986, Mar. 1, 1996, as amended at65 FR 30863, May 15, 2000; 69 FR 29205, May 21, 2004; 76 FR 8252, Feb. 11, 2011; 78FR 61132, Oct.2,2013] §121.407 What are the size procedures formultiple item procurements? If a procurement calls for two or more specific end items or types of services with different size standards and the offeror may submit an offer on

### Small BusinessAdministration any or all end items or types of services, the offeror must meet the size standard for each end item or service item for which it submits an offer. If the procurement calls for more than one specific end item or type ofservice and an offeror is required to submit an offer on all items, the offeror may qualify as a small business for the procurement if it meets the size standard of the item which accounts for the greatest percentage of the total contract value. §121.408 What are the size procedures for SBA's Certificate of Competency Program? (a) A firm which applies for a COC must file an "Application for Small Business Size Determination" (SBA Form 355). If the initial review of SBA Form 355 indicates the applicant, including its affiliates, is small for purposes of the COC program, SBA will process the application for COC. If the review indicates the applicant, including its affiliates, is other than small, SBA will initiate a formal size determination as set forth in §121.1009. In such a case, SBA will not further process the COC application until a formal size determination is made.

(b) A concern is ineligible for a COC if a formal SBA size determination finds the concern otherthan small. §121.409 What size standardapplies in an unrestricted procurement for Certificate of Competency purposes? For the purpose of receiving a Certificate of Competency in an unrestricted procurement, the applicable size standard is that corresponding to the NAICS code set forth in the solicitation. For a manufactured product, a eoneern must also furnish a domestically produced or manufactured product, regardless of the size status of the product manufacturer. The offeror need not be the manufacturer of any of the items acquired. [61 FR 3286, Jan. 31, 1996, as amended at 65 FR 30863, May 15, 2000] §121.410 What are the size standards for SBA's Section 8(d) SubcontractingProgram? For subcontracting purposes pursuant to sections 8(d) of the Small Business Act, a concern is small for subcontracts which relate to Government procurements if it does not exceed the size standard for the NAICS code that the prime contractor believes best describes theproduct or service being acquired by the subcontract. However, subcontracts for engineering services awarded under the National Energy Policy Act of 1992 have the same size standard as Military and Aerospace Equipment and Military Weapons under NAICS code 541330. [61 FR 3286, Jan. 31, 1996, as amended at 65 FR 30863, May 15, 2000; 69 FR 29205, May 21, 2004; 74FR 46313, Sept.9,2009] §121.411 What are the size procedures for SBA's Section 8(d) SubcontractingProgram? (a) Prime contractors may rely on the information contained in the System for Award Management (SAM) (or any successor system or equivalent database maintained or sanctioned by SBA) as an accurate representation of a concern's size and ownership characteristics for purposes ofmaintaining a small business source list.

(b) Even if a concern is on a small business source list, it must still qualify and self-certify as a small business at the time it submits its offer as asection 8(d) subcontractor. Prime contractors may accept a subcontractor's electronic self-certifications as to size, if the subcontract contains a clause which provides that the subcontractor verifies by submission ofthe offer that the size or socioeconomic representations and certifications made in SAM (or any successor system) are current, accurate and complete asofthe date of the offer for the subcontract. Prime contractors or subcontractors may not require the use of SAM (or any successor system) for purposes of representing size or socioeconomic status in connection with asubcontract.

(c) Upon determination of the successful subcontract offeror for a competitive subcontract, but prior to 

### § 121.411

### § 121.411 award, the prime contractor must inform each unsuccessful subcontract offeror in writing of the name and location of the apparent successful offeror.

(d) The self-certification ofa concern subcontracting or proposing to subcontract under section 8(d) of the Small Business Act may be protested by the contracting officer, the prime contractor, the appropriate SBA official orany other interested party.

(e) Presumptionof Loss Based on the Total Amount Expended. In every contract, subcontract, cooperative agreement, cooperative research and development agreement, or grant which is set aside, reserved, or otherwise classified as intended for award to small business concerns, there shall be a presumption of loss to the United States based on the total amount expended on the contract, subcontract, cooperative agreement, cooperative research and development agreement, or grant whenever it is established that a business concern other than a small business concern willfully sought and received the award by misrepresentation.

(f) Deemed Certifications. The following actions shall be deemed affirmative, willful and intentional certifications of small business size and status:

(1) Submission of a bid, proposal, application or offer for a Federal grant, contract, subcontract, cooperative agreement, or cooperative research and development agreement reserved, set aside, or otherwise classified as intended for award to small business concerns.

(2) Submission of a bid, proposal, application or offer for a Federal grant, contract, subcontract, cooperative agreement or cooperative research and development agreement which in any way encourages a Federal agency to classify thebid or proposal, if awarded, as an award to a small business concern.

(3) Registration on any Federal electronic database for the purpose of being considered for award ofa Federal grant, contract, subcontract, cooperative agreement, or cooperative research and development agreement, as a small business concern.

(g) SignatureRequirement.Each offer, proposal, bid, or application for a Fed

### 13 CFR Ch. 1(1-1-15 Edition) eral contract, subcontract, or grant shall contain a certification concerning the small business size and status of a business concern seeking the Federal contract, subcontract orgrant. An authorized official must sign the certification on the same page containing the size status claimed by the concern.

(h) LimitationofLiability.Paragraphs (d) through (f) of this section may be determined not to apply in the case of unintentional errors, technical malfunctions, and other similar situations that demonstrate that a misrepresentation of size was not affirmative, intentional, willful or actionable under the False Claims Act, 31 U.S.C. §§3729, et seq. A prime contractor acting in good faith should notbe held liable for misrepresentations made by its subcontractors regarding the subcontractors' size. Relevant factors to consider in making this determination may include the firm's internal management procedures governing size representation or certification, the clarity or ambiguity ofthe representation or certification requirement, and the efforts made to correct an incorrect or invalid representation or certification in a timely manner. An individual or firm may not be held liable where government personnel have erroneously identified a concern as small without any representation or certification having been made by the concern and where such identification is made without the knowledge ofthe individual orfirm.

(i) Penaltiesfor Misrepresentation.(1) Suspension or debarment.The SBA suspension and debarment official or the agency suspension and debarment official may suspend or debar a person or concern for misrepresenting a firm's size status pursuant to the procedures set forth in 48CFR subpart9.4.

(2) CivilPenalties.Persons or concerns are subject to severe penalties under the False Claims Act, 31 U.S.C. 3729 3733, and under the Program Fraud Civil Remedies Act, 331 U.S.C. 3801 3812, and any other applicable laws.

(3) CriminalPenalties.Persons or concerns are subject to severe criminal penalties for knowingly misrepresenting the small business size status of a concern in connection with procurement programs pursuantto section

### Small BusinessAdministration 16(d) of the Small Business Act, 15 U.S.C. 645(d), as amended, 18 U.S.C. 1001, 18 U.S.C. 287, and any other applicable laws. Persons or concerns are subject to criminal penalties for knowingly making false statements or misrepresentations to SBA for the purpose of influencing any actions of SBA pursuant to section 16(a) of the Small Business Act, 15 U.S.C. 645(a), as amended, including failure to correct ,continuing representations" that are no longer true. [61 FR 3286, Jan. 31, 1996, as amended at 69 FR 29205, May 21, 2004; 78 FR 42403, July 16, 2013; 78 FR 38817, June 28, 2013; 79 FR 29661, May23, 2014] §121.412 What are the size procedures for partial small business setasides? A firm is required to meet size standard requirements only for the small business set-aside portion ofa procurement, and is not required to qualify as a small business for the unrestricted portion. §121.413 [Reserved] SIZE ELIGIBILITY REQUIREMENTS FOR

SALES OR LEASE OF GOVERNMENT PROPERTY §121.501 What programs for sales or leases of Government property are subject to size determinations? Sections 121.501 through 121.512 apply to small business size determinations for the purpose of the sale or lease of Government property, including the Timber Sales Program, the Special Salvage Timber Sales Program, and the sale ofGovernment petroleum, coal and uranium. §121.502 What size standards are applicable to programs for sales or leases ofGovernment property? (a) Unless otherwise specified in this part

(1) A concern primarily engaged in manufacturing is small for sales or leases of Government property if it does not exceed 500 employees;

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

### § 121.506 (b) Size status for such sales and leases is determined by theprimary industry of the applicant business concern. [61 FR 3286, Jan. 31, 1996, as amended at 67 FR 3056, Jan. 23, 2002; 70 FR 72594, Dec. 6, 2005; 73 FR 41254, July 18, 2008; 79 FR 33669, June 12,2014] §121.503 Are SBA size determinations bindingon parties? Formal size determinations based upon a specific Government sale or lease, or made in response to a request from another Government agency under §121.901, are binding upon the parties. Other SBA opinions provided to contracting officers or others are only advisory, and are not binding or appealable. §121.504 When does SBA determine the size status of a business concern? SBA determines the size status of a concern (including its affiliates) as of the date the concern submits a written self-certification that it is small to the Government as part of its initial offer including price where there is a specific sale or lease at issue, or as set forth in §121.903 if made in response to a request ofanother Government agency. §121.505 What is the effect of a selfcertification? (a) A contracting officer may accept a concern's self-certification as true for the particular sale or lease involved, in the absence ofa written protest by other offerors or other credible information which would cause the contracting officer or SBA to question the size ofthe concern.

(b) Procedures for protesting the selfcertification of an offeror are set forth in §§121.1001 through 121.1009. §121.506 What definitions are important for sales or leases of Government-owned timber? (a) Forestproductindustrymeans logging, wood preserving, and the manufacture of lumber and wood related products such as veneer, plywood, hardboard, particle board, or wood pulp, and ofproducts of which lumber

### § 121.507

or wood related products are the principal raw materials.

(b) Logging of timber means felling and bucking, yarding, and/or loading. It doesnot mean hauling.

(c) Manufacture oflogs means, at a minimum, breaking down logs into rough cutsofthe finished product.

(d) Sell means, in addition to its usual and customary meaning, the exchange of sawlogs for sawlogs on a product-for-product basis with or without monetary adjustment, and an indirect transfer, suchas the sale ofthe assets of a concern after it has been awarded one or more set-aside sales of timber.

(e) Significantloggingoftimbermeans that a concern uses its own employees to perform at least two of the following: felling and bucking, yarding, and loading. §121.507 What are the size standards and otherrequirementsforthe purchase of Government-owned timber (other than Special Salvage Timber)? (a) To be small for purposes of the sale of Government-owned timber (other than Special Salvage Timber) a concern must:

(1) Be primarily engaged in the logging or forest products industry;

(2) Not exceed 500 employees, taking into account its affiliates; and

(3) If it does not intend at the time of the offer to resell the timber

(i) Agree that it willmanufacture the logs with its own facilities or those of another business which meets the requirements of paragraphs (a)(1) and (a)(2) ofthissection;

(ii) Agree that if it eventually resells the timber, it will resell no more than 30% of the sawtimber volume to other businesses which do not meet the requirements of paragraphs (a)(1) and (a)(2) ofthissection; and

(iii) Agree that if it becomes acquired or controlled by a business which does not meet the requirements of paragraphs (a)(1) and (a)(2) of this section, it will require as a condition ofthe acquisition or change of control that the acquiring or controlling business resell at least 70% of the sawtimber volume to businesses which do meet the requirements of paragraphs (a)(1) and (a)(2) ofthissection; or 

### 13 CFR Ch. 1(1-1-15 Edition) (4) If it intends at the time ofoffer to resell the timber

(i) Agree that it will not sell more than 30% of such timber (50% of such timber if the concern is an Alaskan business) to a business which does not meet the requirements of paragraphs (a)(1) and(a)(2) ofthis section; and

(ii) Agree that if it becomes acquired or controlled by a business which does not meet the requirements of paragraphs (a)(1) and (a)(2) of this section, it will require as a condition ofthe acquisition or change of control that the acquiring or controlling business resell at least 70% of the sawtimber volume (or at least 50% of the sawtimber volume, if it is an Alaskan business) to businesses which meet the requirements ofparagraphs (a)(1) and (a)(2) of this section.

(b) For a period of three years following the date upon which a concern purchases timber under a small business set-aside (other than through the Special Salvage Timber Sale program), it must maintain arecord of:

(1) The name, address and size status of every concern to which it sells the timber orsawlogs; and

(2) The species, grades and volumesof sawlogs sold.

(c) For a period of three years following the date upon which a concern purchases timber, it must by contract require all small business repurchasers of the sawlogs or timber it purchased under the small business set-aside to maintain the records described in paragraph (b) ofthis section. §121.508 What are the size standards and otherrequirementsforthe purchase of Government-owned Special Salvage Timber? (a) In order to purchase Governmentowned Special Salvage Timber from the United StatesForest Service or the Bureau ofLandManagement as asmall business, a concern must:

(1) Be primarily engaged in the logging or forest product industry;

(2) Have, together with its affiliates, no more than twenty-five employees during any pay period for the last twelve months; and

(3) If it does not intend at the time of offer toresell the timber

### Small BusinessAdministration (i) Agree that it will manufacture a significant portion ofthe logs with its own employees; and

(ii) Agree that it will log the timber only with its own employees or with employees ofanother business which is eligible for award of a Special Salvage Timber salescontract; or

(4) If it intends at the time ofoffer to resell the timber, agree that it will perform a significant portion of timber logging with its own employees and that it will subcontract the remainder of the timber logging to a concern which is eligible for award ofa Special Salvage Timber sales contract. §121.509 What is the size standardfor leasing ofGovernment landforcoal mining? A concern is small for this purpose if it:(a) Together with its affiliates, does not have more than 250 employees;

(b) Maintains management and control ofthe actual mining operations of the tract; and

(c) Agrees that if it subleases the Government land, it will be to another small business, and that it will require its sublessors toagree tothe same. §121.510 What is the size standardfor leasing ofGovernment land forura- nium mining? A concern is small for this purpose if it, together with its affiliates, does not have more than 100 employees. §121.511 What is the size standardfor buying Government-owned petroleum? A concern is small for this purpose if it is primarily engaged in petroleum refining and meets the size standard for a petroleum refining business. §121.512 What is the size standardfor stockpile purchases? A concern is small for thispurpose if: (a) It is primarily engaged in the purchase of materials which are not domestic products; and

(b) Its annual receipts, together with its affiliates, do not exceed $62.5 million. [61 FR 3286, Jan. 31, 1996, as amended at 67 FR 3056, Jan. 23, 2002; 70 FR 72594, Dec. 6, 2005; 73 FR 41254, July 18, 2008; 79 FR 33669, June 12,2014] 

### § 121.603
SIZE ELIGIBILITY REQUIREMENTS FOR

THE 8(a) BUSINESS DEVELOPMENT PROGRAM §121.601 What is a small business for purposes of admission to SBA's 8(a) Business Development program? An applicant must not exceed the size standard corresponding to its primary industry classification in order to qualify for admission to SBA's 8(a) Business Development Program. [69FR 29205, May21, 2004] §121.602 At what point in time must a 8(a) BD applicantbe small? A 8(a) BDapplicant must be small for its primary industry at the time SBA certifies it for admission into the program. [61 FR 3286, Jan. 31, 1996, as amended at 69 FR 29206, May21, 2004] §121.603 How does SBA determine whether a Participantis small fora particular8(a) BD subcontract? (a) Selfcertificationby Participant.A 8(a) BD Participant must certify that it qualifies as a small business under the NAICS code assigned to a particular 8(a) BD subcontract as part of its initial offer including price to the procuring agency. The Participant also must submit a copy ofits offer, including its self-certification as to size, to the appropriate SBA district office at the same time it submits the offer to the procuring agency. See §121.404 for the time at which size is determined for, and §121.406 for the applicability of the nonmanufacturer rule to, 8(a) BD procurements.

(b) Verification ofsize by SBA. Within 30 days of its receipt ofa Participant's size self-certification for a particular 8(a) BD subcontract, the SBA district office serving the geographic area in which the Participant's principal office is located will review the Participant's self-certification and determine if it is small for purposes of that subcontract. The SBA district office will review the Participant's most recent financial statements and other relevant data and then notify the Participant of its decision.

(c) Changesin size betweendateofselfcertificationanddateofaward.(1) Where

### § 121.604 SBA verifies that the selected Participant is small for a particular procurement, subsequent changes in size up to the date of award, except those due to merger with or acquisition by another business concern, will not affect the firm's size status for that procurement.

(2) Where a Participant has merged with or been acquired by another business concern between the date of its self-certification and the date of award, the concern must recertify its size status, and SBA must verify the new certification before award can occur.

(d) FindingParticipant tobeotherthan small. (1) A Participant may request a formal size determination (pursuant to §§121.1001 through 121.1009) with the SBA Government Contracting Area Office serving the geographic area in which the principal office of the Participant is located within 5 working days of its receipt of notice from the SBA district office that it is not small for a particular 8(a) BD subcontract.

(2) Where the Participant does not timely request a formal size determination, SBA may accept the procurement in support ofanother Participant, or may rescind its acceptance of the offer for the 8(a) BD program, as appropriate. [61 FR 3286, Jan. 31, 1996, as amended at 65 FR 30863, May 15, 2000; 69 FR 29206, May 21, 2004] §121.604 Are 8(a) BD Participantsconsidered small for purposes of other SBAassistance? A concern which SBA determines to be a small business for the award of a 8(a) BD subcontract will be considered to have met applicable size eligibility requirements of other SBA programs where that assistance directly and primarily relates to the performance of the 8(a) BDsubcontract in question. [61 FR 3286, Jan. 31, 1996, as amended at 69 FR 29206, May21, 2004] 

### 13 CFR Ch. 1(1-1-15 Edition)
SIZE AND ELIGIBILITY REQUIREMENTS

FOR THE SMALL BUSINESS INNOVATION RESEARCH (SBIR) AND SMALL BUSINESS TECHNOLOGY TRANSFER (STTR) PROGRAMS §121.701 What SBIR and STTR programs are subject to size and eligibility determinations andwhat definitions areimportant? (a) These sections apply to SBA's SBIR and STTR programs, 15 U.S.C. 638.

(b) Definitions. (1) Fundingagreementofficer means a contracting officer, a grants officer, or a cooperative agreement officer.

(2) Fundingagreementmeans any contract, grant or cooperative agreement entered into between any Federal agency and any small business for the purposes ofthe SBIR or STTR program.

(3) Hedgefundhas the meaning given that term in section 13(h)(2) of the Bank Holding Company Act of 1956 (12 U.S.C. 1851(h)(2)). The hedge fund must have a place ofbusiness located in the United States and be created or organized in the United States, or under the law of the United States or of any State.

(4) Portfoliocompanymeans any company that is owned in whole or part by a venture capital operating company, hedge fund, or private equity firm.

(5) Privateequityfirm has the meaning given the term "private equity fund" in section 13(h)(2) of the Bank Holding Company Act of 1956 (12 U.S.C. 1851(h)(2)). The private equity firm must have a place of business located in the United States and be created or organized in the United States, or under the law of the United States or ofany State.

(6) Venture capitaloperatingcompany means an entity described in §121.103(b)(5)(i), (v), or (vi). The venture capital operating company must have a place ofbusiness located in the United States and be created or organized in the United States, or under the law of the United States or ofany State. [77FR 76225, Dec.27, 2012]

### Small BusinessAdministration §121.702 What size and eligibility standards are applicable to the SBIR andSTTR programs? To be eligible for award of funding agreements in SBA's SBIR and STTR programs, a business concern must meet the requirements below at the time of award of an SBIR or STTR Phase I or Phase II funding agreement:

(a) Ownershipandcontrol for theSBIR program.

(1) An SBIR awardee must: (i) Be a concern which is more than 50% directly owned and controlled by one or more individuals (who are citizens or permanent resident aliens of the United States), other small business concerns (each of which is more than 50% directly owned and controlled by individuals who are citizens or permanent resident aliens of the United States), or any combination ofthese;

(ii) Be a concern which is more than 50% owned by multiple venture capital operating companies, hedge funds, private equity firms, or any combination of these (for agencies electing to use the authority in 15 U.S.C. 638(dd)(1)); or

(iii) Be ajoint venture in which each entity to the joint venture must meet the requirements set forth in paragraph (a)(1)(i) or (a)(1)(ii) of this section. Ajoint venture that includes one or more concerns that meet the requirements of paragraph (a)(1)(ii) of this section must comply with §121.705(b) concerning registration and proposal requirements.

(2) No single venture capital operating company, hedge fund, or private equity firm may own more than 50% of the concern.

(3) If an Employee Stock Ownership Plan owns all or part of the concern, each stock trustee and plan member is considered an owner.

(4) If a trust owns all or part of the concern, each trustee and trust beneficiary is considered an owner.

(b) Ownershipandcontrol fortheSTTR program.

(1) An STTR awardee must: (i) Be a concern which is more than 50% directly owned and controlled by one or more individuals (who are citizens or permanent resident aliens of the United States), other small business concerns (each of which is more than 50% directly owned and controlled 

### §121.702 by individuals who are citizens or permanent resident aliens of the United States), or any combination of these; or(ii) Be a joint venture in which each entity to the joint venture must meet the requirements set forth in paragraph (b)(1)(i) ofthis section.

(2) If an Employee Stock Ownership Plan owns all or part of the concern, each stock trustee and plan member is considered an owner.

(3) If a trust owns all or part of the concern, each trustee and trust beneficiary is considered an owner.

(c) Size and affiliation. An SBIR or STTR awardee, together with its affiliates, must not have more than 500 employees. Concerns and entities are affiliates ofeach other when one controls or has the power to control the other, or a third party or parties controls or has the power to control both. It does not matter whether control is exercised, so long as the power to control exists. For the purposes of the SBIR and STTR programs, the following bases ofaffiliation apply:

(1) Affiliationbased on ownership. For determining affiliation based on equity ownership, a concern is an affiliate of an individual, concern, or entity that owns or has the power to control more than 50 percent ofthe concern's voting equity. However, SBA may find a concern an affiliate of an individual, concern, or entity that owns or has the power to control 40% or more of the voting equity based upon the totality of circumstances. If no individual, concern, or entity is found to control, SBA will deem the Board ofDirectors to be in control ofthe concern.

(2) Affiliation arisingunder stock options, convertible securities, and agreements to merge. In determining size, SBA considers stock options, convertible securities, and agreements to merge (including agreements in principle) to have a present effect on the power to control a concern. SBA treats such options, convertible securities, and agreements as though the rights granted have been exercised.

(i) Agreements to open or continue negotiations towards the possibility of a merger or a sale of stock at some

### §121.702 later date are not considered "agreements in principle" and are thus not given present effect.

(ii) Options, convertible securities, and agreements that are subject to conditions precedent which are incapable of fulfillment, speculative, conjectural, or unenforceable under state or Federal law, or where the probability of the transaction (or exercise of the rights) occurring is shown to be extremely remote, are not given present effect.

(iii) An individual, concern or other entity that controls one or more other concerns cannot use options, convertible securities, oragreements toappear to terminate such control before actually doing so. SBA will not give present effect to individuals', concerns' or other entities' ability to divest all or part of their ownership interest in order to avoid afinding ofaffiliation.

(3) Affiliation based on common management. Affiliation arises where the CEO orPresident ofa concern (or other officers, managing members, or partners who control the management of the concern) also controls the management of one or more other concerns. Affiliation also arises where a single individual, concern, or entity that controls the board of directors ofone concern also controls the board of directors or management of one or more other concerns.

(4) Affiliationbasedonidentityofinterest. Affiliation may arise among two or more persons (including any individual, concern or other entity) with an identity of interest. An individual, concern or entity may rebut a determination of identity of interest with evidence showing that the interests deemed to be one are in fact separate.

(i) SBA may presume an identity of interest between family members with identical or substantially identical business or economic interests (such as where the family members operate concerns in the same or similar industry in the same geographic area).

(ii) SBA may presume an identity of interest based upon economic dependence if the SBIR/STTR awardee relies upon another concern or entity for 70% or more ofitsreceipts.

(iii) An SBIR or STTR awardee is not affiliated with a portfolio company ofa 

### 13 CFR Ch. 1(1-1-15 Edition)
venture capital operating company, hedge fund, or private equity firm, solely on the basis of one or more shared investors, though affiliation may be found for other reasons.

(5) Affiliation basedon the newly organizedconcernrule.Affiliation may arise where former or current officers, directors, principal stockholders, managing members, general partners, or key employees of one concern organize a new concern in the same or relatedindustry or field of operation, and serve as the new concern's officers, directors, principal stockholders, managing members, general partners, or key employees, and the one concern is furnishing or will furnish the new concern with contracts, financial or technical assistance, indemnification on bid or performance bonds, and/or other facilities, whether for a fee or otherwise. A concern may rebut such an affiliation determination by demonstrating a clear line of fracture between the two concerns. A "key employee" is an employee who, because of his/her position in the concern, has a critical influence in or substantive control over the operations or management of the concern. A concern will be considered "new" for the purpose of this rule if it has been actively operating continuously for less than one year.

(6) Affiliation based onjoint ventures. Concerns submitting an application as ajoint venture are affiliated with each other with regard to the application. SBA will apply the jointventure affiliation exception at §121.103(h)(3)(iii) for two firms approved to be a mentor and prot6g6 under SBA's 8(a)program.

(7) Affiliation based on the ostensible subcontractor rule.A concern and its ostensible subcontractor are treated as joint venturers, and therefore affiliates, for size determination purposes. An ostensible subcontractor is a subcontractor or subgrantee that performs primary and vital requirements of a funding agreement (i.e., those requirements associated with the principal purpose ofthe funding agreement), ora subcontractor or subgrantee upon which the concern is unusually reliant. All aspects ofthe relationship between the concern and subcontractor are considered, including, but not limited to,

### Small BusinessAdministration the terms ofthe proposal (such as management, technical responsibilities, and the percentage of subcontracted work) and agreements between the concern and subcontractor or subgrantee (such as bonding assistance or the teaming agreement). To determine whether a subcontractor performs primary and vital requirements ofa funding agreement, SBA will consider whether the concern's proposal complies with the performance requirements ofthe SBIR or STTR program.

(8) Affiliation based on license agreements. SBA will consider whether there is a license agreement concerning a product or trademark which is critical to operation of the licensee. The license agreement will not cause the licensor to be affiliated with the licensee if the licensee has the right to profit from its efforts and bears the risk of loss. Affiliation may arise, however, through other means, such as common ownership or common management.

(9) Exception to affiliationforportfolio companies. If a venture capital operating company, hedge fund, or private equity firm that is determined to be affiliated with an awardee is a minority investor in the awardee, the awardee is not affiliated with a portfolio company of the venture capital operating company, hedge fund, or private equity firm, unless:

(i) The venture capital operating company, hedge fund, or private equity firm owns a majority of the portfolio company; or

(ii) The venture capital operating company, hedge fund, or private equity firms holds a majority of the seats of the board of directors of the portfolio company.

(10) Totality of the circumstances. In determining whether affiliation exists, SBA may consider the totality of the circumstances, andmay find affiliation even though no single factor is sufficient to constitute affiliation.

(d) Calculatingownership and control. SBA will review the small business' equity ownership on a fully diluted basis for purposes of determining ownership, control and affiliation in the SBIR and STTR programs. This means that SBA will consider the total number of shares or equity that would be outstanding if all possible sources ofcon- 

### § 121.704 version were exercised, including, but not limited to: Outstanding common stock or equity, outstanding preferred stock (on a converted to common basis) or equity, outstanding warrants (on an as exercised and converted to common basis), outstanding options and options reserved for future grants, and any other convertible securities on an as converted tocommon basis. [77 FR 76225, Dec. 27, 2012; 78 FR 11745, Feb. 20, 2013] §121.703 Are formal size determinations binding on parties? Size determinations by authorized SBA officials are formal actions based upon a specific funding agreement, and are binding upon the parties. Other SBA opinions provided to funding agreement officers or others, are only advisory, and are not binding or appealable. §121.704 When does SBA determine the size and eligibility status of a business concern? (a) The size and eligibility status ofa concern for the purpose of a funding agreement award under the SBIR and STTR programs is determined at the time of award for both Phase I and Phase II SBIR and STTR awards, or on the date ofthe request for a size determination, if anaward is pending.

(b) A concern that qualified as a small business at the time it receives an SBIR or STTR funding agreement is considered a small business throughout the life of that specific funding agreement. Where a concern grows to be other than small, the funding agreement agency may exercise the options on the award that is a contract, grant or cooperative agreement or issue a continuation on a grant or cooperative agreement and still count the award as an award to a small business under the SBIR or STTR program. However, the following exceptions apply:

(1) In the case ofamerger or acquisition, the awardee must, within 30 days of the transaction becoming final (or the approved funding agreement novation if anovation is required), recertify its small business size status to the funding agreement agency or inform the funding agreement agency that it is other than small. If the awardee is

### § 121.705 other than small, the agency can no longer fund the options or issue a continuation pursuant to the funding agreement, from that point forward, with SBIR or STTR funds. Funding agreement novations for reasons other than a merger or acquisition do not neeessarily require re-eertifieation. The funding agreement agency and the awardee must immediately revise all applicable Federal contract and grant databases toreflect the new size status from that point forward.

(2) For the purposes of SBIR and STTR funding agreements with durations ofmore than five years, afunding agreement officer must request that a business concern re-certify its small business size status no more than 120 days prior to the end of the fifth year of the funding agreement, and no more than 120 days prior to exercising any option or issuing any continuation. If the awardee certifies that it is other than small, the funding agreement agency can no longer fund the options or issue a continuation pursuant to the funding agreement with SBIR or STTR funds. The funding agreement agency and the awardee must immediately revise all applicable Federal contract and grant databases to reflect the new size status from that point forward.

(c) Re-certification does not change the terms and conditions ofthe funding agreement. The requirements in effect at the time of award remain in effect throughout the life of the funding agreement.

(d) A request for a size re-certification shall include the size standard in effect atthe time ofre-certification. [77FR 76226, Dec.27, 2012] §121.705 Must a business concern selfcertify its size and eligibility status? (a) A business concern must self-certify that it meets the eligibility requirements set forth in §121.702 for a Phase I or Phase II SBIR or STTR funding agreement.

(b) A business concern that is more than 50% owned by multiple venture capital operating companies, hedge funds, or private equity firms and a joint venture where one or more parties to the joint venture is more than 50% owned by multiple venture capital 

### 13 CFR Ch. 1(1-1-15 Edition) operating companies, hedge funds, or private equity firms mustbe registered with SBA as of the date it submits its initial proposal (or other formal response) to a Phase I or Phase II SBIR announcement or solicitation. Theconcern must indicate in any SBIR proposal or application that it is registered with SBA as majority-owned by multiple venture capital operating companies, hedge funds, or private equity firms.

(c) A small business concern that did not meet the requirements of paragraph (b) of this section at the time of its SBIR proposal or application must notify the funding agreement officer if, on the date of award, the concern is more than 50% owned by multiple venture capital operating companies, hedge funds, or private equity firms.

(1) The concern is still eligible to receive the award if it becomes majorityowned by multiple venture capital operating companies, hedge funds, or private equity firms after the time it submitted its initial proposal (or other formal response) to a Phase I or Phase II SBIR announcement or solicitation if the agency makes the award on or after the date that is 9 months from the end ofthe period for submitting applications under the SBIR solicitation.

(2) This small business, known as a covered small business concern, would have to certify that it meets the requirements of the SBIR program set forth in §§ 121.702(a)(1)(ii) or 121.702(a)(1)(iii), and 121.702(a)(2) and 121.702(c) at the time of award of the funding agreement.

(d) A funding agreement officer may accept a concern's self-certification as true for the particular funding agreement involved in the absence ofa written protest or other credible information which would cause the funding agreement officer or SBA to question the size or eligibility ofthe concern.

(e) Procedures for protesting an awardee's self-certification are set forth in §§121.1001 through 121.1009. In adjudicating a protest, SBA may address both the size status and eligibility ofthe SBIR or STTR awardee. [77FR 76227, Dec.27, 2012]

### Small BusinessAdministration
SIZE ELIGIBILITY REQUIREMENTS FOR PAYING REDUCED PATENT FEES §121.801 May patentfees be reducedif a concern is small? These sections apply to size status for the purpose ofpaying reduced patent fees authorized by Pub. L. 97 247, 96 Stat. 317. The eligibility requirements for independent inventors and nonprofit organizations for the purpose of paying reduced patent fees are set forth in regulations of the Patent and Trademark Office ofthe Department of Commerce, 37 CFR 1.9, 1.27, 1.28. §121.802 What size standards are applicable to reduced patent fees programs? A concern eligible for reduced patent fees is one:

(a) Whose number of employees, including affiliates, does not exceed 500 persons; and

(b) Which has not assigned, granted, conveyed, or licensed (and is under no obligation to do so) any rights in the invention to any person who made it and could not be classified as an independent inventor, or to any concern which would not qualify as anon-profit organization or a small business concern under this section. §121.803 Are formal size determinations binding on parties? Size determinations by authorized SBA officials are formal actions, based upon a specific patent application pursuant to the rules of the Patent and Trademark Office, Department ofCommerce, and are binding upon the parties. Other SBA opinions provided to patent applicants or others are only advisory, and are not binding or appealable. §121.804 When does SBA determine the size status of a business con- cern? Size status is determined as of the date of the patent applicant's written verification ofsize. 

### §121.805 May a business concern selfcertify its size status? (a) A concern verifies its size status with its submission ofits patent application. 

### § 121.903 (b) Any attempt to establish small size status improperly (fraudulently, through gross negligence, or otherwise) may result in remedial action by the Patent and Trademark Office.

(c) In the absence of credible information indicating otherwise, the Patent and Trademark Office may accept the verification by the concern as a small business as true.

(d) Questions concerning the size verification are resolved initially by the Patent and Trademark Office. If not verified as small, the applicant may request a formal SBA size determination. SIZE ELIGIBILITY REQUIREMENTS FOR

COMPLIANCE WITH PROGRAMS OF OTHER AGENCIES §121.901 Can other Government agencies obtain SBA size determinations? Upon request by another Government agency, SBA will provide a size determination, under SBA rules, standards and procedures, for its use in determining compliance with small business requirements of its statutes, regulations or programs. §121.902 What size standards are applicable to programs of other agencies? SBA sizestandards.The size standards for compliance with programs of other agencies are those for SBA programs which are most comparable to the programs of such other agencies, unless the agency and SBA agree otherwise. [67FR 13716, Mar.26, 2002] §121.903 How may an agency use size standardsfor its programs that are different than those established by SBA? (a) Federal agencies or departments promulgating regulations relating to small businesses usually use SBA size criteria. In limited circumstances, if they decide the SBA size standard is not suitable for their programs, then agency heads may establish a more appropriate small business definition for the exclusive use in such programs, but only when:

(1) The size standard will determine:

### § 121.904 (i) The size of a manufacturing concern by its average number ofemployees based on the preceding twelve calendar months, determined according to §121.106;

(ii) The size of a services concern by its average annual receipts over a period ofat least three years, determined according to §121.104;

(iii) The size of other concerns on data over a period of at least three years; or,

(iv) Other factors approved by SBA; (2) The agency has consulted in writing with SBA's Division Chief, office of Size Standards at least fourteen (14) calendar days before publishing the proposed rulewhich is part ofthe rulemaking process. The written consultation will include:

(i) What size standard the agency contemplates using;

(ii) To what agency program it will apply;

(iii) How the agency arrived at this particular size standard for this program; and,

(iv) Why SBA's existing size standards do not satisfy the program requirements;

(3) The agency proposes the size standard for public comment pursuant to the Administrative Procedure Act, 5 U.S.C. 553;

(4) The agency provides a copy of the proposed rule, when it publishes it for public comment as part of the rulemaking process, to SBA's Division Chief, Office ofSize Standards; and

(5) SBA's Administrator approves the size standard before the agency adopts a final rule or otherwise prescribes the size standard for its use. The agency's request for the SBA Administrator's approval must include:

(i) Copies ofall comments on theproposed size standard received in response tothe proposedrule;

(ii) A separate written justification for the intended size standard;

(iii) A copy of the intended final rule if available at that time, or a copy of the intended final rule and preamble prior to itspublication; and

(iv) Other information SBA may request in connection with therequest.

(b) When approving any size standard established pursuant to this section, SBA's Administrator will ensure that 

### 13 CFR Ch. 1(1-1-15 Edition) the size standard varies from industry to industry to the extent necessary to reflect the differing characteristics of the various industries, and consider other relevant factors.

(c) Where the agency head is developing a size standard for the sole purpose ofperforming a Regulatory Flexibility Analysis pursuant to section 601(3) of the Regulatory Flexibility Act, the department or agency may, after consultation with the SBA Office of Advocacy, establish a size standard different from SBA's which is more appropriate for such analysis. [67FR 13716, Mar.26, 2002] §121.904 When does SBA determine the size status of a business concern? For compliance with programs of other agencies, SBA will base its size determination on the size of the concern as of the date set forth in the request ofthe other agency. [67FR 13716, Mar.26, 2002] PROCEDURES FOR SIZE PROTESTS AND

REQUESTS FOR FORMAL SIZE DETERMINATIONS §121.1001 Who may initiate a size protest orrequest a formal size determination? (a) Size StatusProtests.(1) For SBA's Small Business Set-Aside Program, including the Property Sales Program, or any instance in which a procurement or order has been restricted to or reserved for small businesses or a particular group of small businesses (including a partial set-aside), the following entities may file a size protest in connection with a particular procurement, sale or order:

(i) Any offeror whom the contracting officer has not eliminated for reasons unrelated to size;

(ii) Thecontracting officer; (iii) The SBA Government Contracting AreaDirector havingresponsibility for the area in which the headquarters of the protested offeror is located, regardless of the location of a parent company or affiliates, or the Director, Office of Government Contracting; and

### Small BusinessAdministration (iv) Other interested parties. Other interested parties include large businesses where only one concern submitted an offer for the specific procurement in question. A concern found to be other than small in connection with the procurement is not an interested party unless there is only one remaining offeror after the concern is found to be other than small.

(2) For competitive 8(a) contracts, the following entities may protest:

(i) Any offeror whom the contracting officer has not eliminated for reasons unrelated to size;

(ii) The contracting officer; or (iii) The SBA District Director, or designee, in either the district office serving the geographical area in which the procuring activity is located or the district office that services the apparent successful offeror, or the Associate Administrator for Business Development.

(3) For SBA's Subcontracting Program, the following entities may protest:

(i) The prime contractor; (ii) The contracting officer; (iii) Other potential subcontractors; (iv) The responsible SBA Government Contracting Area Director or the Director, Office of Government Contracting; and

(v) Other interested parties. (4) For SBA's SmallBusiness Innovation Research (SBIR) program and Small Business Technology Transfer (STTR) program, the following entities may protest:

(i) An offeror orapplicant for thatsolicitation;

(ii) The funding agreement officer; and

(iii) The responsible SBA Government Contracting Area Director; the Director, Office of Government Contracting; or the Associate Administrator, Investment Division.

(5) For the Department of Defense's Small Disadvantaged Business (SDB) Program, and any other similar program of another Federal agency, the following entities may file a protest in connection with a particular SDB procurement:

(i) Any offeror for the specific SDB requirement whom the contracting of- 

### § 121.1001 ficer has not eliminated for reasons unrelated to size;

(ii) The contracting officer; and (iii) The responsible SBA Area Director for Government Contracting, the SBA Director, Office of Government Contracting, or the SBA Associate Administrator for Business Development;

(6) For SBA's HUBZone program, the following entities may protest in connection with a particular HUBZone procurement:

(i) Any concern that submits an offer for a specific HUBZone set-aside procurement that the contracting officer has not eliminated for reasons unrelated to size;

(ii) Any concern that submitted an offer in full and open competition and its opportunity for award will be affected by a price evaluation preference given a qualifiedHUBZone SBC;

(iii) The contracting officer; and (iv) The SBA Director, Office of HUBZone, or designee.

(7) For any unrestricted Government procurement in which a business concern has represented itself as a small business concern, the following entities may protest in connection with a particular procurement:

(i) Any offeror; (ii) Thecontracting officer; and (iii) The responsible SBA Government Contracting Area Director, the Director, Office of Government Contracting, or the Associate Administrator forBusiness Development.

(8) For SBA's Service Disabled Veteran-Owned Small Business Concern program, the following entities may protest in connection with aparticular service-disabled veteran-owned procurement:

(i) Any concern that submits an offer for a specific service-disabled veteranowned small business set-aside contract;

(ii) Thecontracting officer; (iii) The SBA Government Contracting AreaDirector; and

(iv) The Director, Office of Government Contracting, or designee.

(9) For SBA's WOSB Federal Contracting Program, the following entitiesmay protest:

(i) Any concern that submits an offer for a specific requirement set aside for WOSBs or WOSBs owned by one or

### § 121.1001

more women who are economically disadvantaged (EDWOSB) pursuant to part 127 ofthis chapter;

(ii) The contracting officer; (iii) The SBA Government Contracting AreaDirector; and

(iv) The Director for Government Contracting, ordesignee.

(b) RequestforSize Determinations.(1) For SBA's Financial Assistance Programs, the following entities may request aformal size determination:

(i) The applicant forassistance; and (ii) The SBA official with authority to take final action on the assistance requested. That official may also request the appropriate Government Contracting Area Office to determine whether affiliation exists between an applicant for financial assistance and one or more other entities for purposes of determining whether the applicant would exceed the loan limit amount imposed by §120.151 ofthis chapter.

(iii) The SBA Associate Administrator for Investment or designee may request a formal size determination for any purpose relating to the SBIC program (see part 107 of this chapter) or the NMVC program (seepart 108 ofthis chapter). A formal size determination includes a request to determine whether or not affiliation existsbetween two or more entities for any purpose relating tothe SBICprogram.

(2) For SBA's8(a) BD program: (i) Concerning initial or continued 8(a) BD eligibility, the following entities may request a formal size determination:

(A) The 8(a) BD applicant concern or Participant; or

(B) The Director of the Division of Program Certification and Eligibility or the Associate Administrator for Business Development.

(ii) Concerning individual sole source 8(a) contract awards, the following entities may request a formal size determination:

(A) The Participant nominated for award ofthe particular sole source contract;

(B) The SBA program official with authority to execute the 8(a) contract or, where applicable, the procuring activity contracting officer who has been delegated SBA's 8(a) contract execution functions; or 

### 13 CFR Ch. 1(1-1-15 Edition) (C) The SBA District Director in the district office that services the Participant, or the Associate Administrator for Business Development.

(3) For SBA's Certificate of Competency Program, the following entities may request a formal size determination:

(i) The offeror who has applied for a COC; and

(ii) The responsible SBA Government Contracting Area Director or the Director, Office of Government Contracting.

(4) For SBA's sale or lease ofgovernment property, the following entities may request a formal size determination:

(i) The responsible SBA Government Contracting Area Director or the Director, Office of Government Contracting; and

(ii) Authorized officials of other Federal agencies administering a property sales program.

(5) For eligibility topay reduced patent fees, the following entities may request aformal size determination:

(i) The applicant for thereduced patent fees; and

(ii) The Patent and Trademark Office.

(6) For purposes ofdetermining compliance with small business requirements of another Government agency program not otherwise specified in this section, an official with authority to administer the program involved may request a formal size determination.

(7) In connection with initial or continued eligibility for the Small Disadvantaged Business (SDB) program, the following may request a formal size determination:

(i) The applicant or SDB concern; or (ii) The Director of the Division of Program Certification and Eligibility or the Associate Administrator for Business Development.

(8) In connection with initial or continued eligibility for the HUBZone program, the following may request a formal size determination:

(i) The applicant or qualified HUBZone business concern; or

(ii) The Director, Office ofHUBZone, or designee.

(9) For purposes of validating that firms listed in the System for Award

### Small BusinessAdministration Management (SAM) (or any successor system) are small, the Government Contracting Area Director or the Director, Office of Government Contracting may initiate a formal size determination when sufficient information exists that calls into question a firm's small business status. The eurrent date will be used to determine size, and SBA will initiate the process to remove from the database the small business designation of any firm found to be otherthan small.

(10) The SBA Inspector General may request a formal size determination with respect to any of the programs identified in paragraph (b) of this section. [61 FR 3286, Jan. 31, 1996, as amended at 63 FR 31907, June 11, 1998; 63 FR 35739, June 30, 1998; 69 FR 25266, May 5, 2004; 69 FR 29206, May 21, 2004; 69 FR 29420, May 24, 2004; 69 FR 44461, July 26, 2004; 73 FR 56947, Oct. 1,2008; 74 FR 45753, Sept. 4,2009; 75 FR 62280, Oct. 7, 2010; 76 FR 8253, Feb. 11, 2011; 77 FR 76227, Dec.27, 2012; 78FR 61132, Oct.2,2013] §121.1002 Who makes aformal size determination? The responsible Government Contracting Area Director or designee makes all formal size determinations in response to either a size protest or a request for a formal size determination, with the exception of size determinations for purposes ofthe Disaster Loan Program, which will be made by the Disaster Area Office Director or designee responsible for the area in which the disaster occurred. §121.1003 Where should a size protest befiled? A protest involving a government procurement or sale mustbe filed with the contracting officer for the procurement or sale, who must forward the protest to the SBA Government Contracting Area Office serving the area in which the headquarters of the protested concern is located, regardless of the location of any parent company or affiliates. 

### §121.1004 What time limits apply to size protests? (a) Protestsby entitiesother thancontractingofficers or SBA (1) Sealed bids or sales(includingprotestsonpartialsetasides and reserves of Multiple Award 

### § 121.1004 Contractsandset-asidesofordersagainst Multiple Award Contracts). A protest mustbe received by the contracting officer prior to the close of business on the 5th day, exclusive of Saturdays, Sundays, and legal holidays, after bid opening for

(i) The contract; or (ii) An order issued against a Multiple Award Contract if the contracting officer requested a new size certification in connection with that order.

(2) Negotiated procurement (including protestsonpartialset-asidesand reserves of Multiple Award Contracts and setasides oforders againstMultiple Award Contracts).A protest must be received by the contracting officer prior to the close ofbusiness on the 5th day, exclusive of Saturdays, Sundays, and legal holidays, after the contracting officer has notified the protestor of the identity ofthe prospective awardee for

(i) The contract; or (ii) An order issued against a Multiple Award Contract if the contracting officer requested a new size certification in connection with that order.

(3) Long-Term Contracts. For contracts with durations greater than five years (including options), including all existing long-term contracts, Multiagency contracts, Governmentwide Acquisition Contracts and Multiple Award Contracts:

(i) Protests regarding size certifications made for contracts must bereceived by the contracting officer prior to the close ofbusiness on the 5th day, exclusive of Saturdays, Sundays, and legal holidays, after receipt of notice (including notice received in writing, orally, or via electronic posting) ofthe identity of the prospective awardee or award.

(ii) Protests regarding size certifications made foran option period must be received by the contracting officer prior to the close ofbusiness onthe 5th day, exclusive of Saturdays, Sundays, and legal holidays, after receipt of notice (including notice received in writing, orally, or via electronic posting) of the size certification made by the protested concern.

(A) A contracting officer is not required to terminate a contract where a concern is found tobe other than small pursuant to a size protest concerning a

### § 121.1005 size certification made for an option period.

(B) [Reserved] (iii) Protests relating to size certifications made in response to a contracting officer's request for size certifications in connection with an individual order must be received by the contracting officer prior to the close of business on the 5th day, exclusive of Saturdays, Sundays, and legal holidays, after receipt ofnotice (including notice received in writing, orally, or via electronic posting) of the identity oftheprospective awardee oraward.

(4) Electronic notification of award. Where notification of award is made electronically, such as posting on the Internet under Simplified Acquisition Procedures, a protest must be received by the contracting officer before close of business on the fifth day, exclusive of Saturdays, Sundays, and legal holidays, after the electronic posting.

(5) No notice ofaward.Where there is no requirement for written pre-award notice or notice ofaward, or where the contracting officer has failed to provide written notification of award, the 5-day protest period will commence upon oral notification by the contracting officer or authorized representative or another means (such as public announcements or other oral communications) of the identity of the apparent successful offeror.

(b) Protests by contracting officers, funding agreement officers or SBA. The time limitations in paragraph (a) of this section do not apply to contracting officers, funding agreement officers or SBA, and they may file protests before or after awards, except to the extent set forth in paragraph (e) of this section, including for purposes of the SBIR and STTR programs. Notwithstanding paragraph (e), for purposes of the SBIR and STTR programs the funding agreement officer or SBA may file a protest in anticipation ofan award.

(c) Effect ofcontractaward. A timely filed protest applies to the procurement in question even though a contracting officer awarded the contract prior to receipt oftheprotest.

(d) Untimely protests. A protest received after the allotted time limits 

### 13 CFR Ch. 1(1-1-15 Edition)
must still be forwarded to SBA. SBA will dismiss untimely protests.

(e) Premature protests. A protest filed by any party, including the contracting officer, before bid opening or notification to offerors ofthe selection of the apparent successful offer will be dismissed aspremature. [61 FR 3286, Jan. 31, 1996, as amended at 69 FR 29206, May 21, 2004; 71 FR 66444, Nov. 15, 2006; 77 FR 76227, Dec. 27, 2012; 78 FR 61132, Oct. 2,2013] §121.1005 How must a protest be filed with thecontractingofficer? A protest must be delivered to the contracting officer by hand, telegram, mail, facsimile, Federal Express or other overnight delivery service, email, or telephone. If a protest is made by telephone, the contracting officer must later receive a confirming letter either within the 5-day period in §121.1004(a)(1) or postmarked no later than one day after the date ofthe telephone protest. [61 FR 3286, Jan. 31, 1996, as amended at 69 FR 29206, May21, 2004] §121.1006 When will a size protest be referred to an SBA Government ContractingAreaOffice? (a) A contracting officer who receives a protest (other than from SBA) must forward the protest promptly to the SBA Government Contracting Area Office serving the area in which the headquarters ofthe offeror is located.

(b) A contracting officer's referral must contain the following information:

(1) The protest and any accompanying materials;

(2) A copy ofthe self-certification as to size;

(3) Identification of the applicable size standard;

(4) A copy ofthe solicitation; (5) Identification of the date of bid opening or notification provided to unsuccessful offerors;

(6) The date on which theprotest was received; and

(7) A complete address and point of contact for theprotested concern.

### Small BusinessAdministration §121.1007 Must a protest ofsize status relate to a particular procurement andbe specific? (a) Particularprocurement.A protest challenging the size ofa concern which does not pertain to a particular procurement or sale will not be acted on by SBA.

(b) Aprotestmust includespecificfacts. A protest must be sufficiently specific to provide reasonable notice as to the grounds upon which the protested concern's size is questioned. Some basis for the belief or allegation stated in the protest must be given. A protest merely alleging that the protested concern is not small or is affiliated with unnamed other concerns does not specify adequate grounds for the protest. No particular form is prescribed for a protest. Where materials supporting the protest are available, they shouldbe submitted with theprotest.

(c) Non-specific protests will be dismissed. Protests which do not contain sufficient specificity will be dismissed by SBA. The following are examples of allegation specificity:

Example 1:An allegation that concern X is large because it employs more than 500 employees (where 500 employees is the applicable size standard) without setting forth a basis fortheallegation isnon-specific.

Example 2": An allegation that concern X is large because it exceeds the 500 employee size standard (where 500employees is the applicable size standard) because ahigher employment figure waspublished in publication Yis sufficiently specific.

Example 3:An allegation that concern X is affiliated with concern Y without setting forth anybasis forthe allegation is non-specific.

Example 4:An allegation that concern X is affiliated with concern Y because Mr. A is the majority shareholder inboth concerns is sufficiently specific.

Example 5: An allegation that concern X hasrevenues in excess of$5million(where $5 million isthe applicable size standard) without settingforth abasis forthe allegation is non-specific.

Example 6: An allegation that concern X exceeds the size standard (where the applicable size standard is $5million) because it received Government contracts in excess of$5 million lastyear is sufficiently specific. [61 FR 3286, Jan. 31, 1996, as amended at 69 FR 29206, May21, 2004] 

### §121.1008 What occurs after SBA re- ceives a size protest orrequestfora formal size determination? (a) When SBA receives a size protest, the SBA Area Director for Government Contracting, or designee, will notify the contracting officer, the protested concern, and the protestor that the protest has been received. If the protest pertains to a requirement involving SBA's HUBZone program, the Area Director will also notify the D/HUB of the protest. If the protest pertains to a requirement set aside for WOSBs or EDWOSBs, the Area Director will also notify SBA's Director for Government Contracting of the protest. If the protest pertains to a requirement involving SBA's SBIR or STTR programs, the Area Director will alsonotify the Associate Administrator, Investment Division. If the protest involves the size status ofan SDB concern (see part 124, subpart B of this chapter) the Area Director will notify SBA's Associate Administrator for Business Development. If theprotest pertains toa requirement that has been reserved for competition among eligible 8(a) BD program participants, the Area Director will notify the SBA district office servicing the 8(a) concern whose size status has been protested. SBA will provide a copy of the protest to theprotested concern together with SBA Form 355, Application for SmallBusiness Size Determination, by certified mail, return receipt requested, or by any overnight delivery service that provides proof of receipt. SBA will ask the protested concern to complete the form and respond to the allegations in the protest.

(b) When SBAreceives arequest for a formal size determination in accord with §121.1001(b), SBA will provide a blank copy ofSBA Form 355to the concern whose size is atissue.

(c) The protested concern or concern whose size is at issue must return the completed SBA Form 355 and all other requested information to SBA within 3 working days from the date ofreceipt of the blank form from SBA. SBA has discretion to grant an extension of time to file the form. The firm must attach to the completed SBA Form 355 its answers to the allegations contained in theprotest, where applicable, together with any supporting material. 

### §121.1008

### § 121.1009 (d) If a concern whose size status is at issue fails to submit a completed SBA Form 355, responses to the allegations ofthe protest, or other requested information within the time allowed by SBA, or if it submits incomplete information, SBA may presume that disclosure ofthe information required by the form or other missing information would demonstrate that the concern is other than a small business. A concern whose size status is at issue must furnish information about its alleged affiliates to SBA, despite any third party claims of privacy or confidentiality, because SBA will not disclose information obtained in the course ofasize determination except as permitted by Federal law. [61 FR 3286, Jan. 31, 1996, as amended at 63 FR 31908, June 11, 1998; 69 FR 29207, May 21, 2004; 73 FR 56948, Oct. 1, 2008; 74 FR 45753, Sept. 4,2009; 75 FR 62280, Oct. 7,2010; 77 FR 76227, Dec. 27,2012] §121.1009 What are theprocedures for makingthesize determination? (a) Time framefor making size determination.(1) After receipt of a protest or a request for a formal size determination, the SBA Area Office will issue a formal size determination within 15business days, ifpossible.

(2) The contracting officer may award a contract after receipt of aprotest if the contracting officer determines in writing that an award must be made to protect the public interest. Notwithstanding such a determination, the provisions of paragraph (g) of this section apply to the procurement in question.

(3) If SBA does not issue its determination within 15 business days (or request an extension that is granted), the contracting officer may award the contract if he or she determines in writing that there is an immediate need to award the contract and that waiting until SBA makes its determination will be disadvantageous to the Government. Notwithstanding such a determination, the provisions of paragraph (g) of this section apply to the procurement in question.

(b) Basisfor determination. The size determination will be based primarily on the information supplied by the protestor or the entity requesting the 

### 13 CFR Ch. 1(1-1-15 Edition) size determination and that provided by the concern whose size status is at issue. The determination, however, may also be based on grounds not raised in theprotest or request for size determination. SBA may use other information and may make requests for additional information to the protestor, the concern whose size status is at issue and any alleged affiliates, or other parties.

(c) Burdenofpersuasion.The concern whose size is under consideration has the burden of establishing its small business size.

(d) Weight ofevidence. SBA will give greater weight to specific, signed, factual evidence than to general, unsupported allegations or opinions. In the case ofrefusal or failure to furnish requested information within a required time period, SBA may assume that disclosure would be contrary to the interests ofthe party failing to make disclosure.

(e) Formalsizedetermination.The SBA will base its formal size determination upon the record, including reasonable inferences from the record, and will state in writing the basis for its findings andconclusions.

(f) Notification ofdetermination. SBA will promptly notify the contracting officer, the protester, and theprotested concern. SBA will send the notification by verifiable means, whichmay include facsimile, electronic mail, or overnight delivery service.

(g) Results ofan SBA Size Determination. (1) A contracting officer may award a contract to a protested concern after the SBA Area Office has determined either that the protested concern is an eligible small business orhas dismissed all protests against it. If OHA subsequently overturns the Area Office's determination or dismissal, the contracting officer may apply the OHA decision to the procurement in question.

(2) A contracting officer shall not award a contract to a protested concern that the Area Office has determined is not an eligible small business for theprocurement in question.

(i) If a contracting officer receives such a determination after contract award, and no OHA appeal has been

### Small BusinessAdministration filed, the contracting officer shall terminate the award.

(ii) If a timely OHA appeal is filed after contract award, the contracting officer must consider whether performance can be suspended until an appellate decision is rendered.

(iii) If OHA affirms the size determination finding theprotested concern ineligible, the contracting officer shall either terminate the contract or not exercise the nextoption.

(3) The contracting officer must update the Federal Procurement Data System and other procurement reporting databases to reflect the final agency size decision (the formal size determination if no appeal is filed or the appellate decision).

(4) Once SBA has determined that a concern is other than small for purposes of a particular procurement, the concern cannot later become eligible for the procurement by reducing its size.

(5) A concern determined to be other than small under a particular size standard is ineligible for any procurement or any assistance authorized by the Small Business Act or the Small Business Investment Act of 1958 which requires the same or a lower size standard, unless SBA reeertifies the concern to be small pursuant to §121.1010 or OHA reverses the adverse size determination. After an adverse size determination, a concern cannot self-certify as small under the same or lower size standard unless it is first reeertified as small by SBA. If a concern does so, it may be in violation of criminal laws, including section 16(d) of the Small Business Act, 15 U.S.C. 645(d). If the concern has already certified itself as small on a pending procurement or on an application for SBA assistance, the concern must immediately inform the officials responsible for the pending procurement or requested assistance of the adverse size determination.

(h) Limited reopeningofsize determinations. SBA may, in its sole discretion, reopen a formal size determination to correct an error ormistake, provided it is within the appeal period and no appeal has been filed with OHA. Once the agency has issued a final decision (either a formal size determination that is not timely appealed or an appellate 

### §121.1101 decision), SBA cannot re-open the size determination. [61 FR 3286, Jan. 31, 1996, as amended at 67 FR 47245, July 18, 2002; 69 FR 29207, May 21, 2004; 76 FR 5683, Feb. 2, 2011; 78 FR 38818, June 28, 2013] §121.1010 How does a concern become recertifiedas asmall business? (a) A concern may request SBA torecertify it as small atany time by filing an application for recertification with the Government Contracting Area Office responsible for the area in which the headquarters ofthe applicant is located, regardless ofthe location ofparent companies or affiliates. No particular form is prescribed for the application; however, the request for recertification must be accompanied by a current completed SBA Form 355 and any other information sufficient to show a significant change in its ownership, management, or other factors bearing on its status as a small concern.

(b) Recertification will not be required nor will the prohibition against future self-certification apply if the adverse SBA size determination is based solely on a finding ofaffiliation due to ajoint venture (e.g., ostensible subcontracting) limited to a particular Government procurement or property sale, or is based on an ineligible manufacturer where the eligible small business bidder or offeror is a nonmanufaeturer on a particular Government procurement.

(e) A denial of an application for recertification is a formal size determination and may be reviewed by OHA at the discretion ofthat office.

(d) The granting ofan application for reeertifieation has future effect only. While it is aformal size determination, notice of reeertifieation is required to be given only tothe applicant.

APPEALS OF SIZE DETERMINATIONS AND NAICS CODE DESIGNATIONS §121.1101 Are formal size determinations subjectto appeal? (a) Appeals from formal size determinations may be made to OHA. Unless

### §121.1102

an appeal is made to OHA, the size determination made by a SBA Government Contracting Area Office or Disaster Area Office is the final decision of the agency. The procedures for appealing a formal size determination to OHA are set forth in part 134 of this chapter. The OHA appeal is an administrative remedy that must be exhausted before judicial review of a formal size determination may be sought in a court.

(b) OHA will review all timely appeals ofsize determinations. [69 FR 29207, May 21, 2004, as amended at 76 FR 5683, Feb.2,2011] §121.1102 Are NAICS code designations subjectto appeal? A NAICS code designation made by a procuring activity contracting officer may be appealed to OHA. The procedures governing OHA appeals are set forth in part 134 of this chapter. The OHA appeal is an administrative remedy that must be exhausted before judicial review of a NAICS code designation may be sought in acourt. [67FR 47245, July 18, 2002] §121.1103 What are theprocedures for appealing a NAICS code or size standarddesignation? (a)(1) Any interested party adversely affected by a NAICS code designation may appeal the designation to OHA. An interested party would include a business concern seeking to change the NAICS code designation in order to be considered a small business for the challenged procurement, regardless of whether the procurement is reserved for small businesses or unrestricted. The only exception is that, for a sole source contract reserved under SBA's 8(a) Business Development program (see part 124 of this chapter), only SBA's Associate Administrator for Business Development may appeal the NAICS code designation.

(2) A NAICS code appeal may include an appeal involving the applicable size standard, such as where more than one size standard corresponds to the selected NAICS code, or a question relating to the size standard in effect at the time the solicitation was issued or amended. 

### 13 CFR Ch. 1(1-1-15 Edition) (b) The contracting officer's determination ofthe applicable NAICS code is final unless appealed as follows:

(1) An appeal from a contracting officer's NAICS code or size standard designation must be served and filed within 10 calendar days after the issuance of the solicitation or amendment affecting the NAICS code or size standard. However, SBA may file a NAICS code appeal at any time before offers are due. OHA will summarily dismiss an untimely NAICS code appeal.

(2)(i) The appeal petition must be in writing and must be sent to the Office of Hearings & Appeals, U.S. Small Business Administration, 409 3rd Street, SW., Suite 5900, Washington, DC20416.

(ii) There is no required format for a NAICS code appeal, but an appeal must include the following information: the solicitation or contract number; the name, address, and telephone number of the contracting officer; a full and specific statement as to why the NAICS code designation is erroneous, and argument in support thereof; and the name, address and telephone number ofthe appellant or its attorney.

(3) The appellant must serve the appeal petition upon the contracting officer who assigned the NAICS code to the acquisition and SBA's Office of General Counsel, Associate General Counsel for Procurement Law, 409 3rd Street, SW., Washington, DC 20416.

(c) Procedureafter a NAICS code appealisfiledandserved.

(1) Upon receipt ofthe service copy of a NAICS code appeal, the contracting officer shall:

(i) Stay the solicitation; (ii) Advise the public, by amendment to the solicitation or other method, of the existence ofthe NAICS code appeal and the procedures and deadline for interested parties to file and serve arguments concerning the appeal;

(iii) Send a copy of (or an electronic link to) the entire solicitation, including amendments, to OHA;

(iv) File and serve any response to the appeal prior to the close of the record; and

(v) Inform OHA of any amendments, actions or developments concerning the procurement in question.

### Small BusinessAdministration (2) Upon receipt ofa NAICS code appeal, OHA shall:

(i) Notify the appellant, the contracting officer, the SBA and any other known party of the date OHA received the appeal and the date the record will close; and

(ii) Conduct the appeal in accordance with part 134ofthis chapter.

(3) Any interested party may file and serve its response to the NAICS code appeal. [69 FR 29207, May 21, 2004; 74 FR 45753, Sept. 4,2009, as amended at76 FR5683, Feb.2,2011; 78 FR61132, Oct.2,2013] 

### Subpart B-OtherApplicable Provisions WAIVERS OF THE NONMANUFACTURER

RULE FOR CLASSES OF PRODUCTS AND INDIVIDUAL CONTRACTS 

### §121.1201 What is the NonmanufacturerRule? The Nonmanufacturer Rule is set forth in §121.406(b). §121.1202 When will a waiver of the Nonmanufacturer Rule be granted fora class ofproducts? (a) A waiver for a class of products (class waiver) will be granted when there are no small business manufacturers or processors available to participate in the Federal market for that class ofproducts.

(b) Federalmarketmeans acquisitions by the Federal Government from offerors located in the United States, or such smaller area as SBA designates if it concludes that the class of products is not supplied on anational basis.

(1) When considering the appropriate market area for a product, SBA presumes that the entire United States is the relevant Federal market, unless it is clearly demonstrated that a class of products cannot be procured on a national basis. This presumption may be particularly difficult to overcome in the case of manufactured products, since such items typically have a market area encompassing the entire United States.

(2) When considering geographic segmentation of a Federal market, SBA will not necessarily use market definitions dependent on airline radius, po- 

### §121.1203 litical, or SBA regional boundaries. Market areas typically follow established transportation routes rather than jurisdictional borders. SBA examines the following factors, among others, in cases where geographic segmentation for a class of products is urged:

(i) Whether perishability affects the area in which the product can practically be sold;

(ii) Whether transportation costs are high as a proportion of the total value of the product so as to limit the economic distribution ofthe product;

(iii) Whether there are legal barriers to transportation ofthe item;

(iv) Whether a fixed, well-delineated boundary exists for the purported market area and whether this boundary has been stable over time; and

(v) Whether a small business, not currently selling in the defined market area, could potentially enter the market from another area and supply the market at areasonable price.

(c) Available toparticipatein the context of the Federal market means that contractors exist that have been awarded or have performed a contract to supply a specific class ofproducts to the Federal Government within 24 months from the date oftherequest for waiver, either directly or through a dealer, or who have submitted an offer on a solicitation for that class ofproducts within that time frame.

(d) Class ofproducts is an individual subdivision within an NAICS Industry Number as established by the Office of Management and Budget in the NAICS Manual. [61 FR 3286, Jan. 31, 1996, as amended at 65 FR 30863, May 15, 2000] §121.1203 When will a waiver of the Nonmanufacturer Rule be granted foranindividual contract? An individual waiver for a product in a specific solicitation will be approved when the SBA Director, Office of Government Contracting reviews and accepts a contracting officer's determination that no small business manufacturer or processor can reasonably be expected to offer a product meeting the specifications ofa solicitation, including theperiod ofperformance.

### §121.1204 §121.1204 What are theprocedures for requesting andgrantingwaivers? (a) Waiversfor classesofproducts. (1) SBA may, at its own initiative, examine a class of products for possible waiver ofthe Nonmanufacturer Rule.

(2) Any interested person, business, association, or Federal agency may submit arequest for awaiver for aparticular class of products. Requests should be addressed or hand-carried to the Director, Office of Government Contracting, Small Business Administration, 409 3rd Street SW., Washington, DC20416.

(3) Requests for a waiver of a class of products need not be in any particular form, but should include a statement of the class of products to be waived, the applicable NAICS code, and detailed information on the efforts made to identify small business manufacturers or processors for the class.

(4) If SBA decides that there are small business manufacturers or processors in the Federal procurement market, it will deny therequest forwaiver, issue notice of the denial, and provide the names, addresses, and telephone numbers of the sources found. If SBA does not initially confirm the existence of small business manufacturers or processors in the Federal market, it will:

(i) Publish notices in the Commerce Business Daily and the FEDERAL REGISTER seeking information on small business manufacturers or processors, announcing a notice ofintent to waive the Nonmanufacturer Rule for that class ofproducts and affording the public a 15-daycomment period; and

(ii) If no small business sources are identified, publish a notice in the FEDERAL REGISTER stating that no small business sources were found and that a waiver of the Nonmanufacturer Rule for that class of products has been granted.

(5) An expedited procedure forissuing a class waiver may be used for emergency situations, but only if the contracting officer provides a determination to the Director, Office of Government Contracting that the procurement is proceeding under the authority of FAR §6.302 2 (48 CFR 6.302 2) for "unusual and compelling urgency," or provides a determination materially 

### 13 CFR Ch. 1(1-1-15 Edition) the same as one ofunusual and compelling urgency. Under the expedited procedure, if a small business manufacturer or processor is not identified by a PASS search, the SBA will grant the waiver for the class of products and then publish a notice in the FEDERAL REGISTER. The notice will state that a waiver has been granted, and solicit public comment for future procurements.

(6) The decision by the Director, Office of Government Contracting to grant or deny awaiver is the final decision by the Agency.

(7) A waiver of the Nonmanufacturer Rule for classes ofproducts has no specific time limitation. SBA will, however, periodically review existing class waivers to the Nonmanufacturer Rule to determine if small business manufacturers or processors have become available to participate in the Federal market for the waived classes ofproducts and the waiver should be terminated.

(i) Upon SBA's receipt of evidence that a small business manufacturer or processor exists in the Federal market for a waived class of products, the waiver will be terminated by the Director, Office ofGovernment Contracting. This evidence may be discovered by SBA during a periodic review of existing waivers or may be brought to SBA's attention by other sources.

(ii) SBA will announce its intent to terminate a waiver for a class ofproducts through the publication of a notice in the FEDERAL REGISTER, asking for comments regarding the proposed termination.

(iii) Unless public comment reveals that no smallbusiness manufacturer or processor in fact exists for the class of products in question, SBA will publish a final Notice of Termination in the FEDERAL REGISTER.

(b) Individualwaiversforspecificsolicitations. (1) A contracting officer's request for a waiver of the Nonmanufacturer Rule for specific solicitations need notbe in any particular form, but must, at aminimum, include:

(i) A definitive statement of the specific item to be waived and justification as to why the specific item is required;

### Small BusinessAdministration (ii) The solicitation number, NAICS code, dollar amount of the procurement, and a brief statement of theprocurement history;

(iii) A determination by the contracting officer that there are no known small business manufacturers or proeessors for the requested items (the determination must contain a narrative statement ofthe contracting officer's efforts to search for small business manufacturers orprocessors ofthe item and the results of those efforts, and a statement by the contracting officer that there are no known small business manufacturers for the items and that no small business manufacturer or processor can reasonably be expected to offer the required items); and

(iv) For contracts or orders expected to exceed $500,000, a copy of the Statement ofWork.

(2) Requests should be addressed to the Director, Office of Government Contracting, Small Business Administration, 409 3rd Street, SW., Washington, DC20416.

(3) SBA will examine the contracting officer's determination and any other information it deems necessary to make an informed decision on the individual waiver request. If SBA's research verifies that no small business manufacturers or processors exist for the item, the Director, Office of Government Contracting will grant an individual, one-time waiver. If a small business manufacturer or processor is found for the product in question, the Associate Administrator will deny the request. Either decision represents a final decision by SBA. [61 FR 3286, Jan. 31, 1996, as amended at 65 FR 30863, May 15, 2000; 78 FR 61132, Oct. 2, 2013] §121.1205 How is a list of previously grantedclass waivers obtained? A list ofclasses ofproducts forwhich waivers for the Nonmanufacturer Rule have been granted is maintained in SBA Web site at: http://www.sba.gov/ aboutsba/sbaprograms/gcprograms/ ge waivers nonmanufacturer.html. A list of such waivers may also be obtained by contacting the Office ofGovernment Contracting, U.S. Small Business Administration, 409 3rd Street, SW., Washington, DC20416, or the nearest SBA Government Contracting Area Office. [69 FR 29208, May 21, 2004, as amended at 74 FR 46313, Sept. 9,2009] 

### PART 123-DISASTER LOAN PROGRAM Subpart A-Overview Sec. 123.1 Whatdo theserules cover? 123.2 What are disaster loans and disaster declarations? 123.3 Howaredisaster declarations made? 123.4 What isa disaster area andwhy is it important? 123.5 Whatkindsofloansare available? 123.6 What does SBA look for when considering adisaster loanapplicant? 123.7 Are there restrictions on how disasterloans canbe used? 123.8 Does SBA charge any fees for obtaininga disasterloan? 123.9 What happens ifI don't use loan proceeds forthe intendedpurpose? 123.10 What happens ifI cannot use my in- surance proceeds to make repairs? 123.11 Does SBA require collateral for any ofitsdisasterloans? 123.12 Are booksandrecordsrequired? 123.13 What happens ifmy loan application isdenied? 123.14 How does theFederal Debt Collection Procedures Actof 1990apply? 123.15 WhatifIchange mymind? 123.16 How are loans administered and serviced? 123.17 Do otherFederal requirementsapply? 123.18 Can I request an increase in the amountofaphysical disasterloan? 123.19 May I request an increase in the amountofan economic injuryloan? 123.20 How long do Ihave to request an increase in the amount of a physical disasterloan oraneconomic injury loan? 123.21 Whatis amitigation measure? Subpart B-Home Disaster Loans 123.100 Am I eligible to apply for a home disaster loan? 123.101 When am I not eligible for a home disaster loan? 123.102 What circumstances would justify myrelocating? 123.103 What happens ifI am forcedto move frommyhome? 123.104 What interest rate will Ipay onmy home disasterloan? 123.105 How much can Iborrowwithahome disaster loan and what limits apply on use offundsandrepaymentterms? 123.106 Whatiseligible refinancing? 

### Pt. 123