§ 120.1900

documents at such times, in such

forms, and accompanied by such reporting data, as required by SBA, the

SBA Office of the Inspector General, or

other authorized government personnel

upon request or upon a request 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 of records. 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 of an SISMBD Loan recipient.

(2) A loan recipient shall submit a report 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 days after the end of each

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 cover the operations of the recipi13 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 Lending Authority 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

Subpart A-Size Eligibility Provisions and

Standards

PROVISIONS OF GENERAL APPLICABILITY

Sec.

121.101 What are SBA size 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

"primary industry"?

121.108 What are the requirements for representing small business size status, and

what are the penalties for misrepresentation?

121.109 What must a concern do in order to

be identified as a small business concern

in any Federal 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

to financial assistance programs?
Small Business Administration

121.302 When does SBA determine the size

status of an 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 SBA loan?

121.305 What size eligibility requirements

exist for obtaining financial assistance

relating to particular 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 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?

121.502 What size standards are applicable

to programs for sales or leases of Government property?

121.503 Are SBA size determinations binding

on parties?

121.504 When does SBA determine the size

status of a business concern?

121.505 What is the effect of a self-certification?

121.506 What definitions are important for

sales or leases of Government-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 land for 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 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?

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 size and eligibility status?

SIZE ELIGIBILITY REQUIREMENTS 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 fees programs?

121.803 Are formal size determinations binding on parties?

121.804 When does SBA determine the size

status of a business concern?

121.805 May a business concern self-certify

its size status?

Pt. 121
§ 121.101

SIZE ELIGIBILITY REQUIREMENTS FOR COMPLIANCE WITH PROGRAMS OF OTHER AGENCIES

121.901 Can other Government agencies obtain SBA size determinations?

121.902 What size standards are applicable

to programs of other 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 of a business concern?

PROCEDURES FOR SIZE PROTESTS AND

REQUESTS FOR FORMAL SIZE DETERMINATIONS

121.1001 Who may initiate a size protest or a

request for formal size determination?

121.1002 Who makes a formal size determination?

121.1003 Where should a size protest be filed?

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 small business?

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-Other Applicable 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

of products?

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.

Subpart A-Size Eligibility

Provisions and Standards

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 of economic 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 of an

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 Business Administration

from other firms, and the objectives of

its programs and the impact on those

programs of different size standard levels.

(b) As part of its review of a size

standard, SBA will investigate if any

concern at or below a particular standard would be dominant in the industry.

SBA will take into consideration market share of a concern and other appropriate factors which may allow a concern to exercise a major 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 of operation.

(c) As part of its review of size standards, SBA's Office of Size Standards

will examine the impact of inflation on

monetary-based size standards (e.g., receipts, net income, 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 of the monetary-based

size standards, it will issue a proposed

rule to increase size standards.

(d) Please address any requests to

change existing size standards or establish new ones for emerging industries

to the Division Chief, Office of Size

Standards, Small Business Administration, 409 3rd Street, SW., Washington,

DC 20416.

[61 FR 3286, Jan. 31, 1996, as amended at 67

FR 3045, Jan. 23, 2002]

§ 121.103 How does SBA determine affiliation?

(a) General Principles of Affiliation. (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 the power 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 the receipts, 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 Small Business 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, or development companies qualifying, under the Small Business Investment Act of 1958, as amended, are not considered affiliates of such

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 of Indian Tribes,

ANCs, NHOs, or CDCs are not considered affiliates of such 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 a joint program of research and development or for defense production as

authorized by the Small Business Act

are not affiliates of one another because of the pool.

(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) of this 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 of employees;

(iii) Employee benefit or pension

plans within the meaning of the Employee Retirement Income Security

Act of 1974, as amended (29 U.S.C. 1001,

et seq.);

(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, et seq.); and

(vi) Investment companies, as defined

under the 1940 Act, which are not registered under the 1940 Act 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 other reasons.

(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 of their 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 of offers 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 or joint 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 a block of voting stock which

is large compared to other outstanding

blocks of voting stock, controls or has

the power to control the concern.

(2) If two or more persons (including

any individual, concern or other entity) each owns, controls, or has the

power to control less than 50 percent of
Small Business Administration

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 be rebutted 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

of evidence to the contrary.

(d) Affiliation arising under 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, or agreements to appear

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 a finding of affiliation.

(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

of one concern also control the board of

directors or management of one or

more other concerns.

(f) Affiliation based on identity of interest. Affiliation may arise among two or

more persons with an identity of interest. 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) may be 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) Affiliation based on the newly organized concern rule. Affiliation may arise

where former officers, directors, principal stockholders, managing members,

or key employees of one concern organize a new concern in the same or related industry or field of operation, 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 or management of the concern.

(h) Affiliation based on joint ventures.

A joint 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 a two year period, for which

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 the partners to the joint

venture being deemed affiliated for all

purposes. Once a joint 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 of the 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 of this provision and in order

to facilitate tracking of the number of

contract awards made to a joint venture, a joint venture must be in writing

and must do business under its own

name, and it may (but need not) be in

the form of a 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.

Example I to paragraph (h) introductory text. Joint Venture AB has received two con- tracts. On April 2, Joint Venture AB submits an offer for Solicitation 1. On June 6, Joint

Venture AB submits an offer for Solicitation

2. On July 13, Joint Venture AB submits an

offer for Solicitation 3. In September, Joint

Venture AB is found 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 its joint venture partners be13 CFR Ch. 1 (1-1-15 Edition)

cause Joint Venture AB had not yet received

three contract awards as of the dates of the

offers for each of three solicitations at issue.

Example 2 to paragraph (h) introductory text.

Joint Venture XY receives a contract on December 19, year 1. It may receive two additional contracts through December 19, year

3. On August 6, year 2, XY receives a second

contract. It receives no other contract

awards through December 19, year 3 and 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 an additional contract award. The individual parties to XY must form a new joint

venture if they want to seek and be awarded

additional contracts as a joint venture.

Example 3 to paragraph (h) introductory text. Joint Venture XY receives a contract on December 19, year 1. On May 22, year 2, XY submits 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, XY submits

an offer for Solicitation 3. In January, XY is

found to be the apparent successful offeror

for Solicitation 3. XY is eligible for the con- tract award because compliance with the

three awards in two years rule is determined as of the date of the initial offer including

price, XY submitted its offer prior to December 19, year 3, and XY had not received 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 a particular procurement

or property sale as joint venturers are

affiliated with each other with regard

to the performance of that contract.

(3) Exception to affiliation for certain

joint ventures. (i) A joint venture of two

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 so long 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) of this chapter; or

(B) The procurement is other than

bundled or consolidated requirement
Small Business Administration

within the meaning of §125.2(d) of this

chapter, and:

(1) For a procurement having a receipts based size standard, the dollar

value of the 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 of the 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 firms approved by SBA to be

a mentor and prot6g6 under §124.520 of

these regulations may joint venture as

a small business for any Federal government prime contract or subcontract, provided the prot6g6 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 of these regulations. If the procurement 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 as joint 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 its receipts its proportionate

share of joint venture receipts, and in

its total number of employees its proportionate share of joint venture employees.

(i) Affiliation based on franchise and license 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 of loss commensurate with ownership. Affiliation may arise, however,

through other means, such as common

ownership, common management or excessive restrictions upon the sale of the

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 FR 8251, Feb. 11,

2011; 77 FR 76224, Dec. 27, 2012; 78 FR 61130,

Oct. 2, 2013]

§ 121.104 How does SBA calculate annual receipts?

(a) Receipts means "total income" (or

in the case of a sole proprietorship, "gross income") plus "cost of goods

sold" as these terms are defined and reported 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 or before the date of self-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 of account,

audited financial statements, or information contained in an affidavit by a

person with personal knowledge of the

facts.

(b) Completed fiscal year means a taxable year including any short year.

"Taxable year" and "short year" have

the meanings attributed to them by

the IRS.

(c) Period of measurement. (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 total receipts 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 of the

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 of weeks in the short year and

the two full fiscal years, multiplied by

52.

(d) Annual receipts of affiliates. (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 of the 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 or an 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) of this section even

though this may result in using a different period of measurement to calculate an affiliate's annual receipts.

(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 Business Administration

(e) Unless otherwise defined in this

section, all terms shall have the meaning attributed to them 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 or concern"?

(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 or cooperative that does not qualify as small

under this part may not be a member

of a 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 a joint venture there can be no more than 49 percent participation by foreign business

entities in the joint 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 of employees?

(a) In determining a concern's number of employees, 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 of a concern. 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

of employees is used for each of the pay

periods during which it has been in

business.

(4)(i) The average number of employees of a business 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 of employees 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, May 21, 2004]

§ 121.107 How does SBA determine a

concern's "primary industry"?

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

for representing small business size

status, and what are the penalties

for misrepresentation?

(a) Presumption of 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.

(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 the bid 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 of a Federal

grant, contract, subcontract, cooperative agreement, or cooperative research and development agreement, as

a small business concern.

(c) Signature Requirement. 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 or grant.

An authorized official must sign the

certification on the same page containing the size status claimed by the

concern.

(d) Limitation of Liability. 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 not be 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 of the 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 of the individual or firm.

(e) Penalties for 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
Small Business Administration

size status pursuant to the procedures

set forth in 48 CFR subpart 9.4.

(2) Civil Penalties. 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) Criminal Penalties. 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 pursuant to 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.

[78 FR 38816, June 28, 2013]

§ 121.109 What must a concern do in

order to be identified as a small

business concern in any Federal

procurement databases?

(a) In order to be identified as a small

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 firm will not be listed

as a small business concern in SAM,

unless and until the firm recertifies its

size.

[78 FR 38817, June 28, 2013]

SIZE STANDARDS USED To DEFINE

SMALL BUSINESS CONCERNS

§ 121.201 What size standards has SBA

identified by North American Industry Classification 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, Fishing and 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 Farm ing .................................................................................

Oilseed (except Soybean) Farm ing ......................................................

Dry Pea and Bean Farm ing ..................................................................

W heat Farm ing .....................................................................................

Corn Farm ing ........................................................................................

Rice Farming ........................................................................................

Oilseed and Grain Combination Farming .............................................

All Other Grain Farm ing .......................................................................

Potato Farm ing .....................................................................................

Other Vegetable (except Potato) and Melon Farm ing .........................

Orange G roves .....................................................................................

Citrus (except Orange) Groves .............................................................

Apple Orchards .....................................................................................

Grape Vineyards ...................................................................................

Strawberry Farm ing ..............................................................................

Berry (except Strawberry) Farm ing ......................................................

Tree Nut Farm ing .................................................................................

Fruit and Tree Nut Combination Farm ing .............................................

Other Noncitrus Fruit Farm ing ..............................................................

M ushroom Production ...........................................................................

Other Food Crops Grown Under Cover ...............................................

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

........................
§ 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

111421 ....................... Nursery and Tree Production ............................................................... $0.75 ........................

111422 ....................... Floriculture Production .......................................................................... $0.75 ........................

111910 ....................... Tobacco Farm ing .................................................................................. $0.75 ........................

111920 ....................... Cotton Farm ing . ..................... ..... ................................. $0.75 ........................

111930 ....................... Sugarcane Farm ing .............................................................................. $0.75 ........................

111940 ....................... Hay Farm ing .................................................................................. ...... $0.75 ........................

111991 ....................... Sugar Beet Farm ing ............................................................................. $0.75 ........................

111992 ....................... Peanut ut.Farming................... Farm ing ..... ................................ $0.75 ........................

111998 ....................... All Other M iscellaneous C rop Farm ing ................................................. $0.75 ........................

Subsector 112-Animal Production and Aquaculture

112111 ....................... Beef Cattle Ranching and Farm ing ...................................................... $0.75 ........................

112112 ....................... Cattle Feedlots .............................................................................. ....... $7.5

112120 ....................... Dairy Cattle and M ilk Production .......................................................... $0.75 ........................

112210 ....................... Hog and Pig Farm ing ........................................................................... $0.75 ........................

112310 ....................... C hicken Egg Production ....................................................................... $15.0

112320 ....................... Broilers and Other M eat Type C hicken Production ............................. $0.75 ........................

112330 ....................... Turkey Production ................................................................................. $0.75 ........................

112340 ....................... Poultry Hatcheries ................................................................................. $0.75 ........................

112390 ....................... Other Poultry Production ...................................................................... $0.75 ........................

112410 ....................... Sheep Farm ing ....... .. . . . ................... ................................. $0.75 ........................

112420 ....................... G oat Farm ing .................................................................................... $0.75 ........................

112511 ....................... Finfish Farm ing and Fish Hatcheries .................................................... $0.75 ........................

112512 ....................... Shellfish Farm ing .................................................................................. $0.75 ........................

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

112910 ....................... Apiculture .......................................................................... ................... $0.75 ........................

112920 ....................... Horse and Other Equine Production .................................................... $0.75 ........................

112930 ....................... Fur-Bearing Anim al and Rabbit Production .......................................... $0.75 ........................

112990 ....................... All Other Anim al Production ................................................................. $0.75 ........................

Subsector 113-Forestry and Logging

113110 ....................... Tim ber Tract O perations ....................................................................... $11.0

113210 ....................... Forest Nurseries and G athering of Forest Products ............................ $11.0

113310 ....................... Logging ................................................................................................. ........................ 500

Subsector 114-Fishing, Hunting and Trapping

114111 ....................... Finfish Fishing ...................................................................................... $20.5

114112 ....................... Shellfish Fishing .................................................................................... $5.5

114119 ....................... Other M arine Fishing ............................................................................ $7.5

114210 ....................... Hunting and Trapping ........................................................................... $5.5

Subsector 115-Support Activities for Agriculture and Forestry

115111 ....................... Cotton G inning .................................................................................. $11.0

115112 ....................... Soil Preparation, Planting, and C ultivating ........................................... $7.5

115113 ....................... C rop Harvesting, Prim arily by M achine ................................................ $7.5

115114 ....................... Postharvest C rop Activities (except Cotton G inning) ........................... $27.5

115115 ....................... Farm Labor Contractors and C rew Leaders ......................................... $15.0

115116 ....................... Farm M anagem ent Services ................................................................. $7.5

115210 ....................... Support Activities for Anim al Production .............................................. $7.5

115310 ....................... Support Activities for Forestry .............................................................. $7.5

Except, ....................... Forest Fire Suppression 17 ........................... . . .. . .. . .. . .. . .. . .. . . .. .. . .. . .. . .. . .. . . .. $19.0 17

Except, ....................... Fuels M anagem ent Services 17 ...................... .. .. . .. . .. . .. . .. . . .. .. . .. . .. . .. . .. . . .. $19.0 17

Sector 21-Mining, Quarrying, and Oil and Gas Extraction

Subsector 211-Oil and Gas Extraction

211111 ....................... C rude Petroleum and Natural G as Extraction ...... .................. 500................................ S

211112 ....................... Natural G as Liquid Extraction ............................................................... ........................ 500

Subsector 212-Mining (except Oil and Gas)

212111 ....................... Bitum inous Coal and Lignite Surface M ining ....................................... ........................ 500

212112 ....................... Bitum inous Coal U nderground M ining .................................................. ........................ 500

212113 ....................... Anthracite M ining .............................................................................. ..................... 500

212210 ....................... Iron O re M ining ..................................................................................... 5........................ 500

212221 ....................... G old O re M ining .............................................................................. ..................... 500
Small Business Administration

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

2 12 2 2 2 ....................... S ilv e r O re M in ing .................................................................................. 5 5........................ 00

212231 ....................... Lead O re and Zinc O re M ining ............................................................. ........................ 500

212234 ....................... C opper O re and N ickel O re M ining ...................................................... ........................ 500

212291 ....................... Uranium-Radium-Vanadium Ore Mining ............................................... ........................ 500

2 12299 ....................... A ll O ther M etal O re M ining ................................................................... ........................ 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 ....................... C onstruction Sand and G ravel M ining ................................................. ........................ 500

212322 ....................... Industrial Sand M ining .......................................................................... . ........ ........... 500

2 12324 ....................... Kaolin and Ball C lay M ining ................................................................. ........................ 500

212325 ....................... Clay and Ceramic and Refractory Minerals Mining .............................. ........................ 500

212391 ....................... Potash, Soda, and Borate Mineral Mining ........................................... ........................ 500

2 12392 ....................... P hosphate R ock M ining ........................................................................ ........................ 500

212393 ....................... Other Chemical and Fertilizer Mineral Mining ...................................... ........................ 500

212399 ....................... All O ther Nonm etallic M ineral M ining ................................................... ........................ 500

Subsector 213-Support Activities for Mining

2 13 111 ....................... D rilling O il a nd G as W e lls .................................................................... ........................ o5

213112 ....................... Support Activities for Oil and 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

Subsector 221-Utilities

221111 ....................... Hydroelectric Pow er G eneration ........................................................... ........................ 50

221112 ....................... Fossil Fuel Electric Pow er G eneration ................................................. ........................ 750

221113 ....................... N uclear Electric Pow er G eneration ...................................................... ........................ 750

221114 ....................... Solar E lectric Pow er G eneration .......................................................... ........................ 250

221115 ....................... W ind E lectric Pow er G eneration .......................................................... ........................ 250

221116 ....................... Geothermal Electric Power Generation ................................................ ........................ 250

221117 ....................... Biom ass Electric Pow er G eneration ..................................................... ........................ 250

221118 ....................... O ther Electric Pow er G eneration .......................................................... ........................ 250

221121 ....................... Electric Bulk Power Transmission and Control .................................... ........................ 50

221122 ....................... Electric Power Distribution .................................................................... ................. ..... 1,000

22 12 10 ....................... N atura l G as D istrib utio n ....................................................................... ........................ 50

221310 ....................... Water Supply and Irrigation Systems ................................................... $27.5

221320 ....................... Sew age T reatm ent Facilities ................................................................ $20 .5

221330 ....................... Steam and Air-Conditioning Supply ..................................................... $15.0

Sector 23-Construction

Subsector 236-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 em odelers ........................................................................ $36.5

236210 ....................... Industrial Building C onstruction ............................................................ $36.5

236220 ....................... Commercial and Institutional Building Construction ............................. $36.5

Subsector 237-Heavy and Civil Engineering Construction

237110 ....................... Water and Sewer Line and Related Structures Construction .............. $36.5

237120 ....................... Oil and Gas Pipeline and Related Structures Construction ................. $36.5

237130 ....................... Power and Communication Line and Related Structures Construction $36.5

237210 ....................... Land Subdivision................... Subdivision ...... ............................... $27.5

237310 ....................... Highway, Street, and Bridge Construction ........................................... $36.5

237990 ....................... Other Heavy and Civil Engineering Construction ................................. $36.5

Except, ....................... Dredging and Surface Cleanup Activities 2 ........................................... $27.52

Subsector 238-Specialty Trade Contractors

$15.0

$15.0

$15.0

238110 ....................... Poured Concrete Foundation and Structure Contractors .....................

238120 ....................... Structural Steel and Precast Concrete Contractors .............................

238130 ....................... Fram ing 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 ....................... M asonry C ontractors ............................................................................. $15.0

238150 ....................... Glass and Glazing Contractors ............................................................. $15.0

238 160 ....................... R oofing C ontractors .............................................................................. $ 15.0

238 170 ....................... S iding C ontractors ................................................................................ $ 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 Insulation Contractors ....................................................... $15.0

238320 ....................... Painting and Wall Covering Contractors .............................................. $15.0

238330 ....................... Flooring C ontractors ............................................................................. $ 15.0

238340 ....................... Tile and Terrazzo Contractors .............................................................. $15.0

238350 ....................... Finish C arpentry C ontractors ................................................................ $15.0

238390 ....................... Other Building Finishing Contractors .................................................... $15.0

238910 ....................... Site Preparation C ontractors ................................................................ $15.0

238990 ....................... All Other Specialty Trade Contractors .................................................. $15.0

Except . ...................... Building and Property Specialty Trade Services 13 ....... . . . .. .. . .. . .. . .. . .. . . .. $15.013

Sectors 31-33-Manufacturing

Subsector 311-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 M anufacturing ........................................................

Other Anim al Food M anufacturing ........................................................

Flour M illing ...........................................................................................

Rice M illing ...........................................................................................

M alt M anufacturing ...............................................................................

W et Corn M illing ...................................................................................

Soybean and Other O ilseed Processing ..............................................

Fats and O ils Refining and Blending ....................................................

Breakfast Cereal M anufacturing ...........................................................

Beet Sugar M anufacturing ....................................................................

Cane Sugar M anufacturing ...................................................................

Nonchocolate Confectionery M anufacturing .........................................

Chocolate and Confectionery Manufacturing from Cacao Beans.

Confectionery Manufacturing from Purchased Chocolate ....................

Frozen Fruit, Juice and Vegetable M anufacturing ...............................

Frozen Specialty Food M anufacturing ..................................................

Fruit and Vegetable Canning 3 ..............................................................

Specialty Canning .................................................................................

Dried and Dehydrated Food M anufacturing .........................................

Fluid M ilk M anufacturing .......................................................................

C ream ery Butter M anufacturing ............................................................

C heese M anufacturing ..........................................................................

Dry, Condensed, and Evaporated Dairy Product Manufacturing.

Ice C ream and Frozen Dessert M anufacturing ....................................

Anim al (except Poultry) Slaughtering ...................................................

M eat Processed from C arcasses ...................................................

Rendering and M eat Byproduct Processing .........................................

Poultry Processing ................................................................................

Seafood Product Preparation and Packaging ......................................

Retail Bakeries .. ................................. ..............................................

Com m ercial Bakeries ............................................................................

Frozen Cakes, Pies, and Other Pastries Manufacturing ......................

Cookie and C racker M anufacturing ......................................................

Dry Pasta, Dough, and Flour Mixes Manufacturing from Purchased

Flour.

Tortilla M anufacturing ...........................................................................

Roasted Nuts and Peanut Butter M anufacturing .................................

Other Snack Food M anufacturing ........................................................

Coffee and Tea M anufacturing .............................................................

Flavoring Syrup and Concentrate M anufacturing .................................

Mayonnaise, Dressing and Other Prepared Sauce Manufacturing.

Spice and Extract M anufacturing .........................................................

Perishable Prepared Food M anufacturing ............................................

All Other M iscellaneous Food M anufacturing ......................................

Subsector 312-Beverage and Tobacco Product Manufacturing

3 12 111 ....................... S oft D rink M a nufacturing ...................................................................... ........................

3 12 112 ....................... Bottled W ater M anufacturing ................................................................ ........................

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

........................
Small Business Administration

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 ....................... Brew eries .............................................................................................. 5........................ 500

312130 ....................... W ineries ................................................................................................ 5........................ 500

312140 ....................... Distilleries .............................................................................................. ........................ 750

312230 ....................... Tobacco M anufacturing ........................................................................ ........................ 1,000

Subsector 313-Textile Mills

313110 ....................... Fiber, Yarn, and Thread M ills ............................................................... ........................ 500

313210 ....................... Broadw oven Fabric M ills ....................................................................... ........................ 1,000

313220 ....................... Narrow Fabric M ills and Schiffli M achine Em broidery .......................... ....................... 500

313230 ....................... Nonw oven Fabric M ills .......................................................................... ........................ 500

313240 ....................... Knit Fabric M ills .................................................................................... 500 5........................ 

313310 ....................... Textile and Fabric Finishing M ills ......................................................... ........................ 1,000

313320 ....................... Fabric Coating M ills .............................................................................. ........................ 1,000

Subsector 314-Textile Product Mills

314110 ....................... Carpet and Rug M ills ............................................................................ ........................ 500

314120 ....................... C urtain and Linen M ills ......................................................................... ........................ 500

314910 ....................... Textile Bag and Canvas M ills ............................................................... ........................ 500

314994 ....................... Rope, Cordage, Tw ine, Tire Cord, and Tire Fabric M ills .............................................. 1,000

314999 ....................... All Other M iscellaneous Textile Product M ills ...................................... ........................ Soo

Subsector 315-Apparel Manufacturing

315110 ....................... Hosiery and Sock M ills ......................................................................... ........................ 500

315190 ....................... Other Apparel Knitting M ills .................................................................. ........................ 500

315210 ....................... C ut and Sew Apparel Contractors ........................................................ ........................ 500

315220 ....................... M en's and Boys' C ut and Sew Apparel M anufacturing ....................... ...................... 500

315240 ....................... W om en's, G irls', and Infants' C ut and Sew Apparel M anufacturing .... ........................ 500

315280 ....................... Other C ut and Sew Apparel M anufacturing ......................................... ........................ 500

315990 ....................... Apparel Accessories and O ther Apparel M anufacturing ...................... ...................... 500

Subsector 316-Leather and Allied Product Manufacturing

316110 ....................... Leather and Hide Tanning and Finishing ............................................. ........................ 500

316210 ....................... Footw ear M anufacturing ....................................................................... ........................ 1,000

316992 ....................... W om en's Handbag and Purse M anufacturing ...................................... ........................ 500

316998 ....................... All Other Leather G ood and Allied Product M anufacturing ............. . .. ...................... 500

Subsector 321-Wood Product Manufacturing

321113 ....................... Saw m ills ................................................................................................ 5........................ 500

321114 ....................... W ood Preservation ............................................................................... .................. .... . 500

321211 ....................... Hardw ood Veneer and Plyw ood M anufacturing ................................... ........................ 500

321212 ....................... Softw ood Veneer and Plywood M anufacturing .................................... ........................ 500

321213 ....................... Engineered W ood M em ber (except Truss) M anufacturing ............... ........................ 500

321214 ....................... Truss M anufacturing ................................................................................. ............. 500

321219 ....................... Reconstituted W ood Product M anufacturing ........................................ ........................ 500

321911 ....................... W ood W indow and Door M anufacturing .............................................. ........................ 500

321912 ....................... C ut Stock, Resaw ing Lum ber, and Planing ......................................... ........................ 500

321918 ....................... Other M illw ork (including Flooring) ....................................................... ........................ 500

321920 ....................... W ood Container and Pallet M anufacturing .......................................... ........................ 500

321991 ....................... M anufactured Hom e (M obile Hom e) M anufacturing ............................ ........................ 500

321992 ....................... Prefabricated W ood Building M anufacturing ........................................ ........................ 500

321999 ....................... All Other M iscellaneous W ood Product M anufacturing ........................ ....................... I. 500

Subsector 322-Paper Manufacturing

322110 ....................... Pulp M ills ....................................................................................................................... 750

322121 ....................... Paper (except New sprint) M ills ............................................................. ........................ 750

322122 ....................... New sprint M ills ...................................................................................... ........................ 750

322130 ....................... Paperboard M ills ............................................................................................................ 750

322211 ....................... Corrugated and Solid Fiber Box M anufacturing ................................... ........................ 500

322212 ....................... Folding Paperboard Box M anufacturing ............................................... ........................ 750

322219 ....................... Other Paperboard Container M anufacturing ........................................ ........................ 750

322220 ....................... Paper Bag and Coated and Treated Paper M anufacturing ............ ... ...................... 500

322230 ....................... Stationery Product M anufacturing ........................................................ ........................ 500

322291 ....................... Sanitary Paper Product M anufacturing ................................................ ........................ 500

322299 ....................... All Other Converted Paper Product M anufacturing .............................. ........................ 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-Printing and Related Support Activities

323111 ....................... Commercial Printing (except Screen and Books) ................................ ........................ 50

323 113 ....................... C om m ercial S creen P rinting ................................................................. ........................ 50

3 2 3 1 17 ....................... B o o ks P rinting ....................................................................................... 5........................ S o o

323 120 ....................... S upport A ctivities for P rinting ............................................................... ........................ 50

Subsector 324-Petroleum and Coal Products Manufacturing

324 110 ....................... P etrole um R efine ries4 ........................................ . . .. . .. . .. . .. . . .. . .. .. . .. . .. . .. . . .. .. . .. . .. . .. . .. . .. . .. . .. . 4 1,500

324121 ....................... Asphalt Paving Mixture and Block Manufacturing ................................ ........................ 50

324122 ....................... Asphalt Shingle and Coating Materials Manufacturing ........................ ........................ 750

324191 ....................... Petroleum Lubricating Oil and Grease Manufacturing ................................................ o5

324199 ....................... All Other Petroleum and Coal Products Manufacturing ............................................. o5

Subsector 325-Chemical Manufacturing

325110 ....................... Petrochem ical M anufacturing ............................................................... ........................ 1,000

325 120 ....................... Industrial G as M anufacturing ................................................................ ........................ 1,000

325130 ....................... Synthetic Dye and Pigment Manufacturing .......................................... ........................ 1,000

325180 ....................... Other Basic Inorganic Chemical Manufacturing ............................................................ 1,000

325 193 ....................... Ethyl A lcohol M anufacturing ................................................................. ........................ 1,000

325194 ....................... Cyclic Crude, Intermediate, and Gum and Wood Chemical Manufac . ....................... 750

turing.

325199 ....................... All Other Basic Organic Chemical Manufacturing ......................................................... 1,000

325211 ....................... Plastics Material and Resin Manufacturing .......................................... ........................ 750

325212 ....................... Synthetic R ubber M anufacturing .......................................................... ........................ 1,000

325220 ....................... Artificial and Synthetic Fibers and Filaments Manufacturing ............... ........................ 1,000

325311 ....................... N itrogenous Fertilizer M anufacturing .................................................... ........................ 1,000

325312 ....................... Phosphatic Fertilizer M anufacturing ..................................................... ........................ o5

325314 ....................... Fertilizer (M ixing O nly) M anufacturing .................................................. ........................ o5

325320 ....................... Pesticide and Other Agricultural Chemical Manufacturing ....................................... 500

325411 ....................... Medicinal and Botanical Manufacturing ................................................ ........................ 750

325412 ....................... Pharmaceutical Preparation Manufacturing .......................................... ........................ 750

325413 ....................... In-Vitro Diagnostic Substance Manufacturing ...................................... ........................ 500

325414 ....................... Biological Product (except Diagnostic) Manufacturing ................................................ 500

325510 ....................... Paint and C oating M anufacturing ......................................................... ........................ 500

325520 ....................... A dhesive M anufacturing ....................................................................... ........................ 500

325611 ....................... Soap and Other Detergent Manufacturing ........................................... ........................ 750

325612 ....................... Polish and Other Sanitation Good Manufacturing ................................ ........................ 500

325613 ....................... Surface Active Agent M anufacturing .................................................... ........................ 500

325620 ....................... Toilet Preparation M anufacturing .......................................................... ........................ 500

3259 10 ....................... P rinting Ink M anufacturing .................................................................... ........................ 500

325920 ....................... Explosives M anufacturing ..................................................................... ........................ 750

325991 ....................... Custom Compounding of Purchased Resins ....................................... ........................ 500

325992 ....................... Photographic Film, Paper, Plate and Chemical Manufacturing ........... ....................... 500

325998 ....................... All Other Miscellaneous Chemical Product and Preparation Manufac . ....................... 500

turing.

Subsector 326-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 Profile Shape 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 (except Retreading) 5 .................. .......................

....

T ire R etre a d ing .....................................................................................

Rubber and Plastics Hoses and Belting Manufacturing .......................

Rubber Product Manufacturing for Mechanical Use ............................

500

500

500

500

500

500

500

500

500

500

750

51,000

500

500

500

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

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

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

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

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

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

........................
Small Business Administration

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

3272 11 ....................... Flat G lass M anufacturing ...................................................................... ........................ 1,000

327212 ....................... Other Pressed and Blown Glass and Glassware Manufacturing ......... ........................ 750

327213 ....................... Glass Container Manufacturing ............................................................ ........................ 750

327215 ....................... Glass Product Manufacturing Made of Purchased Glass ................. ........................ 500

3273 10 ....................... C em ent M anufacturing ......................................................................... ........................ 750

327320 ....................... Ready-Mix Concrete Manufacturing ..................................................... ........................ 500

327331 ....................... Concrete Block and Brick Manufacturing ............................................. ........................ 500

327332 ....................... C oncrete Pipe M anufacturing ............................................................... ........................ 500

327390 ....................... Other Concrete Product Manufacturing ................................................ ........................ 500

327410 ....................... Lime Manufacturing .................................................................................................... 500

327420 ....................... Gypsum Product Manufacturing ........................................................... ........................ 1,000

327910 ....................... Abrasive Product Manufacturing .......................................................... ........................ 500

327991 ....................... Cut Stone and Stone Product Manufacturing ...................................... ........................ 500

327992 ....................... Ground or Treated Mineral and Earth Manufacturing .................................................. 500

327993 ....................... M ineral W ool 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

33 1222 ....................... S tee l W ire D raw ing ............................................................................... . ........................ 1,000

331313 ....................... Alumina Refining and Primary Aluminum Production ................................................... 1,000

331314 ....................... Secondary Smelting and Alloying of Aluminum ................................... ........................ 750

331315 ....................... Aluminum Sheet, Plate and Foil Manufacturing .......................................... 750

331318 ....................... Other Aluminum Rolling, Drawing, and Extruding ................................ ........................ 750

331410 ....................... Nonferrous Metal (except Aluminum) 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

cept Copper and Aluminum).

3 3 15 1 1 ....................... Iro n F o u nd rie s ....................................................................................... ........................ 500

33 15 12 ....................... Steel Investm ent Foundries .................................................................. ........................ 500

331513 ....................... Steel Foundries (except Investment) .................................................... ........................ 500

331523 ....................... Nonferrous Metal Die-Casting Foundries ............................................. ........................ 500

331524 ....................... Aluminum Foundries (except Die-Casting) ........................................... ........................ 500

331529 ....................... Other Nonferrous Metal Foundries (except Die-Casting) .................. ........................ I . 500

Subsector 332-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 Form ing ............................................................................

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 W ork Manufacturing ....................................................................

Metal W indow and Door Manufacturing ...............................................

Sheet Metal W ork Manufacturing .........................................................

Ornamental and Architectural Metal W ork 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 W ire Product Manufacturing .....................................

Machine Shops .....................................................................................

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

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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, Rivet and Washer Manufacturing ............................. ........................ 500

3328 11 ....................... M eta l H eat T reating .............................................................................. . ........................ 750

332812 ....................... Metal Coating, Engraving (except Jewelry and Silverware), and Allied ........................ 500

Services to 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 (except Small 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 Machinery and Equipment Manufacturing ................................

Oil and Gas Field Machinery and Equipment Manufacturing ..............

Food Product Machinery Manufacturing ...............................................

Sem iconductor Machinery Manufacturing ............................................

Sawmill, Woodworking, and Paper Machinery Manufacturing .............

Printing Machinery and Equipment Manufacturing ...............................

Other Industrial Machinery Manufacturing ............................................

Optical Instrument and Lens Manufacturing .........................................

Photographic and Photocopying Equipment Manufacturing ................

Other Commercial and Service Industry Machinery Manufacturing.

Industrial and Commercial Fan and Blower and Air Purification

Equipment Manufacturing.

Heating Equipment (except Warm 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 Machine Tool Accessory Manufacturing ..................

M achine Tool M anufacturing ................................................................

Rolling Mill and Other Metalworking Machinery Manufacturing ...........

Turbine and Turbine Generator Set Unit Manufacturing ......................

Speed Changer, Industrial High- Speed Drive and Gear Manufacturing.

Mechanical Power Transmission Equipment Manufacturing ................

Other Engine Equipment Manufacturing ..............................................

Pump and Pumping Equipment Manufacturing ....................................

Air and Gas Compressor 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 M achinery M anufacturing ....................................................

Industrial Process Furnace and Oven Manufacturing ..........................

Fluid Power Cylinder and Actuator Manufacturing ...............................

Fluid Power Pump and Motor Manufacturing .......................................

Scale and Balance M anufacturing ........................................................

All Other Miscellaneous General Purpose Machinery Manufacturing ..

§ 121.201

Subsector 334-Computer and Electronic Product Manufacturing6

334111 ....................... Electronic C om puter M anufacturing ..................................................... ........................

334112 ....................... Computer Storage Device Manufacturing ............................................ ........................

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

........................
Small Business Administration § 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 ....................... Telephone Apparatus 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 for Measuring, 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 Apparatus Manufacturing ..................................................... ........................ 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-Electrical Equipment, Appliance and Component Manufacturing6

335110 ....................... Electric Lamp Bulb and Part Manufacturing .................... ........................ 1,000

335121 ....................... Residential Electric Lighting Fixture Manufacturing ............................. ........................ 500

335122 ....................... Commercial, Industrial and Institutional Electric Lighting Fixture 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 Appliance Manufacturing ....................................................... 500

335311 ....................... Power, Distribution and Specialty Transformer Manufacturing ............ ........................ 750

335312 ....................... Motor and Generator Manufacturing .................................................... ........................ 1,000

335313 ....................... Switchgear and Switchboard Apparatus Manufacturing ............ ........................ 750

335314 ....................... Relay and Industrial Control Manufacturing ......................................... ........................ 750

335911 ....................... Storage Battery M anufacturing ............................................................. ........................ 500

335912 ....................... Prim ary Battery M anufacturing ............................................................. ........................ 1,000

335921 ....................... Fiber O ptic C able M anufacturing .......................................................... ........................ 1,000

335929 ....................... Other Communication and Energy Wire Manufacturing ................................................ 1,000

335931 ....................... Current-Carrying Wiring Device Manufacturing .................................... ........................ 500

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

335991 ....................... Carbon and Graphite Product Manufacturing ...................................... ........................ 750

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

facturing.

Subsector 336--Transportation Equipment Manufacturing6

336111 .......................

336112 .......................

336120 .......................

336211 .......................

336212 .......................

336213 .......................

336214 .......................

336310 .......................

336320 .......................

336330 .......................

336340 .......................

Automobile Manufacturing ....................................................................

Light Truck and Utility Vehicle Manufacturing ......................................

Heavy Duty Truck Manufacturing .........................................................

Motor Vehicle Body Manufacturing ......................................................

Truck Trailer Manufacturing ..................................................................

Motor Home Manufacturing ..................................................................

Travel Trailer and Camper Manufacturing ...........................

Motor Vehicle Gasoline Engine and Engine Parts Manufacturing.

Motor Vehicle Electrical and Electronic Equipment Manufacturing.

Motor Vehicle Steering and Suspension Components (except Spring)

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 Interior Trim Manufacturing ....................... ...................... 500

336370 ....................... Motor Vehicle Metal Stamping ............................................................. ........................ 500

336390 ....................... Other Motor Vehicle Parts Manufacturing ............................................ ........................ 750

3364 11 ....................... A ircraft M a nufacturing ........................................................................... ........................ 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 Missile and Space Vehicle Parts and Auxiliary Equip . ....................... 1,000

ment Manufacturing.

336510 ....................... Railroad Rolling Stock Manufacturing .................................................. ........................ 1,000

3366 11 ....................... S hip B uilding and R epairing ................................................................. ........................ 1,000

3 3 6 6 12 ....................... B o at B u ild ing ......................................................................................... 500 5........................ 

336991 ....................... Motorcycle, Bicycle and Parts Manufacturing ...................................... ........................ 500

336992 ....................... Military Armored Vehicle, Tank and Tank Component Manufacturing ........................ 1,000

336999 ....................... All Other Transportation Equipment Manufacturing ............................. ........................ 500

Subsector 337-Furniture and Related Product Manufacturing

337110 ....................... Wood Kitchen Cabinet and Counter Top Manufacturing ..................... ...................... 500

337121 ....................... Upholstered Household Furniture Manufacturing ................................. ........................ 500

337122 ....................... Nonupholstered Wood Household Furniture Manufacturing ........... ........................ 500

337124 ....................... Metal Household Furniture Manufacturing ........................................... ........................ 500

337125 ....................... Household Furniture (except Wood and Metal) Manufacturing ........... ....................... 500

337127 ....................... Institutional Furniture Manufacturing .................................................... ........................ 500

337211 ....................... Wood Office Furniture Manufacturing ................................................... ........................ 500

337212 ....................... Custom Architectural Woodwork and Millwork Manufacturing ............. ....................... 500

337214 ....................... Office Furniture (Except Wood) Manufacturing .................................... ........................ 500

337215 ....................... Showcase, Partition, Shelving, and Locker Manufacturing ............. ......................... 500

3379 10 ....................... M attress M anufacturing ........................................................................ ........................ 500

337920 ....................... Blind and Shade Manufacturing ........................................................... ........................ 500

Subsector 339-Miscellaneous Manufacturing

339112 ....................... Surgical and Medical Instrument Manufacturing .................................. ........................ 50

339113 ....................... Surgical Appliance and Supplies Manufacturing .................................. ........................ 50

339114 ....................... Dental Equipment and Supplies Manufacturing ................................... ........................ o5

339115 ....................... Ophthalmic Goods Manufacturing ........................................................ ........................ o5

339116 ....................... Dental Laboratories .................................................................................................... 50

339910 ....................... Jewelry and 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

Sector 42-Wholesale Trade

(These NAICS codes shall not be used to classify Government acquisitions for supplies. They also shall not be used by Federal

Government contractors when subcontracting for the acquisition for supplies. The applicable manufacturing NAICS code shall

be used to classify acquisitions for supplies. A Wholesale Trade or Retail Trade business concern submitting an offer or a

quote on a supply acquisition is categorized as a nonmanufacturer and deemed small if it has 500 or fewer employees and

meets the requirements of 13 CFR 121.406.)

Subsector 423-Merchant Wholesalers, Durable Goods

423110 ....................... Automobile and Other Motor Vehicle Merchant Wholesalers ..............

423120 ....................... Motor Vehicle Supplies and New Parts Merchant Wholesalers ...........

423130 ....................... Tire and Tube Merchant Wholesalers ..................................................

423140 ....................... Motor Vehicle Parts (Used) Merchant Wholesalers .............................

423210 ....................... Furniture M erchant W holesalers ...........................................................

423220 ....................... Home Furnishing Merchant Wholesalers .............................................

423310 ....................... Lumber, Plywood, Millwork, and Wood Panel Merchant Wholesalers

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

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

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

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

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

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

........................
Small Business Administration

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 W holesalers .............................

Photographic Equipment and Supplies Merchant Wholesalers ...........

Office Equipment Merchant W holesalers .............................................

Computer and Computer Peripheral Equipment and Software Merchant Wholesalers.

Other Commercial Equipment Merchant Wholesalers .........................

Medical, Dental, and Hospital Equipment and Supplies Merchant

Wholesalers.

Ophthalmic Goods Merchant W holesalers ...........................................

Other Professional Equipment and Supplies Merchant Wholesalers ..

Metal Service Centers and Other Metal Merchant Wholesalers ..........

Coal and Other Mineral and Ore Merchant Wholesalers .....................

Electrical Apparatus and Equipment, Wiring Supplies, and Related

Equipment Merchant Wholesalers.

Household Appliances, Electric Housewares, and Consumer Electronics Merchant Wholesalers.

Other Electronic Parts and Equipment Merchant Wholesalers ............

Hardware M erchant W holesalers .........................................................

Plumbing and Heating Equipment and Supplies (Hydronics) Merchant Wholesalers.

Warm Air Heating and Air-Conditioning Equipment and Supplies

Merchant Wholesalers.

Refrigeration Equipment and Supplies Merchant Wholesalers ............

Construction and Mining (except Oil Well) Machinery and Equipment

Merchant Wholesalers.

Farm and Garden Machinery and Equipment Merchant Wholesalers

Industrial Machinery and Equipment Merchant Wholesalers ...............

Industrial Supplies Merchant W holesalers ...........................................

Service Establishment Equipment and Supplies Merchant Wholesalers.

Transportation Equipment and Supplies (except Motor Vehicle) Merchant Wholesalers.

Sporting and Recreational Goods and Supplies Merchant Wholesalers.

Toy and Hobby Goods and Supplies Merchant Wholesalers ..............

Recyclable Material Merchant W holesalers .........................................

Jewelry, Watch, Precious Stone, and Precious Metal Merchant

Wholesalers.

Other Miscellaneous Durable Goods Merchant Wholesalers ..............

Subsector 424-Merchant Wholesalers, Nondurable Goods

Printing and W riting Paper Merchant W holesalers ..............................

Stationary and Office Supplies Merchant Wholesalers ........................

Industrial and Personal Service Paper Merchant Wholesalers ............

Drugs and Druggists' Sundries Merchant Wholesalers ........................

Piece Goods, Notions, and Other Dry Goods Merchant Wholesalers

Men's and Boys' Clothing and Furnishings Merchant Wholesalers.

Women's, Children's, and Infants' Clothing and Accessories Merchant Wholesalers.

Footwear M erchant W holesalers ..........................................................

General Line Grocery Merchant W holesalers ......................................

Packaged Frozen Food Merchant W holesalers ...................................

Dairy Product (except Dried or Canned) Merchant Wholesalers.

Poultry and Poultry Product Merchant W holesalers .............................

Confectionery Merchant W holesalers ...................................................

Fish and Seafood Merchant W holesalers ............................................

Meat and Meat Product Merchant W holesalers ...................................

Fresh Fruit and Vegetable Merchant W holesalers ...............................

Other Grocery and Related Products Merchant Wholesalers ..............

Grain and Field Bean Merchant W holesalers ......................................

Livestock M erchant W holesalers ..........................................................

Other Farm Product Raw Material Merchant Wholesalers ..................

Plastics Materials and Basic Forms and Shapes Merchant Wholesalers.

Other Chemical and Allied Products Merchant Wholesalers ...............

Petroleum Bulk Stations and Term inals ...............................................

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

........................
§ 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

424720 ....................... Petroleum and Petroleum Products Merchant Wholesalers (except ........................ 100

Bulk Stations and Terminals).

424810 ....................... Beer and Ale Merchant Wholesalers .................................................... ........................ 100

424820 ....................... Wine and Distilled Alcoholic Beverage Merchant Wholesalers ............ ........................ 100

424910 ....................... Farm Supplies Merchant Wholesalers .................................................. ........................ 100

424920 ....................... Book, Periodical, and Newspaper Merchant Wholesalers ................... ........................ 100

424930 ....................... Flower, Nursery Stock, and Florists' Supplies Merchant Wholesalers ........................ 100

424940 ....................... Tobacco and Tobacco Product Merchant Wholesalers ....................... ........................ 100

424950 ....................... Paint, Varnish, and Supplies Merchant Wholesalers ........................... ........................ 100

424990 ....................... Other Miscellaneous Nondurable Goods Merchant Wholesalers ..... ........................ 100

Subsector 425-Wholesale Electronic Markets and Agents and Brokers

425110 ....................... Business to Business Electronic Markets ............................................. . ........... 100

425120 ....................... Wholesale Trade Agents and Brokers ................................................. ........................ 100

Sector 44-45-Retail Trade

(These NAICS codes shall not be used to classify Government acquisitions for supplies. They also shall not be used by Federal

Government contractors when subcontracting for the acquisition for supplies. The applicable manufacturing NAICS code shall

be used to classify acquisitions for supplies. A Wholesale Trade or Retail Trade business concern submitting an offer or a

quote on a supply acquisition is categorized as a nonmanufacturer and deemed small if it has 500 or fewer employees and

meets the requirements of 13 CFR 121.406.)

Subsector 441-Motor Vehicle and Parts Dealers

44 1110 ....................... N ew C a r D ea le rs .................................................................................. . ........................ 200

44 1120 ....................... U sed C ar 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 Accessories Stores ........................................... $15.0

441320 ....................... Tire Dealers ...................................................................................... $15.0

Subsector 442-Furniture and Home Furnishings Stores

442 110 ....................... F urniture S to res .................................................................................... $20 .5

4422 10 ....................... Floor C overing S tores ........................................................................... $7.5

442291 ....................... W indow Treatm ent Stores .................................................................... $7.5

442299 ....................... All Other Home Furnishings Stores ...................................................... $20.5

Subsector 443-Electronics and Appliance Stores

443141 ....................... Household Appliance Stores ................................................................ $11.0

443 142 ....................... E lectronics S tores ................................................................................. $32.5

Subsector 444-Building Material and Garden Equipment and Supplies Dealers

444110 ....................... Home Centers .................................................................................... $38.5

444120 ....................... Paint and W allpaper Stores .................................................................. $27.5

444 130 ....................... H ardw are S tores ................................................................................... $7.5

444190 ....................... O ther Building M aterial Dealers ............................................................ $20.5

444210 ....................... Outdoor Power Equipment Stores ........................................................ $7.5

444220 ....................... N ursery and G arden C enters ............................................................... $11.0

Subsector 445-Food and Beverage Stores

445110 ....................... Supermarkets and Other Grocery (except Convenience) Stores $32.5

445120 ....................... C onvenience Stores ............................................................................. $29.5

445210 ....................... Meat Markets ................................................................................ ....... $7.5

445220 ....................... Fish and Seafood M arkets ................................................................... $7.5

445230 ....................... Fruit and Vegetable M arkets ................................................................ $7.5

445291 ....................... Baked G oods Stores ............................................................................ $7.5

445292 ....................... Confectionery and Nut Stores .............................................................. $7.5

445299 ....................... All Other Specialty Food Stores ........................................................... $7.5

445310 ....................... Beer, W ine and Liquor Stores .............................................................. $7.5

Subsector 446-Health and Personal Care Stores

446110 ....................... Pharm acies and Drug Stores ...............................................................

446120 ....................... Cosm etics, Beauty Supplies and Perfum e Stores ...............................

$27.5

$27.5
Small Business Administration

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 ....................... O ptical G oods Stores ........................................................................... $20.5

446191 ....................... Food (Health) Supplement Stores ........................................................ $15.0

446199 ....................... All Other Health and Personal Care Stores ......................................... $7.5

Subsector 447-Gasoline Stations

447110 ....................... Gasoline Stations with Convenience Stores ........................................ $29.5

447190 ....................... O ther G asoline Stations ....................................................................... $15.0

Subsector 448-Clothing and Clothing Accessories Stores

448 110 ....................... M en's C lothing Stores .......................................................................... $ 11.0

448120 ....................... W om en's C lothing Stores ..................................................................... $27.5

448130 ....................... Children's and Infants' Clothing Stores ................................................ $32.5

448 140 ....................... Fam ily C lothing Stores ......................................................................... $38 .5

448150 ....................... C lothing Accessories Stores ................................................................. $15.0

448 190 ....................... O ther C lothing Stores ........................................................................... $20.5

448210 ....................... Shoe Stores .................................................................................... .... $27.5

448310 ....................... Jewelry Stores .................................................................................. $15.0

448320 ....................... Luggage and Leather Goods Stores .................................................... $27.5

Subsector 451-Sporting Good, Hobby, Book and Music Stores

451110 ....................... Sporting G oods Stores ......................................................................... $15.0

451120 ....................... Hobby, Toy and 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

Subsector 452-General Merchandise Stores

452111 ....................... Department Stores (except Discount Department Stores) ................... $32.5

452112 ....................... D iscount Departm ent Stores ................................................................. $29.5

452910 ....................... Warehouse Clubs and Superstores ..................................................... $29.5

452990 ....................... All Other General Merchandise Stores ................................................ $32.5

Subsector 453-Miscellaneous Store Retailers

4 5 3 1 10 ....................... F lo rists .................................................................................................. $ 7 .5

453210 ....................... Office Supplies and Stationery Stores ................................................. $32.5

453220 ....................... Gift, Novelty and Souvenir Stores ........................................................ $7.5

453310 ....................... Used M erchandise Stores .................................................................... $7.5

453910 ....................... Pet and Pet Supplies Stores ................................................................ $20.5

453920 ....................... A rt D ealers ............................................................................................ $7.5

453930 ....................... Manufactured (Mobile) Home Dealers .................................................. $15.0

453991 ....................... Tobacco Stores ............................................................................. ..... $7.5

453998 ....................... All Other Miscellaneous Store Retailers (except Tobacco Stores) $7.5

Subsector 454-Nonstore Retailers

454 111 ....................... E lectronic S hopping .............................................................................. $32.5

454 112 ....................... E lectronic A uctions ............................................................................... $38 .5

454 113 ....................... M ail-O rder H ouses ................................................................................ $38 .5

454210 ....................... Vending M achine O perators ................................................................. $11.0

4 5 4 3 10 ....................... F ue l D e a le rs ......................................................................................... 5........................ s0

454390 ....................... Other Direct Selling Establishments ..................................................... $7.5

Sectors 48-49-Transportation and Warehousing

Subsector 481-Air Transportation

481111 ....................... Scheduled Passenger Air Transportation ............................................. ........................ 1,500

481112 ....................... Scheduled Freight A ir T ransportation ................................................... ........................ 1,500

481211 ....................... Nonscheduled Chartered Passenger Air Transportation ............................................... 1,500

Except, ....................... Offshore Marine Air Transportation Services ....................................... $30.5

481212 ....................... Nonscheduled Chartered Freight Air Transportation ..................................................... 1,500

Except, ....................... Offshore Marine Air Transportation Services ....................................... $30.5

481219 ....................... Other Nonscheduled Air Transportation ............................................... $15.0
§ 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 482-Rail Transportation

482 111 ....................... Line-H a ul R a ilroads ...................................................... ........................ 1,500

482 112 ....................... S ho rt Line R ailroads ..................................................................................................... 500

Subsector 483-Water Transportation 1 5

483111 ....................... Deep Sea Freight Transportation ......................................................... ........................ 500

483112 ....................... Deep Sea Passenger Transportation ................................................... ........................ 500

483113 ....................... Coastal and Great Lakes Freight Transportation ................................. ........................ 500

483114 ....................... Coastal and Great Lakes Passenger Transportation ................................................... 500

483211 ....................... Inland W ater Freight T ransportation ..................................................... ........................ 500

483212 ....................... Inland Water Passenger Transportation ............................................... ........................ 500

Subsector 484-Truck Transportation

484110 ....................... G eneral Freight Trucking, Local ........................................................... $27.5

484121 ....................... General Freight Trucking, Long-Distance, Truckload ........................... $27.5

484122 ....................... General Freight Trucking, Long-Distance, Less Than Truckload $27.5

484210 ....................... Used Household and Office Goods Moving ......................................... $27.5

484220 ....................... Specialized Freight (except Used Goods) Trucking, Local .................. $27.5

484230 ....................... Specialized Freight (except Used Goods) Trucking, Long-Distance $27.5

Subsector 485-Transit and Ground Passenger Transportation

485111 ....................... M ixed M ode Transit System s ............................................................... $15.0

485112 ....................... C om m uter R ail System s ....................................................................... $15.0

485113 ....................... Bus and Other Motor Vehicle Transit Systems .................................... $15.0

485119 ....................... O ther U rban Transit System s ............................................................... $15.0

485210 ....................... Interurban and Rural Bus Transportation ............................................. $15.0

485310 ....................... Taxi Service ...................................................................................... $15.0

485320 ....................... Lim ousine S erv ice ................................................................................. $ 15.0

485410 ....................... School and Employee Bus Transportation ........................................... $15.0

4855 10 ....................... C harter B us Industry ............................................................................. $ 15.0

485991 ....................... Special Needs Transportation .............................................................. $15.0

485999 ....................... All Other Transit and Ground Passenger Transportation ..................... $15.0

Subsector 486-Pipeline Transportation

486110 ....................... Pipeline Transportation of C rude O il .................................................... ........................ 1,500

486210 ....................... Pipeline Transportation of Natural Gas ................................................ $27.5

486910 ....................... Pipeline Transportation of Refined Petroleum Products ............................................... 1,500

486990 ....................... All Other Pipeline Transportation .......................................................... $37.50

Subsector 487-Scenic and Sightseeing Transportation

487110 ....................... Scenic and Sightseeing Transportation, Land ............................ $7.5

487210 ....................... Scenic and Sightseeing Transportation, Water ......... .................... $7.5

487990 ....................... Scenic and Sightseeing Transportation, Other .................................... $7.5

Subsector 488-Support Activities for Transportation

488 111 ....................... A ir T raff ic C o ntrol .................................................................................. $32 .5

488119 ....................... O ther A irport O perations ....................................................................... $32.5

488190 ....................... Other Support Activities for Air Transportation .................................... $32.5

488210 ....................... Support Activities for Rail Transportation ............................................. $15.0

488310 ....................... Port and Harbor O perations ................................................................. $38.5

488320 ....................... M arine C argo H andling ......................................................................... $38.5

488330 ....................... Navigational Services to Shipping ........................................................ $38.5

488390 ....................... Other Support Activities for Water Transportation ............................... $38.5

488410 ....................... M otor V ehicle T ow ing ........................................................................... $7.5

488490 ....................... Other Support Activities for Road Transportation ................................ $7.5

488510 ....................... Freight Transportation Arrangement 1 0 ................. ................................ $15.01°

Except, ....................... Non-Vessel Owning Common Carriers and Household Goods For- $27.5

warders.

48899 1 ....................... Packing and C rating ............................................................................. $27.5

488999 ....................... All Other Support Activities for Transportation ..................................... $7.5

Subsector 491-Postal Service

49 1110 ....................... I P ostal S e rv ice .. ..................................................................................... $7.5
Small Business Administration

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

Subsector 492-Couriers and Messengers

492110 ....................... Couriers and Express Delivery Services .............................................. ........................ 1,500

492210 ....................... Local Messengers and Local Delivery .................................................. $27.5

Subsector 493-Warehousing and Storage

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

Subsector 511-Publishing Industries (except Internet)

5 11110 ....................... N ew spape r P ub lishe rs .......................................................................... ........................ 500

5 11120 ....................... P e riod ica l P ub lishe rs ............................................................................ ........................ o5

5 1 1 13 0 ....................... B o o k P ub lishe rs .................................................................................... 5........................ 50 0

511140 ....................... D irectory and M ailing List Publishers ................................................... ........................ 500

5 1119 1 ....................... G reeting C ard P ublishers ..................................................................... ........................ 500

5 11199 ....................... A ll O the r P ub lishe rs .............................................................................. . ........................ 500

5 112 10 ....................... S oftw are P ublishers .............................................................................. $38.5

Subsector 512-Motion Picture and Sound Recording Industries

512110 ....................... Motion Picture and Video Production ................................................... $32.5

512120 ....................... M otion Picture and Video Distribution .................................................. $32.0

512131 ....................... Motion Picture Theaters (except Drive-Ins) .......................................... $38.5

512132 ....................... D rive-In M otion Picture Theaters .......................................................... $7.5

512191 ....................... Teleproduction and Other Postproduction Services ............................. $32.0

512199 ....................... Other Motion Picture and Video Industries .......................................... $20.5

5 122 10 ....................... R ecord P roduction ................................................................................ $7.5

512220 ....................... Integrated Record Production/Distribution ............................................ ........................ 750

5 12230 ....................... M usic P ub lishe rs ................................................................................... 5........................ 500

512240 ....................... Sound R ecording Studios ..................................................................... $7.5

512290 ....................... Other Sound Recording Industries ....................................................... $11.0

Subsector 515-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

Subsector 517-Telecommunications

517110 ....................... W ired Telecom m unications C arriers ..................................................... ........................ 1,500

517210 ....................... Wireless Telecommunications Carriers (except Satellite) ............................................. 1,500

517410 ....................... Satellite Telecom m unications ............................................................... $32.5

517911 ....................... Telecom m unications R esellers ............................................................. ........................ 1,500

517919 ....................... All O ther Telecom m unications .............................................................. $32.5

Subsector 518-Data Processing, Hosting, and Related Services

518210 ....................... Data Processing, Hosting, and Related Services ................................ $325

Subsector 519-Other Information Services

5 19 110 ....................... N ew s Syndicates .................................................................................. $27.5

5 19 120 ....................... Libraries and A rchives .......................................................................... $ 15.0

519130 ....................... Internet Publishing and Broadcasting and Web Search Portals .......... ...................... 500

519190 ....................... All O ther Inform ation Serv ices .............................................................. $27.5

Sector 52-Finance and Insurance

Subsector 522-Credit Intermediation and Related Activities

$550 million in

assets 8

$550 million in

assets 8

522110 ....................... Commercial Banking 8 ................................. .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . ......

522120 ....................... Savings Institutions 8 .................................. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . ......
§ 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

522 130 ....................... C redit U nions 8 ......................................... .. . .. . .. . .. . .. . .. . .. . .. . . .. .. . .. . .. . .. . .. . . .. $550 m illion in

assets 8

522190 ....................... Other Depository Credit Intermediation 8 ..................... . .. . . .. .. . .. . .. . .. . .. . . .. $550 million in

assets 8

522210 ....................... C redit C ard Issuing 8 ..................................... . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . . .. $550 m illion in

assets 8

522220 ....................... S a les F ina ncing .................................................................................... $38 .5

52229 1 ....................... C onsum er Lending ............................................................................... $38.5

522292 ....................... R eal E state C redit ................................................................................ $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 Related to Credit Intermediation ................................. $20.5

Subsector 523-Securities, Commodity Contracts, and Other Financial Investments and Related Activities

523110 ....................... Investment Banking and Securities Dealing ......................................... $38.5

523 120 ....................... S ecurities B rokerage ............................................................................ $38.5

523130 ....................... Commodity Contracts Dealing .............................................................. $38.5

523140 ....................... Commodity Contracts Brokerage .......................................................... $38.5

523210 ....................... Securities and Commodity Exchanges ................................................. $38.5

523910 ....................... M iscellaneous Interm ediation ............................................................... $38.5

523920 ....................... Portfolio M anagem ent ........................................................................... $38.5

523930 ....................... Investm ent A dvice ................................................................................. $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 ....................... D irect Life Insurance C arriers ............................................................... $38.5

524114 ....................... Direct Health and Medical Insurance Carriers ..................................... $38.5

524126 ....................... Direct Property and Casualty Insurance Carriers ................................. ........................ 1,500

524127 ....................... D irect T itle Insurance C arriers .............................................................. $38.5

524128 ....................... Other Direct Insurance (except Life, Health and Medical) Carriers $38.5

524 130 ....................... R einsurance C arriers ............................................................................ $38.5

524210 ....................... Insurance Agencies and Brokerages ................................................... $7.5

52429 1 ....................... C la im s A djusting ................................................................................... $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 and Other Financial Vehicles

525110 ....................... Pension Funds ............................................................................... ...... $32.5

525120 ....................... Health and W elfare Funds .................................................................... $32.5

525190 ....................... O ther Insurance Funds ......................................................................... $32.5

525910 ....................... Open-End Investment Funds ................................................................ $32.5

525920 ....................... Trusts, Estates, and Agency Accounts ................................................ $32.5

525990 ....................... O ther Financial V ehicles ....................................................................... $32.5

Sector 53-Real Estate and 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 Self Storage Units 9 .... . . .. .. . .. . .. . .. . .. . . .. $27.59

531190 ....................... Lessors of Other Real Estate Property 9 ............... . .. . .. . .. . . .. .. . .. . .. . .. . .. . . .. $27.59

531210 ....................... Offices of Real Estate Agents and Brokers 10 .......... . .. . .. . . .. .. . . . . . . . . . . . . . $7.510

531311 ....................... Residential Property M anagers ............................................................ $7.5

531312 ....................... Nonresidential Property Managers ....................................................... $7.5

531320 ....................... Offices of Real Estate Appraisers ........................................................ $7.5

531390 ....................... Other Activities Related to 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, Utility Trailer, and RV (Recreational Vehicle) Rental and Leasing.
Small Business Administration

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 Electronics and Appliances Rental ..................................... $38.5

532220 ....................... Formal Wear and Costume Rental ....................................................... $20.5

532230 ....................... Video Tape and Disc Rental ................................................................ $27.5

532291 ....................... Home Health Equipment Rental ........................................................... $32.5

532292 ....................... Recreational G oods Rental .................................................................. $7.5

532299 ....................... All Other Consumer Goods Rental ....................................................... $7.5

532310 ....................... G eneral R ental C enters ........................................................................ $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 Machinery and Equipment Rental and Leasing ......................... $32.5

532490 ....................... Other Commercial and Industrial Machinery and Equipment Rental $32.5

and Leasing.

Subsector 533-Lessors of Nonfinancial Intangible Assets (except Copyrighted Works)

533110 ....................... Lessors of Nonfinancial Intangible Assets (except Copyrighted $38.5

Works).

Sector 54-Professional, Scientific and Technical Services

Subsector 541 -Professional, Scientific and Technical 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 .......................

O ff ices of Law yers ................................................................................

Title Abstract and Settlement Offices ...................................................

A ll O ther Legal S erv ices .......................................................................

Offices of Certified Public Accountants ................................................

Tax Preparation Services .....................................................................

P ay ro ll S e rv ice s ....................................................................................

Other Accounting Services ...................................................................

A rchitectura l S e rv ices ...........................................................................

Landscape Architectural Services ........................................................

E ng ineering S e rv ices ............................................................................

Military and Aerospace Equipment and Military Weapons ...................

Contracts and Subcontracts for Engineering Services Awarded

Under the National Energy Policy Act of 1992.

Marine Engineering and Naval Architecture .........................................

D rafting S e rv ice s ...................................................................................

Building Inspection Services .................................................................

Geophysical Surveying and Mapping Services ....................................

Surveying and Mapping (except Geophysical) Services ......................

T esting Labo rato ries .............................................................................

Interior D esign S erv ices .......................................................................

Industrial D esign S ervices ....................................................................

Graphic Design Services ......................................................................

Other Specialized Design Services ......................................................

Custom Computer Programming Services ...........................................

Computer Systems Design Services ....................................................

Computer Facilities Management Services ..........................................

Other Computer Related Services ........................................................

Information Technology Value Added Resellers 18 ......... . .. .. . .. . .. . .. .......

Administrative Management and General Management Consulting

Services.

Human Resources Consulting Services ...............................................

Marketing Consulting Services .............................................................

Process, Physical Distribution and Logistics Consulting Services.

Other Management Consulting Services ..............................................

Environmental Consulting Services ......................................................

Other Scientific and Technical Consulting Services .............................

Research and Development in Biotechnology.1 1

Research and Development in the Physical, Engineering, and Life

Sciences (except Biotechnology).1 1

A irc ra ft ...................................................................................................

Aircraft Parts, and Auxiliary Equipment, and Aircraft Engine Parts.

Space Vehicles and Guided Missiles, their Propulsion Units, their

Propulsion Units Parts, and their Auxiliary Equipment and Parts.

Research and Development in the Social Sciences and Humanities

A dvertising A gencies 10 .........................................................................

P ublic R elations A gencies ....................................................................

M edia B uying A gencies ........................................................................

$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

$1 5.0 l o0

$15.0

$15.0
§ 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

541840 ....................... M edia Representatives ......................................................................... $15.0

541850 ....................... O utdoor Advertising .............................................................................. $15.0

541860 ....................... Direct M ail Advertising .......................................................................... $15.0

541870 ....................... Advertising M aterial Distribution Services ............................................ $15.0

541890 ....................... Other Services Related to Advertising ................................................. $15.0

541910 ....................... M arketing Research and Public O pinion Polling .................................. $15.0

541921 ....................... Photography Studios, Portrait ............................................................... $7.5

541922 ....................... Com m ercial Photography ..................................................................... $7.5

541930 ....................... Translation and Interpretation Services ................................................ $7.5

541940 ....................... Veterinary Services ............................................................................... $7.5

541990 ....................... All Other Professional, Scientific and Technical Services .................... $15.0

Sector 55-Management of Companies and Enterprises

Subsector 551-Management of Companies and Enterprises

551111 ....................... Offices of Bank Holding Com panies .................................................... $20.5

551112 ....................... Offices of O ther Holding Com panies .................................................... $20 .5

Sector 56-Administrative and Support, Waste Management and Remediation Services

Subsector 561 -Administrative and Support Services

561110 ....................... Office Adm inistrative Services .............................................................. $7.5

561210 ....................... Facilities Support Services1 2 ........................ . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . . .. $38 .5 12

561311 ....................... Em ploym ent Placem ent Agencies ........................................................ $27.5

561312 ....................... Executive Search Services ................................................................... $27.5

561320 ....................... Tem porary Help Services ..................................................................... $27.5

561330 ....................... Professional Em ployer O rganizations ................................................... $27.5

561410 ....................... Docum ent Preparation Services ........................................................... $15.0

561421 ....................... Telephone Answ ering Services ............................................................ $15.0

561422 ....................... Telem arketing Bureaus and Other contact Centers ............................. $15.0

561431 ....................... Private M ail Centers ............................................................................. $15.0

561439 ....................... Other Business Serv ice Centers (including Copy Shops) .................... $15.0

561440 ....................... Collection Agencies .............................................................................. $15.0

561450 ....................... C redit 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 Agencies1 0 ................................................ . . .. . .. . .. . . .. .. . .. . .. . .. . .. . . .. $20.5 10

561520 ....................... Tour O perators 10 .................................................................. ............... $20.5 10

561591 ....................... Convention and Visitors Bureaus ......................................................... $20.5

561599 ....................... All Other Travel Arrangement and Reservation Services .................... $20.5

561611 ....................... Investigation Services ........................................................................... $20.5

561612 ....................... Security G uards and Patrol Services ................................................... $20.5

561613 ....................... Arm ored Car Services .......................................................................... $20.5

561621 ....................... Security System s Services (except Locksm iths) .................................. $20.5

561622 ....................... Locksm iths .......................................................................................... $20.5

561710 ....................... Exterm inating and Pest Control Services ............................................. $11.0

561720 ....................... Janitorial Services ................................................................................. $18.0

561730 ....................... Landscaping Services ........................................................................... $7.5

561740 ....................... Carpet and Upholstery C leaning Services ........................................... $5.5

561790 ....................... Other Services to Buildings and Dw ellings .......................................... $7.5

561910 ....................... Packaging and Labeling Services ........................................................ $11.0

561920 ....................... Convention and Trade Show O rganizers 10 ............ . . .. . .. . . .. .. . .. . .. . .. . .. . . .. $11.0 10

561990 ....................... All Other Support Services ................................................................... $11.0

Subsector 562-Waste Management and Remediation Services

562111 ....................... Solid W aste Collection .......................................................................... $38.5

562112 ....................... Hazardous W aste Collection ................................................................ $38.5

562119 ....................... Other W aste Collection ......................................................................... $38.5

562211 ....................... Hazardous W aste Treatm ent and D isposal .......................................... $38.5

562212 ....................... Solid W aste Landfill .............................................................................. $38.5

562213 ....................... Solid W aste Com bustors and Incinerators ........................................... $38.5

562219 ....................... Other Nonhazardous W aste Treatm ent and Disposal ......................... $38.5

562910 ....................... Rem ediation Services ........................................................................... $20.5

Except, ....................... Environm ental Rem ediation Services 14 ......................... . . .. .. . .. . .. . .. . .. . . .. .. . .. . .. . .. . .. . .. . .. . .. . 500 14

562920 ....................... M aterials Recovery Facilities ................................................................ $20 .5

562991 ....................... Septic Tank and Related Services ....................................................... $7.5

562998 ....................... All Other M iscellaneous W aste M anagem ent Services ....................... $7.5
Small Business Administration

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 Secondary Schools .................................................... $11.0

611210 ....................... Junior Colleges ................................................................................. $20.5

611310 ....................... Colleges, Universities and Professional Schools ................................. $27.5

611410 ....................... Business and Secretarial Schools ........................................................ $7.5

6 11420 ....................... C o m p ute r T ra ining ................................................................................ $ 11.0

611430 ....................... Professional and Management Development Training ........................ $11.0

611511 ....................... Cosmetology and Barber Schools ........................................................ $7.5

611512 ....................... Flight Training ................................................................................... $27.5

6 115 13 ....................... A pprenticeship T raining ........................................................................ $7.5

611519 ....................... Other Technical and Trade Schools ..................................................... $15.0

Except, ....................... Job C orps C enters 16 ............................... ...... ..... . . . . ............................. $38.5 16

6 116 10 ....................... F ine A rts S choo ls ................................................................................. $7 .5

611620 ....................... Sports and Recreation Instruction ........................................................ $7.5

6 11630 ....................... Language S chools ................................................................................ $ 11.0

611691 ....................... Exam Preparation and Tutoring ........................................................... $7.5

611692 ....................... A utom obile D riving S chools .................................................................. $7.5

611699 ....................... All Other Miscellaneous Schools and Instruction ................................. $11.0

611710 ....................... Educational Support Services ............................................................... $15.0

Sector 62-Health Care and Social Assistance

Subsector 621--Ambulatory Health Care Services

621111 ....................... Offices of Physicians (except Mental Health Specialists) .................... $11.0

621112 ....................... Offices of Physicians, Mental Health Specialists ................................. $11.0

62 12 10 ....................... O ff ices of D entists ................................................................................ $7.5

621310 ....................... O ffices of C hiropractors ........................................................................ $7.5

621320 ....................... O ffices of O ptom etrists ......................................................................... $7.5

621330 ....................... Offices of Mental Health Practitioners (except Physicians) ................. $7.5

621340 ....................... Offices of Physical, Occupational and Speech Therapists and Audiol- $7.5

ogists.

62 139 1 ....................... O ff ices of P odiatrists ............................................................................. $7.5

621399 ....................... Offices of All Other Miscellaneous Health Practitioners ....................... $7.5

62 14 10 ....................... Fam ily P lanning C enters ....................................................................... $ 11.0

621420 ....................... Outpatient Mental Health and Substance Abuse Centers ................... $15.0

621491 ....................... H M O M edical C enters .......................................................................... $32.5

621492 ....................... Kidney D ialysis C enters ........................................................................ $38.5

621493 ....................... Freestanding Ambulatory Surgical and Emergency Centers ............... $15.0

621498 ....................... All Other Outpatient Care Centers ....................................................... $20.5

62 15 11 ....................... M edical Laboratories ............................................................................ $32.5

621512 ....................... D iagnostic Im aging C enters .................................................................. $15.0

621610 ....................... Hom e Health C are Services ................................................................. $15.0

62 19 10 ....................... A m bulance S erv ices ............................................................................. $ 15.0

621991 ....................... Blood and O rgan Banks ....................................................................... $32.5

621999 ....................... All Other Miscellaneous Ambulatory Health Care Services ................. $15.0

Subsector 622-Hospitals

622110 ....................... General Medical and Surgical Hospitals ................................ $38.5

622210 ....................... Psychiatric and Substance Abuse Hospitals ............................ $38.5

622310 ....................... Specialty (except Psychiatric and Substance Abuse) Hospitals .......... $38.5

Subsector 623-Nursing and Residential Care Facilities

623110 ....................... Nursing Care Facilities (Skilled Nursing Facilities) ............................... $27.5

623210 ....................... Residential Intellectual and Developmental Disability Facilities ........... $15.0

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

623311 ....................... Continuing Care Retirement Communities ........................................... $27.5

623312 ....................... Assisted Living Facilities for the Elderly ............................................... $11.0

623990 ....................... O ther Residential C are Facilities .......................................................... $11.0

Subsector 624-Social Assistance

$11.0

$11.0

$11.0

$11.0

624110 ....................... C hild and Youth Services .....................................................................

624120 ....................... Services for the Elderly and Persons w ith Disabilities .........................

624190 ....................... Other Individual and Fam ily Services ...................................................

624210 ....................... Com m unity Food Services ....................................................................
§ 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

62422 1 ....................... T em porary S helters .............................................................................. $ 11.0

624229 ....................... Other Community Housing Services .................................................... $15.0

624230 ....................... Emergency and Other Relief Services ................................................. $32.5

624310 ....................... Vocational Rehabilitation Services ....................................................... $11.0

624410 ....................... C hild D ay C are S erv ices ...................................................................... $7.5

Sector 71-Arts, Entertainment and Recreation

Subsector 711-Performing Arts, Spectator Sports and Related Industries

711110 ....................... Theater Companies and Dinner Theaters ............................................ $20.5

7 11120 ....................... D ance C om panies ................................................................................ $ 11.0

711130 ....................... M usical G roups and A rtists .................................................................. $11.0

711190 ....................... Other Performing Arts Companies ....................................................... $27.5

711211 ....................... Sports T eam s and C lubs ...................................................................... $38.5

711212 ....................... Race Tracks .................................................................................... ..... $38.5

7 112 19 ....................... O ther S pectator S ports ......................................................................... $ 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

Subsector 712-Museums, Historical Sites and Similar Institutions

7 12 1 10 ....................... M use u m s ............................................................................................. $ 2 7.5

712120 ....................... Historical Sites .............................................................................. ....... $7.5

712130 ....................... Zoos and Botanical Gardens ................................................................ $27.5

712190 ....................... Nature Parks and Other Similar Institutions ......................................... $7.5

Subsector 713-Amusement, Gambling and Recreation Industries

713110 ....................... Amusement and Theme Parks ............................................................. $38.5

713120 ....................... A m usem ent A rcades ............................................................................ $7.5

713210 ....................... Casinos (except Casino Hotels) ........................................................... $27.5

713290 ....................... O ther G am bling Industries .................................................................... $32.5

713910 ....................... Golf Courses and Country Clubs ......................................................... $15.0

713920 ....................... Skiing Facilities ................................................................................. $27.5

7 13930 ....................... M arinas .................................................................. .......................... $7.5

713940 ....................... Fitness and Recreational Sports Centers ............................................. $7.5

7 13950 ....................... B ow ling C e nte rs .................................................................................... $7 .5

713990 ....................... All Other Amusement and Recreation Industries ................................. $7.5

Sector 72-Accommodation and Food 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 Traveler Accommodation ....................................................... $7.5

721211 ....................... RV (Recreational Vehicle) Parks and Campgrounds ........................... $7.5

721214 ....................... Recreational and Vacation Camps (except Campgrounds) ................. $7.5

721310 ....................... Rooming and Boarding Houses ........................................................... $7.5

Subsector 722-Food Services and Drinking Places

722310 ....................... Food Service Contractors ..................................................................... $38.5

722320 ....................... C aterers ...................................................................... ....................... $7.5

722330 ....................... M obile Food S erv ices ........................................................................... $7.5

722410 ....................... Drinking Places (Alcoholic Beverages) ................................................. $7.5

722511 ....................... Full-S erv ice 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 Business Administration

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 Public Administration)

Subsector 811-Repair and Maintenance

811111 ....................... G eneral A utom otive 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, Paint and Interior Repair and Maintenance ............ $7.5

811122 ....................... Automotive Glass Replacement Shops ................................................ $11.0

811191 ....................... Automotive Oil Change and Lubrication Shops ................................... $7.5

811192 ....................... Car Washes ................................................................................... .... $7.5

811198 ....................... All Other Automotive Repair and Maintenance .................................... $7.5

811211 ....................... Consumer Electronics Repair and Maintenance .................................. $7.5

811212 ....................... Computer and Office Machine Repair and Maintenance ..................... $27.5

811213 ....................... Communication Equipment Repair and 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 Repair and Maintenance ..................... $7.5

811412 ....................... Appliance Repair and Maintenance ..................................................... $15.0

811420 ....................... Reupholstery and Furniture Repair ...................................................... $7.5

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

811490 ....................... Other Personal and Household Goods Repair and Maintenance $7.5

Subsector 812-Personal and Laundry Services

812111 ....................... Barber Shops ................................................................................ ....... $7.5

812112 ....................... Beauty Salons ............................................................................... ..... $7.5

8 12 113 ....................... N ail S alons ............................................................................................ $7.5

812191 ....................... Diet and Weight Reducing Centers ...................................................... $20.5

812199 ....................... O ther Personal C are Services .............................................................. $7.5

812210 ....................... Funeral Homes and Funeral Services .................................................. $7.5

812220 ....................... Cemeteries and Crematories ................................................................ $20.5

812310 ....................... Coin-Operated Laundries and Drycleaners .......................................... $7.5

812320 ....................... Drycleaning and Laundry Services (except Coin-Operated) ................ $5.5

812331 ....................... Linen Supply ..................................................................................... $32.5

8 12332 ....................... Industrial Launderers ............................................................................ $38.5

812910 ....................... Pet Care (except Veterinary) Services ................................................. $7.5

812921 ....................... Photofinishing Laboratories (except One-Hour) ................................... $20.5

812922 ....................... O ne-H our P hotofinishing ....................................................................... $15.0

812930 ....................... Parking Lots and G arages .................................................................... $38.5

812990 ....................... All O ther Personal Services .................................................................. $7.5

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

8 13 110 ....................... R eligious O rganizations ........................................................................ $7.5

813211 ....................... G rantm aking Foundations .................................................................... $32.5

813212 ....................... Voluntary Health O rganizations ............................................................ $27.5

813219 ....................... Other Grantmaking and Giving Services .............................................. $38.5

813311 ....................... H um an R ights O rganizations ................................................................ $27.5

813312 ....................... Environment, Conservation and Wildlife Organizations ....................... $15.0

813319 ....................... Other Social Advocacy Organizations .................................................. $7.5

813410 ....................... C ivic and Social O rganizations ............................................................. $7.5

8 139 10 ....................... B usiness A ssociations .......................................................................... $7.5

813920 ....................... Professional O rganizations ................................................................... $15.0

813930 ....................... Labor Unions and Similar Labor Organizations ................................... $7.5

8 13940 ....................... Political O rganizations .......................................................................... $7.5

813990 ....................... Other Similar Organizations (except Business, Professional, Labor, $7.5

and Political Organizations).

Sector 92-Public Administration 19

(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.)
§ 121.201

Footnotes

1. [Reserved]

2. NAICS code 237990 Dredging: To be considered small for purposes of Government

procurement, a firm must perform at least 40

percent of the volume dredged with its own

equipment or equipment owned by another

small dredging concern.

3. NAICS code 311421 For purposes of Government procurement for food canning and

preserving, the standard of 500 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 125,000 barrels

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 or bona fide feedstocks.

5. NAICS code 326211 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 of tires 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 of its 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 of the 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

of the total value of such 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 code 336413 Contracts for the rebuilding or overhaul of aircraft ground sup13 CFR Ch. 1 (1-1-15 Edition)

port equipment on a contract basis are classified under NAICS 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 of this size standard means the

assets defined according to the Federal Financial Institutions Examination Council 041

call report form for NAICS codes 522110,

522120, 522190, and 522210 and the National

Credit Union Administration 5300 call report

form for NAICS code 522130.

9. NAICS codes 531110, 531120, 531130, and

531190 Leasing of Building Space to the Federal Government by Owners: For Government procurement, a size standard of $38.5

million in gross receipts applies to the owners of building space leased to the Federal

Government. The standard does not apply to

an agent.

10. NAICS codes 488510 (part) 531210, 541810,

561510, 561520, and 561920 As measured by

total revenues, but excluding funds received

in trust for an unaffiliated third party, such

as bookings or sales subject to commissions.

The commissions received are included as

revenues.

11. NAICS codes 541711 and 541712 For research and development contracts requiring

the delivery of a manufactured product, the

appropriate size standard is that of the manufacturing industry.

(a) "Research and Development" means

laboratory or other physical research and development. It does not include economic,

educational, engineering, operations, systems, or other nonphysical research; or computer programming, data processing, commercial and/or medical laboratory testing.

(b) For purposes of the Small Business Innovation Research (SBIR) and the Small

Business Technology Transfer (STTR) Programs only, a different definition has been

established by law. See § 121.702 of these regulations.

(c) "Research and Development" for guided

missiles and space vehicles includes evaluations and simulation, and other services requiring thorough knowledge of complete

missiles and spacecraft.

12. NAICS code 561210 Facilities Support

Services:

(a) If one or more activities of Facilities

Support Services as defined in paragraph (b)

(below in this footnote) can be identified

with a specific industry and that industry

accounts for 50% or more of the value of an

entire procurement, then the proper classification of the procurement is that of the

specific industry, not Facilities Support

Services.

(b) "Facilities Support Services" requires

the performance of three or more separate
Small Business Administration

activities in the areas of services or specialty trade contractors industries. If services are performed, these service activities

must each be in a separate NAICS industry.

If the procurement requires the use of specialty trade contractors (plumbing, painting,

plastering, carpentry, etc.), all such specialty trade contractors activities are considered a single activity and classified as

"Building and Property Specialty Trade

Services." Since "Building and Property

Specialty Trade Services" is only one activity, two additional activities of separate

NAICS industries are required for a procurement to be classified as "Facilities Support

Services."

13. NAICS code 238990 Building and Property Specialty Trade Services: If a procurement requires the use of multiple specialty

trade contractors (i.e., plumbing, painting,

plastering, carpentry, etc.), and no specialty

trade accounts for 50% or more of the value

of the procurement, all such specialty trade

contractors activities are considered a single

activity and classified as Building and Property Specialty Trade Services.

14. NAICS 562910 Environmental Remediation Services:

(a) For SBA assistance as a small business

concern in the industry of Environmental

Remediation Services, other than for Government procurement, a concern must be engaged primarily in furnishing a range of

services for the remediation of a contaminated environment to an acceptable condition including, but not limited to, preliminary assessment, site inspection, testing, remedial investigation, feasibility studies, remedial design, containment, remedial action, removal of contaminated materials,

storage of contaminated materials and security and site closeouts. If one of such activities accounts for 50 percent or more of a concern's total revenues, employees, or other related factors, the concern's primary industry

is that of the particular industry and not the

Environmental Remediation Services Industry.

(b) For purposes of classifying a Government procurement as Environmental Remediation Services, the general purpose of the

procurement must be to restore or directly

support the restoration of a contaminated

environment (such as, preliminary assessment, site inspection, testing, remedial investigation, feasibility studies, remedial design, remediation services, containment, removal of contaminated materials, 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 of activities in three

or more separate industries with separate

NAICS codes or, in some instances (e.g., engineering), smaller sub-components of

NAICS codes with separate, distinct size

§ 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 of the

value of the entire procurement, then the

proper size standard is the one for that particular industry, and not the Environmental

Remediation Service size standard.

15. Subsector 483 Water Transportation

Offshore Marine Services: The applicable size

standard shall be $30.5 million for firms furnishing specific transportation services to

concerns engaged in offshore oil and/or natural gas exploration, drilling production, or

marine research; such services encompass

passenger and freight transportation, anchor

handling, and related logistical services to

and from the work site or at sea.

16. NAICS 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 of Labor Job Corps Center. The activities involved include admissions activities,

life skills training, educational activities,

comprehensive career preparation activities,

career development activities, career transition activities, as well as the management

and support functions and services needed to

operate and maintain the facility. For SBA

assistance as a small business concern, other

than for Federal Government procurements,

a concern must be primarily engaged in providing the services to operate and maintain

Federal Job Corps Centers.

17. NAICS code 115310 (Support Activities

for Forestry) Forest Fire Suppression and

Fuels Management Services are two components of Support Activities for Forestry.

Forest Fire Suppression includes establishments which provide services to fight forest

fires. These firms usually have fire-fighting

crews and equipment. Fuels Management

Services firms provide services to clear land

of hazardous materials that would fuel forest

fires. The treatments used by these firms

may include prescribed fire, mechanical removal, establishing fuel breaks, thinning,

pruning, and piling.

18. NAICS code 541519 An Information

Technology Value Added Reseller provides a

total solution to information technology acquisitions by providing multi-vendor hardware and software along with significant

services. Significant value added services
§ 121.301

consist of, but are not limited to, configuration consulting and design, systems integration, installation of multi-vendor computer

equipment, customization of hardware or

software, training, product technical support, maintenance, and end user support. For

purposes of Government procurement, an information technology procurement classified

under this industry category must consist of

at least 15% and not more than 50% of value

added services as measured by the total price

less the cost of information technology hardware, computer software, and profit. If the

contract consists of less than 15% of value

added services, then it must be classified

under a NAICS manufacturing industry. If

the contract consists of more than 50% of

value added services, then it must be classified under the NAICS industry that best describes the predominate service of the procurement. To qualify as an Information

Technology Value Added Reseller for purposes of SBA assistance, other than for Government procurement, a concern must be

primarily engaged in providing information

technology equipment and computer software and provide value added services which

account for at least 15% of its receipts but

not more than 50% of its receipts.

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 of a government program

are classified under the NAICS private sector

industry based on the activities performed.

Similarly, procurements for these types of

services are classified under the NAICS private sector industry that best describes the

activities to be performed. For example, if a

government agency issues a procurement for

law enforcement services, the requirement

would be classified using one of the NAICS

industry codes under 56161, Investigation,

Guard, and Armored Car Services.

[65 FR 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 at www.fdsys.gov.

1. At 73 FR 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 of the 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 of the 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 Business Administration

(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) of this

section.

(c) For the Small Business Investment Company (SBIC) program, an applicant must meet one of the 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 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.

(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 the results obtained in paragraphs (c)(2)(i) and (c)(2)(ii) of this 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 of the financial assistance within a labor surplus area. Labor

surplus areas are listed monthly 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 FR 41254, July 18,

2008; 74 FR 20580, May 5, 2009; 74 FR 36110,

July 22, 2009; 75 FR 48550, Aug. 11, 2010; 79 FR

33669, June 12, 2014; 79 FR 71296, Dec. 2, 2014]

§ 121.302 When does SBA determine

the size status of an applicant?

(a) The size status of an applicant for

SBA financial assistance is determined

as of the 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

of approval of the loan by the Preferred

Lender.

(c) For disaster loan assistance

(other than physical disaster loans),

size status is determined as of the date

the disaster commenced, as set forth in

the Disaster Declaration. For pre-disaster mitigation loans, size status is

determined as of the date SBA accepts

a complete Pre-Disaster Mitigation

Small Business Loan Application for

processing. Refer to §123.408 of this

chapter to find 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 of the 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 FR 48550, Aug. 11, 2010;

79 FR 33669, 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, a surety

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 of eligibility 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, a request 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 Area Director

for the Disaster Area Office which denied the assistance.

(e) There are no time limitations for

making a formal 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

SBA loan?

(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 subject to size determinations?

The rules set forth in §§ 121.401

through 121.413 apply to all Federal

procurement programs for which 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.

[75 FR 62280, Oct. 7, 2010]
Small Business Administration

§ 121.402 What size standards are applicable to Federal Government

Contracting programs?

(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 of the 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 itself manufacture 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) Multiple Award 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) of this 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 a single 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

best represents 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 or order.
§ 121.403

(d) The NAICS code assigned to a procurement and its corresponding size

standard is final unless timely appealed to SBA's Office of Hearings and

Appeals (OHA), or unless SBA assigns

an NAICS code or size standard as provided in paragraph (d) of this 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 FR 61604, Oct. 6, 2010; 76 FR 5683, 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 binding on 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 not binding 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 of its 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 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 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 for each order issued against

the contract, unless a contracting officer requests a new size certification in

connection with a specific 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 of initial 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 a new 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 to receive small business

goaling credit for the order.

(b) A concern 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 Business Administration

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 of an applicant for

a Certificate of Competency (COC) relating to an unrestricted procurement

is determined as of the date of the concern's application for the COC.

(d) Size status for purposes of compliance 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 of the

date that it 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 of its initial bid

or proposal (which may or may not include price).

(g) A concern that represents itself as

a small business and qualifies as small

at the time of its 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 at the time of

initial offer for a Multiple Award Contract (see § 121.1042(c) for designation of

NAICS codes on a Multiple Award Contract), then it will be considered small

for each order issued against the contract with the same NAICS code and

size standard, unless a contracting officer requests a new size certification in

connection with a specific order. Where

a concern grows to be 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 of an 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 of a merger or acquisition, 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 reflect the 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 a joint 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 as a small business.

(3) For the purposes of contracts (including Multiple Award Contracts)

with durations of more 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 of the 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 a result of a size recertification.

(iii) A request for a size re-certification shall include the size standard

in effect at the time of re-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 to each

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 or lower size standard.

(v) Where the contracting officer explicitly requires concerns to recertify

their size status in response to a solicitation for an 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 busi13 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) A follow-on or renewal 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 the procuring

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 FR 5683, Feb. 2, 2011; 76 FR 8252, Feb.

11, 2011; 78 FR 42403, July 16, 2013; 78 FR 38817,

June 28, 2013; 78 FR 61131, Oct. 2, 2013]

EDITORIAL NOTE: At 78 FR 61131, Oct. 2,

2013, §121.404(b) was amended by removing

"date of certification by SBA" and adding in

its place "date the Director of the Division

of Program Certification and Eligibility or the Associate Administrator for Business 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 in the 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 of the concern.

(c) Procedures for protesting the selfcertification of an offeror are set forth

in §§ 121.1001 through 121.1009.
Small Business Administration

§ 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 or EDWOSB set-aside, or 8(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

of the end item being procured (and the

end item must be manufactured or produced 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 the retail

or wholesale trade and normally sells

the type of item being supplied;

(iii) Takes ownership or possession of

the item(s) with its personnel, equipment or facilities in a manner consistent with industry practice; 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 did not 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 as a raw

material to be used in further manufacturing. Firms which perform only

minimal operations upon the item

being procured do not qualify as manufacturers 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 of the 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 of the

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 of products; 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 of the 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 as a service contract,

but also has a supply component, the

nonmanufacturer rule does not apply
§ 121.407

to the supply component of the requirement.

Example I to paragraph (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 of the procurement is serv- ices and classifies the procurement as a services procurement, the nonmanufacturer rule

does not apply to the computer hardware

portion of the requirement. This means that

while a contractor must meet the applicable

performance of work requirement set forth

in §125.6 for the services portion of the con- tract, the contractor does not have 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 of the requirement.

A firm seeking to qualify as 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 set forth in § 125.6 for the services

portion of the contract.

(5) The Administrator or designee

may waive the requirement 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 (including period 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) of this 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 itself be 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) of this 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 of any of the 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 at 65 FR 30863, May 15, 2000;

69 FR 29205, May 21, 2004; 76 FR 8252, Feb. 11,

2011; 78 FR 61132, Oct. 2, 2013]

§ 121.407 What are the size procedures

for multiple 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 Business Administration

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 of service

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 other than small.

§ 121.409 What size standard applies 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) Subcontracting Program?

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 the product 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; 74 FR 46313, Sept. 9, 2009]

§ 121.411 What are the size procedures

for SBA's Section 8(d) Subcontracting Program?

(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 of maintaining 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 a section 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 of the offer that

the size or socioeconomic representations and certifications made in SAM

(or any successor system) are current,

accurate and complete as of the 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 a subcontract.

(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 of a 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 or any other interested party.

(e) Presumption of 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 the bid 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 of a Federal

grant, contract, subcontract, cooperative agreement, or cooperative research and development agreement, as

a small business concern.

(g) Signature Requirement. Each offer,

proposal, bid, or application for a Fed13 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 or grant.

An authorized official must sign the

certification on the same page containing the size status claimed by the

concern.

(h) Limitation of Liability. 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 not be 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 of the 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 of the individual or firm.

(i) Penalties for 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 48 CFR subpart 9.4.

(2) Civil Penalties. 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) Criminal Penalties. 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 pursuant to section
Small Business Administration

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,

May 23, 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 of a 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 of Government petroleum, coal

and uranium.

§ 121.502 What size standards are applicable to programs for sales or

leases of Government 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 of Government property if it has

annual receipts not exceeding $7.5 million.

§ 121.506

(b) Size status for such sales and

leases is determined by the primary 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

binding on 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 of another 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 of a written protest by other offerors or other credible

information which would cause the

contracting officer or SBA to question

the size of the 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) Forest product industry means logging, wood preserving, and the manufacture of lumber and wood related

products such as veneer, plywood,

hardboard, particle board, or wood

pulp, and of products 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 does not mean hauling.

(c) Manufacture of logs means, at a

minimum, breaking down logs into

rough cuts of the 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, such as the sale of the assets of a concern after it has been

awarded one or more set-aside sales of

timber.

(e) Significant logging of timber means

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 other requirements for the 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 will manufacture the

logs with its own facilities or those of

another business which meets the requirements of paragraphs (a)(1) and

(a)(2) of this section;

(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) of this section; 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 of the 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) of this section; or

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

(4) If it intends at the time of offer 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) of this 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 of the 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 of paragraphs (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 a record of:

(1) The name, address and size status

of every concern to which it sells the

timber or sawlogs; and

(2) The species, grades and volumes of

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) of this section.

§ 121.508 What are the size standards

and other requirements for the purchase of Government-owned Special

Salvage Timber?

(a) In order to purchase Governmentowned Special Salvage Timber from

the United States Forest Service or the

Bureau of Land Management as a small

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 to resell the timber
Small Business Administration

(i) Agree that it will manufacture a

significant portion of the logs with its

own employees; and

(ii) Agree that it will log the timber

only with its own employees or with

employees of another business which is

eligible for award of a Special Salvage

Timber sales contract; or

(4) If it intends at the time of offer 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 of a Special

Salvage Timber sales contract.

§ 121.509 What is the size standard for

leasing of Government land for coal

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 of the 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 to agree to the same.

§ 121.510 What is the size standard for

leasing of Government land for ura- 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 standard for

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 standard for

stockpile purchases?

A concern is small for this purpose 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.

[69 FR 29205, May 21, 2004]

§ 121.602 At what point in time must a 8(a) BD applicant be small?

A 8(a) BD applicant 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, May 21, 2004]

§ 121.603 How does SBA determine

whether a Participant is small for a particular 8(a) BD subcontract?

(a) Self certification by 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 of its 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 of size by SBA. Within

30 days of its receipt of a 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) Changes in size between date of selfcertification and date of award. (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) Finding Participant to be other than

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 of another 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 Participants considered small for purposes of other

SBA assistance?

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) BD subcontract in question.

[61 FR 3286, Jan. 31, 1996, as amended at 69

FR 29206, May 21, 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 and what definitions are important?

(a) These sections apply to SBA's

SBIR and STTR programs, 15 U.S.C.

638.

(b) Definitions.

(1) Funding agreement officer means a

contracting officer, a grants officer, or

a cooperative agreement officer.

(2) Funding agreement means any contract, grant or cooperative agreement

entered into between any Federal agency and any small business for the purposes of the SBIR or STTR program.

(3) Hedge fund has 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 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 of any

State.

(4) Portfolio company means any company that is owned in whole or part by

a venture capital operating company,

hedge fund, or private equity firm.

(5) Private equity firm 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

of any State.

(6) Venture capital operating company

means an entity described in

§121.103(b)(5)(i), (v), or (vi). The venture

capital operating company 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 of any State.

[77 FR 76225, Dec. 27, 2012]
Small Business Administration

§ 121.702 What size and eligibility

standards are applicable to the

SBIR and STTR 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) Ownership and control for the SBIR

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 of these;

(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 a joint 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. A joint 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) Ownership and control for the STTR

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) of this 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 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 the power to control

exists. For the purposes of the SBIR

and STTR programs, the following

bases of affiliation apply:

(1) Affiliation based 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 of the 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 of Directors to be

in control of the concern.

(2) Affiliation arising under 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, or agreements to appear

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 a finding of affiliation.

(3) Affiliation based on common management. Affiliation arises where the

CEO or President of a 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 of one concern also controls the board of directors or management of one or more

other concerns.

(4) Affiliation based on identity of interest. 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 of its receipts.

(iii) An SBIR or STTR awardee is not

affiliated with a portfolio company of a

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 based on the newly organized concern rule. 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 related industry

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 on joint ventures.

Concerns submitting an application as

a joint venture are affiliated with each

other with regard to the application.

SBA will apply the joint venture 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 of the funding agreement), or a

subcontractor or subgrantee upon

which the concern is unusually reliant.

All aspects of the relationship between

the concern and subcontractor are considered, including, but not limited to,
Small Business Administration

the terms of the 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 of a funding agreement, SBA will consider

whether the concern's proposal complies with the performance requirements of the 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 affiliation for portfolio

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, and may find affiliation

even though no single factor is sufficient to constitute affiliation.

(d) Calculating ownership 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 of con-

§ 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 to common 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 of a

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 of the request for a size determination, if an award 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 of a merger or acquisition, the awardee must, within 30 days

of the transaction becoming final (or

the approved funding agreement novation if a novation 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 to reflect the new size status

from that point forward.

(2) For the purposes of SBIR and

STTR funding agreements with durations of more than five years, a funding

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 of the 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 at the time of re-certification.

[77 FR 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 must be 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. The concern 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 of the 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 of a written protest or other credible information which would cause the funding

agreement officer or SBA to question

the size or eligibility of the 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 of the SBIR or STTR awardee.

[77 FR 76227, Dec. 27, 2012]
Small Business Administration

SIZE ELIGIBILITY REQUIREMENTS FOR

PAYING REDUCED PATENT FEES

§ 121.801 May patent fees be reduced if a concern is small?

These sections apply to size status

for the purpose of paying 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 of the 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 a non-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 of Commerce, 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 of size.

§ 121.805 May a business concern selfcertify its size status?

(a) A concern verifies its size status

with its submission of its 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 size standards. 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.

[67 FR 13716, Mar. 26, 2002]

§ 121.903 How may an agency use size

standards for 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 of employees 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 of at 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 rule which is part of the 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 of Size 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 of all comments on the proposed size standard received in response to the proposed rule;

(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 its publication; and

(iv) Other information SBA may request in connection with the request.

(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 of performing 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.

[67 FR 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 of the other agency.

[67 FR 13716, Mar. 26, 2002]

PROCEDURES FOR SIZE PROTESTS AND

REQUESTS FOR FORMAL SIZE DETERMINATIONS

§ 121.1001 Who may initiate a size protest or request a formal size determination?

(a) Size Status Protests. (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) The contracting officer;

(iii) The SBA Government Contracting Area Director having responsibility 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 Business Administration

(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 Small Business Innovation Research (SBIR) program and

Small Business Technology Transfer

(STTR) program, the following entities

may protest:

(i) An offeror or applicant for that solicitation;

(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 qualified HUBZone 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) The contracting officer; and

(iii) The responsible SBA Government Contracting Area Director, the

Director, Office of Government Contracting, or the Associate Administrator for Business Development.

(8) For SBA's Service Disabled Veteran-Owned Small Business Concern

program, the following entities may

protest in connection with a particular

service-disabled veteran-owned procurement:

(i) Any concern that submits an offer

for a specific service-disabled veteranowned small business set-aside contract;

(ii) The contracting officer;

(iii) The SBA Government Contracting Area Director; and

(iv) The Director, Office of Government Contracting, or designee.

(9) For SBA's WOSB Federal Contracting Program, the following entities may 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 of this chapter;

(ii) The contracting officer;

(iii) The SBA Government Contracting Area Director; and

(iv) The Director for Government

Contracting, or designee.

(b) Request for Size Determinations. (1)

For SBA's Financial Assistance Programs, the following entities may request a formal size determination:

(i) The applicant for assistance; 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 of this 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 (see part 108 of this

chapter). A formal size determination

includes a request to determine whether or not affiliation exists between two

or more entities for any purpose relating to the SBIC program.

(2) For SBA's 8(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 of the 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 of government 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 to pay reduced patent fees, the following entities may request a formal size determination:

(i) The applicant for the reduced patent fees; and

(ii) The Patent and Trademark Office.

(6) For purposes of determining 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 of HUBZone,

or designee.

(9) For purposes of validating that

firms listed in the System for Award
Small Business Administration

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 other than 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; 78 FR 61132, Oct. 2, 2013]

§ 121.1002 Who makes a formal 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 of the 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

be filed?

A protest involving a government

procurement or sale must be 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) Protests by entities other than contracting officers or SBA (1) Sealed bids

or sales (including protests on partial setasides and reserves of Multiple Award

§ 121.1004

Contracts and set-asides of orders against

Multiple Award Contracts). A protest

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 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

protests on partial set-asides and reserves

of Multiple Award Contracts and setasides of orders against Multiple Award

Contracts). A protest 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 the contracting officer

has notified the protestor of the identity of the 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 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 of notice

(including notice received in writing,

orally, or via electronic posting) of the

identity of the prospective awardee or

award.

(ii) Protests regarding size certifications made for an option period 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 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 to be 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 of notice (including

notice received in writing, orally, or

via electronic posting) of the identity

of the prospective awardee or award.

(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 of award. Where there is

no requirement for written pre-award

notice or notice of award, 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 of an

award.

(c) Effect of contract award. A timely

filed protest applies to the procurement in question even though a contracting officer awarded the contract

prior to receipt of the protest.

(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 of the selection

of the apparent successful offer will be

dismissed as premature.

[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 the contracting officer?

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 of the telephone protest.

[61 FR 3286, Jan. 31, 1996, as amended at 69

FR 29206, May 21, 2004]

§ 121.1006 When will a size protest be

referred to an SBA Government

Contracting Area Office?

(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 of the offeror is located.

(b) A contracting officer's referral

must contain the following information:

(1) The protest and any accompanying materials;

(2) A copy of the self-certification as

to size;

(3) Identification of the applicable

size standard;

(4) A copy of the solicitation;

(5) Identification of the date of bid

opening or notification provided to unsuccessful offerors;

(6) The date on which the protest was

received; and

(7) A complete address and point of

contact for the protested concern.
Small Business Administration

§ 121.1007 Must a protest of size status

relate to a particular procurement

and be specific?

(a) Particular procurement. A protest

challenging the size of a concern which

does not pertain to a particular procurement or sale will not be acted on

by SBA.

(b) A protest must include specific facts.

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

should be submitted with the protest.

(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 for the allegation is non-specific.

Example 2": An allegation that concern X is

large because it exceeds the 500 employee

size standard (where 500 employees is the applicable size standard) because a higher employment figure was published in publication

Y is sufficiently specific.

Example 3: An allegation that concern X is

affiliated with concern Y without setting

forth any basis for the allegation is non-specific.

Example 4: An allegation that concern X is

affiliated with concern Y because Mr. A is

the majority shareholder in both concerns is

sufficiently specific.

Example 5: An allegation that concern X

has revenues in excess of $5 million (where $5

million is the applicable size standard) without setting forth a basis for the allegation is

non-specific.

Example 6: An allegation that concern X

exceeds the size standard (where the applicable size standard is $5 million) because it received Government contracts in excess of $5

million last year is sufficiently specific.

[61 FR 3286, Jan. 31, 1996, as amended at 69

FR 29206, May 21, 2004]

§ 121.1008 What occurs after SBA re- ceives a size protest or request for a 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 also notify the Associate Administrator, Investment Division. If the protest involves the size

status of an SDB concern (see part 124,

subpart B of this chapter) the Area Director will notify SBA's Associate Administrator for Business Development.

If the protest pertains to a 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 the protested concern together with SBA Form 355, Application

for Small Business 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 SBA receives a request for a

formal size determination in accord

with §121.1001(b), SBA will provide a

blank copy of SBA Form 355 to the concern whose size is at issue.

(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 of receipt

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 the protest, 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 of the protest, or other requested

information within the time allowed by

SBA, or if it submits incomplete information, SBA may presume that disclosure of the 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 of a size 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 the procedures for

making the size determination?

(a) Time frame for 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 15 business days, if possible.

(2) The contracting officer may

award a contract after receipt of a protest 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) Basis for 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 the protest 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) Burden of persuasion. The concern

whose size is under consideration has

the burden of establishing its small

business size.

(d) Weight of evidence. SBA will give

greater weight to specific, signed, factual evidence than to general, unsupported allegations or opinions. In the

case of refusal or failure to furnish requested information within a required

time period, SBA may assume that disclosure would be contrary to the interests of the party failing to make disclosure.

(e) Formal size determination. 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 and conclusions.

(f) Notification of determination. SBA

will promptly notify the contracting

officer, the protester, and the protested

concern. SBA will send the notification

by verifiable means, which may include

facsimile, electronic mail, or overnight

delivery service.

(g) Results of an 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 or has

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 the procurement in question.

(i) If a contracting officer receives

such a determination after contract

award, and no OHA appeal has been
Small Business Administration

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 the protested concern

ineligible, the contracting officer shall

either terminate the contract or not

exercise the next option.

(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 reopening of size determinations. SBA may, in its sole discretion,

reopen a formal size determination to

correct an error or mistake, 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

recertified as a small business?

(a) A concern may request SBA to recertify it as small at any time by filing

an application for recertification with

the Government Contracting Area Office responsible for the area in which

the headquarters of the applicant is located, regardless of the location of parent 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 of affiliation due to

a joint 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 of that office.

(d) The granting of an application for

reeertifieation has future effect only.

While it is a formal size determination,

notice of reeertifieation is required to

be given only to the applicant.

APPEALS OF SIZE DETERMINATIONS AND

NAICS CODE DESIGNATIONS

§121.1101 Are formal size determinations subject to 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 of size determinations.

[69 FR 29207, May 21, 2004, as amended at 76

FR 5683, Feb. 2, 2011]

§ 121.1102 Are NAICS code designations subject to 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 a court.

[67 FR 47245, July 18, 2002]

§ 121.1103 What are the procedures for

appealing a NAICS code or size

standard designation?

(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 of the 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,

DC 20416.

(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 of the 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) Procedure after a NAICS code appeal is filed and served.

(1) Upon receipt of the 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 of the 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 Business Administration

(2) Upon receipt of a 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 134 of this 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 at 76 FR 5683, Feb. 2, 2011;

78 FR 61132, Oct. 2, 2013]

Subpart B-Other Applicable Provisions

WAIVERS OF THE NONMANUFACTURER

RULE FOR CLASSES OF PRODUCTS AND

INDIVIDUAL CONTRACTS

§ 121.1201 What is the Nonmanufacturer Rule?

The Nonmanufacturer Rule is set

forth in § 121.406(b).

§ 121.1202 When will a waiver of the

Nonmanufacturer Rule be granted

for a class of products?

(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 of products.

(b) Federal market means 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 a national 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 of the product;

(iii) Whether there are legal barriers

to transportation of the 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 a reasonable price.

(c) Available to participate in the context of the Federal market means that

contractors exist that have been

awarded or have performed a contract

to supply a specific class of products to

the Federal Government within 24

months from the date of the request for

waiver, either directly or through a

dealer, or who have submitted an offer

on a solicitation for that class of products within that time frame.

(d) Class of products 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

for an individual 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 of a solicitation, including the period of performance.
§ 121.1204

§ 121.1204 What are the procedures for

requesting and granting waivers?

(a) Waivers for classes of products. (1)

SBA may, at its own initiative, examine a class of products for possible

waiver of the Nonmanufacturer Rule.

(2) Any interested person, business,

association, or Federal agency may

submit a request for a waiver for a particular 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, DC 20416.

(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 the request for waiver,

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 of intent to waive

the Nonmanufacturer Rule for that

class of products and affording the public a 15-day comment 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 for issuing

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 of unusual 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 a waiver is the final decision by the Agency.

(7) A waiver of the Nonmanufacturer

Rule for classes of products 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 of products 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 of Government 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 of products through the publication of a notice in the FEDERAL REGISTER, asking

for comments regarding the proposed

termination.

(iii) Unless public comment reveals

that no small business 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) Individual waivers for specific solicitations. (1) A contracting officer's request for a waiver of the Nonmanufacturer Rule for specific solicitations

need not be in any particular form, but

must, at a minimum, include:

(i) A definitive statement of the specific item to be waived and justification as to why the specific item is required;
Small Business Administration

(ii) The solicitation number, NAICS

code, dollar amount of the procurement, and a brief statement of the procurement 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 of the contracting officer's efforts to search for small business manufacturers or processors of the

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 of Work.

(2) Requests should be addressed to

the Director, Office of Government

Contracting, Small Business Administration, 409 3rd Street, SW., Washington, DC 20416.

(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

granted class waivers obtained?

A list of classes of products for which

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 of Government Contracting, U.S. Small Business Administration, 409 3rd Street,

SW., Washington, DC 20416, 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 What do these rules cover?

123.2 What are disaster loans and disaster

declarations?

123.3 How are disaster declarations made?

123.4 What is a disaster area and why is it

important?

123.5 What kinds of loans are available?

123.6 What does SBA look for when considering a disaster loan applicant?

123.7 Are there restrictions on how disaster loans can be used?

123.8 Does SBA charge any fees for obtaining a disaster loan?

123.9 What happens if I don't use loan proceeds for the intended purpose?

123.10 What happens if I cannot use my in- surance proceeds to make repairs?

123.11 Does SBA require collateral for any

of its disaster loans?

123.12 Are books and records required?

123.13 What happens if my loan application

is denied?

123.14 How does the Federal Debt Collection

Procedures Act of 1990 apply?

123.15 What if I change my mind?

123.16 How are loans administered and serviced?

123.17 Do other Federal requirements apply?

123.18 Can I request an increase in the

amount of a physical disaster loan?

123.19 May I request an increase in the

amount of an economic injury loan?

123.20 How long do I have to request an increase in the amount of a physical disaster loan or an economic injury loan?

123.21 What is a mitigation 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

my relocating?

123.103 What happens if I am forced to move

from my home?

123.104 What interest rate will I pay on my

home disaster loan?

123.105 How much can I borrow with a home

disaster loan and what limits apply on use of funds and repayment terms?

123.106 What is eligible refinancing?

Pt. 123