U.S. GOVERNMENT PUBLISHING OFFICE

31-211 WASHINGTON : 2019

THE TAX LAW’S IMPACT ON MAIN STREET 

HEARING 

BEFORE THE

COMMITTEE ON SMALL BUSINESS 

UNITED STATES 

HOUSE OF REPRESENTATIVES 

ONE HUNDRED FIFTEENTH CONGRESS 

SECOND SESSION 

HEARING HELD 

JULY 25, 2018 

Small Business Committee Document Number 115–087 

Available via the GPO Website: www.govinfo.gov 

SBR002 with DISTILLER


Congress.#13
(II) 

HOUSE COMMITTEE ON SMALL BUSINESS 

STEVE CHABOT, Ohio, Chairman 

STEVE KING, Iowa 

BLAINE LUETKEMEYER, Missouri 

DAVE BRAT, Virginia 

AUMUA AMATA COLEMAN RADEWAGEN, American Samoa 

STEVE KNIGHT, California 

TRENT KELLY, Mississippi 

ROD BLUM, Iowa 

JAMES COMER, Kentucky 

JENNIFFER GONZA ́ LEZ-COLO ́ N, Puerto Rico 

BRIAN FITZPATRICK, Pennsylvania 

ROGER MARSHALL, Kansas 

RALPH NORMAN, South Carolina 

JOHN CURTIS, Utah 

NYDIA VELA ́ ZQUEZ, New York, Ranking Member 

DWIGHT EVANS, Pennsylvania 

STEPHANIE MURPHY, Florida 

AL LAWSON, JR., Florida 

YVETTE CLARKE, New York 

JUDY CHU, California 

ALMA ADAMS, North Carolina 

ADRIANO ESPAILLAT, New York 

BRAD SCHNEIDER, Illinois 

VACANT 

KEVIN FITZPATRICK, Majority Staff Director 

JAN OLIVER, Majority Deputy Staff Director and Chief Counsel 

ADAM MINEHARDT, Staff Director 

SBR002 with DISTILLER

(III) 

C O N T E N T S 

OPENING STATEMENTS 

Page 

Hon. Steve Chabot ................................................................................................... 1 

Hon. Nydia Vela ́zquez ............................................................................................. 2 

WITNESSES 

Mr. Wettlin Treppendahl, Owner, Treppendahl’s Super Foods, Woodville, MS, 

testifying on behalf of the National Grocers Association .................................. 5 

Mr. Tibi Czentye, Chief Executive Officer, All Pro Solutions, Rock Hill, SC ..... 7 

Mr. Gary Ellerhorst, President/CEO, Crown Plastics Co., Harrison, OH ........... 8 

Ms. K. Davis Senseman, Founder, Davis Law Office, Minneapolis, MN, testifying on behalf of the Main Street Alliance ....................................................... 10 

APPENDIX 

Prepared Statements: 

Mr. Wettlin Treppendahl, Owner, Treppendahl’s Super Foods, Woodville, 

MS, testifying on behalf of the National Grocers Association ................... 32 

Mr. Tibi Czentye, Chief Executive Officer, All Pro Solutions, Rock Hill, 

SC ................................................................................................................... 36 

Mr. Gary Ellerhorst, President/CEO, Crown Plastics Co., Harrison, OH ... 38 

Ms. K. Davis Senseman, Founder, Davis Law Office, Minneapolis, MN, 

testifying on behalf of the Main Street Alliance ........................................ 44 

Questions for the Record: 

None. 

Answers for the Record: 

None. 

Additional Material for the Record: 

Statement of David Borris, Owner, Hel’s Kitchen Catering ......................... 51 

Statement of Kelly Conklin, Owner, Foley-Waite LLC ................................. 52 

Statement of Hon. John Curtis ....................................................................... 53 

Statement of Mike Draper, Owner, RAYGUN ............................................... 59 

Statement of Deborah Field, Owner, Paperjam Press PDX .......................... 60 

NFIB Small Business Economic Trends ......................................................... 61 

NFIB Research Center ..................................................................................... 82 

Statement of Maurice Rahming, Owner, O’Neill Construction Group ......... 107 

Small Business Index ....................................................................................... 108 

SBA Table of Small Business Size Standards ................................................ 132 

Statement of ReShonda Young, Owner, Popcorn Heaven ............................. 178 

SBR002 with DISTILLER

SBR002 with DISTILLER

(1) 

THE TAX LAW’S IMPACT ON MAIN STREET 

WEDNESDAY, JULY 25, 2018 

HOUSE OF REPRESENTATIVES, 

COMMITTEE ON SMALL BUSINESS, 

Washington, DC. 

The Committee met, pursuant to call, at 11:02 a.m., in Room 

2360, Rayburn House Office Building. Hon. Steve Chabot [chairman of the Committee] presiding. 

Present: Representatives Chabot, King, Luetkemeyer, Kelly, 

Blum, Marshall, Norman, Curtis, Vela ́zquez, Evans, Lawson, 

Clarke, Chu, Adams, and Schneider. 

Also Present: Representative Harper, and Norman. 

Chairman CHABOT. Good morning. I call the Committee to 

order, and we thank everyone for being with us. 

After more than 30 years of thinking and talking about tax reform, Congress produced and passed the Tax Cuts and Jobs Act. 

On December 22nd of last year, President Trump signed this historic tax package into law. Today, the unemployment rate is at historic lows. New claims for unemployment benefits have recently 

plunged, and equipment purchases are on the rise. The economy as 

a whole is recording very positive marks. Beyond macroeconomic 

data trends, this tax law will be judged on its direct impact on the 

ground. From a business perspective, optimistic scores, optimism, 

it is really sky high. That is a very good thing, and for small businesses, it is a great thing. 

According to the NFIB, National Federation of Independent Business, their most recent Small Business Optimism survey recorded 

the sixth highest mark in history. When it comes to problems facing small businesses, the NFIB survey showed that small firms 

listing taxes as a major problem has fallen considerably. It used to 

be way up there on the list but now people think that we finally 

dealt with it. It does not mean we are done but we are certainly 

headed in the right direction as a result of the Tax Cuts and Jobs 

bill. 

Additionally, NFIB released a separate survey specifically looking at the Tax Cuts and Jobs Act. According to that report, more 

than 85 percent of all small business owners believe that the tax 

reform package will produce positive results. In another report, the 

U.S. Chamber of Commerce and MetLife joined forces and found 

that small business owners were forecasting continued growth as 

the year progresses. 

And I ask unanimous consent to enter these three surveys into 

the record. 

And without objection, so ordered. 

SBR002 with DISTILLER

2 

While reports capture the overall temperature of the industry, I 

want to hear directly from those that are on the ground. And that 

is the folks sitting before us here this morning. That is what we 

are here to discuss today—the reactions, the impact, and the effects 

of the Tax Cuts and Jobs Act on small businesses all across the 

country. And I think we all look forward to hearing from each witness about the business environment in their community and how 

they have been impacted from the tax reform package. Additionally, I think we are interested in hearing where your companies 

were a year ago and where they are today as a result of the tax 

cut. From Ohio, to Mississippi, to Utah, small businesses are transforming communities and neighborhoods. They are responsible for 

the creation of two out of every three new jobs in the private sector, 

small businesses are, and as we continue to study the impact of tax 

reform, it is important to hear from those employing nearly half of 

the private sector workforce. Simply put, the economy runs on 

small businesses. 

Before we move forward in this hearing, I want to take this time 

to especially thank all the witnesses for being with us here today. 

I know that you are sacrificing time and energy away from your 

business to testify before us, and we really do appreciate that. So 

thank you for joining with us. 

And I would now like to yield to the Ranking Member for her 

opening statement. 

Ms. Vela ́zquez? 

Ms. VELA ́ ZQUEZ. Thank you, Mr. Chairman. 

A little more than 7 months ago, President Trump signed into 

law a partisan Republican tax bill. Unfortunately, it has become increasingly clear that the lion’s share of benefits from this law will 

fall disproportionately to the largest corporations and the very 

wealthy. At the same time, small businesses who could have benefitted from well-crafted targeted tax reform are largely left behind. 

Some small firms are seeing, at best, marginal benefits. Many others have yet to see many meaningful advantages at all. A longstanding challenge for small businesses has been managing Tax 

Code complexity. Complying with intricate and frequently changing 

tax rules imposes a significant burden on small enterprises, many 

of whom do not have in-house tax professionals. Instead, small 

firms need to spend time and money on outside counsel and tax 

preparers. We have heard time and again from small businesses 

that this uncertainty and unpredictability imposes additional costs 

for them making it difficult, if not impossible, to plan. 

Unfortunately, the Trump tax law did little to alleviate the twin 

problems of uncertainty and complexity. Instead, it has fueled more 

confusion and uncertainty. For instance, as of today, an overworked, underfunded IRS has yet not released Section 199A, Passthrough Regulations. Another example is the promise that small 

businesses will be able to file their taxes on a piece of paper the 

size of a postcard. As always, the devil is in the details. 

Recently leaked IRS documents suggest there will be additional 

paperwork and worksheets small businesses will need to navigate. 

For those firms that think they will be able to capitalize on the 

new tax laws through restructuring, they can expect an expensive 

and time-consuming process that may eclipse any benefits. 

SBR002 with DISTILLER

3 

While benefits for Main Street small businesses are minimal at 

best, the Trump tax law will be a boom to Wall Street big companies and the extraordinarily wealthy. Millionaires will receive an 

average tax cut of nearly $70,000 this year, more than 100 times 

the size of the average tax cuts for families earning less than 

$150,000 annually. Not only does this cast doubt on how large a 

tax cut most entrepreneurs will receive but it also suggests most 

locally owned businesses will not see much secondary stimulative 

economic benefit. Unlike the very wealthy, when working and middle class families get a tax cut, they are most likely to spend it 

quickly at local Main Street businesses, spurring customer demand 

for small businesses’ goods and services. 

Simply put, the cost of tax reform has been put on the backs of 

small employers and working families that will see any rate reduction expire at the end of 2025, while corporate rate deductions continue permanently. On top of it all, the Trump tax changes will 

mean the federal deficit grows by trillions of dollars. So much for 

fiscal conservancy. 

Already, the tax plan jeopardizes health coverage for 13 million 

Americans, and these future deficit pressures could imperil Social 

Security, Medicare, and Medicaid. Most small business owners I 

know want to take care of their employees. Ultimately, cutting the 

ACA and vital social safety net programs imposes indirect costs on 

responsible entrepreneurs who want to do right by their employees. 

The fact is real bipartisan tax reform that helps small businesses, 

American families, and it is fiscally responsible could have been 

achieved if Republicans had worked across the aisle. Unfortunately, the Trump tax plan was pushed through rapidly with the 

support of just one party aimed at achieving a political goal. Not 

good policy. It is my hope that in the future Congress can work together on more responsible tax solutions that help small firms and 

strengthen our economy for the long term. 

With that I yield back. 

Chairman CHABOT. Thank you. The gentlelady yields back. 

I will take just a moment before introducing our panel to explain 

our lighting system and timing things. 

We operate under the 5-minute rule. Each of you will have 5 

minutes to testify. The green light will be on for 4 minutes. The 

yellow light will come on for a minute to let you know that you 

should be wrapping up. And then the red light will come on letting 

you know your 5 minutes is up. And we would ask that you stay 

within that time if at all possible. 

And I would now like to yield to the gentleman from Mississippi, 

who is the Chairman of the House Administration Committee, Mr. 

Harper, in order to introduce our first witness here this morning. 

Mr. HARPER. Thank you, Chairman Chabot, and Ranking Member Vela ́zquez for allowing me the opportunity to participate briefly 

in this Committee’s hearing this morning in order to introduce my 

constituent and friend, Mr. Wettlin Treppendahl. 

Wettlin is the Owner of Treppendahl’s Super Foods in Woodville, 

Mississippi, a town of just over 1,000 people, and one of our state’s 

oldest communities having been incorporated in 1811, 6 years before Mississippi became a state. While the first Treppendahl did 

not arrive in Woodville until almost 100 years later, the 

SBR002 with DISTILLER

4 

Treppendahl family name today is readily recognized throughout 

Southwest Mississippi and immediately identified with Woodville 

and Wilkinson County. 

The Treppendahl family history is the classic American success 

story. In 1903, as a 24-year-old, Carl Treppendahl was sent from 

Denmark to New Orleans wearing a shipping tag pinned to his coat 

that said, ‘‘send me to Woodville, Mississippi. I do not read or 

speak English.’’ He had been promised a job as a bookkeeper by a 

fellow Danish immigrant, but unfortunately, that business failed 

shortly after Carl immigrated to the United States. Carl was left 

in Woodville with nothing, so he got busy. He opened a small store 

where he bought and sold everything from hardware and dry goods 

to lumber and fertilizer. In 1924, he added a grocery store in downtown Woodville to his enterprises. Carl’s son Adolph took over operation of the business, which eventually passed to his son and our 

witness today, Wettlin Treppendahl, Jr. Wettlin is assisted in the 

daily operation of the family’s full-service grocery store by his son 

and daughter, Adolph Wettlin Treppendahl III and Susan 

Treppendahl LeBlanc. 

Mr. Treppendahl is testifying today on behalf of the National 

Grocery Association, and I would like to welcome him today to this 

hearing and to Washington, D.C., on behalf of the House of Representatives. 

And I thank you, Mr. Chairman. I wish I could stay longer but 

I have to go and chair a matter over in the Committee on House 

Administration. Thank you for allowing me to introduce Mr. 

Treppendahl. 

Chairman CHABOT. Thank you very much for that, and you are 

excused. We appreciate you being here. 

And our next witness, I would recognize the gentleman from 

South Carolina, Mr. Norman, for the purpose of introducing our 

second witness. 

Mr. NORMAN. Thank you, Chairman Chabot. And I would also 

like to thank Ranking Member Vela ́zquez and the rest of the Committee for the opportunity to introduce one of our witnesses who is 

from my hometown. Tibi, great to see you again, and thank you for 

traveling all the way from the great state of South Carolina to join 

us today in our talk about tax reform and what it means for small 

businesses, particularly yours. 

I have known Tibi for quite some time now and I have not only 

found a smart businessman but also a great friend. If you do not 

know, Tibi is the CEO of his company, All Pro Solutions. All Pro 

Solutions is a very small business in my hometown of Rock Hill, 

South Carolina, which is just south of Charlotte, North Carolina. 

Twenty-six years ago, after fleeing from communist Romania and 

coming to America, Tibi started All Pro Solutions and has turned 

it from a small startup to a thriving small business. Ten years ago, 

Tibi and his family moved to South Carolina. They have enjoyed 

every minute, and he attributes his move to South Carolina not 

only as a personal decision for him and his family but a business 

decision where he would be able to grow his family-run business, 

which he did. Since I have known Tibi, I have grown to know him 

as an honest, hard-working, and dedicated family man, businessman, and friend. I look forward to his testimony. He is a true sucSBR002 with DISTILLER

5 

cess story. When we went through his business, he really was excited about his business and what he does. I welcome his wife here 

today, and Tibi, again, thank you for taking the time to come. And 

I look forward to your testimony. 

Chairman CHABOT. Thank you very much. 

And I will introduce our next witness, who is Gary Ellerhorst, 

who actually is from my district in the great State of Ohio, and 

about a half hour outside the city of Cincinnati in Harrison, Ohio, 

where he is the Chief Executive Officer and President of Crown 

Plastics Company. Crown Plastics is an innovator and manufacturer of advanced plastics and polymers that has locations in both 

Ohio and internationally. With impact-resistance characteristics, 

Crown Plastic’s materials are helping advance the shipping and 

transportation industry, as well as the ski and snowboard markets. 

The company was founded back in 1972 by Mr. Ellerhorst’s father, 

Robert Ellerhorst. Today, the company is led by Gary Ellerhorst, 

who has over 40 years of experience with Crown Plastics. In addition to his responsibilities there, Mr. Ellerhorst is past president of 

Main Street Harrison and the Greater Harrison Chamber of Commerce. And we thank you for taking time away from the business, 

and we welcome you here today. 

And I would now like to recognize our Ranking Member, Ms. 

Vela ́zquez, for the purpose of introducing our fourth and final witness. 

Ms. VELA ́ ZQUEZ. Thank you, Mr. Chairman. 

It is my pleasure to introduce Ms. Davis Senseman, the Founder 

of Davis Law Office in Minneapolis, Minnesota. Her law firm employs five people and serves a roster of over 800 Minnesota-based 

small business clients. Ms. Senseman graduated from Becknell 

University and magna cum laude from Mitchell Hamline School of 

Law. She serves on several nonprofits and hails from Brooklyn, 

New York. She is testifying today on behalf of the Main Street Alliance, a national network of small business owners. 

I want to welcome you and all the witnesses. Thank you so much 

for being here today. 

Chairman CHABOT. Thank you very much. The gentlelady 

yields back. 

And if Committee members have opening statements, I would 

ask that they be submitted for the record. 

And we will now turn to our witnesses. 

Mr. Treppendahl, you are recognized for 5 minutes. 

STATEMENTS OF WETTLIN TREPPENDAHL, OWNER, 

TREPPENDAHL’S SUPER FOODS; TIBI CZENTYE, CHIEF EXECUTIVE OFFICER, ALL PRO SOLUTIONS; GARY ELLERHORST, 

PRESIDENT & CEO, CROWN PLASTICS CO.; K. DAVIS 

SENSEMAN, FOUNDER, DAVIS LAW OFFICE 

STATEMENT OF WETTLIN TREPPENDAHL 

Mr. TREPPENDAHL. Good morning. Thank you to Chairman 

Chabot and Ranking Member Vela ́zquez, and to the members of 

the Small Business Committee for the opportunity to testify and 

share my family business story. 

SBR002 with DISTILLER

6 

My name is Wettlin Treppendahl, and I am a fourth-generation 

retailer and owner of Treppendahl Super Foods in Woodville, Mississippi. My family business originally opened in the 1800s and 

later expanded to the grocery store that we own and operate, and 

have been since 1924. Treppendahl’s is a full-service grocery store 

offering specialty items, a deli, a bakery, and premium meats. My 

daughter assists me in the operation and plans to take over the 

business someday. 

I am testifying on behalf of the National Grocers Association, the 

national trade association representing the retailers and wholesalers that comprise the independent sector of the supermarket industry. Woodville is a 1-square mile town of 1,200 people, and 

Treppendahl’s is the largest employer with 50 employees. We are 

the only grocery store in town where 60 percent of our customers 

are eligible for the SNAP benefit and would face significant difficulties in accessing fresh fruits and vegetables if not for our store. 

The new tax law has had an immediate impact on my business’s 

ability to invest in our store and community. We have upgraded 

and replaced 12 doors of frozen foods section providing work for our 

local refrigeration company and allowing us to expand our selection 

of frozen food and save on energy costs. We are also in the process 

of upgrading our check lanes, which are 18 years old. Tax reform 

has allowed me to provide full-time employees with raises. 

The estate tax has also been a concern of our business. Supermarkets are somewhat unique in that most of our assets are nonliquid, tied up in property, inventory, fixtures, and equipment. Paying a big estate tax could mean going into debt or selling off part 

of the company. The new tax law’s double exempt threshold for the 

estate tax has reduced fear I have about the future of my business 

as it is to be passed through generations. The permanency for this 

provision would assure me that our store will remain in business 

for years to come. 

The 20 percent pass-through deduction is a positive for my business as we are organized as an S corporation, but long-term certainty for this provision and rate parity with C corporations is desired for the future since we must compete with chain stores. 

Another important aspect to the tax reform is 100 percent bonus 

depreciation qualified improvement properties. As a supermarket 

owner, I must replace expensive equipment over time, as well as 

upgrade shelving units, flooring, ceiling tile, wiring. These items 

carry high price tags, and the ability to write them off fully and 

immediately gives me the confidence to invest in my store. 

However, a drafting error in the new tax law prevents me from 

being eligible for the benefits, and I urge Congress to fix this issue 

as soon as possible. 

Thanks to the new tax law, I have received new confidence in my 

business. As Congress looks to improve the tax law, I urge you to 

make permanent pro-growth policies for small businesses that 

would remove uncertainty so I can continue to invest in my employees, my business, and my community for years to come. 

Thank you, and I am happy to answer any questions you may 

have. Thank you. 

Chairman CHABOT. Thank you very much. 

Mr. Czentye, you are recognized for 5 minutes. 

SBR002 with DISTILLER

7 

STATEMENT OF TIBI CZENTYE 

Mr. CZENTYE. Good morning, Mr. Chairman, Ranking Member 

Vela ́zquez, and members of the Committee. I am honored for the 

opportunity to testify before the Committee today on how the Tax 

Cuts and Jobs Act helps small businesses. 

My name is Tibi Czentye, CEO of All Pro Solutions located in 

Rock Hill South Carolina. I am a legal immigrant and a proud U.S. 

citizen. I escaped from Romania in 1989 and after 2 years of vetting, I received political asylum for U.S. After 5 years of working 

three jobs, I opened my own company, bought my own house, and 

sent my kids to good colleges in California. And then after 18 years 

there, we left California and found our dream state, South Carolina, where we enjoy family values, good business opportunities, 

and a lower cost of living. 

All Pro Solutions was created in 1996. We are a manufacturer of 

disc publisher archiving systems and digital services. We sell our 

equipment all over the world, including the government. 

When we started the company, we were two people and now we 

are 10. Recently we added two. We were eight; now we are 10. And 

we expect to hire even more at the end of the year. Because of the 

Tax Cut and Jobs Act, the optimism in the small business community is very high. I am a member of York County Chamber of Commerce, and after each meeting I notice the optimism of our community entrepreneurs growing higher and higher. 

The tax reduction is huge and the extra in the company’s pocket 

is a big amount of money a small company can do a lot with. Until 

last year, many companies, including us, didn’t want to spend their 

money, but now, because of this big tax cut, any entrepreneur can 

see the opportunity to invest in its company with the goal to make 

more money and for the employees also. It is a very good feeling. 

All Pro Solutions’ forecast for the end of this year and beginning 

of the next increased four times compared to the last period of the 

year. Because of that, we already started to buy new inventory to 

build our equipment. Last year, we built 50 units, and this year we 

plan to build 150-185 units. Because of this extra number of products, we already began to expand our company, and in the end, 

when everything is done, we will hire between two and maybe even 

four people. 

One of the other good signs on how the Tax Cuts and Jobs Act 

works can be seen through jobs advertising on Craigslist. I used to 

advertise each year, and I used to receive 200-300 resumes, and 

now we received just 20-30. It is clear why. The economy is booming, people have jobs, and the job market starts to be a huge issue 

to hire for us. Therefore, we have to increase the employees’ wages, 

and also, when we hire, we have to offer them more than usually 

just to be able to catch them. 

Another big opportunity for us, arisen because of the tax cut, is 

to try to bring in U.S. Chinese manufacturers that already sell 

their products here. To manufacture their products here could be 

a big advantage for them comparing to making them in China 

which adds some expenses, and also the transporting can be a huge 

amount. And besides that, I believe we even can have lower costs 

to build products to them than what they have there. And also, it 

is more safe. 

SBR002 with DISTILLER

8 

We already have a company interested. They visit us and we are 

in the third phase of dealing with them. The company name is 

Oulupa Filtration, a manufacturer of high precision filters. I hope 

we will be able to partner with them, and I am really happy to 

bring companies from China to the U.S. This shall be something 

special for us. 

Reduction in the individual income tax is another big help for the employees, and a lower tax by an average of $1,334 per family per 

year, which is 2.2 percent, put more money in their pockets. 

Expanding the Child Tax Credit, which I think is big, too, from $1,000 to $2,000, and preserving the mortgage interest deduction, 

this is one very big, good thing to preserve it so the people, if they 

buy, it is good to be able to be helped. 

Because of all these wonderful results of the Tax Cuts and Jobs 

Act, you can see many happy faces in the streets, more people 

shopping our malls and eating out in the restaurants. Whatever 

people say, what I know is that money brings happiness. 

Thank you for listening to me, and I would be pleased to answer 

any questions you might have. 

Chairman CHABOT. Thank you very much. 

Mr. Ellerhorst, you are recognized for 5 minutes. 

STATEMENT OF GARY ELLERHORST 

Mr. ELLERHORST. Chairman Chabot and Ranking Member 

Vela ́zquez, good to see you both again. Thank you very much for 

having me. It is an honor to testify. 

In 1972, my father started Crown Plastics Company. After working several years as a second shift machine operator while attending Xavier University, I came on full time at Crown in 1978. In the 

past 40 years, I have experienced just about every level of financial 

difficulty and success due to both general economic as well as market-specific conditions. What I have come to learn is that although 

a singular situation or event can bring a solid successful business 

to its knees, for example, streaming videos, complete annihilation 

of Blockbuster Video or regulatory impact on small community 

banks, it takes a combination of specific market and economic conditions to fuel significant profitable growth. These include internal 

aspects, such as a skilled workforce, product value and innovation, 

wages and benefits, external items, such as general economy, global competition, regulation, taxation, and availability to capital, and 

other more nebulous things, such as corporate and consumer confidence in the future economic environment. 

Although each of these aspects play an important individual role 

on overall economic performance, it is a combination of these that 

create the synergistic rocket fuel of a booming economy. Separately, 

Mentos will freshen your breath, and Diet Coke will quench your 

thirst, but together in the proper environment they are explosive. 

Either of them alone will not do it, nor could you replace them with 

Tic Tacs or Diet Pepsi and get the same result. So trying to evaluate the impact of the recent tax bill contextually removed from the 

other contributing economic influences, which combine to generate 

the overall economic picture, can be difficult and potentially misleading. I will to the best of my ability provide my perspective as 

to how the bill both directly, and more importantly, in conjunction 

SBR002 with DISTILLER

9 

with other economic and policy-based contributors, is impacting my 

business. 

The attached exhibit is a drastically simplified illustration of the 

direct impact on our tax liability. As an S corp, under the new bill, 

Crown shareholders would be eligible for the 20 percent passthrough tax deduction. However, we also lose the 9 percent domestic production activity tax deduction that was eliminated. Based on 

a million dollars in taxable income, which is about where we budgeted for 2018, Crown would see a net decrease of just over $64,000 

in shareholder tax liability. As with most S corporations, we commit to distributing to the shareholders enough to cover their Federal and state tax liabilities, so the result is that the company 

would be able to reduce its distributions by the $64,000 and still 

provide our shareholders the funds to meet their tax requirements. 

Now, that may not sound like a big deal for a $14 million company, but in reality, it is. Over the past 10 years, we have invested 

over $5 million in new equipment, process improvements, and technological updates, and have paid out little to nothing to our shareholders. Even if we decided to just pay out the pre-tax bill numbers, it would provide the opportunity for the shareholders to keep 

their portion of the tax reduction and use it for themselves and 

their families. And as a privately held company, our shareholders 

are just regular folks like myself, many of them, the children of initial investors who have inherited the stock from their parents. 

We could also choose to use the money to pay down debt, further 

reducing interest costs. $64,000 a year would also provide us with 

the capability to service well over $1 million in additional loans for 

further investing in our business, which is very timely as we just 

signed a contract on an additional building adjacent to ours, which 

with upgrades will cost us about $1.1 million. The tax savings will 

allow us to cover this additional expense without adversely affecting our current cash flow, which is the most critical factor to a 

growing business. 

A key impact for us is with regard to our medical insurance benefits. We continue to pay 100 percent of the premiums for our employees’ high deductible HSA medical insurance policies, as well as 

40 percent of the deductible on the backside. This has been a commitment of ours to our employees, and over the past 10 years, we 

have worked hard with our insurance broker to do whatever we 

could to maintain that benefit through increased deductibles, 

change in carriers, and sponsoring employee wellness programs. 

We are at a point where one more large increase in premium costs 

could force us to start requiring employees to contribute to the program. 

But with the new tax bill, not only can be maintain the status 

quo for 2019, but for many years to come. Why? Because when we 

realize the impact of a booming economy, along with the returns 

from recent investments we have made in the business, we expect 

to double profits next year, which means $64,000 becomes $128,000 

in tax savings, and even more in 2020. 

Another aspect that is potentially even more impactful than the 

tax rate itself is the ability to accelerate depreciation of our investments into our company. Outside the purchase of the new facility, 

we have budgeted capital expenditures of $800,000 for 2018. AlSBR002 with DISTILLER

10 

though the net impact over time is a wash, the ability to expense 

these investments, rather than depreciating them over 5 to 7 years, 

will provide us with an additional $200,000 of cash in 2018, which 

again is often the most critical item for a growing company. With 

increased receivables, inventory, and work in process, a growing 

business requires significant cash. 

So in closing, the recent tax reduction in and of itself will have 

a positive impact on our employees and our business in 2018 and 

beyond. But when augmented by the reduction and regulation, and 

most importantly, the hugely positive outlook by business leaders 

and consumers which started the day after the 2016 election, the 

resulting booming economy takes that positive impact of the tax 

bill and increases it exponentially. 

Thank you very much. 

Chairman CHABOT. Thank you very much. 

Ms. Senseman, you are recognized for 5 minutes. 

STATEMENT OF K. DAVIS SENSEMAN 

Ms. SENSEMAN. Chairman Chabot, Ranking Member 

Vela ́zquez, and members of the Committee, thank you for the invitation to testify today examining how the Tax Cuts and Jobs Act 

has affected real Main Street small businesses. 

My name is Davis Senseman, and I am a member of Main Street 

Alliance, a national network of over 30,000 small business owners. 

I have owned a small business law firm for more than 8 years, currently employ five people, and have a roster of over 800 business 

clients, many of whom I have consulted with about the TCJA. 

The vast majority of those clients, like others across the country, 

are not seeing consequential gains from the TCJA and its 20 percent pass-through deduction. It is nice that some of the other testifiers here today are but they are most certainly the exception and 

not the rule. And from what they offered as concerns about their 

businesses, I wonder how many Americans would actually classify 

them as small. 

At last measurement by the SBA, the median income for self-employed individuals who own pass-through was $49,204 a year. 

These businesses are the bodegas, auto mechanics, and small farmers who would have to pay more to an attorney like me, or an accountant, to figure out the new law than they would ever gain from 

tax cuts. 

The Act’s small business provisions were also needlessly confusing. The TCJA turned the tax treatment of tax treatment of 

pass-through entities completely on its head, and now two businesses making the same amount of money may have completely 

different tax situations. 

As Ranking Member Vela ́zquez mentioned, we sit here today, 

July 25th, still without any IRS regulations about what specifically 

will constitute things like qualified business income or specified 

trades, making it nearly impossible for these businesses to do any 

tax planning. 

My law partners and I sit in a very privileged position as attor- neys, and yet we still spent nearly $2,500 with our accountant on 

tax planning for 2018, a cost which could have doubled if we also 

had to hire legal advisors. In future years, once we have recouped 

SBR002 with DISTILLER

11 

the cost of our accountants, the TCJA will likely result in our having a slightly smaller tax burden. 

But first and foremost, we did not need it. And it certainly will 

not be enough to hire more staff. 

And we are not alone. A recent poll by Businesses for Responsible Tax Reform found that 69 percent of small business owners 

do not plan on hiring a new employee because of the new tax law. 

While many Main Street businesses will not feel benefits from 

the TCJA, they will feel a hit. The Congressional Budget Office estimates the TCJA will slash government revenue by nearly $2 trillion. As many predicted, some of your colleagues are using this deficit increase to justify deep cuts to Social Security, Medicare, infrastructure, and other public services that small business owners and 

our communities rely on. Many republicans were ardent opponents 

of any increase in the Federal deficit under President Obama, but 

now remain silent in the face of a burgeoning deficit due to a new 

tax law. 

The Tax Policy Center estimates that a typical small business 

owner, those folks with a median yearly income of $49,204, will experience a tax cut of roughly $500 in 2018. You would be hard 

pressed to find any Minnesota small business owner who would 

rather have $500 in hand now than an assurance that they can access heating assistance if their business is down in one of our 

tough Minnesota winters, or in Minnesota Care, our state Medicaid 

program, if they need it in the future. The CBO also found that the 

TCJA’s repeal of the individual mandate will cause 13 million 

Americans to lose access to healthcare and health insurance premiums to climb. 

I started my firm in 2010, the first year that the provisions of 

the Affordable Care Act took effect, at a time when large corporations in Minnesota were still reducing their workforces from the 

last recession. And do you know what I spent most of my time 

doing in those early months? Creating LLCs and drafting agreements for folks who had been laid off from Minnesota’s largest companies, but who had decided that they would take the risk to start 

their own business simply because they were on longer reliant on 

a large company to provide them health insurance. 

I would like to close my testimony with a story about an early 

U.S. small business owner, Henry Ford. Due to the Model T’s success and an innovative assembly line, Ford had a capital surplus 

of $60 million by 1916. He planned to use the money to employ 

more workers, make his cars more affordable for his employees, 

and help them build their lives, which is a lot of the promises we 

heard about the TCJA. Unfortunately, Ford had two shareholders, 

John and Horace Dodge, who sued him, arguing that the purpose 

of the company is to maximize shareholder profits, not to benefit 

the community. The court agreed, holding that management’s primary duty in a corporation is to maximize shareholder wealth. 

Dodge v. Ford makes clear that any attempt to stimulate the economy and create jobs by making sure that businesses have more 

money will run right into the issue that those businesses are legally obligated to use surplus money to benefit their shareholders 

through things such as stock buybacks, which have increased by 

$615 billion since the passage of this bill and not for the greater 

SBR002 with DISTILLER

12 

good. For the vast majority of small business owners, the confusing 

outcome of the TCJA has bene of little benefit, especially when 

compared with the good, affordable healthcare system, sufficient retirement funds, and the high quality jobs that sustain a strong customer base. 

I urge Congress to reexamine this entire bill and reconsider the 

methods used. I look forward to answering any questions. 

Chairman CHABOT. Thank you very much. 

And we will begin our questions now. And I recognize myself for 

5 minutes. 

Let me ask Mr. Treppendahl, Mr. Czentye, and Mr. Ellerhorst, 

how many employees do each of you have? Let’s just go down. 

Mr. TREPPENDAHL. Fifty. 

Chairman CHABOT. Fifty. 

Mr. CZENTYE. Eight and a couple part time. 

Chairman CHABOT. Eight and a couple part time? Two parttime? 

Mr. ELLERHORST. Fifty-three here and 20 in our international 

manufacturing facility. 

Chairman CHABOT. Okay. And I would ask unanimous consent 

to enter into the record the SBA Small Business Administration’s 

size standards that determine whether a business should be considered small. And let the record show that all three businesses before 

us indicate that they are small according to the size standards of 

the SBA, generally 500 or fewer employees. And they are also within, as far as the gross revenues. 

And without objection, so ordered. 

The same three witnesses, let me ask you this. 

Mr. KING. Will the gentleman yield? 

Chairman CHABOT. I would be happy to yield. 

Mr. KING. I just want to ask the Chairman if you have got that 

in your hand for the benefit of the Committee, what the gross receipt number is that is used to measure small business. 

Chairman CHABOT. It is $32.5 million under that. 

Mr. KING. Five hundred employees. 

Chairman CHABOT. Yes. Five hundred employees. 

Mr. KING. Thank you, Mr. Chairman. 

Chairman CHABOT. So about 10 percent, approximately, of what 

is considered a small business in America. And when we talk about 

there being 29 million approximately small businesses in America, 

that is the numbers within which we are working. 

The three gentleman that I just asked the question, as compared 

to last year at this time, do you feel your business is better off 

today with the Tax Cuts and Jobs Act being in place? 

Mr. Treppendahl? 

Mr. TREPPENDAHL. Yes, sir. I do. I think that we have to work 

as hard or harder but I am investing back in my company because 

I think that we are on the right track. I would not ask my daughter to come back and work with me—she has an accounting degree 

and I would not ask her to come back and work with me if I did 

not. 

Let me explain. When you say a small grocery store, we are a 

small grocery store on a scale of the big people. We had a 1-day 

meat sale. And on our 1-day meat sale, we did really good. We sold 

SBR002 with DISTILLER

13 

over $50,000 that one day. Now, you realize, I went to work at 4:30 

in the morning and I got home at 8 o’clock that night. And of that 

$50,000, our profit was 1 percent to 2 percent. So that is $500 we 

made for that. So any kind of break or any kind of cut that can 

help small businesses. And I am saying small business. We have 

got 1,200 people in our town, and it is 1-mile square. We are little 

bitty in the scope of the big boys. But yes. I am 69 years old. I 

would be retiring if I did not have faith. 

Chairman CHABOT. Thank you. 

Mr. Czentye, are you better off today as a result of the Tax Cuts 

and Jobs Act? 

Mr. CZENTYE. Yes. And even I feel better. 

Chairman CHABOT. Thank you. 

Mr. CZENTYE. So this is from huge optimist. It is a very general 

good feeling where you go and you talk with people and they have 

companies, how positive they see it. Usually, the entrepreneurs, 

they have to go first, not after, or cannot be followers. So once we 

see the opportunity, our job is to go and spend and do stuff and 

try to do stuff because with a good backup you can make 50 percent profit. And it is one chain. Even some critics at the big companies, I love them. Why? Because if they spend money, they are 

going to buy stuff from me, I have to make stuff, and I have to buy 

stuff from others. And this by the way is one side because it is not 

just small companies, not big companies. We are related. I have my 

forecast, 80 percent big companies are going to buy stuff from me. 

And what they did, they purchased one unit, now I have five, six, 

seven, which is between $5,000 and can be $25,000-$30,000. It is 

a big difference. So it is one chain, which I love. It is not just a 

small company. It is one good example. That is why I am here. But 

I had the chance to be here. But it is not just that. Even the big 

corporations, they have one huge inference over us and help us because they buy stuff from me. 

Chairman CHABOT. Thank you. 

Mr. CZENTYE. They buy stuff from me. 

Chairman CHABOT. Yeah, I am going to run out of time. So I 

want to get to Mr. Ellerhorst. 

Mr. Ellerhorst, let me mention one thing. 

Mr. ELLERHORST. Yes. 

Chairman CHABOT. Are you better? 

And then secondly, I think you mentioned that you are in a 

group of 37 other small businesses. And what are you hearing? And 

what kind of businesses are those? And what are you hearing from 

them, too? 

Mr. ELLERHORST. I am absolutely better off, and will continue 

to be better off as time goes. I am a member of Vistage CEO Group 

and another chamber. 

Chairman CHABOT. What was the name of that again? 

Mr. ELLERHORST. Vistage. It used to be Tech. At another CEO 

roundtable with 26 other businesses, and they range anywhere 

from banking to restaurants, complete wide gamut, and there is 

not a single one, whether they like the president or not, that will 

not say that they absolutely are benefitting from the tax bill. Not 

a one. 

Chairman CHABOT. Okay. Thank you. My time is expired. 

SBR002 with DISTILLER

14 

The Ranking Member is recognized for 5 minutes. 

Ms. VELA ́ ZQUEZ. Thank you, Mr. Chairman. 

We held a subcommittee hearing on entrepreneurial development, and we have a table and witnesses just like this. There were 

three Republican witnesses and one Democratic witness. That day, 

when asked by a member of the other side if the Republican tax 

bill benefited them, each one of them replied in the negative. I was 

not here. It was on the subcommittee but I watched the proceedings. 

So a postcard filing form was touted as the game changer of tax 

reform. This is the card that Speaker Ryan used to show that it 

was going to be easy. You know, a small business person would be 

able to file their taxes on a postcard like this. Yet, it is becoming 

more apparent that this is not just reality, especially for small 

businesses. In fact, these are the draft forms that we have seen. 

I have to get up because it is this long. 

So after seeing the draft forms, would you consider filing your 

own taxes since it is so much easier to file now, Ms. Senseman? 

Ms. SENSEMAN. No. When I have consulted with my accountants, they have said here is our best guess as to how things will 

be interpreted by the IRS because we do not have any regulations 

yet. And this law in no way made anything simpler. It completely 

flipped the way that LLCs and S corporations are taxed. So two 

businesses making the same amount of money could have widely 

differing tax results. So no, I would certainly not do my own taxes, 

nor advise any of my clients to do their own taxes. 

Ms. VELA ́ ZQUEZ. More than 90 percent of taxpayers now e-file, 

which also helps a cash-strapped IRS process returns more efficiently. Does it make sense that we are moving backwards in that 

respect? 

Ms. SENSEMAN. No. It certainly does not. One of the things 

that happens with the IRS is that if you have any changes or need 

to communicate any things that stand out from one tax year to the 

other you cannot e-file. We could not e-file last year because we 

were switching from being an S corporation back to a partnership. 

And so I would imagine that most accountants who are concerned 

about how taxes will be viewed or construed will air on the side 

of caution because that is what accountants do, and they will paper 

file rather than e-file to be able to send in notes. 

Ms. VELA ́ ZQUEZ. Every time we held hearings on this Committee about taxes, there were two areas that the witnesses 

raised—complexity and uncertainty. This chart, prepared by the 

Democratic Ways and Means staff shows the steps to calculate the 

pass-through provision. 

So my question to you is—by the way, my colleague Congressman Doggett said it is pass-through purgatory. 

Ms. Senseman, can you explain some of the unknowns and confusions surrounding section 199A? 

Ms. SENSEMAN. Absolutely. Section 199A is the new passthrough 20 percent deduction that was added to the bill after there 

was some backlash and some pushback from organizations, including the NFIB. What it basically says is that pass-through entities 

will have this 20 percent deduction, but then it goes on to cut into 

that will only be on their qualified business income, that will only 

SBR002 with DISTILLER

15 

be for income under a certain amount, that will only be in certain—in specified trades which are very broadly defined, you will 

have a phase out. And so the uncertainty of how these defined 

terms will be interpreted, the uncertainty of whether a business 

owner’s—whether what they are bringing home is qualified business income or not, all of these things are brand new uncertainties 

that they never had to deal with before. Not that was noncomplex 

before but these are all uncertainties bred from the new section 

199A. 

Ms. VELA ́ ZQUEZ. Thank you. 

I see my time is up. 

Chairman CHABOT. The gentlelady’s time is expired. 

The gentleman from Iowa is recognized for 5 minutes. 

Mr. KING. Thank you, Mr. Chairman. I appreciate this hearing 

and the testimony of each one of you. 

I would like to start out with Mr. Treppendahl. The introduction 

that was delivered by Mr. Harper was interesting to me and I did 

not commit it all well enough to memory, but what I wanted to ask 

you first, and it is a little off topic, is was your grandfather, his 

name was tagged and the address was tagged inside his jacket, did 

I get that right? 

Mr. TREPPENDAHL. Yes, sir. 

Mr. KING. And it was 1904? 

Mr. TREPPENDAHL. Yes, sir. 

Mr. KING. And how old was he when that happened? 

Mr. TREPPENDAHL. Twenty-four. 

Mr. KING. And he was sent from? 

Mr. TREPPENDAHL. From Denmark. He came from Denmark 

to New Orleans and caught the train from New Orleans with the 

shipping tag that said, ‘‘Ship me to Woodville, Mississippi. I do not 

read or write English.’’ And when he got up here, I do not know 

if anybody knows Jerry Clower, but that was Jerry Clower that 

would tell that story. But when he got to Woodville, the gentleman 

had closed his business. It was a neighbor of his from Denmark. 

And so Grandpa had to do a little bit of everything and we had 

every kind of store. And then finally we ended up with a grocery 

store. 

Mr. KING. He went by ship from Denmark to New Orleans? 

Mr. TREPPENDAHL. He went from Denmark to Liverpool, England, and caught a boat at Liverpool, England, and came in 

straight to New Orleans. 

Mr. KING. With a shipping tag inside his jacket? 

Mr. TREPPENDAHL. And shipping tag. It was on his lapel. 

Mr. KING. You know, that is not the only story like that I have 

heard. The reason I focus on it is because I have heard a good 

number of them. 

Mr. TREPPENDAHL. Yes, sir. 

Mr. KING. Including a former member of Congress, Tom 

Tancredo’s grandfather who was shipped across the continent and 

ended up in Colorado with a tag on his jacket. And the orphan 

trains that went across this country, and the destiny of family after 

family was changed by these pretty exciting stories of people that 

are faced with adversity but they do not know that at the time. 

Mr. TREPPENDAHL. They do not know. 

SBR002 with DISTILLER

16 

Mr. KING. It is opportunity to them. 

Mr. TREPPENDAHL. Yes, sir. 

Mr. KING. And how would he know? Or he would not be able 

to know at this day what you have accomplished. 

I am also impressed that a town of 1,200 people, and I have got 

a couple of hometowns in the 1,100 and the 800 category, and I am 

looking at the grocery stores in there. Fifty people employed in a 

grocery store that serves 1,200 people is a pretty good sized employment list. 

Mr. TREPPENDAHL. Yes, sir. It is. You know, we are still a 

complete grocery store but we still carry out. You do not have to 

carry your groceries when you come to Treppendahl’s. So if you get 

busy up here you can come on down and we will carry your groceries out. 

Mr. KING. You are a marketer, too. But you must reach out 

quite a long ways outside the community—— 

Mr. TREPPENDAHL. Yes, sir. 

Mr. KING.—to have 50 employees serving. 

Mr. TREPPENDAHL. Woodville is in the southwest corner of 

Mississippi, and we have small surrounding towns. 

Mr. KING. So they come to you. 

Mr. TREPPENDAHL. And we are 8 miles from the Louisiana 

line, so we catch some people from Louisiana, too. 

Mr. KING. Okay. And I did not catch in your testimony, did you 

have a hard number on what this tax cut does to your company— 

for your company? 

Mr. TREPPENDAHL. Not a hard number, but I can tell you, our 

store, in the last 3-1/2 years, we have paid over $466,000 in taxes. 

Mr. KING. Thank you, Mr. Treppendahl. 

And I go to Mr. Ellerhorst because you had a hard number. And 

I heard the testimony here that you guys, the three of you are the 

exceptions not the rule on beneficiaries of this tax policy. What 

about your associates? Your number was $64,000 annually on 

about a million dollars of net income. Did I hear that right? 

Mr. ELLERHORST. Yes, sir. That was from our accountants. 

They told us that is what we could expect the difference to be putting everything in. And it only took them about 10 minutes to give 

me that number. So there did not seem to be a whole lot of confusion. 

Mr. KING. Any of your friends and associates that are business 

people as well, what are you hearing? 

Mr. TREPPENDAHL. A gentleman send me an email, ‘‘We definitely feel the tax changes will enable us to free cash that can be 

used to grow the business. Additional jobs have been on the fence, 

adding more now going through. Additionally, the increase in deductions allow for new equipment buys. Have made equipment expansions easier to justify. Finally, the project activity from our customer base has rocketed this year, capacity being moved, expansions being pushed through.’’ That is from a member of my Vistage 

group who owns a manufacturing business in Cincinnati. 

Mr. KING. And one of you testified as to the regulatory relief 

that is part of all this, too. I know that President Trump as a candidate said that for every new regulation, eliminate two old ones. 

And they gave us a report. I think it was in February of this year, 

SBR002 with DISTILLER

17 

that for every new regulation they eliminated 22 old ones. That 

was pretty interesting to me. But then my first question was, why 

in the world did we have any new regulations? 

I wanted to also, and I think this is pretty well established, and 

I would say that the business I started in 1975, my oldest son owns 

that completely today and they do not even ask me for advice. I 

would have to pay them to give them some, but they are doing 

okay. And they run it through the software package of their accountant as well and his numbers look very, very good. I didn’t give 

him a thought actually on this tax piece, but they are very, very 

good. And I am hearing it a lot of places. 

I wanted to turn back to Mr. Treppendahl and ask a quick question about child labor laws within the grocery store business. Can 

these young people that are going to be 18 years old tomorrow, 

they are only 17 today, can they walk into the cooler and haul 

some of that—— 

Mr. TREPPENDAHL. Yes, sir. 

Mr. KING.—$50,000 worth of meat out of there? 

Mr. TREPPENDAHL. Oh. 

Mr. KING. Can they even go in the cooler at age 17? 

Mr. TREPPENDAHL. No. They cannot go in the cooler or the 

deli or any place where saws or anything like that are. 

Now, as far as out there in the store itself, yes, sir. 

Mr. KING. They can do dry goods? 

Mr. TREPPENDAHL. Yes, sir. 

Mr. KING. But they cannot do produce or meat? 

Mr. TREPPENDAHL. They can do produce. 

Mr. KING. Can they go in the cooler to get it? 

Mr. TREPPENDAHL. No, sir. 

Mr. KING. You have to get it out for them? 

Mr. TREPPENDAHL. Yes, sir. 

Mr. KING. And they can carry it the rest of the way. And then 

can they mow the lawn outside the store? 

Mr. TREPPENDAHL. I do not have them doing that. 

Mr. KING. You cannot do that either? 

Mr. TREPPENDAHL. No, sir. 

Mr. KING. I just make this point. Some time, Mr. Chairman, I 

think we ought to have a hearing in this Committee about the child 

labor laws that keep the young people, let’s say 16 years old, that 

get into a car and can drive anywhere in the country they want to 

go, stay up as late as they want to, cannot work after 7:00 on a 

school night and they cannot do these silly things here and many 

others. And they are not learning the work ethic that they need to 

learn. 

Mr. TREPPENDAHL. Mr. King, you have got a good point. 

Mr. KING. And so that is my request, Mr. Chairman. And I appreciate your support of that idea. I appreciate all of you and I 

yield back the balance of my time. 

Chairman CHABOT. I think it is a good suggestion. 

The gentleman’s time is expired. 

And the chair would just note for the record, when we have been 

talking about the postcard, in general, we are not referring to that 

postcard for businesses to file their taxes on. It is the vast majority 

of individual taxpayers. Now, businesses are probably still going to 

SBR002 with DISTILLER

18 

have to file business forms, and they might be complicated. And 

wealthy individuals are probably going to itemize in many instances, too. But it is the folks who got their standard deduction 

doubled and the child tax credit doubled that are less likely to have 

to file a complicated tax form now that could use the postcard in 

many instances. 

Ms. VELA ́ ZQUEZ. Let’s roll the videotape. 

Chairman CHABOT. Which videotape? 

Ms. VELA ́ ZQUEZ. Speaker Ryan holding a postcard. 

Chairman CHABOT. Yeah, but he is not talking about Proctor 

and Gamble that is headquartered in my district or these folks. 

They are talking about individuals. 

Ms. VELA ́ ZQUEZ. He talked about simplicity. 

Chairman CHABOT. Which is the vast majority of people. 

Ms. VELA ́ ZQUEZ. That is what he talked about. And what I 

have shown you is not simplicity. 

Chairman CHABOT. I do not think anybody said that small businesses were going to have their tax forms dramatically simplified 

or that big corporations were. Or that wealthy people were. You 

know, they still have to get tax accountants oftentimes and that 

sort of thing. But in any event, we can agree to disagree. 

And the gentlelady from California, Ms. Chu, is recognized for 5 

minutes. 

Ms. CHU. Ms. Senseman, thank you for being here today. In addition to my position on this Small Business Committee, I am also 

fortunate to be a member of the House Ways and Means Committee, which has jurisdiction over tax issues. In fact, I joined the 

Committee just last year as republicans began to tout the grand 

promises of the highly anticipated tax plan. And they repeated said 

that the plan would boost economic growth, increase wages, and reduce complexity. 

While I did get a close-up view of how this law came to be, it 

was a very rushed and hasty process. It created more loopholes, 

complexity, and increased compliance costs for small businesses in 

particular. And you have seen this famous postcard. Yes, actually, 

I was in the Committee, and that postcard was held up over and 

over again as the promise for what this tax plan would be. 

And instead, just let’s take one, you know, Ms. Vela ́zquez showed 

this as the tax purgatory process for the pass-through element of 

the Small Business Plan. And I actually went and tried to go 

through the different loopholes here. You have to go through each 

phase and determine where you are in this. And example, just one 

of these loopholes, determine taxpayer’s combined qualified business income. I will just read it. 

‘‘CQBI equals the sum of the amounts determined under 

199A(b)(2)(A), 20 percent of QBI for each qualifying trade or business, plus 20 percent of qualified 12:09:15xxx partnership income 

of the taxpayer for the tax year.’’ That is one loophole. 

So that does not sound like simplicity on a postcard to me. 

And so there actually a very serious question about the fate following small businesses. And first of all, it is about the estimated 

tax withholding. I mean, you really have to be sure that you have 

the correct estimated amount or you pay the penalty. So has the 

uncertainty surrounding the pass-through provision created difSBR002 with DISTILLER

19 

ficulties for small businesses trying to estimate their quarterly filings of business taxes? I am very concerned that some small businesses will ultimately under withhold due to the confusion and be 

subject to late payment penalties. 

Ms. SENSEMAN. Yes. That is a very real concern. As you have 

mentioned, if you under withhold and do not pay the IRS enough 

for the earnings that you made you can face a penalty. Those penalties can incur interest if you cannot pay them all at once. There 

is no way to know until we have regulations from the IRS how they 

will define something like qualified business income or specified 

trades and industries. 

If you have ever seen a hard copy of the IRS Code, there are two 

to three books that are the code and there are seven to eight books 

that are the regulations. Tax accountants, tax attorneys, business 

attorneys do not really spend a lot of time in the code. They spend 

a lot of time in the regulations because it often does not matter 

what the code says; it matters how the IRS is going to interpret 

it. And so you do have business owners right now who are making 

their quarterly estimated payments as best they can but certainly 

may end up finding out that they thought they were eligible for the 

20 percent QBI deduction but that they were not and that they 

now owe 20 percent more in income taxes. 

Ms. CHU. And that is a pretty penny there. 

In fact, are more small businesses investing in tax professionals 

since the passage of the tax law? Do your small business clients 

feel that the costs associated with claiming the deduction will ultimately be worth it for their businesses? 

Ms. SENSEMAN. Yeah. I mean, I think there are certainly small 

businesses that cannot afford tax advice and will never take advantage of that 20 percent. They will never know that they have it so 

they will overpay. But certainly, more of the small businesses we 

work with who had a fairly simple, straightforward tax situation 

before—LLCs and pass-through do not have a separate tax form. 

Just to clarify what they were talking about with forms. They do 

not have their own form. It is just a schedule on the individual’s 

form. So if the individual were to have a postcard, I suppose the 

business owner should have a postcard with a schedule at the very 

most. But they certainly are having to consult with tax advisors to 

just tell them how to understand whether they even have a change 

or can expect a change. 

Ms. CHU. And how much do you think this would cost? 

Ms. SENSEMAN. I mean, for us, there are, you know, three of 

us and not a very large business, and we paid nearly $1,000 each. 

I mean, I think that you could see, you know, for those business 

owners who make a median of $49,000 a year, I think you could 

see up to 5 to 10 percent of their income being spent just to figure 

out what they are going to owe and what they need to withhold. 

Chairman CHABOT. The gentlelady’s time is expired. 

The gentleman from South Carolina, Mr. Norman, is recognized 

for 5 minutes. 

Mr. NORMAN. I just want to thank each one of you for coming 

up and taking your time to testify. 

You know, you are in the small business. You are running a business. Most of the critics have never run a small business, know the 

SBR002 with DISTILLER

20 

tax plan, or really what we face. I am a small business owner. I 

run a development company. You are in it. Congressman Chabot 

played college football. He was in it. He can describe what it means 

to play college football. So you need to be in the real world of what 

we are doing rather than just saying it does not work. 

My first question, Mr. Treppendahl, you mentioned—I think your 

quote was, ‘‘If these cuts were to be reversed, I would not feel comfortable reinvesting in my store.’’ 

Are there certain provisions in the tax reform that lead you to 

say this? Or is it the entire package that you are thinking about? 

Mr. TREPPENDAHL. Well, in discussing with my accountant, 

and as I said, we added 12 doors of frozen food, and that we are 

able to take off right now. We can put our money to use. And we 

think it would be very advantageous to continue. He also said, his 

old saying, he said, ‘‘You make the money and I will worry about 

the taxes.’’ But he said, ‘‘We have got to worry about this.’’ And I 

think anything we can get to help us, and as we said, 1 and 2 percent in the grocery business is not a whole lot of profit. So if we 

can save a little bit here and a little bit there, it will give me a 

little bit of confidence to go ahead and spend the money and put 

the money back into the store, in the community, employ the people, I think it will help us. 

Mr. NORMAN. So in your statement, you mention if the tax cuts 

were reversed you would not feel comfortable reinvesting? 

Mr. TREPPENDAHL. Not completely. I would just feel—I just 

feel better now. 

Mr. NORMAN. Okay. Right. 

Mr. Czentye, in your testimony you state until last year, many 

companies, including us, did not want to spend their money. Why 

was this the case? And what about overregulation for the last 8 

years that have been reversed now, has that played a part in your 

success? 

Mr. CZENTYE. My understanding, that is one big picture regarding the tax cuts. And small companies, and maybe the big companies, too, like more to be free than have a bunch of regulations 

and do not be able to move freely just because there are so many 

paperwork. And these regulations remind me from communist 

country that I am coming from, that was one big problem to have 

lots of regulations and people were not able to do nothing. So for 

us, I enjoy that and I really like this kind of freedom and less regulation than more regulations. 

Mr. NORMAN. Okay. 

Next question, Mr. Ellerhorst, you are from Harrison, Ohio. How 

is the business climate in your city and state? Are folks more optimistic than they used to be? 

Mr. ELLERHORST. Extremely. For many, many reasons. One 

being the economy and on the individual basis, the tax cut is just 

a part of that. But in general, the economy. 

I would like to say, I hope I am a better businessman than 

Chairman Chabot was a football player. 

Mr. NORMAN. He was pretty good. 

Chairman CHABOT. Point of personal privilege, we went to rival 

high schools and, yeah, and I think Gary played at Elder and I 

played at LaSalle. And so, in any event. 

SBR002 with DISTILLER

21 

Mr. ELLERHORST. Yes, so. 

Chairman CHABOT. Thank the gentleman for yielding. 

Mr. ELLERHORST. Yeah, I think the overall is very, very high. 

I think there is a lot of pent up things that have just kind of been 

released with a lot of the promises that have been kept since the 

election as far as reducing regulation and things. I know we lost 

our relationship. We were a big fish in a small pond. We are a very 

small local bank, but due to Dodd-Frank, we had a banker in our 

CEO group that said if you are not excised, you will not be able 

to survive the additional oversight that has been required. And so 

we are now with a decent bank, but again, that whole situation 

was disastrous in our banking. And now there is much more capital 

involved. It is just interesting, all this talk about unwritten rules 

and regulations where Dodd-Frank just tied up the whole banking. 

And by the time we started dismantling it, I still do not think the 

regulations were written. So there is a real example of tying up, 

locking up the banks because they still had no idea what the rules 

were going to be. Just though it would be worth bringing up. 

Mr. NORMAN. Thank God we are cutting most of those, trying 

to on Dodd-Frank. 

Mr. ELLERHORST. Yes, sir. 

Mr. NORMAN. I want to complement each one of you for staying 

active in your local chamber of commerce. You need to keep the 

pressure on all politicians. We need to spend less money on government and give it back to the taxpayer who has earned it. 

So I thank you for taking the time, and I yield back, Mr. Chairman. 

Chairman CHABOT. Thank you. The gentleman’s time has expired. 

The gentlelady from North Carolina, Ms. Adams, who is the 

Ranking Member of the Subcommittee on Investigation’s, Oversight, and Regulations, is recognized for 5 minutes. 

Ms. ADAMS. Thank you, Mr. Chairman. Thank you, Ranking 

Member Vela ́zquez. And thank you for your testimony. 

In the 1980s, the republicans touted trickledown economics, 

claiming that cutting corporate taxes would allow big businesses to 

invest in workers and expand the economy. Instead, income inequality drastically expanded and now the Center on Budget and 

Policy Priorities point to the pass-through, benefitting the wealthiest households significantly more than the rest of the country. 

Ms. Senseman, how would the continuation of trickledown economics help small business this time around? 

Ms. SENSEMAN. I do not know that it would. As I pointed out 

with kind of the seminal case in why corporations exist, they exist 

to bring money to their shareholders. That is their primary goal. 

And as a shareholder, you can bring a shareholder’s suit if you 

think the management is not doing that. I do not think that 

trickledown economics is going to work. I think there are studies 

that have shown that 61 percent of the benefit through this new 

pass-through deduction will go to the wealthiest 1 percent and that 

4 percent of it will go to the bottom two-thirds of earners who earn 

money through pass-through. So that is a 15 to 1 ratio of going to 

the top 1 percent versus the bottom two-thirds of owners. I mean, 

no matter your economic theory, the end result is that businesses 

SBR002 with DISTILLER

22 

exist to make money for the shareholders, not to pay it out as Mr. 

Ford was hoping to do. To do that, there are some states where you 

can organize as a benefit corporation but your traditional corporations and pass-through entities are designed to make money for the 

business and for the owners. 

Ms. ADAMS. Thank you. 

As you know, the tax law will cost a total of $1.9 trillion over 

the next 10 years, a deficit that is harmful to our society as a 

whole. But I am particularly concerned about how the outrageous 

deficit hurts our nation’s youth. I am disappointed that the tax law 

does nothing to really address their needs, like providing families 

with greater child tax credits or dependent caregivers. 

So Ms. Senseman, if Congress passed laws to address education 

rather than giving corporate tax breaks, how would the Nation’s 

small businesses be impacted? 

Ms. SENSEMAN. Well, our youth will become the employees of 

our small businesses, and they already are and will continue to be 

the customers of our small businesses. And so the more we can invest in young people, such as folks who Mr. King wanted to work 

in the freezers, the more educated they are, the more we have invested in them, the more that they have what they need to survive, 

the more we will have a stronger workforce in our businesses. And 

so education is a key component for small business owners because 

you need an educated, well-funded educational workforce so that 

they can be your future employees, your future customers, and the 

future owners of businesses that will do business with you. 

Ms. ADAMS. Thank you. 

Mr. Ellerhorst, in your written testimony you alluded to the fact 

that it is not just the tax law helping your business, it is also the 

general healthy state of the economy. We have been hearing from 

small businesses in a wide variety of industries that the tariffs 

brought on by trade war will wipe out any tax reform benefit. So 

as a manufacturer in China, is there any concern that you have 

that your industry will be impacted? 

Mr. ELLERHORST. I do not fear that at this point. In my opinion, I would rather intellectually analyze the results rather than to 

emotionally respond to the process. I do believe this is a process. 

I do not believe there will be a tax war. I believe as a businessman, 

our president is very well aware of the negatives of a tax war. He 

also believes that we are in a very strong position to take this 

stance and that the net result will be a reduction of tariffs on our 

goods going to countries. I testified maybe 10 years ago on free 

trade agreements, and I believe in those, but they have go to be 

fair. I mean, we cannot say, okay, we will reduce all of our barriers 

and you keep yours. I think that is what the president is after, and 

that is what he stated he is after. I do not believe in a trade war, 

but I do not believe the president believes in a trade war either, 

but we are in a position of strength with our economy. Now is the 

time to negotiate from a position of strength, and I do believe the 

results are going to be, eventually, a reduction in tariffs on U.S.- 

made goods into some of these other countries. 

Ms. ADAMS. Thank you for your opinion, sir. I yield back. 

Chairman CHABOT. Thank you very much. The gentlelady 

yields back. 

SBR002 with DISTILLER

23 

The gentleman from Iowa, Mr. Blum, who is the Chairman of the 

Subcommittee on Agriculture, Energy, and Trade is recognized for 

5 minutes. 

Mr. BLUM. Thank you, Chairman Chabot. And thank you to our 

panelists for being here today. And I would be remiss if I did not 

compliment my colleague, Ms. Adams, on her hat today. Absolutely 

outstanding. 

Mr. Czentye, I believe you said in your testimony something 

about being optimistic, which reminds me of my favorite definition 

of entrepreneurs, of which I am one, that we go from one failure 

to the next with the greatest of enthusiasm. 

Mr. CZENTYE. That is our job. 

Mr. BLUM. I just want to address a couple things before I question. I hear over and over again that tax cuts cost our government, 

and I look at this, first of all, letting people keep more of the money 

that they earn is not a cost to the Federal government, unless you 

believe all money belongs to the Federal government and 435 sitting here in suits decide how much of your money you get to keep. 

Secondly, tax cuts add to our debt. Totally and patently untrue. 

1964, John F. Kennedy cut—taxes were cut. He was assassinated 

in 1963. His tax cuts were passed in 1964. Huge tax cuts. What 

happened to Federal tax revenues in the next 10 years? They doubled. 1986, Ronald Reagan cut taxes. Big tux in 1986, the last one 

we have had. And what happened to tax revenues, the Federal government, they doubled over the next 10 years. In fact, a half a percent increase, half a percent increase in gross domestic product 

(GDP) growth rate over a 10-year period produces $1.5 trillion in 

Federal revenue. Half a percent produces $1.5 trillion in revenue. 

Our GDP growth rate under President Obama, 2008 to 2016 averaged 1.8 percent growth. Okay? 1.8 percent. The last five quarters 

we have averaged 3.1 percent. I do not want to bore you with statistics, but that is greater than a half a percent. So these tax cuts 

and the rollback and regulations on businesses and the tax cuts to 

Americans is working. We are producing a higher GDP growth 

rate, and it is not costing the Federal government a penny. In fact, 

it would be reducing our deficit right now. It would be reducing our 

deficit right now. Federal tax revenues to our government are at 

all-time record high. All-time record high. Never before has this 

government taken more money out of the pockets of Americans. 

Never before. So as Ronald Reagan said in the 1980s, ‘‘We do not 

have large deficits because we tax too little.’’ Reagan said, ‘‘We 

have large deficits because we spend too much.’’ 

So I just wanted to make that clear that the tax cuts are going 

to reduce our deficit. They are not going to increase the Federal 

deficit. 

Mr. Czentye, in your testimony you said until last year, many 

companies, including us, did not want to spend their money. And 

I am an entrepreneur; I get that. But can you explain that? Why 

would not small businesses until last year not want to invest their 

money? 

Mr. CZENTYE. Well, once the deregulation is a big step, the second maybe before that is the tax cut. And once you can save from 

an extra 15 percent, you can afford, if you are in business, an entrepreneur, you have to go and reach for that because that is the 

SBR002 with DISTILLER

24 

sign you have to do that step. And then once this optimism is on 

me, on you, and on others, this will be one chain. And then you 

are going to decide to buy something from me, not because of my 

accent, because I have something. I am going to buy something 

from him. It will be one cycle. Therefore, you are going to do more, 

I am going to do more, he is going to do more. For some reason, 

after 6 months you are going to say, wow, we are doing well. Almost everybody. So I really think the tax cut gives us that huge 

optimism and this optimism works for all the entrepreneurs who 

really want to do something. 

And I just want to tell you something. Somebody here said if 

somebody in small business, they are going to have $500 profit, 

they prefer to have some help from the government. 

I escaped from Romania. I am from a communist country. I want 

to tell you my story is different. I am happy for the $500 if I can 

do it. And if I cannot make $500, I close the company, I do not 

know what I am doing, and I am going to work for you. 

Mr. BLUM. Well said, well said. 

I would like to ask one of the entrepreneurs here with the little 

time I have remaining, oftentimes here in Washington I hear about 

one-time stimulus packages, so it is a one-time spending versus a 

10-year tax cut program that you, as business people, can plan on 

is going to be there for 10 years versus a one-time stimulus. Give 

me your thoughts on that and how that impacts your uncertainty. 

Mr. ELLERHORST. Businesses rely on consistency and knowing 

what the future is going to be in order to make investments. I 

know politicians like to change their terms from expenditures, now 

they are called investments. Well, an investment requires a certain 

outlay with an ROI over a period of time. So it is very easy to take 

that investment and say, oh, that is an expense. No, if it is truly 

an investment, then you do not take that number in and of itself 

and say, oh, it is going to hit the deficit like this. You have to wait 

to see what the return on investment is. You will get much greater 

return on investment over time on a much more consistent, steady, 

stable—we can plan on. And so if they really want to count them 

as investments, then give us a chance to give you some return on 

investment before we start talking about what it is going to cost. 

Chairman CHABOT. The gentleman’s time is expired. 

So Mr. Treppendahl, if you can answer very quickly. 

Mr. TREPPENDAHL. I agree with him. 

Chairman CHABOT. Okay. 

Mr. TREPPENDAHL. I like stability. I like to know what is 

going on. I do not like change. 

Chairman CHABOT. Thank you. The gentleman’s time has expired. 

Mr. BLUM. I yield back. 

Chairman CHABOT. Thank you. The gentleman yields back. 

The gentleman from Pennsylvania, Mr. Evans, who is the Ranking Member of the Subcommittee on Economic Growth, Tax, and 

Capital Access is recognized for 5 minutes. 

Mr. EVANS. Thank you, Mr. Chairman. 

Mr. Ellerhorst, I want to deal with something you said a few 

minutes ago. 

Mr. ELLERHORST. Yes, sir. 

SBR002 with DISTILLER

25 

Mr. EVANS. On the words of semantics about investment versus 

spending. You would consider infrastructure what? What would 

you consider infrastructure? 

Mr. ELLERHORST. It would be an investment. 

Mr. EVANS. Okay. Then there is a direct connection between infrastructure and economic growth; would you not agree with that? 

Mr. ELLERHORST. There is an impact, whether it is dollar for 

dollar, but there absolutely is. There absolutely is. 

Mr. EVANS. Right. Because you have to transport whatever you 

have, may it be on roads, ships, airlines. You have to transport it; 

right? 

Mr. ELLERHORST. Yes, sir. 

Mr. EVANS. Because whatever product you have, it has to be 

transported some way; right? 

Mr. ELLERHORST. Yes, sir. 

Mr. EVANS. Okay. And that is the only differ I have with your 

comment about, what did you say, politicians, about spending and 

investment, because specifically, I do not think you build roads or 

bridges; am I correct? 

Mr. ELLERHORST. I do not. 

Mr. EVANS. Okay. So you are like a supplier to government 

since you are in the plastics, to the entity called government so it 

can invest in roads and bridges; right? 

Mr. ELLERHORST. Yes. I am also an investor since my tax 

money is being used. 

Mr. EVANS. Correct. Correct. 

Mr. ELLERHORST. Yes, sir. 

Mr. EVANS. And I thank you. I thank you for what you do because I come from that little state next to Ohio, Pennsylvania. 

Mr. ELLERHORST. Yes. 

Mr. EVANS. And, you know, we know a lot about, you know, in 

Meadville, and Erie, and all those places. And as a matter of fact, 

I started a company that was called Fame. And the purpose was 

to deal with—we had a company called Crown, Cork, and Seal, a 

packaging company. Are you familiar with that? 

Mr. ELLERHORST. I have heard the name. 

Mr. EVANS. So that is why I am saying I do not think this 

should be an either/or. I do not really think this is democrat and 

republican if you are talking about the economy. 

Mr. ELLERHORST. Right. Yes, sir. 

Mr. EVANS. That is what I am saying. 

Mr. ELLERHORST. Yes, sir. 

Mr. EVANS. But I am just concerned that sort of the view like, 

you know, democrats think this and republicans think this, but the 

name of the game is to grow the economy. 

Mr. ELLERHORST. Yes, sir. And my comment was not saying 

that no expenditures were investments. It is just that all expenditures are not investments. And the understanding of an investment 

is there is an outlay and an expected time of return. 

Mr. EVANS. Correct. But Dwight Eisenhower was the one who 

led the charge for the roads. 

Mr. ELLERHORST. Yes, sir. 

Mr. EVANS. Based on national security and what he did; right? 

Mr. ELLERHORST. Yes, sir. 

SBR002 with DISTILLER

26 

Mr. EVANS. We did not have that, obviously, as you take Route 

76 across Pennsylvania going into Ohio, or Route 80. We need that; 

right? 

Mr. ELLERHORST. Absolutely, sir. Absolutely. 

Mr. EVANS. I just figured I wanted to add that point. 

Mr. ELLERHORST. Yes, sir. 

Mr. EVANS. I want to go to—I have got a minute. I want to go 

to—one other thing you said, which I think psychologically I heard 

you say you wanted to deal in specifics, particularly around the 

area of trade. 

Mr. ELLERHORST. Yes, sir. 

Mr. EVANS. And I heard you say—and this is not the Agriculture Committee. I am on the Ag Committed. 

Mr. ELLERHORST. Yes, sir. 

Mr. EVANS. And I know you are not here to defend the president, so I want to make that very clear that is not your role. You 

know, when the president on one hand says what he says about the 

tariff situations and then on the other hand kind of give a $12 billion initiative; right? 

Mr. ELLERHORST. Yes, sir. 

Mr. EVANS. On the one hand, he is saying $12 billion for the 

farmers, and then on the other hand he is saying we do not really 

want to be in a trade war. So I do not understand, you know, the 

basis. 

Mr. ELLERHORST. Well, I believe that in the process, it is not 

going to be a painless process like everything else. That the trade 

is going to create some pain in some areas short term. And what 

the president is saying is take some of the revenues that are generated from the taxes to help out those who are being impacted 

until the situation is resolved to hopefully we eliminate or reduce 

all barriers, at which point in time there is no trade war which 

there is no longer a need for bolstering, but a short-term assistance 

to those being most effectively, or most, I guess, greatly impacted 

during the process, I believe is what he is trying to accomplish. 

Mr. EVANS. Well, you are pretty good if you can figure out what 

he says. 

Mr. ELLERHORST. That is my opinion. 

Mr. EVANS. Ms. Senseman, small firms often have the fewest 

resources to spend on accountants to identify potential tax breaks. 

How does this complexity in the new tax law expand the ventures 

for firms that can devote resources to identify tax loopholes? 

Ms. SENSEMAN. Yeah, that is certainly a concern. Small companies are generally just at the mercy of how much their accountant 

knows. And if they are dealing with a one or two-person accounting 

firm, it is unlikely that they may know. You know, I think uncertainty as folks here have said is the enemy of any business you 

want to be able to plan. Larger firms will be able to employ larger 

teams and pay more money to accountants and will likely be able 

to take advantage of the many loopholes that are available in the 

law, and smaller firms just will not have that ability. 

Mr. EVANS. I thank you, Mr. Chairman, and yield back the balance of my time. 

Chairman CHABOT. Thank you very much. The gentleman 

yields back. 

SBR002 with DISTILLER

27 

The gentleman from Illinois, Mr. Schneider, who is the Ranking 

Member of the Subcommittee on Agriculture, Energy, and Trade, 

is recognized for 5 minutes. 

Mr. SCHNEIDER. Thank you, Mr. Chairman, Madam Ranking 

Member. I appreciate the opportunity to have this hearing. It is an 

important issue. Small business, obviously, is the driver of our 

economy. So many small businesses are working just to make ends 

meet on a day-to-day basis, but in doing so they hire people, they 

produce products, they help make our community stronger. 

Mr. Ellerhorst, like you, I was a member of Vistage. I understand 

the value that those connections bring. 

I just want to be clear on a couple things. 

Mr. Treppendahl, you may have said this but I believe, is your 

business organized as a pass-through entity? 

Mr. TREPPENDAHL. Okay, you are going to have to—— 

Mr. SCHNEIDER. Are you organized as a pass-through? Are you 

an S corp or LLC? 

Mr. TREPPENDAHL. An S corp. 

Mr. SCHNEIDER. S corp. So the income that shows on your 

business is included with your personal income. 

Mr. TREPPENDAHL. Yes, sir. 

Mr. SCHNEIDER. And Mr. Czentye, how about you? Is your 

business a pass-through entity or C corp? 

Mr. CZENTYE. We are C. 

Mr. SCHNEIDER. You are a C corp. Okay. 

And Mr. Ellerhorst, you said in your testimony you guys are an 

S corp? 

Mr. ELLERHORST. Yes, sir. 

Mr. SCHNEIDER. Ms. Senseman, you are a law firm. A little bit 

different than a partnership, but also I assume a pass-through entity? 

Ms. SENSEMAN. Yes. 

Mr. SCHNEIDER. And I know when I had my business it was 

a pass-through. And the money we invested in our business was a 

function of the decisions we were making as a family. And it has 

a real big impact. And impacts on our personal finances could impact our business just as much as the other way around. 

I have a firm in my district. It is called Hell’s Kitchen. It is a 

small business, catering business that has been in business since 

1985. Its owner, David Boris, actually just testified in this Committee. He would be the first to share with you through his work 

he has been able to create hundreds of jobs over the years that 

they have been in business. They are providing jobs, and it is not 

just for the people who work for the company but also people who 

provide services and products to the company. 

Now, Illinois is one of the states that is being hammered by the 

tax bill because of the elimination of the state and local tax deduction. And David shares that because of that elimination, the new 

law is not putting any more dollars in his business, in his pocket, 

not investing in his business. Whatever benefits he might be getting from the pass-through are being wiped out by the elimination 

of the SALT deduction. And as a result, despite the republican 

talking points, he is not going to hire anymore people. He is not 

going to be able to buy anymore equipment. In fact, many of the 

SBR002 with DISTILLER

28 

businesses in my community are talking about this. They may be 

left in a hole, not an opportunity. 

So Ms. Senseman, I will ask you. How common from your members, how common is the experience I just described? 

Ms. SENSEMAN. In states where you have high state and local 

taxes and that has been capped, I think that is not an uncommon 

experience. There were other things that were taken away in the 

tax bill or things that must now be taxed, such as parking benefits 

for your employees. I could not give a good explanation to clients 

about why this has a change and this does not. But I think that 

you are right. If it is not a state like yours where the state and 

local tax cap is affecting business owners, it is paying someone to 

help them figure out what exactly is going on. Or just taking time 

out of their day if they are someone who charges by the hour who 

provides a service, when they cannot be providing that service because they are filling out new I-9s for their employees and filling 

out new withholding forms because their employees have different 

deductions now. I think that all of that adds up to eat into any benefit, any savings they would see through that complicated passthrough 20 percent deduction. 

Mr. SCHNEIDER. And it was mentioned in the conversations 

earlier today, businesses thrive on stability. They thrive on the 

ability to look forward and say, I believe that if I make this investment today—Mr. Ellerhorst, you talked about this—if I make an 

investment today, I am making that investment because I believe 

I am going to get a return. It is not guaranteed. We wake up early 

in the morning before dawn. We will go home at the end of the day. 

And are going to fight and struggle for that $500 profit each day. 

But if you do it every day, hopefully you get rewarded for your 

hard work. 

I think one of the challenges, and we talked a little bit earlier 

about the process that we went through on this last tax cut, it was 

not a formal process. There were no hearings. In fact, there were 

zero hearings, zero discussions about what would be the broader 

implications of tax return. We need tax reform. We need to make 

sure as a country we are deciding and having a debate, where 

should we be investing? Whether, as Mr. Evans said, investing in 

infrastructure so that we can invent things here, make things here, 

and literally ship them around the world to allow companies to 

prosper. But if we have this partisan activities like we saw last 

year, then the pendulum is just going to swing back and forth and 

create the uncertainty that as businesspeople we all worry about. 

So I hope as we go forward there will be a way to work across the 

aisle—democrats, republicans, and everyone in between—to make 

sure that we have investments in our future, in our children, in our 

infrastructure, in the business opportunities that will ensure the 

United States cannot just compete on the global stage but we can 

lead and win and ensure our economy is growing for everybody. 

But it has to be done in a way that is sensible, done in a way that 

balances, and done in a way that takes into consideration all the 

impacts. As we talked about here, the states that are affected by 

the elimination, punitive elimination of that SALT deduction, are 

not benefitting from this bill. They are really struggling. 

And with that, I yield back. 

SBR002 with DISTILLER

29 

Chairman CHABOT. Thank you. The gentleman’s time is expired. 

And the Chairman would note that he agrees with the gentleman 

that it would definitely be better to work together in a bipartisan 

manner when that is possible. In the Tax Cut bill it did not look 

like that was possible, and I would have liked it perhaps when we 

were dealing with healthcare, the Affordable Care Act or the 

Obamacare, whichever terminology one prefers, that there would 

have been a little bipartisanship there. But it didn’t happen in either case. 

Mr. SCHNEIDER. Let’s agree we have to do it on everything. I 

was not here for the healthcare debate. I was here for this tax debate. And we reached out, and I think we can work together. 

Chairman CHABOT. And I was not either because I lost in 2008. 

So when they passed that—I was going to say horrible thing but 

I do not want to comment on that—I was not here during that 

time. 

Mr. SCHNEIDER. No, but we see when bills do pass, working together, as we have done in this Committee. 

Chairman CHABOT. And we are a much better institution since 

you and I are here. 

Mr. SCHNEIDER. Agreed. 

Chairman CHABOT. Okay. Very good. Thank you very much. 

Mr. SCHNEIDER. Thank you. I yield back. 

Chairman CHABOT. Thank you. The gentleman’s time is expired. 

And I think our last interrogator this morning and now into this 

afternoon, will be the gentleman from Florida, Mr. Lawson, who is 

the Ranking Member of the Subcommittee on Health and Technology. You are recognized for 5 minutes. 

Mr. LAWSON. Thank you, Mr. Chairman. And welcome to the 

Committee. 

I have been in business before I came here for the past 36 years. 

And so I understand what tax breaks mean to small businesses. 

And from my perspective just coming here, it was not an issue with 

me whether it was democrat or republican. It was just what is best 

for the business, which I thought everyone should be concerned 

about. But sometimes it is not like that here. In Washington, it 

might be who really gets credit. But my concern in dealing with a 

lot of small businesses, small businesses, you know, really always 

like get relief because they are concerned about their employees, 

they are concerned about the bottom line, they are concerned about 

escalating costs in different areas, whereas intangible taxes or 

whatever you have to pay. 

Also, so my question would be to all of you is how can we reform 

if there is reform and listen to some of you on the tax package that 

we passed last year to reduce the level of complexity in our tax 

codes for small business? And the reason why I say that is in Florida, we had to pay the intangible tax. And it used to cost more 

money for a small business to pay the CPA to fill out the form for 

the intangible tax, and so, you know, I filed legislation to really 

kind of change that because they were saying you need to pay attention, but you paid more money than it was for the intangible 

tax. And so if we have that same kind of situation coming up, I 

SBR002 with DISTILLER

30 

would like to know, what can we do in Congress to alleviate some 

of the complexity that would go along with the tax package? And 

everyone can comment on it. 

Mr. TREPPENDAHL. Well, I think stability. And I think uniformity would be, you know, we kind of put out here and really not 

sure what is going to happen, whether it is with the Tax Code or 

the tax era, I do not think we are just really sure which way we 

were going. I operate a lot better—I do not like surprises. And I 

think that if we can just have it where what we are doing, and we 

know from day in to day out, week in to week out, and I am sure 

there is somebody in here that when they were a younger boy 

worked in a grocery store. And you know what it is working in a 

grocery store. It is pushing those cans and putting rice on the shelf 

and then getting it out the door. And getting it out. And it is not 

just a lot of profit in it. It is a lot of hard work and a lot of fun. 

And we have fun with our employees. We classify ourselves as a 

family. Because I better be. I am with my employees more than I 

am with my own family. So it had better be. 

Mr. ELLERHORST. If I could answer your question of what you 

all can do, my perspective, and I know the perspective of a lot of 

small business people, and Americans in general, our founding fathers set up our dual party system based on different means to a 

common end. In my opinion, in the last decade or so, we have lost 

the common end. It seems like we are now at an ongoing philosophical battle about what kind of country we are going to be. Are 

we going to be a democratic republic? Are we going to be a social 

democracy and things? And we have completely divided along party 

lines, which is a shame. And that is why there cannot be any cooperation because now you are talking about people giving up core 

beliefs of what they think is the right thing to do. 

So if Congress can do one thing, it is to get together and decide 

what our country is going to be and then go back to I am a conservative constitutionalist, but I realize I need the opinion of every liberal individual in this country as well. I am not always right. I am 

not the smartest person in the room. But the only way we are 

going to ever solve the issues is to really come up with a common 

goal and decide how in our differing opinions is the best way to get 

there. And until we get that back, this is going to be a partisan 

absolutely break. And so I would plead, as most of us in America 

are, tell Congress to please decide on what it is that we can work 

together on and what our goals are going to be, because until we 

do that, we are going to be stuck with exactly what we have today. 

Ms. SENSEMAN. And I would just say the four of us certainly 

do not have the answers, but neither do all of you. I would ask that 

you consult with experts and you would have studies, like the ones 

that are coming out now, before you take any action, not in the 

months after. I would ask that you look to people who do this all 

the time instead of trying to ram something through in 2o months 

without a single hearing. I think that that could only provide you 

more insight into what effect they will have. 

Mr. LAWSON. Mr. Chairman, if I could have one more minute. 

Chairman CHABOT. The gentleman is recognized for an additional minute. 

SBR002 with DISTILLER

31 

Mr. LAWSON. I just want to say about working in a grocery 

store, as long as I was bagging and getting tips, I was okay. When 

they moved me to produce I did not want to do produce. I wanted 

to get those tips. 

I yield back. 

Chairman CHABOT. The gentleman yields back. 

And we want to thank the panel this morning, and now this 

afternoon. And I think all four did an excellent job in kind of explaining their points of view and helping this Committee on both 

sides to deal with this very important issue, which is the Tax Code, 

and did the Tax Cuts and Jobs Act have a positive impact on the 

economy or negative or a combination thereof? 

And Mr. Ellerhorst, as you mentioned, we do need to hear each 

other. And this is one Committee where we actually do that. We 

tend to work in a very bipartisan manner. Last week we passed 

eight bills, all of which were bipartisan. Had republican and democratic cosponsors. So this Committee operates that way, although 

we do not always agree on everything, like that darn postcard that 

Ms. Vela ́zquez was talking about there. But in any event, we listen 

and we are respectful. 

So again, thank you all for continuing in that line that we try 

to follow here. 

And I would ask unanimous consent that members have 5 legislative days to submit statements and supporting materials for the 

record. 

Without objection, so ordered. 

And if there is no further business to come before the Committee, 

we are adjourned. 

Thank you very much. 

[Whereupon, at 12:37 p.m., the Committee was adjourned.] 

SBR002 with DISTILLER

32 

A P P E N D I X 

SBR002 with DISTILLER


Insert offset folio 32 here 31211.001

Prepared Testimony and Statement for the Record of 

Adolph Wettlin Treppendahl, Jr., Owner, Treppendahl's Super Foods 

On Behalf of the National Grocers Association 

Hearing on 

"The Tax Law's Impact on Main Street" 

Before the 

House Small Business Committee 

July 25, 20 I 8 

2360 Rayburn House Oftice Building 

Washington, DC 
33 

SBR002 with DISTILLER


Insert offset folio 33 here 31211.002

Good morning, 

Thank you to Chairman Chabot, Ranking :vi ember Vehizqucz, and members oft he House Small Business 

Committee for the opportunity to testify today and share the story of my family business. My name is 

Wcttlin Treppendahl, and I am a fourth-generation retailer and owner ofTrcppcndahl Super Foods in 

Woodville, Mississippi. My family business began in the late 1800s with the G.A. Wettlin family. When 

C.M. Treppendahl married his daughter, he bought out G.A, Wettlin and ran his own mercantile store. In 

1924, he added a grocery store in downtown Woodville to his enterprises, and thus began our ~~~mily's 

legacy. The businesses grew and by 1976. the grocery operation was moved to its current 18,000 square 

foot location. :vly family business is a complete full-service grocery store offering many specialty items. a 

deli. bakery, and select and premium meats. I am assisted in the daily operations of the store by my 

daughter. who plans to take over the business someday. 

I have been asked to testify today by the National Grocers Association (NGA). NGA is the national trade 

association representing the retailers and wholesalers that comprise the independent sector of the 

supermarket industry. The independent supermarket industry is accountable for close to one percent of the 

nation's overall economy and responsible for generating nearly one million jobs, $30 billion in wages. and 

$27 billion in taxes. Detined as a privately held, family owned, or employee owned business, independent 

supermarket operators run businesses of all formats and sizes, serving a wide range of customers in their 

local communities. Having of! en been in business for generations. independent grocers are dedicated to 

their customers. associates and communities. 

The town of Woodville is a one-square-mile town of just 1,200 people, but what we lack in size, we make 

up in our rich history and vibrant community. We do however share some of the same challenges that 

many small towns throughout the U.S. face in present day. Advanced educational opportunities and 

steady jobs can be limited. Treppcndahl's Super Foods is the largest employer in Woodville, and my 

business Jills a much-needed gap in the workforce and empowers individuals to get ahead. We employ 50 

people, with minorities representing the largest percentage of employees. Additionally, we are the only 

grocery store located in town, a food desert, where more than sixty percent of our customers are eligible 

for Supplemental Nutrition Assistance Program (SNAP) benefits and would face significant difticulties in 

accessing tfesh fruits and vegetables if not for our store. 

In fact, the next closest grocery store is 25 miles away, and the closest grocery store located in a large city 

is 55 miles away in Flaton Rouge, Louisiana. The absence of my store would mean that members of the 

community would be required to travel to these distant stores to acquire food and other necessities. Given 

the high poverty level in Woodville, many residents do not have the means to travel these distances. If my 

family's store was not there. it is not an overstatement to say that the town of Woodville would simply 

not exist. Woodville's population has been steadily falling in recent years, as locals seek more fertile 

economic grounds. Trcppendahl's Super Foods is committed to staying in Woodville, and continuing to 

offer fresh foods at the lowest prices possible while providing quality jobs to our townsfolk. 

I commend Congress for accomplishing comprehensive tax refonn that benefited both C corporations and 

pass-through companies such as my small business. The new tax law has had an immediate positive 

impact on my family business' ability to invest in our store and local community. Independent grocery 

stores are capital intensive businesses that survive on 1 to 2 percent protit margins. As a direct result of 

tax reform, we have upgraded and replaced 12 doors in the frozen foods section of our store during the 

past few months. That may not sound like a big project to some people, but that investment cost over 

$65,000 and most importantly provided work for our local refrigeration company. Because of these new 

freezers we have been able to expand our selection of frozen foods to our customers and save on energy 
34 

SBR002 with DISTILLER


Insert offset folio 34 here 31211.003

costs. We are also in the process of working with the Associated Grocers of Baton Rouge, our wholesaler, 

to develop a plan for upgrading our checkout lanes, which are currently 18 years old. We hope to install 

new checkout counters in our store next year. 

The grocery business also requires us to purchase expensive equipment such as coolers and air 

conditioners to remain functioning. If it were not for tax reform, we would not have been able to make 

these improvements to our store. Being able to invest our savings back into our business and community 

is a good thing. The new tax law has increased my confidence in making important business decisions, 

now and in the future, which has allowed me to be more comfortable investing in my business. If these 

tax cuts were to be reversed. I would not feel comfortable reinvesting in my store. Tax reform has also 

allowed me to provide all ti.JII-time, rank and file, employees with raises, which has boosted our 

employees' confidence and ability to support themselves and their families. 

The estate tax has been a significant concern for our business in the past because it could drive our family 

store out of business. Supermarkets are somewhat unique in that most of our assets are non-liquid, tied up 

in property. inventory, tlxtures and equipment. Paying a big estate tax bill could mean going into debt or 

selling off part of the company. As a fourth-generation business owner. the new tax law's doubled 

exemption threshold for the estate tax has reduced the fears I've had about the future of my family 

business as it continues to be passed along from generation to generation. I am concerned, however. that 

the provision will sunset alter 2025. Permanency for this provision would help assure me that our store 

will remain in business for many more years to come. 

The 20 percent pass-through deduction is also positive for my business, as we are organized as an S 

corporation. but long-term certainty for this provision and rate parity with C corporations is desired for 

the future. Serving our local community, we are driven to remain competitive with large chain stores. We 

pride ourselves with being a fair and honest business with the ultimate satisfaction of being a positive 

force in our local community. Without stability and predictability in the tax code, we cannot be at our best 

when our community needs us the most. 

Another aspect of the new tax law that is critical to my business is Congress' intended benefit of 

providing us with the oppol1Lmity to fully and immediately expense qualified improvement property. As a 

small business owner in the grocery industry, I must replace expensive equipment over time, as well as 

upgrade shelving units, t1ooring, ceiling tiles, and electrical wiring. These items have high price tags 

associated with them, and the ability to write them off fully and immediately gives me the confidence to 

continue to invest in and upgrade my store. I am aware, however, that there is a drafting error in the new 

tax law that prevents retailers, like myself, ti'om being eligible for I 00% bonus depreciation for qualified 

improvement property. I am extremely concerned about this error and urge Congress to fix the issue as 

soon as possible. in any moving legislative vehicle, so that I can continue to have the contldence to make 

improvements to my store. 

As a fourth-generation small business owner, f believe that the Tax Cuts and Jobs Act strikes the right 

balance in simplifying the tax code, lowering rates, and broadening the tax base. The law accomplishes 

this goal while retaining deductions and tax provisions that encourage growth and investment in my 

business. The new tax law fixes our broken tax system by simplifying the tax code, lowering rates, and 

retaining deductions and tax provisions that encourage growth and investment in American businesses. 

Treppendahl's Super Foods commends Congress for taking action that allows Main Street businesses to 

grow and create American jobs. 

As Congress looks ahead to the future, I urge you to enact tax provisions that provide my small family 

business with permanency, certainty, and predictability so that I can continue to feel confident investing 

in my community and business. 
35 

SBR002 with DISTILLER


Insert offset folio 35 here 31211.004

Thank you. 

Wettlin Treppcndahl 

Owner, Treppendahl's Super Foods 
36 

SBR002 with DISTILLER


Insert offset folio 36 here 31211.005

TESTIMONY 

Tiberiu Czentye 

CEO 

All Pro Solutions 

Rock Hill, South Carolina 

Before the 

Committee on Small Business 

U.S. House of Representatives 

Hearing on 

Tax Cuts and Jobs Act: How it impacts Small Businesses 

July 25, 2018 

Mr. Chairman, ranking member Velazquez, and members of the committee, I'm honored for the 

opportunity to testify before the committee today on how the Tax Cuts and Job Acts help Small 

Businesses. 

My name is Tiberiu Czentye, CEO of All Pro Solutions located in Rock Hill South Carolina. I'm a legal 

immigrant and a proud US Citizen. I escaped from communist Romania in 1989 and after 2 years of the 

vetting process, I received political asylum for U.S. 

After 5 years of working 3 jobs, I opened my own company, bought my own house and sent my kids tc 

good colleges in California. 

After 18 years there, we left California and found our dream State, South Carolina, where we enjoy family 

values, good business opportunities and a lower cost of leaving, 

All Pro Solutions was created in 1996; we are a manufacturer of Disc Publisher Archiving Systems and 

Digital Services. We sell our equipment all over the world, including the Government. When we started 

the company we were just 2 people and now we are 10 with plans to hire more. 

Because of the Tax Cut and Jobs Act, the optimism in the Small Business Community is very high. I'm a 

member of York County Chamber of Commerce and, after each meeting I noticed the optimism of our 

community entrepreneurs grows higher and higher. 

The tax reduction is huge and the extra in the company's pocket is a big amount of money a smal 

company can do a lot with. 

Until last year, many companies, including us, didn't want to spend their money, but now, because of this 

big tax cut, any entrepreneur can see the opportunity to invest in its company with the goal to make more 

money for the company and its employees. Good feeling ... 

All Pro Solutions forecast for the end of this year and beginning of next, increased 4 times comparing tc 

last period. Because of that, we already started to buy new inventory to build our equipment. Last year we 

built 50 units and this year we plan to build 150-185 units. Because of this extra number of products, we 

already began to expand the company and, in the end, when everything is done, we will hire between 2 

and 4 more people. 

One of the other good signs on how the Tax Cut and Jobs Act works and the economy is booming, car 

be seen through JObs advertising on Craigslist: last year we used to receive 200-300 resumes for a jot 

listing comparing to 20-30 this year. It's clear why -the economy is booming, people have jobs and the 

T. Czentye Testimony 
37 

SBR002 with DISTILLER


Insert offset folio 37 here 31211.006

competition is higher. I have to increase my employees' wages and when we hire, offer more than we did 

a year ago. 

Another big opportunity for us, arisen because of the tax cut, is to try to bring in U.S. Chinese 

manufacturers that already sell their products here. To manufacture their products here could be a big 

advantage for them comparing to making them in China and add the expense of transporting them here. 

We already have a company interested they visited us and we're in the 3'd phase of dealing with them. 

Company name is OULUPA FILTRATION, a manufacturer of high precision filters and oil quality 

monitoring instruments. I hope we will close the deal and soon we'll have a Chinese company partner in 

U.S. 

Reduction in the Individual income tax is another positive result of the Tax Cut and Jobs Act A lower tax 

by an average of $1,334 per family per year, which translates to a reduction by 2.2%, puts more money in 

our employees' pockets 

Expanding the Child Tax Credit from $1,000 to $2,000 and preserving the mortgage interest deduction, 

are another good sources of more money for working families. 

Because of all these wonderful results of the Tax Cut and Jobs Act, you can see many happy faces in the 

streets, more people shopping our malls and eating out in restaurants. 

Whatever people say, what I know is that money brings happiness. 

Thank you for listening to me and I would be pleased to answer any questions you might have 

T. Czentye Testimony 
38 

SBR002 with DISTILLER


Insert offset folio 38 here 31211.007

Testimony of 

Gary R. Ellerhorst 

President/CEO 

of 

Crown Plastics Co. 

Harrison, OH 

to the 

House Comtnittee on Small Business 

July 25th, 2018 
39 

SBR002 with DISTILLER


Insert offset folio 39 here 31211.008

Gary R. Ellerhorst 

President/CEO, Crown Plastics Co ............. 2005 - Present 

COO, Crown Plastics Co ....................... .1995- 2005 

Sales Manager, Crown Plastics Co ............ 19!\4- 1995 

Sales, Crown Plastics Co ........................ 197!\ 1984 

Machine Operator, Crown Plastics Co ......... 1976- 1977 

Past President, Main Street Harrison Harrison, OH 

Member, Greater Harrison Chamber of Commerce Creation Committee 

Past Board President, Greater Harrison Chamber of Commerce 

Current Committee Chair, Greater Harrison Chamber of Commerce 

Member, City of Harrison Comprehensive Plan Steering Committee 

Current Board Chair Southern Ohio District Export Council 
40 

SBR002 with DISTILLER


Insert offset folio 40 here 31211.009

In 1972, my father staJied Crmvn Plastics Co. After working several 

years as a second shift machine operator while attending Xavier University, 

I came on full time at Crown in 1978. In the past 40 years I have 

experienced just about every level of financial difficulty and success, due 

both to general economic as well as market specific conditions. What I have 

come to learn is that although a singular situation or event can bring a solid, 

successful business to its knees ... for example streaming video's complete 

annihilation ofB!ockbustcr Video, or regulatory impact on small community 

banks ... it takes a combination of specific market and economic conditions 

to fuel significant profitable growth. These include internal aspects such as 

a skilled workforce, product value and innovation, and wages and benefits, 

external items such as the general economy, global competition, regulation, 

taxation, and availability to capital, and other, more nebulous things such as 

corporate and consumer confidence in the future economic environment. 

Although each of these aspects plays in important individual role on 

overall economic perfonnance, it is the combination of these that create the 

synergistic rocket fuel for a booming economy. Separately, Menthos will 

freshen your breath and Diet Coke will quench your thirst ... but together in 

the proper environment they are explosive. Either of them alone vvon 't do it, 

nor could you replace them with Tic Tacs or Diet Pepsi and get the same 

result. 

So, trying to evaluate the impact of the recent tax bill contextually 

removed from the other contributing economic int1uencers which combine to 

generate the overall economic picture can be dif±1cult and potentially 

misleading. I will, to the best of my ability, provide my perspective as to 

how the bill both directly and, more importantly, in conjunction with other 

economic and policy-based contributors, is impacting my business. 

The attached exhibit is a drastically simplified illustration of the direct 

impact on our tax liability. As an S Corp, under the new bill Crown 

shareholders would be eligible for the 20% pass through tax deduction. 

However, we also lose the 9% Domestic Production Activity Tax deduction 

that was eliminated. Based on $1 million in taxable income, which is about 

where \Ve budgeted for 2018, Crown would see a net decrease ofjust over 

$64,000 is shareholder tax liability. As with most S corporations, we 

commit to distributing to the shareholders enough to cover their federal and 

state tax liabilities, so the result is that the company would be able to reduce 

its distributions by the $64,000 and still provide our shareholders the funds 

to meet their tax requirements. 
41 

SBR002 with DISTILLER


Insert offset folio 41 here 31211.010

Now, that may not sound like that big a deal for a $14MM company, 

but in reality it is. Over the past 10 years, we have invested over $5:\fM in 

new equipment, process improvements and technological updates and have 

paid out little-to-nothing to our shareholders. Even if we decided to just pay 

out the pre-tax bill numbers, it would provide the opportunity for the 

shareholders to keep their portion of the tax reduction and use it for 

themselves and their families. And as a privately held company, our 

shareholders are just regular folks like myself, many of them the children of 

the initial investors who have inherited the stock from their parents. 

We could also choose to use the money to pay down debt, further 

reducing interest costs. $64,000 per year would also provide us with the 

capability to service well over $1MM in addition loans for fmiher investing 

in our business ... which is very timely as we just signed a contract on an 

additional building adjacent to ours \Vhich, with upgrades, will cost us about 

$1.1MM. The tax savings will allow us to cover this additional expense 

without adversely affecting our current cash t1ow, which is the most critical 

factor to a growing business. 

A key impact for us is with regards to our medical insurance benefits. 

We continue to pay 1 00% of the premiums for our employees' high 

deductible HSA medical insurance policies, as \Veil as 40% of the deductible 

on the backside. This has been a commitment of ours to our employees, and 

over the past 10 years we have worked hard with our insurance broker to do 

whatever we could to maintain that benefit through increased deductibles, 

changing carriers and sponsoring employee wellness programs. We are at a 

point where one more large increase in premium costs vvill force us to staii 

requiring the employees to contribute to the program. But with the new tax 

bill not only can we maintain the status quo for 2019, but for many years to 

come. Why? Because when we realize the impact of a booming economy 

along with the returns from recent investments we have made in the 

business, we expect to double profits next year ... which means $64,000 

becomes $128,000 in tax savings. And even more in 2020. 

Another aspect that is potentially even more impactful than the tax 

rate itself, is the ability to accelerate depreciation of our investments into our 

company. Outside the purchase of the new facility, we have budgeted 

capital expenditures of $800,000 for calendar 2018. Although the net impact 

over time is a wash, the ability to expense these investments rather than 

depreciating them over 5 or 7 years will provide us with an additional 

2 
42 

SBR002 with DISTILLER


Insert offset folio 42 here 31211.011

$200,000 of cash in 2018 which again, is often the most critical item for a 

growing company. With increased receivables, inventory and work in 

process, a growing business requires significant cash. 

So, in closing, the recent tax reduction in and of itself will have a 

positive impact on our employees and our business in 2018 and beyond. But 

when augmented by reduction in regulation and, most importantly, the 

hugely positive outlook by business leaders and consumers which started the 

day a±ter the 2016 election, the resulting booming economy takes that 

positive impact of the tax bill and increases it exponentially. 

3 

Insert offset folio 43 here 31211.012SBR002 with DISTILLER

Crown Plastics, Inc. 

Rough Illustration of New Tax Law 

2018 

OLD NEW 

Taxable Income $ 1,000,000 $ 1,000,000 

New Small Business Deduction 20% $ $ (200,000) 

OLD DPAO deduction 9% $ (90,000) .1 

Taxable Income $ 910,000 $ 800,000 $ 

Max Rate 39.60% 37.00% ~ederal Taxes $ 360,360 $ 296,000 

Percent of Taxable Income 36.04% 29.60% 
44 

SBR002 with DISTILLER


Insert offset folio 44 here 31211.013

U.S. House of Representatives Committee on Small Business Hearing: 

"The Tax Law's Impact on Main Street" 

Wednesday, July, 25, 2018 

Statement of K. Davis Senscman 

Founder, Davis Law Office 

Minneapolis, Minnesota 

Main Street Alliance Member 

Chairman Chabot, Ranking Member Velazquez, and members of the committee: 

Thank you for the invitation to testify today examining how the Tax Cuts and Jobs Act has 

affected real Main Street small businesses. 

My name is Davis Senseman and I am a member of Main Street Alliance, a national network of 

over 30,000 small business owners. I also serve on the Executive Committee of Main Street 

Alliance of Minnesota, a statewide network of small business owners. Our network creates 

opportunities for small business owners to speak for ourselves on matters of public policy that 

impact our businesses, our employees, and the communities we serve. 

I've been a small business owner for more than eight years and I currently employ five people. I 

am the founder of a full-service law firm for small and medium sized businesses. We have a 

roster of over 900 small business clients, the majority of which are located across the state of 

Minnesota. My entire job as a small business attorney is to review and advise my clients on 

whether something that is being proposed to them is a good idea or a bad idea. 

I have spent quite a bit of my time with clients since last fall trying to figure out what the TCJA 

meant for them and their business, as well as figuring out what it meant for my own firm. I will 

speak today from both of these perspectives, and will have four primary points. 

First, the majority of small businesses in Minnesota and across the country are not seeing 

consequential gains from the TJCA. It is nice that the folks who spoke earlier today are, but they 

are most certainly the exception, not the rule, and from what they offered as concerns to their 

business, I wonder how many Americans would actually classify them as "small". 

Second, and I can't imagine this comes as a surprise to anyone in this room - the Act's small 

business provisions were quite confusing for all but the most sophisticated small business owner. 

Main Street Alliance- 1101 17th St. NW, Suite 1220, Washington. DC 20036 

~~~Y\\' ... maw~Jn.~.t.:!<dJimJJ.),~ ._I}J:.,~ 
45 

SBR002 with DISTILLER


Insert offset folio 45 here 31211.014

JV!any business owners, including several of my clients, will see nearly all of the savings the Act 

may have provided eaten up by attorney and accounting fees, as they paid experts like myself to 

parse through the Act and advise them on their best next move. 

Third, to build an equitable economy that works for small business owners like me and my 

hundreds of clients. large corporations and wealthy individuals must pay their fair share of taxes. 

Small business owners know this, because healthy communities with safe roads and funded 

schools ensure that our customers can get to our businesses. will have money to spend there and 

that our future workforce will be educated and able to staff our businesses. 

And my fourth and final point is one perhaps only a lawyer can make and that is that no matter 

what you believe in the theories of trickle-down or up economics, the system of American 

corporate law (and the case of a small business owner named Ford and his activist shareholder 

named Dodge) simply forbids corporations from doing anything that doesn't provide the greatest 

economic benefit to their shareholders. and that this is why a corporate tax cut, no matter what 

size business it is aimed at. can never bring about the greatest economic stimulus for Americans. 

I. How will the pass-through tax deduction impact :vlain Street? 

The most significant change in the TJCA that directly impacts small businesses is the creation of 

a new 20% deduction for owners of pass-through entities. As this committel' knows. a wide 

variety of businesses arc structured as pass-throughs. ranging from mom-and-pop shops to law 

tlrms to massive hedge funds. 

While this provision has been lauded as a boon for small business. in practice, it's another major 

tax cut for very wealthy individuals. The median income for a self-employed individual with an 

incorporated business in the United States was $49,204 in 2014, the last year for which the SBA 

has data. 1 These businesses arc the bodegas, auto mechanics. family restaurants, and small 

farmers who would have to pay more to a tax attorney like myself or an accountant to figure out 

the new law than they \Hmld reap in tax cuts. or who arc seeing increases in health insurance 

premiums that outweigh any nominal tax cut they might receive. 

The median income statistic may make it seem like most ofthc benefit for pass-throughs would 

then go to those who need it the most- after all. a median or $49.204 is pretty low. so the top 

earners can't make that much right') Wrong- that was businesses where the owners actual!: 

WORKED there. 

Overall. incomc from pass-through businesses skews heavily to the very wealthy. with 70 

percent of pass-through income accruing to the top I percent of income earners.2 That income is 

often "earned .. in the loosest definition of the \Vord. and certainly not through being employed by 

the business. In fact. The Joint Committee on Taxation (JCT) recently found that by 2024. 61 

percent of the benellts of the pass through deduction will accrue to the vve<llthiest l percent or 

pass-through business mvners. \lhile just 4 percent will go to the bottom two-thirds. including 

Main Street Alliance- 1101 17th St. NW. Suite 1220. Washington. DC 2003() 

~\ '~.'>\:..fPlUll<.:lt),'s'Ja!km_n: .t)fJ~. 

2 
46 

SBR002 with DISTILLER


Insert offset folio 46 here 31211.015

real !Vlain Street shops that personify small business. The top 1 percent will sec a bcnellt that is 

15 times larger than what the bottom two thirds of business owners will receive.'·' 

It's evident that \vcalthy business owners stand to benefit far more from this new deduction than 

real small business owners. While writers of the tax bill claim they built guardrails into the law 

that keep the investment bankers and Wall Street lawyers li·om using the tax break once their 

income reaches a certain level. But savvy. highly-paid accountants arc already tlguring out how 

to game the system and restructure their clients" businesses to claim the maximum bcncllt from 

the n.cw law', whik real small businesses arc left uncertain and struggling to understand the 

changes. 

II. The TJCA is breeding confusion and uncertainty 

For years business advisors like me instructed our clients who were creating new businesses that 

in the vast majority of cases, one should be structured as an LLC until you arc making over a 

certain amount in income. at \.vhich time switching to aS corporation may result in a better tax 

situation. The TCJA turned this advice on its head, and now two businesses making the same 

amount of money may have completely different tax situations -thus, many small business 

owners on Main Street arc stuck with an S election that now causes them to pay far higher taxes 

than if they had never made such election. Further compounding the issue is the fact that the IRS 

does not allow one to change your business tax election for tlve years after you make it, so there 

is no quick tlx that won't also allow absolute gaming of the tax system. 

There is also so much uncertainty in the law that it's actually still quite hard to find an 

accountant who can give you a simple yes or no answer about whether you should restructure 

your small business to even see a potential nominal benetlt from the hm. We sit here today. July 

25. and have yet to sec the regulations the IRS promised \\oulcl be out by July at the latest to 

provide any reassurance around the new Act. 

For my personal business, my partners and I sit in a very privileged position because we arc 

attorneys who advise small businesses. We did decide to restructure our busiucss to take 

maximum advantage of the tax law. and still had lo spend a great deal of money with our 

accountant figuring out the details- I would put the final figure between $2.000-$3000. That 

means that. in the first year at least. what we will save in taxes will be pretty much outweighed 

by what we spent to figure it out, and again, we are in such a unique position since we only have 

to spend money on accountants. I \\Ould double what we spent for any other small businesses 

because they will need to talk tu their atturncys as well. 

For real Main Street small business owners. what they would spend on accountants and attorneys 

often outweighs any small benctlt they may see from restructuring. 

3 
47 

SBR002 with DISTILLER


Insert offset folio 47 here 31211.016

III. The TJCA will balloon the deficit, is an attack on health care and is the wrong way to 

spur small business growth 

\Vhile most of' Main Street won't feel much of the bencllts of the TJC:\. they will feel the brunt 

of its impact. The Congrt~ssional Budget Office (CBO) estimates that the TJCA will slash 

government revenue hy $1.3 trillion from 2018 to 2028. and when the cost of paying interest on 

that debt is included, the TJCA will add a total of$1.9 trillion to the deficit. 6 As many predicted. 

some of your colleagues are using this delle it increase to justify deep cuts to Social Security. 

Medicare. Medicaid. education. infrastructure. as well as food. rental and energy assistance. and 

other vital public services that tens of millions of people-including small business owners and 

our communities--rely on 7 

l'vlany Republicans vvcre ardent opponents of any increase in the federal deficit when President 

Obama wanted to invest in critical human needs programs. but now remain quiet in the fi1ce of a 

burgeoning delle it due to the tax law. The CBO bas said that the T.ICA is expected to increase 

growth by . 7 { 7 i I Oths) of a percent over the next decade. but even with that. it won't be close the 

2.9 percent growth thai the Trump Administration said would cover the cost of the tax law8 

The nonpartisan Tax Policy Center. estimates that a typical snull business owner (those folks 

vv ith the median income of $49.204) would experience a tax cut of roughly SSOO in 2018. 9 In my 

experience, folks who make $49,204 are generally one catastrophe away from needing a myriad 

of social services funded by our tax base. In Minnesota. they arc worried about whether there 

will be enough money to fund MinncsotaC:are, our state Medicaid program, or if they can access 

heating assistance if their business suffers a down month during our tough Minnesota winters. 

You'd be hard pressed to lind a true Minnesota small business owner who would rather have 

$500 in hand now than an assurance that help would be there if they need it in the future. 

Crumbling and outdated infi·astructllrc has caused small business owners to experience increased 

transportation costs as well as a variety of health and safety issues. The lack of broadband 

internet connectivity in many rural communities has hampered business growth and 

'kvclopment. Robust public investment in sustainable and resilient inti·astructure would help 

increase business efficiency. widen the consumer base. and ensure safe and healthy communities. 

all things that boost a Main Street business's bottom line more than $500 per year. 

rurthcrmore. a lack of adequate investment in the public education system has led to shrinking 

school budgets. increased class sizes. shortened school years, and the loss of many school 

programs. Small business owners rdy on a strong public school system to ensure a welleducated. prepared >>orkforcc for the future. 

a. The T.JCA is pat·t of a larger assault on hcalthcare 

Main Street Alliance- 1101 17th St. NW. Suite t220. Washington. DC 20036 

4 
48 

SBR002 with DISTILLER


Insert offset folio 48 here 31211.017

In addition to the aforementioned cuts. the CBO found that the TJCA 's repeal of the individual 

mandate will cause l3 million Americans to lose access to healthcare and health insurance 

premiums to increase by an average of I 0 pcrcentF' But coupled with additional attacks on the 

ACA, including the expansion of junk and short-term health plans by the Trump Administration. 

and judicial attacks on preexisting conditions, the Urban Institute found that 17.1 million people 

would lose coverage in 2019, a 50 percent increase in just a single year as a result of the attacks 

on the ACA 11 • This is over and above the impact of zeroing out the individual mandate penalty. 

These acts will destabilize the individual and small group markets. driving up costs for the most 

vulnerable enrollees. This "ill devastate small business owners already struggling to afford 

insurance for themselves or their employees. Small businesses fund their expenditures from 

month to month, and need predictability to make business decisions. Erratic premium increases 

undermine their ability to project expenses. As health care costs skyrockc•t and families are 

forced to pay more for vital healthcare services, they will have less money to spend at local 

businesses, causing consumer demand to plummet. 

Moremer. this limits who will be able to take on the risk of becoming an entrepreneur. I started 

my firm in 2010. the tirst yeat· that the provisions of the AITordablc Care Act took effect. and a 

time when the large corporations in Minnesota were still reducing their workforccs from the last 

recession. Do you know what I spent most of my time doing in those months') Creating LLCs 

and dmfting agreements for folks who had been laid ofT fi·om the General Mills and Best Buy 

and other large companies but who fwd decided they would bL' take the risk to start their own 

business because they were no longer reliant on a large company to rrovide them health 

insurance. 

Small business owners need a foundation of social stability to succeed, and the lack of access to 

quality, afTordablc health care is a barrier to starting or expanding a business. Every tear in the 

social safety net prevents people from pursuing their dream of small business ownership, stitling 

innovation. 

b. The TJCA will not cause small businesses to grow their· businesses 

As [previously stated. in future years. once we have recouped the costs of nur accountants. the 

TC.JA willlikdy result in my law partners and I haYing a smaller tax burden. But it certainly 

won't he enough to hire more staff. And it ''on't he enough that any of' the other small 

businesses \\e work with will feel the effect. In fact. businesses hire more people only when 

there is enough demand to warrant more employees. This is underscored by a recent poll by 

Businesses for Responsible Tax Rclorm. which found that 69 percent of small business owner·s 

do not plan on hiring a new employee because of the new tax law. and 59 percent do not plan to 

give current employees raises. 12 

Main Street Alliance- 1101 17th St. NW. Suite 1220, Washington. DC 20036 

H"!~ \\ 

5 
49 

SBR002 with DISTILLER


Insert offset folio 49 here 31211.018

Main Street's ability to create jobs is particularly important to economic growth because small 

businesses employ nearly 50 percent of the country's private sector workforce. that is 58 million 

out of the 121 million private sector employeesD The Small Business Administration found that 

since 1993. small businesses, not large companies. created 62 percent of the country's net new 

private sector jobs. 1

'

1 And since the end of the Great Recession, small businesses have created 2 

out of 3 private sectors jobs. 15 

IV. Why corporate tax cuts will never spur national prosperity 

Wealthy corporations are and their shareholders arc reaping the majority of the benelits from the 

T.JCA. In fact, 156 companies have been identified as receiving $77.3 billion in total tax cuts and 

authorizations for stock buy backs have increased by $615 billion since the passage of the bill. 

On the other hand, just 4.3 percent of workers are getting any one-time bonuses or wage 

increases ti·om their employers 16 

I'd like to close my testimony with a story about an early US small business owner, Henry Ford. 

Due to the Modci-T's success and an innovative assembly line, Ford Motor Co. amassed a 

capital surplus of$60 million by 1916. With this money. Henry Ford wanted to employ more 

workers, make the autos affordable for the assembly workers, and help workers build their lives. 

Sounds a bit like the promise of the TCJA doesn't it? 

Unfortunately Dodge, a minority shareholder, disagreed with this plan and Jiled suit against Ford 

arguing that the purpose of the company was to maximize shareholder profits- and not to benefit 

the community by making affordable cars or employing more workers. The court agreed, holding 

that management's primary duty is to maximize shareholder wealth. This case remains law 

today, and fairly clearly conlirms, that any attempt to stimulate the economy and create jobs by 

making sure that businesses have more money will soon run into the issue that those same 

companies are legally obliged to use any surplus money to benefit their shareholders- not the 

greater good. 

IV. Closing 

The stated purpose of the TJCA was to stimulate the US economy. As my testimony, the 

supporting citations and the cautionary tale of Dodge v. Ford make clear, the methods employed 

in the Act did not have that intended effect. In order to create a more equitable economy with 

broadly shared prosperity on Main Streets across the country, it's imperative to reform the tax 

and transfer system, and ensure wealthy corporations and individuals pay their lair share of 

taxes. This includes eliminating corporate tax loopholes that enable tax evasion and incentivize 

offshoring, as well as creating a more balanced income tax structure. 

if lawmakers in DC are the champions of small business they claim to be. you must ensure that 

our tax code prioritizes strong public investment over corporate profits. For the vast majority of 

6 
50 

SBR002 with DISTILLER


Insert offset folio 50 here 31211.019

small business owners, paying marginally less in taxes has little benefit when compared with a 

good. affordable healthcare system; sufficient retirement funds; and high-quality jobs that sustain 

a strong customer base. Congress has its work cut out for itself to tlx these significant challenges. 

Main Street Alliance- 1!01 17th St. NW, Suite 1220. Washington, DC 200.\6 

~\'\\ \\.fll<.\l.!l.S.\lJ't'.t.aUl.~tll.\'"'' .. \?r.!! 

7 
51 

SBR002 with DISTILLER


Insert offset folio 51 here 31211.020

U.S. House of Representatives Committee on Small Business Hearing: 

"The Tax Law's Impact on Main Street" 

Wednesday, July, 25, 2018 

Statement of David Borris 

Owner, Hel's Kitchen Catering 

3027 Commercial Ave. 

Northbrook, IL 60062 

(847) 205-5125 

My wife and I opened a small homemade food store near Chicago in 1985, and over the years we have 

expanded into a full-service catering company with 41 full-time employees and over 80 part-time and seasonal 

workers. 

Over 33 years we have created hundreds ofjobs in the Chicago land area. Ever since we started, we ·ve been 

committed to providing litmily sustaining wages and quality. affordable hcalthcare to our employees. 

The new Republican tax law will not put more dollars in my pocket or cause me to expand my business. While 

1 may sec a nominal benefit through the pass-through deduction. it will be zeroed out by the limits on SALT 

deductibility. I certainly won't be able to hire more employees or provide raises to my current employees. More 

importantly. the long-term trajectory of the inevitable cuts in social services will be devastating to many of my 

employees and their families. 

So who is benefitting from the Republican tax law? Wealthy Republican donors. corporate shareholders and 

CEOs. One reason for this is that the tax law gives tax breaks to multinational corporations that offshore 

domestic jobs. 

My business is deeply rooted in my community. and we create quality jobs right here at home. Our business 

model. like many small businesses across Chicago land and the nation provides food, beverage. and personal one 

on one service to clients and their guests. I can't provide services to my customers from a post office box in 

Grand Cayman or Ireland. Or ask my employees to incorporate themselves in the British Virgin Islands. 

To put it simply. I am a job creator who is decidedly no! benefitting from the Republican tax law. Yet 

multinational corporations who offshore what \Verc once good paying domestic johs and pro tits are reaping a 

windfall in benefits at the expense of small businesses and middle-class taxpayers like me. 

David Borris is the co-owner ofHel's Kitchen Catering, a gourmet catering company located in Chicago, 

Illinois. He serves on the Executive Commitlee of the Main Streel Alliance. a naliona/ small business network. 

For questions, please contact Sapna Mehta, Legislative and Policy Director, at 

sapna(ll:'·mainstreetalliance.org. 

Main Street Alliance- 1101 17th St. NW, Suite 1220, Washington, DC 20036 
52 

SBR002 with DISTILLER


Insert offset folio 52 here 31211.021

U.S. House of Representatives Committee on Small Business Hearing: 

"The Tax Law's Impact on :vlain Street" 

Wednesday, July, 25, 2018 

Statement of Kelly Conklin 

Owner, Foley-Waite LLC 

746 Colfax Ave. 

Kenilworth, N.J 07033 

(908) 298-0700 

The new Republican tax law has the potential to devastate my business. My wife and I own a custom 

woodworking business in Kenilworth, :--.lew Jersey. The bulk of our business is conducted in New York City 

and the tax law- which limits the deductibility of state and local taxes- has already sent the City's 

residential real estate market into a tailspin. 

Home sales are on the decline. If people are not purchasing homes. they definitely aren't renovating their 

homes and engaging our custom carpentry services. This could be incredibly damaging to our business. 

It's extremely frustrating when government policy sows the seeds of uncertainty into a market that we depend 

on for our livelihood. The changes to tax policy in the 1990's fllrced us out of the commercial market, but we 

found a new niche in the residential market. Working in NYC is not easy, but for over 30 years we have run a 

successful business that now employs 15 crafts people. 

If the New York real estate market is upended, the only people who will be able to afford to purchase and 

renovate their homes will be the Russian oligarchs buying up Park Avenue. My future financial security 

shouldn't depend on a Russian oligarch because Republicans want to give a trillion-dollar tax break to their 

wealthy donors. 

Instead of a tax giveaway to ultra-rich. we should be investing in repairing and modernizing the country's 

crumbling infrastructure, including a new rail tunnel under the Hudson River that will relieve both rail and 

ground transportation congestion while markedly improving the t1ow of goods and people up and down the East 

Coast. 

Kelly Conklin is the owner of Foley-Waite LLC, a custom woodworking business in Kenilworth, New Jersey. He 

serves on the Executive Committee oft he Main Street Alliance. a national small business network. 

For questions, please contact Sapna Mehta, Legislative and Policy Director, at 

sapna:a:mainstrectalliancc.org. 

Main Street Alliance- 1101 17th St. NW, Suite 1220. Washington, DC 20036 

~Y\l}.'::,l1J1lill<>IJ:££1Q.Uim1<.::f:.Org 
53 

SBR002 with DISTILLER


Insert offset folio 53 here 31211.142

House Small Business Committee: The Tax Law's Impact on Main Street 

John Curtis 

I'd like to thank the Chairman for holding this important hearing today. Tax Reform has 

had a tremendous impact on our economy and so much good has come from it. Over one hundred 

utility companies have lowered prices in 48 states because of tax reform, over 600 companies have 

given pay raises, bonuses, and other benefits to workers because of tax reform, and over one 

million jobs have been created because of tax reform. 

These results have been mirrored in Utah with businesses like Larry H. Miller Group of 

Companies, SkyWest Airlines, Zions Bank, Dominion Energy and so many more providing 

bonuses and benefits to their workers or passing along tax cut savings to their customers. 

I have a growing list of specific positive impacts that tax reform has had in Utah and rather than 

spend all of my time naming each one, I'd ask unanimous consent that this statement be submitted 

to the record. [Tax Reform's Positive Impact on Utah Companies Statement] 

Tax Reform's Positive Impact on Utah Companies 

LarTy H. Miller Group of Compani<'S (Sandy, Utah)-- $1,000 bonuses for 10,000 employees: 

Utah'sfirst lady of business is sharing some of her goodfiJrtune with the people who are 

helping to build herfamily's empire. 

About 10,000 employees of the Larry H lvfiller Group o{Companies will be getting an 

extra $1,000 in their next paycheck courtesy o(the owner and chairvvoman, Gail Miller. 

The company confirmed the gift authorization Thursday. David Blain. president of Saxton 

Horne Communications, the advertising and communications agency for the LHM Group, 

said the largesse is a token of Miller's gratitude toward the thousands of people who make 

the company so succes,~fu/. 

"Gail Miller took an opportunity to reward our front-end employees with a gesture of 

thanks," he explained. "Our vision for the company is to be the best place in town to work 

and the best place to do business. Because ~~!their commitment to that vision, Gail wanted 

to reward the employees." 

The LHM Group is comprised of more than 80 businesses operating in 46 states with over 

10,000 employees and total assets valued at more than $2.6 billion including 52 car 

dealerships. 
54 

SBR002 with DISTILLER


Insert offset folio 54 here 31211.143

The LHM Group joins a number of large corporations that have given back to its 

employee base in the wake of the new tax law passed by Congress in December. This year, 

scores of the nation's biggest companies- including Walmart and Walt Disney have 

bestowed tax-cut windfalls on workers, primarily in the form of one-time bonuses as well 

as salary increases and retirement plan matches. 

Some of the many LHlvf companies include the Larry H lvfiller Dealerships, Vivint Smart 

Home Arena, Utah Jazz, Salt Lake Bees. Saxton Horne Communications, Salt Lake City 

Stars. Megaplex Theatres, the Zone Sports Network, Prestige Financial, Total Care Auto, 

Jordan Commons, Larry H Miller Real Estate and Tour of' Utah.-- Marc!t 1, 2018 

I>eseret News article excerpts 

Dominion Energy, Utah The utility will lower rates for customers because of tax reform: 

As a result o(f'ederal tax cuts, Dominion Energy is passing on $17 million in savings to its 

consumers. 

The Utah Division of Public Utilities announced that the energy companyfiled January 

31, 2018,for the multi-millions in adjustments that enables customers to get a break on 

their gas bills. 

According to the Division of Public Utilities, Utah utility customers will begin seeing 

savingsfi·omfederal tax reform over the next few months. 

A press release stated that the .first wave of cuts should take effect in the next 30 days, 

providing $2.5 million in savings on in('rastructure. 

"Ever since federal tax reform legislation was passed, our Division ofPublic Utilities has 

been working closely with the Public Service Commission and utilities to determine the 

best method to pass on tax savings to Utah customers. Consumers should begin seeing 

lower gas bills soon and our Division will continue to ensure other tax cuts reach 

customer bills as quickly as possible. " stated Chris Parker, Division Director, in a press 

release. 

Additional reductions will follow Dominion Energy's gas cost filing later this spring. The 

Division is working with other agencies to immediately reduce base rates to customers by 

$14.5 million more, the press release stated. -- Feb. 5, 2018 K UTV CBS Salt Lake City 

article 

l'acifiCorp (Draper, Utah) The utility will pass along tax cut savings to customers: 

Utah regulators have approved changes to PacifiCorp's electric service rates, reducing 

them by $61 million through the remainder of this year due to federal/ax ref'orm. 

Changes in federal tax law passed in December 2017 will reduce rates for customers of 

PacifiCorp's Rocky Mountain Power division in Utah by a 4. 7% overall average, 

according to the Berkshire Hathaway Energy subsidiary. The Utah Public Service 

Commission on April 27 ordered the rate cuts to take effect on May 1. PacifiCorp said 

the average residential customer using 698 kWh a month would see a "tax cut 

adjustment" on their bill of about $4.17. 

The PSCfimher noted the rate reduction it ordered reflected a substantial portion, but 

likely not all, of' the amount ofthe 2018 reduction as the company must.file a .final 

calculation of the impacts of tax law changes, including the effects of excess accumulated 

deferred income taxes. PacifiCorp said it will continue to review more complex details of 
55 

SBR002 with DISTILLER


Insert offset folio 55 here 31211.144

the tax law change and provide the total impact of the new law by June I 5, which the 

company agreed is likely result in additional benefits to customers.- ivfay 21, 2018 SNL 

Financial Electric Utility Report 

Sky West Airlines (St. George, Utah)-- Increased employee bonus and incentive program; 

increased 40 I (k) contributions; increased capital expenditures; increased charitable donations. 

Under the enhanced bonuses, "employees are expected to enjoy a nearly 17 percent increase in 

2018 financial bonuses for every eligible employee." 

The full internal memo is below: 

There have been numerous questions and much publicity surrounding recent significant 

tax reform becoming effective this year. As it has now been signed into law, Sky• West plans 

to ensure employees enjoy the le?;islation 's benefits through increased Performance 

Rewards and 401 (k) discretionary contributions. 

"Our employees are the foundation of everything we do, "said Sky West, Inc. President and 

CEO Chip Childs. "This tax r~form enhances our ability to maintain strong, sustainable 

careers and we're pleased to reco?;nize our people by passing its positive impact 

throughout 2018 and beyond Additionally, given the new long-term ben~fits of the reform, 

Sky West plans to increase our charitable contributions, as well as reinvest in our .fleet and 

across our operation to provide even more confidence in our airline andfitture." 

Sky West's Financial Performance Re·wards and other workgroup bonus programs pay 

employees on a percentage oft he SAy West Airlines net margin. Historically, 

these programs have been modeled to neutralize any tax impact (which has been 

generally negative) to employees. However, under new tax reform, the company will 

modify those models to pass the benefit on to employees. As a result, employees are 

expected to enjoy a nearly 17 percent increase in 20 18financial bonusesfor eve1y 

eligible employee. Additionally, the company will increase its discretionary 401 (k) 

contribution to all participating employees in 2018. This chan?;e will be effective January 

I, 2018, and will be distributed beginning with thefirst 2018 PeJ.formance Rewards 

payout in late Apri/2018 

Performance Rewards and profit sharing program payouts will remain on 

current schedules based on each specific program; and the company will continue to 

evaluate each of our programs for economic impact and the most value to employees. 

"This is not a one-time bonus, but will be an ongoing benefit to employees for the duration 

of the legislation. Becoming the partner and investment ofchoice is not possible without 

being the employer of choice, "continued Chip. "In today 's environment, it's more 

importa/11 than ever that we recognize our people who take care of our customers. To our 

incredible team, I want to say thank you for the great work you do each and every day to 

take care of each other and our customers. " 

Zions Hank (headquarters in Salt Lake City, with Utah branches in Huntington, Castle Dale, 

Price, Ephraim, Manti, Salina, Santaquin, Payson, Spanish Fork, Springville, Duchesne, Provo, 

and Fillmore)- Pay raises for more than 40% of employees; $1,000 bonuses for nearly 80% of 

employees; increased charitable contributions: 

Zions Bancorporation (NASDAQ: ZION) announced today that as a result oftlte Tax Cuts 

and Jobs Act of 2017, it will be increasing ongoing compensation for more than 40% of 

its employees as of January 1, 2018, and providing nearly 80% of employees with $1,000 
56 

SBR002 with DISTILLER


Insert offset folio 56 here 31211.145

bonuses during 2018, subject to certain conditions. 

Additionally, Zions intends· to contribute $12 million to the Zions 

Bancorporation Foundation, V.'hich is expected to benefit local communities in which 

Zions does business. Jn2017, Foundation beneficiaries included the United Way, youth 

programs, fiwd pantries, homeless shelters, affiJrdable housing projects, and educational 

programs. 

Zions expects to incur an increase in noninterest expense in the fourth quarter ()( 2017 of 

approximately $12 million as a result ofthe contribution to the Foundation, while 

compensation adjustments are expected to be incorporated into 2018 expense.-- Jan. 2, 

20/8 Zions Bancorporation press release 

lJ-Haul (Utah locations: Centerville, West Valley City, Murray. Midvale, Salt Lake City, 

Bountiful, Cedar City, Beaver, Hurricane, Parowan, Hildale, Panguitch, Saint George, Enoch, 

Vernal, Moab, Blanding, Monticello, Loa, Salina, Mount Pleasant, Big Water, Washington, 

Nephi)- $1,200 bonuses for full-time employees, $500 for part-time employees. 

Lowe's -- 2,000 cmplo~·ccs at 16 stores in L'tah. Employees will receives bonuses of up to 

$1,000 based on length of service; expanded benefits and maternity/parental leave; $5,000 of 

adoption assistance. 

\Valnutrt 51 locations in lltah --Over 12,500 Utah-based Walmart and Sam's Club 

employees are receiving wage increases as well as tax reform bonuses ranging from $200 -

$1,000 for a state total of $5.7 million. The starting wage rate was raised for all hourly 

employees to $11. The company also announced expanded maternity and parental leave, and 

$5,000 for adoption expenses. 

AT&T -- $1,000 bonuses to 423 Utah-based employees. The company also announced a $1 

billion increase in capital expenditures nationwide. 

Apple (Apple store locations in Farmington, Murray, Salt Lake City)-- $2.500 employee 

bonuses in the form of restricted stock units; Nationwide, $30 billion in additional capital 

expenditures over five years; 20,000 new employees will be hired; increased support of coding 

education and science, technology, engineering, arts, and math; increased support for U.S. 

manufacturing. 

Home Depot-- 22 locations in Utah, bonuses for all hourly employees, up to $1,000. 

Cintas Cot·p<H·ation (Multiple locations in Utah)-- $1,000 bonuses for employees of at least a 

year, $500 for employees of less than a year. 

Comcast (Multiple locations in Utah)-- $1 ,000 bonuses; nationally, at least $50 billion 

investment in infrastructure in next five years. 

Chipotle 1\'k\ican G1·ill (Multiple locations in Utah)- Bonuses ranging from $250 to $1,000; 

increased employee benefits; nationally, $50 million investment in existing restaurants. 
57 

SBR002 with DISTILLER


Insert offset folio 57 here 31211.146

Ryder (lJtah locations: Salt Lake Cit~, Clca..ticld, Hurricane)-- Tax reform bonuses for 

employees. 

Starbucks Coffee Company (101 locations in Utah)- $500 stock grants for all retail 

employees, $2,000 stock grants for store managers, and varying plan and support center 

employee stock grants. Nationally, 8,000 new retail jobs; an additional wage increase this year, 

totaling approximately $120 million in wage increases, increased sick time benefits and parental 

leave. 

McDonald's (100+ locations in Utah) -Increased tuition investments which will provide 

educational program access for 400,000 U.S. employees. $2,500 per year (up from $700) for 

crew working 15 hours a week, $3,000 (up from $1,050) for managers, and more: 

McDonald's Corporation today announced it will allocate $150 million over.five years to 

its global Archways to Opportunity education program. This investment will provide 

almost 400,000 US. restaurant employees with accessibility to the program as the 

company will also lower eligibility requirementsji'Oin nine months to 90 days of 

employment and drop weekly shifi minimumsji·om 20 hours to 15 hours. Additionally, 

McDonald's will also extend some education benefits to restaurant employees '.family 

members. These enhancements underscore McDonald's and its independentfranchisees' 

commitment to providingjobs thatfit around the lives of restaurant employees so they 

may pursue their education and career ambitions. 

The Archways to Opportunity program provides eligible US. employees an opportunity 

to earn a high school diploma, receive upfi·ont college tuition assistance, access free 

education advising services and learn English as a second language. 

"Our commitment to education reinforces our ongoing support of'the people who play a 

crucial role in our journey to build a better McDonald's," said Steve Easterbrook, 

McDonald's President and CEO. "By offering restaurant employees more opportunities 

tofia·ther their education and pursue their career aspirations, we are helping them find 

their full potential, whether that's at McDonald's or elsewhere. " 

Accelerated by changes in the U.S. tax law, McDonald's increased investment in the 

Archways to Opportunity Program includes: 

o Increased Tuition Investment: 

o Crew: Eligible crew will have access to $2,500/year, upfi'om $700/year. 

o Managers: Eligible Managers will have access to $3,000/year, upfrom 51,050. 

o Participants have a choice for how they apply thisfimding -whether it be to a community 

college, four year university or trade school. There is no lifetime cap on tuition assistance 

restaurant employees will be able to pursue their education and career passions at their 

own pace. The new tuition assistance is effective May I, 2018 and retroactive to January 

1, 2018. 

o Lowered Eligibility Requirements: Increase access to the program by lowering eligibility 

requirements from nine months to 90 days of employment. In addition, dropping from 20 

hours minimum to 15 hours minimum (roughly two full time shift,\) per week to enable 

restaurant employees more time tofilcus on studies. 
58 

SBR002 with DISTILLER


Insert offset folio 58 here 31211.147

o Extended Services to Families: Exlension of Career Online High School and College 

Advisory services to restaurant employees 'family members through existing educational 

partners Cengage and Counci!.for Adult and Lxperiential Leaming (CAEL), 

o Additional Resources: Career exploration resources for eligible restaurant employees to 

be available later this year. 

o Creation of an International Education Fund: Grants to provide local initiatives and 

incentives in global markets tofitrther education advancement programs. 

"Since its inception, Archways to Opportunity was meant to match the ambition and 

drive of' restaurant crew with the means and network to help themfind success on their 

own terms," said David Fairhurst, McDonald's Chie{ People Officer. "By tripling tuition 

assistance, adding education benefitsforfamily members and lowering eligibility 

requirements to the equivalent of a summer job, we are sending a signal that if you come 

work at your local McDonald's, we'll invest in your future. " 

After launching inlhe US. in 2015, Archways to Opportunity has increased access /o 

education for over 24,000 people and awarded over $21 million in high school and 

college lzfition assistance. Gradumes have received college degrees in Business 

Administration, Human Resources, Communications, Accounling, A1icrobiology and 

more. ~!Hare II 29, 2018 McDonald'.\· Corporation press relea.\e excerpt 

Fort Ranch (Promontory, Utah)- Tax reform bonuses for employees. 
59 

SBR002 with DISTILLER


Insert offset folio 59 here 31211.022

U.S. House of Representatives Committee on Ways and Means Tax Policy Subcommittee 

''Tax Reform and Small Businesses: Growing Our Economy and Creating .Jobs" 

Wednesday, May 23,2018 

Statement of Mike Draper 

Owner, RA YGt:'l 

505 East Grand Ave 

Des Moines, lA 50309 

(515) 288-1323 

Republicans say they support small businesses, the economic backbone and job creators of communities across the 

country and in Iowa, often citing "The American Dream." And they continue to say that their tax plan is benefitting 

small businesses. But the truth of the matter is, this tax plan threatens my ability to access healthcare and provide 

health coverage to my employees. And that is worth much more in absolute terms than the marginal tax cuts I might 

receive. 

When Republicans jammed their tax plan through Congress late last year, they included a repeal of the ACA individual 

mandate to help pay for the windfall in tax cuts to wealthy corporations. This increased the number of uninsured and 

caused hefty premium increases- which arc projected to spike even more in 2019 and 2020. 

President Trump's 'nobody knew how complicated healthcare was' comment made me want to raise my hand and say, 

'oh, I actually knew how complicated healthcare was.' I've gone through every phase ofhealthcarc, from uninsured, 

insurance through my wife, an individual policy that I paid for, and now through RA YGUN on our group insurance. 

The group insurance that we now have is one part of the ACA that allowed small businesses to buy into larger groups 

and still have options within those groups. There is a lot of focus on the larger issues- preexisting conditions and the 

individual mandate, but there are also a lot of small parts of the ACA that every day small businesses like mine actually 

usc. 

As Republicans continue to sabotage the ACA. through the proposed expansion of short-term and junk plans, I am 

extremely concerned that the double digit premium increases will threaten my ability to provide healthcare to my 

employees. In Iowa, estimated premium increases in 2019 due to these acts of sabotage average nearly $1,500. Small 

business owners like me arc being saddled with higher healthcare premiums and looming cuts to other essential 

services in order to fund tax cuts to \veal thy corporations. 

I know and like David Yotmg personally. but strongly disagree with his decision to support tax cuts for the wealthy. It 

will take years to unwind. 

Afike Draper is the owner of RA YGUN. a custom t-shirt design company. RAYGUN headquartered in De:'}· }.Joines. IA 

with stores in Des Afoines. Cedar Rapids. !mva Ci!_v and Kansas City. He is a lead(!r at 1-Pith the Alain Street Alliance, 

a national small business netvvork. 

For questions, please contact Sapna Mehta, Legislative and Policy ])irector, at sannartl'mainstrcctalliancc.org. 

Main Street Alliance~ I 101 17th St. NW, Suite 1220, Washington, DC 20036 

!\~V"\.Ul!i!.ill?.!.!:.~etaltll~~~ 
60 

SBR002 with DISTILLER


Insert offset folio 60 here 31211.023

U.S. House of Representatives Committee on Small Business Hearing: 

"The Tax Law's Impact on Main Street" 

Wednesday, July, 25,2018 

Statement of Deborah Field 

Owner, Paperjam Press PDX 

4730 NE Fremont Street 

Portland, OR 97213 

(503) 238-5777 

Deborah Field is the co-owner of'l'aperiam Press P!XJ(, a boutique printing and design company 

located in Portland, Oregon emp/oyingjimr people. She serves on the Executive Committee of 

the Main Street Alliance of Oregon, a statewide network of small business owners. 

The GOP tax plan doesn't help me or many other small businesses. l used to be a corporate tax 

accountant, so I am very comli.lftable wiib numbers. I calculated my tax based on the new 

changes. and I end up paying $700 more than last year. 

I wanted to see what this would mean f(Jr some of my fellow businesses, so I went out and talked 

to them. They didn't even pause. they all laughed and said this isn't for us-- this tax plan is a 

giveaway to the biggest corporations who aren't paying their E1ir share in taxes already. 

Too many big corporations take advantage of all America has to offer. but then refuse to pay 

their lair share in taxes. Corporate loopholes are already so large that some multinational 

corporations pay less in taxes than I do. There is something deeply wrong with that. 

If Republicans really wanted to help small businesses. they would stop giving us phony tax cuts 

and look to the banks that are not loaning to small businesses. They would invest in policies and 

programs that expand access to credit and capital for small businesses. That would really help 

small businesses like mine grow-- trillion dollar tax breaks large corporations will not. 

For questions, please contact Sapna Mehta, Legislative and Policy Director, at 

sapmt'ir.·mainstrectalliance.org. 

Main Street Alliance- I 101 17th St. NW, Suite 1220, Washington, DC 20036 

w\\ ~~111!1 1.1'1~s:t.!HL;l!l~~:..Qlli 
61 

SBR002 with DISTILLER


Insert offset folio 61 here 31211.024

Based on a &Jrvey of Small and Independent Business Owners 
62 

SBR002 with DISTILLER


Insert offset folio 62 here 31211.025

NFIB 

SMALL BUSINESS 

ECONOMIC TRENDS 

NFIB Research Center has ccllected Snail Business 

Economic Trends Data with Quarterly surveys since 

1973 and monthly surveys since 1986. The sample 

is drawn from the membership files of the 

National Federation of Independent Business 

(NFIB). Each was mailed a questionnaire and one 

reminder. &Jbscriptions for twelve monthly S3ET 

issues are $250. Historical and unadjusted data 

are available, along with a ccpy of the 

questionnaire, from the NAB Research Center. You 

may reproduce Snail Business Economic Trends 

items if you cite the publication name and date 

and note it is a ccpyright of the NRB Research 

Center. © NAB Research Center. IS3S #0940791-

24-2. 01ief Economist \MIIiam C. Dunkelberg and 

Director of Research and Policy Analysis Holly 

IMide are responsible for the report. 

IN THIS ISSUE 

Summary. 

Commentary .. 

Optimism. 

Outlook. 

Earnings 

Sales. 

Prices. 

Employment. 

Compensation . 

Credit Conditions. 

Inventories. 

capital Outlays .. 

Most Important Problem . 

Survey Profile . 

Economic Survey ... 

. ..... 1 

3 

..4 

...4 

.. .... 6 

.7 

.. ........ 8 

9 

10 

. 12 

14 

16 

18 

. .... 19 

.20 
63 

SBR002 with DISTILLER


Insert offset folio 63 here 31211.026

OPTIMISM INDEX 

The J.me Index of Small Business Optimism is the sixth highest reading 

in survey history. The Index declined slightly in J.me, falling 0.6 points 

to 107.2. Since December 2016, the Index has averaged an 

astounding, unprecedented 105.4, compared to 92.4 for 2009-2016, 

well below the 45 year average of 98. The 1983-1990 expansion 

boasted an Index average of 101.5, including the record reading of 

108.0. Although less exuberant that the current run, it produced 

quarterly job creation of 689,000 new jobs compared to 440,000 in the 

2009-2016 period, even with a much bigger economy. Overall, a very 

solid report, with the Index among the highest readings in 45 years. 

LABOR MARKETS 

Reports of employment gains remain strong among small businesses. 

Owners reported adding a net 0.19 workers per firm on average, 

virtually unchanged from May and a good number. Rfteen percent 

(down 1 point) reported increasing employment an average of 3.6 

workers per firm and 12 percent (up 4 points) reported reducing 

employment an average of 1.6 workers per firm (seasonally adjusted). 

Sixty-three percent reported hiring or trying to hire (up 5 points), but 

55 percent (87 percent of those hiring or trying to hire) reported few or 

no qualified applicants for the positions they were trying to fill. Twentyone percent of owners cited the difficulty of finding qualified workers 

as their Single Most Important Business Problem (down 2 points), a 

few points below the survey record. Thirty-six percent of all owners 

reported job openings they could not fill in the current period, up 3 

points matching the survey record high set in November 2000. Twelve 

percent reported using temporary workers, unchanged. A seasonallyadjusted net 20 percent plan to create new jobs, up 2 points from May 

and very strong. Labor markets are very tight, for both skilled and 

unskilled workers. Thirty-one percent have openings for skilled 

workers, and 13 percent have openings for unskilled labor, both ahead 

of the May readings. More firms are looking for workers than workers 

looking for a job. And the hiring strength is in industries that pay well: 

construction, manufacturing, and financial services. 

CAPITAL SPENDING 

Rfty-nine percent reported capital outlays, down 3 points from May, 

but solid. Of those making expenditures, 44 percent reported 

spending on new equipment (down 3 points), 26 percent acquired 

vehicles(up 2 points), and 14 percent improved or expanded facilities 

(down 2 points). Rve percent acquired new buildings or land for 

expansion (down 1 point) and 12 percent spent money for new fixtures 

and furniture (down 1 point). Solid investment spending is necessary 

to produce the improvements in productivity that will secure future 

increases in real wages. Twenty-nine percent plan capital outlays in the 

next few months, down 1 point from May. Plans were most frequent 

in manufacturing (38 percent) where additional capacity and 

productivity-enhancing investments are needed. 

~ CD 

u: 

z 
64 

SBR002 with DISTILLER


Insert offset folio 64 here 31211.027

0 

& 

f 

" 

SALES AND INVENTORIES 

A net 10 percent of all owners (seasonally adjusted) reported higher 

nominal sales in the past three months compared to the prior three 

months, down 5 points but still one of the strongest readings in years. 

Reports of sales increases were most frequent in manufacturing and 

the wholesale trades. The net percent of owners expecting higher real 

sales volumes fell 5 points to a net 26 percent of owners, reversing half 

of the 10 point rise in May. Retailers and firms in financial services 

were especially optimistic about future sales prospects, the basis for 

their strong hiring and inventory investment plans. 

The net percent of owners reporting inventory increases fell 6 points to 

a net negative 2 percent (seasonally adjusted), ending a five month 

positive run for reports of increases. The net percent of owners 

viewing current inventory stocks as "too low" (a positive number 

means more think stocks are too low than too high, a positive for 

inventory building) gained 4 points to a net 0 percent, a very positive 

move. This confirms that the stock reductions reported were indeed a 

result of strong sales, not a result of less certainty. The net percent of 

owners planning to build inventories rose 2 points to a net 6 percent. 

COMPBIJSI\TION AND EARNINGS 

Reports of higher worker compensation slipped 4 points from May's 

record reading to a net 31 percent of all firms. Plans to raise 

compensation rose 1 point to a net 21 percent, high but below its 

recent peak of 24 percent in J3nuary. Owners complain at record rates 

about labor quality issues, with 87 percent of those hiring or trying to 

hire in Jme reporting few or no qualified applicants for their open 

positions. The frequency of reports of positive profit trends fell from 

its record high in May, losing 4 percentage points to a net negative 1 

percent reporting quarter on quarter profit improvements, still one of 

the best readings in the survey's 45 year history. 

CREDIT MARKETS 

Three percent of owners reported that all their borrowing needs were 

not satisfied, down 1 point and historically low. Thirty percent 

reported all credit needs met (down 7 points) and 54 percent said they 

were not interested in a loan, up 11 points. These are extreme 

movements, and the JJiy figures are likely to be an average of May and 

JJne. Only 2 percent reported that financing was their top business 

problem compared to 21 percent the availability of qualified labor, 16 

percent citing taxes, and 14 percent citing regulations and red tape. 

Two percent reported loans "harder to get," historically about as low as 

the measure can go. Twenty-eight percent of all owners reported 

borrowing on a regular basis (down 6 points). The average rate paid 

on short maturity loans fell 30 basis points to 6.1 percent. 

INFlATION 

The net percent of owners raising average selling prices fell 5 points to 

a net 14 percent seasonally adjusted. Unadjusted, 9 percent of owners 

reported reducing their average selling prices in the past three months 

(up 3 points), and 25 percent reported price increases (down 3 points). 

Inflation does not appear to be a threat in the current environment. 

Seasonally adjusted, a net 24 percent plan price hikes (down 2 points). 
65 

SBR002 with DISTILLER


Insert offset folio 65 here 31211.028

GOP growth in the first quarter was disappointing, as have been 

first quarter reports for several years now. Lacking a better 

explanation, the chatter is that there is a seasonal adjustment 

problem. The second quarter looks like it will come in at a much 

better pace (the New York Federal Reserve anticipates 2.8 

percent, the Atlanta Federal Reserve 3.8 percent). Certainly 

economic activity on Main Street is supportive of a much better 

GOP growth reading. Small business owners are pushing ahead 

with an expansive agenda, trying to figure out how to produce 

more with a restricted supply of labor. Unemployment is about 

as low as it can go. Mortgage rates and inflation are both still 

historically low, and incomes are rising. 

Main Street is getting the good news first hand- higher sales, 

more profits, opportunities to expand and grow. They see at 

street level the successes being achieved in the economy that 

news programs don't cover nearly enough. Record numbers see 

the current period as a good time to expand operations and are 

trying to hire more workers. Capital spending is at levels not 

seen in a decade. Regulatory burdens are being reduced. Small 

business owners are focusing on what really matters and moving 

the economy forward. Economic growth will be solid through 

the end of the year on Main Street. 
66 

SBR002 with DISTILLER


Insert offset folio 66 here 31211.029

110 

OVERVIEW- SMALL BUSINESS OPTIMISM 

OPTIMISM INDEX 

Based on Ten Survey Indicators 

(S3asona!ly A:ijusted 1986=1 00} 

88 90 92 94 96 98 00 02 04 06 08 10 12 14 16 

YEAR 

OPTIMISM INDEX 

Based on Ten Survey Indicators 

(S?asonally A:JJusted 1986=100) 

SMALL BUSINESS OUTLOOK 

OUTLOOK 

Good Time to Expand and Expected General Business Conditions 

J:muary 1986 to J..me 2018 

{S3asona!ly .Adjusted) 

86 88 90 92 94 96 98 00 02 04 06 08 10 12 14 16 

YEAR 

80 

60 

40 

20 

-20 

-40 

I 

c 

~£ .~ 

c • • c 02 

~cg 

~8 ~0 

Jj~ 

• 65 
67 

SBR002 with DISTILLER


Insert offset folio 67 here 31211.030

SMALL BUSINESS OUTLOOK (CONTINUED) 

OUTLOOK FOR EXPANSION 

Percent Next Three Months "Good Time to Expand" 

(Seasonally A:!Justed) 

MOST IMPORTANT REASON FOR EXPANSION OUTLOOK 

Outlook 

OUTLOOK FOR GENERAL BUSINESS CONDITIONS 

Months From Now 
68 

SBR002 with DISTILLER


Insert offset folio 68 here 31211.031

SMALL BUSINESS EARNINGS 

EARNINGS 

Actual Last Three Months 

-Enuary 1986 to lme 2018 

(Soasonally !'djusted) 

~ 88 00 ~ ~ % 98 00 ~ ~ 00 00 10 12 14 16 

YEAR 

Net Percent 

ACTUAL EARNINGS CHANGES 

Minus "Lower") Last Three Months 

to Prior Three Months 

(Seasonally ,Adjusted) 

MOST IMPORTANT REASON FOR LOWER EARNINGS 

Percent Reason 

Jme2018 
69 

SBR002 with DISTILLER


Insert offset folio 69 here 31211.032

50 

40 

30 

20 

10 

-10 

-20 

-:>J 

SMALL BUSINESS SALES 

SA.LES 

Actual (Prior Three Months) and Expected (Next Three Months) 

...Bnuary 1986 to J.me 2018 

(Slasonally !'dJusted) 

88 90 92 94 96 98 00 02 04 06 08 10 12 14 16 

YEAR 

---~- ----------~ 

ACTUAL SALES CHANGES 

Net Percent ("Higher" Minus "Lower") Last Three Months 

Compared to Prior Three Months 

(~asonally Pd;usted) 

SALES EXPECTATIONS 

Net Percent ("Higher" Minus "Lower") During Next Three Months 

(!?easona!!y ftdjusted} 
70 

SBR002 with DISTILLER


Insert offset folio 70 here 31211.033

40 

E 3o 

a: 20 

0 10 

g 

£ -10 

z • -A! 

SMALL BUSINESS PRICES 

PRICES 

Actual Last Three Months and Planned Next Three Months 

Jmuary 1986 to J.me 2018 

(Slasonally />djusted) 

-~++~~~~~~+4~~~~~++~~~~~ 

86 88 90 92 94 96 98 00 02 04 06 08 10 12 14 16 

YEAR 

ACTUAL PRICE CHANGES 

Net Percent ("Higher" Minus "Lower") 

Compared to Three Months Ago 

(Slaronally />dje~sted) 

PRICE PLANS 

in the Next Three Months 
71 

SBR002 with DISTILLER


Insert offset folio 71 here 31211.034

SMALL BUSINESS EMPLOYMENT 

ACTUAL Elv1PLOYMENTCHANGES 

Net Percent ("Increase" Minus "Decrease") in the Last Three Months 

(S:?asonalty Pdjusted) 

10 

QUALIRED APPLICANTS FOR JJB OPENINGS 

Percent Few or No Qualified Applicants 

EMPLOYMENT 

Planned Next Three Months and Current ..bb Openings 

..Bnuary 1986 to J.me 2018 

(a,asonally l'dJUSted) 

-10 -l-+-++-'e-++-+-+-+-+-l-+-+-i-++-+-+-+-+-<-++-i-+~+-+-++-l-+-

86 88 90 92 94 96 98 00 02 04 06 08 10 12 14 16 

YEAR 
72 

SBR002 with DISTILLER


Insert offset folio 72 here 31211.035

2018 

SMALL BUSINESS EMPLOYMENT (CONTINUED) 

.OB OPENINGS 

Percent V'v1th Positions Not Able to Fill Right Now 

(Seasonally Pdjusted) 

HIRING PLANS 

Net Percent (''Increase" 

18 20 '16 18 20 

SMALL BUSINESS COMPENSATION 

COMPENSATION 

Actual Last Three Months and Planned Next Three Months 

..Bnuary 1986 to J.me 2018 

(Seasonally Adjusted) 

86 88 90 92 94 96 98 00 02 04 06 08 10 12 14 16 

YEAR 
73 

SBR002 with DISTILLER


Insert offset folio 73 here 31211.036

SMALL BUSINESS COMPENSATION (CONTINUED} 

ACTUAL COMPENSI\TION CHANGES 

Net Percent ("Increase" Minus "Decrease") During Last Three Months 

(Seasonally A::ljusted) 

20 

10 

-10 

COMPENSI\TION PLANS 

PRICES AND LABOR COMPENSI\TION 

Net Percent Price Increase and Net Percent Compensation 

(Seasonally Mjusted) 

·20 -Ac!ualCompensa!IC'1 

-Xl -+-+-+ 86 88 90 92 94 96 98 00 02 04 06 08 10 12 14 16 

YEAR 

;: 
74 

SBR002 with DISTILLER


Insert offset folio 74 here 31211.037

0 

& 

·2 

-4 

-6 

SMALL BUSINESS CREDIT CONDITIONS 

CREDIT CONDITIONS 

Loan Availability Com pared to Three Months Ago* 

..Bnuary 1986 to Jme 2018 

I I I I I I I I I I I I I I I I I I I I 1 I I I I I I I I 

86 88 90 92 94 96 98 00 02 04 06 08 10 12 14 16 

YEAR 

• Forthepopulatlonborrowmgatleas!onceeverythreemon:hs 

---

REGULAR BORROWERS 

Percent Borrowing at Least Once Every Three Months 

AVAILABILITY OF LOANS 

Net Percent ("Easier" Minus '·Harder") 

Compared to Three Months Ago 

(Regular Borrowers) 
75 

SBR002 with DISTILLER


Insert offset folio 75 here 31211.038

SMALL BUSINESS CREDIT CONDITIONS (CONTINUED) 

BORROWINGNEEDSS'\TISFIED 

Percent of All Businesses Last Three Months Satisfied/ 

Percent of All Businesses Last Three Months Not Satisfied 

(.AJI Borrowers) 

EXPECTED CREDIT CONDITIONS 

Net Percent ("Easier" Minus "Harder") During Next Three Months 

(Regular Borrowers) 

INTEREST RATES 

Relative Rates and Actual Rates Last Three Months 

J3nuary 1986toJme2018 

86 88 90 92 94 96 98 00 02 04 06 08 10 12 14 16 

YEAR 

~ m 

u: 

z 
76 

SBR002 with DISTILLER


Insert offset folio 76 here 31211.039

SMALL BUSINESS CREDIT CONDITIONS (CONTINUED) 

RELATIVE INTEREST RATE PAID BY 

REGULAR BORROWERS 

Net Percent ("Higher" Minus "Lower") Compared to Three Months Ago 

BorrOWI'lQ at Leas!: Once Every l'hroo Months 

15 

10 

ID -5 

~ -10 

m-is 

z_20 

-25 

ACTUAL INTEREST RATE PAID ON 

SHORT-TERM LOANS BY BORROWERS 

Average Interest Rate Paid 

SMALL BUSINESS INVENTORIES 

INVENTORIES 

Actual (Last Three Months) and Planned (Next Three Months) 

Jmuary 1986 to J.me 2018 

(!Oeasonally !ldjusted) 

-~#+~+H~~+H~~+H~~+H+W~+H~~+H~~ 

00 M 00 a M % M 00 ~ M 00 00 W ~ M ffi 

YEAR 
77 

SBR002 with DISTILLER


Insert offset folio 77 here 31211.040

SMALL BUSINESS INVENTORIES (CONTINUED) 

ACTUAL INVENTORY CHANGES 

Net Percent ("Increase" Minus "Decrease") During Last Three Months 

(Seasonally .tldjusted) 

INVENTORY SATISFACTION 

Present Time 

INVENTORY PLANS 

;§ 

ro 

u: 

z 
78 

SBR002 with DISTILLER


Insert offset folio 78 here 31211.041

~ ro 

0: 

z 

SMALL BUSINESS CAPITAL OUTLAYS 

INVENTORYS'ITISFACTION AND INVENTORY PlANS 

Net Percent ("Too Low" Minus "Too Large") at Present Time 

Net Percent Planning to Add Inventories in the Next Three to Six Months 

15 

10 

-5 

-10 

75 

65 

55 

45 

35 

25 

(Seasonally A:ljusted} 

88 90 92 94 96 98 00 02 04 06 08 10 12 14 16 

YEAR 

CAPITAL EXPENDITURES 

Actual Last Slx Months and Planned Next Three Months 

J:muary 1986 to J.me 2018 

(S.asonally PdJUsted) 

~~ --Expected 

86 88 90 92 94 96 98 00 02 04 06 08 10 12 14 16 

YEAR 

ACTUAL CAPITAL EXPENDITURES 

Percent Making a Capita! Expenditure During the Last Six Months 
79 

SBR002 with DISTILLER


Insert offset folio 79 here 31211.042

SMALL BUSINESS CAPITAL OUTLAYS (CONTINUED) 

TYPE OF CAPITAL EXPENDITURES MADE 

Percent Purchasing or Leasing During Last Six Months 

AMOUNT OF CAPITAL EXPENDITURES MADE 

Percent Distribution of Per Firm 

During the Last Six 

CAPITAL EXPENDITURE PLANS 

Next Three to Six Months 
80 

SBR002 with DISTILLER


Insert offset folio 80 here 31211.043

40 

11 30 

"' 0 20 

E 

2 3: 10 

20 

10 

SINGLE MOST IMPORTANT PROBLEM 

SINGLEMOSTIMPORTANTPROBLEM 

Jme 2018 

SELECTED SINGLE MOST IMPORTANT PROBLEM 

Inflation, Big Business, Insurance and Regulation 

...Bnuary 1986 to llne 2018 

819 Busmess 

-Inflation 

-Insurance 

Regulation 

88 90 92 94 96 98 00 02 04 06 08 10 12 14 16 

YEAR 

SELECTED SINGLE MOST IMPORTANT PROBLEM 

Taxes, Interest Rates, Sales and Labor Quality 

J:muary 1986 to J.me 2018 

--Sales 

lnteresi Rate>cS & Labor Quality 

88 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 

YEAR 
81 

SBR002 with DISTILLER


Insert offset folio 81 here 31211.044

30 

25 

20 

15 

10 

SURVEY PROFILE 

OWNERIMEMBERSPARTICIPATING IN 

ECONOMIC SURVEY NFIB 

Actual Number of Firms 

NFIB OWNER/MEMBERS PARTICIPATING 

IN ECONOMIC SURVEY 

Industry of SmaH Business 

NFIB OWNER/MEMBERS PARTICIPATING 

IN ECONOMIC SURVEY 

Number of Fu!! and Part~Time Employees 

s 

& 

~ 

"' w 

u 

g 

~ 

~ 

~ 

~ ~ 

til 

~ ro 

i)'~ [L 

'0. z 

<i-0 '[2 
82 

SBR002 with DISTILLER


Insert offset folio 82 here 31211.045

15 

& 

~ 

"' 

<i 

"" u 

15 

~ 

~ 

,jl "

~ 

'" IT: 

z 

0 

N 

SMALL BUSINESS &IRVEY QUESTIONS 

Do you think the next three months will be a good time 

for small business to expand substantia!!y?\i\lhy?. 

About the economy in general, do you think that six 

months from now general business conditions wlll be 

better than they are now, about the same, or worse?. 

Were your net earnings or «income" (after taxes) from your 

business during the last calendar quarter higher, lower, or 

about the same as they were for the quarter before?. 

If higher or lower, what is the most important reason?. 

During the last calendar quarter, was your dollar sales 

volume higher, lower, or about the same as it was for 

the quarter before?. 

Overall, what do you expect to happen to real volume 

(number of units) of goods and/or services that you will 

sell during the next three months?. 

How are your average selling prices compared to 

three months ago?. 

In the next three months, do you plan to change the 

average selling prices of your goods and/or services?, 

PAGE IN REPORT 

6 

6 

During the last three months, did the total number of employees 

in your firm increase, decrease, or stay about the same?. 9 

If you have filled or attempted to fill any job openings 

in the past three months, how many qualified applicants 

were there for the posltion(s)?. 9 

Do you have any job openings that you are not able 

to fill right now?. 10 

In the next three months, do you expect to increase or 

decrease the total number of people working for you?. 10 

Over the past three months, did you change the average 

employee compensation?., 11 

Do you plan to change average employee compensation 

during the next three months? .. 11 
83 

SBR002 with DISTILLER


Insert offset folio 83 here 31211.046

EM ALL BUSINESS SURVEY QUESTIONS PAGE IN REPORT 

Are . .Joans easier or harder to get than they were 

three months ago?.. 12 

During the last three months, was your firm able to 

satisfy its borrowing needs?. 13 

Do you expect to find it easier or harder to obtain your 

required financing during the next three months?. 13 

If you borrow money regularly (at least once every three 

months) as part of your business activity, how does the 

rate of interest payable on your most recent loan compare 

withthatpaidthreemonthsago?. 14 

If you borrowed within the last three months for business 

purposes, and the loan maturity (pay back period)was 1 

year or less, what interest rate did you pay?. 14 

During the last three months, did you increase or decrease 

your inventories?. 15 

At the present time, do you feel your inventories are too 

large, about right, or inadequate?. 15 

Looking ahead to the next three months to six months, 

do you expect, on balance, to add to your inventories, 

keep them about the same, or decrease them?. 15 

During the last six months, has your firm made any capital 

expenditures to improve or purchase equipment, buildings, 

or land?. 16 

If [your firm made any capital expenditures], what was 

the total cost of all these projects?. 17 

Looking ahead to the next three to six months, do you 

expect to make any capital expenditures for plant 

and/or physical equipment?. 

What is the single most important problem facing your 

business today?. 

Please classify your major business activity, using one 

of the categories of example below. 

How many employees do you have full and part~time, 

including yourself?. 

17 

18 

19 

19 

c 

0 

" 
84 

SBR002 with DISTILLER


Insert offset folio 84 here 31211.047

~ FIB 

RESEARCH 

CENTER 

Small Business 

Introduction to the 

Tax Cuts and Jobs Act: 

Part 1 

May 2018 
85 

SBR002 with DISTILLER


Insert offset folio 85 here 31211.048

Executive Summary 

• Over three-quarters (76 percent) of small business owners believe the current 

business climate is heading in a positive direction (0#4). 

• The vast majority (87 percent) percent of small business owners think the new 

tax law will have a positive impact on the general economy. Just 4 percent 

believe it will have a negative impact and 9 percent think it will have no significant 

impact (0#14). 

• Three-fourths (75 percent) of small business owners believe the tax law will 

positively impact their business, 22 percent anticipate it will have no impact, and 

3 percent a negative impact (0#12). 

• While small business owners are enthusiastic about the law generally, many of 

the details are still unfamiliar to them. Almost one-in-four (24 percent) percent of 

small business owners are not at all familiar with the new tax law (0#7). 

• Half of small business owners with some familiarity about the law obtained their 

most useful information from their tax preparer or advisor, another 28 percent 

from the general news media (0#8). 

• Over half (51 percent) of small business owners expect to pay less in federal 

income taxes next year, 7 percent expect to pay more, and 37 percent about the 

same (0#15). 

• Almost half (47 percent) of small business owners who expect to pay less in 

taxes next year plan to increase business investments with their tax saving 

(0#15a5) and 44 percent plan to increase employee compensation (0#15a6). 

Another 40 percent of small business owners plan to pay down debt obligations 

(0#15a7), 32 percent plan to retain the funds freed up as higher earnings 

available to support business growth (0#15a4 ), and 27 percent plan to hire an 

additional employee (0#15a3). 

• Over half (55 percent) say that the creation of Section 199A, allowing for up to a 

20 percent small business income tax deduction, is "very important" with another 

29 percent "somewhat important" (0#208). 

• Forty-five percent of small business owners say that changes to the personal 

income tax brackets and rates are "very important" to them and their business, 

40 percent say "somewhat important" (0#20A). 

2 
86 

SBR002 with DISTILLER


Insert offset folio 86 here 31211.049

Introduction 

The Tax Cuts and Jobs Act (TCJA) was signed into law December 22, 2017. The new 

law is the most comprehensive tax rewrite in over three decades. It offers significant tax 

relief to many small business owners. Small business is a very diverse sector of the 

economy, consisting of over five million employer firms with fewer than 20 employees, 

and about 5.7 million with fewer than 500 employees. In addition, the small business 

sector includes about 23 million nonemployer firms operating in the economy with 

varying degrees of activity levels. The NFIB's 2016 Small Business Problems and 

Priorities survey found that five of the top 10 most severe problems facing small 

business owners are tax related. 1 The most severe is "Federal Taxes on Business 

Income" which ranks third out of 75 problems with 29 percent of small business owners 

finding it a critical problem in operating their business, not surprising since profits are 

the major source of capital for firm growth and expansion. 

The frustration level associated with tax related costs and compliance is immense. The 

new tax law will help ease some of these problems for most small businesses, some 

more significantly than others. NFIB's Small Business Economic Trends survey 

highlights small business owners' enthusiasm for the new tax law as near record 

optimism levels were achieved in the months following the law's passage. 2 Taxes 

historically received the most votes as the single most important business problem 

since 1982. but fell to only 13 percent in March, the lowest reading in 35 years 3 

This survey provides a benchmark from which to measure future surveys' results. Most 

small business owners are still learning about how the law will affect them and their 

business as the impact depends on their form of business and detailed IRS 

interpretations that are still being developed. And the looming uncertainties with many 

tax provisions, including the individual tax rates and Section 199A, expiring at the end of 

2025 will continue to affect businesses differently. Incorporated businesses have a 

clearer path as the corporate tax rates were permanently consolidated to 21 percent 

and the corporate alternative minimum tax was permanently repealed. Congress chose 

not to make the provisions for "pass through" businesses permanent. 

Legal Structure of Small Businesses 

Small businesses fall into one of five legal structure categories: sole proprietorship, 

partnership, LLC, S corporation, and C corporation. The S corporation is the most 

common legal form of business for small business owners. Forty-two percent of small 

businesses are structured as an S corporation (0#2). Twenty percent of small 

1 8nall Business A-oblemsand A-iorities, Holly Wade, NFIB Research Center, 2016. 

1 NRB 8nall Business Economic Trends, (ids.) William C Dunkel berg and Holly Wade, N FIB Research Center, series. 

lNWW.ilfd).L;or:n/sbQ) 

3 The historic high survey reading for taxes as the Single Most Important Problem is 32 percent reached in February 

1997, the average is 22 percent. 
87 

SBR002 with DISTILLER


Insert offset folio 87 here 31211.050

businesses are structured as an LLC, 19 percent as sole proprietorship, and 17 percent 

as a C corporation. Only 3 percent of small businesses are structured as a partnership. 

Small businesses are generally structured as a C corporation for one (or a combination) 

of three main reasons: tax rate, liability, and legacy. Tax rate is the main reason for 

using C corporation status for 33 percent of small business owners (0#2a). Business 

income for all legal forms of business other than C corporations is treated as personal 

income and taxed on the owners' individual income tax returns. C corporations are 

taxed at the 21 percent corporate rate, a rate the new law consolidated from a more 

progressive, graduated rate structure. Thirty-one percent separately cited liability and 

legacy advantages as the main reason for their C corporation structure. The five legal 

forms provide varying degrees of protection for personal assets in the event of a liability 

suit with larger small businesses generally requiring stronger liability protection. 

The new tax law will affect owners differently depending on the legal structure of the 

business. During the tax reform debate, there was a lot of discussion about whether 

proposed tax code changes would increase the rate of business owners changing the 

legal structure of their business. But for now, very few small business owners plan to 

change their business's legal structure over the next 1 - 3 years in response to the new 

tax law. Only 4 percent plan to do so with 83 percent planning no change (0#6). 

Thirteen percent of small business owners are not sure whether they will change their 

business's legal structure. Tax rate purposes is the main reason for wanting to switch 

(49 percent), followed by liability protection (22 percent) (0#6b). 

The number of businesses owned also affects the cost and complexity of a owners' 

federal tax filing. While most small business owners (66 percent) own one business 

(0#26), another 22 percent own two businesses. Twelve percent own three or more. 

Owners of larger businesses tend to own more of them. 

Familiarity with TCJA 

The TCJA is a substantial overhaul of the tax code. The IRS and Treasury are still in the 

process of providing guidance and promulgating regulations for provisions within the 

law. And while small business owners are enthusiastic about the law generally, many of 

the details are still unfamiliar to them. Over half of small business owners (57 percent) 

are not too familiar or not at all familiar with the new law (0#7). Thirty-eight (38) percent 

are somewhat familiar, and 5 percent claim to be very familiar. The familiarity gap varies 

with firm size. Owners of larger small businesses are more familiar with the law than 

owners of smaller businesses. This gap is not surprising as owners of larger businesses 

tend to utilize accountants and lawyers more frequently than owners of smaller ones. 

Fewer than half (44 percent) of small business owners have talked with a tax 

professional or advisor about how the new tax law will affect their business (0#11 ). 

Fifty-six percent have not. The percent of owners having talked with a tax advisor 

increases by firm size with almost two-thirds (63 percent) of employers with more than 

100 employees having done so compared to 35 percent of non-employers. 

4 
88 

SBR002 with DISTILLER


Insert offset folio 88 here 31211.051

Of owners with some familiarity with the law, the main source of information for 50 

percent of small business owners is a tax preparer or advisor (0#8). Twenty-eight 

percent received most of their information from the general news media and 11 percent 

from a trade or business association. Combined, other business owners and general 

internet information were the main source for 11 percent of small business owners. 

Government was the main source of information for only 1 percent of them. 

Small business owners are generally satisfied with the level of information they received 

about the law. Nearly three-fourths (73 percent) of small business owners are very or 

somewhat satisfied (0#9). One-quarter reported being less satisfied, and just 3 percent 

are not at all satisfied. 

One of the most beneficial provisions within the tax law for small business owners is the 

newly created Section 199A, which allows most small businesses, those organized as a 

partnership, S corporation, LLCs or sole proprietorship, to deduct up to 20 percent of 

qualified business income from their federal income taxes. However, only 7 percent of 

small business owners are very familiar with the provision, 19 percent are somewhat 

familiar, and 40 percent are not very familiar (0#10). One-third of small business 

owners have no familiarity with the provision at all. As with familiarity of the law 

generally, owners of larger small business are more familiar with this provision than 

owners of smaller business. While half of owners with more than 100 employees are 

familiar with the provision, only 23 percent of non-employers are familiar. Those who 

are least familiar with the deduction are most likely to be eligible for it. 

Owners' Reaction to TCJA 

The vast majority (76 percent) of small business owners believe the current business 

climate is heading in a positive direction (0#4). The U.S. economy is strong with GOP 

growth averaging 2.6 percent in 2017, nine years after the Great Recession 4 The 2016 

election buoyed small business enthusiasm with the promise of lower taxes and fewer 

regulations, two top concerns for small business owners. The Tax Cuts and Jobs Act 

was a giant step in addressing some of these pressing concerns. 

Economy 

The reaction to the new tax law has been overwhelmingly positive as initially reported in 

NFIB's monthly Small Business Economic Trends report. The Index of Small Business 

Optimism reached record level high readings after the law passed in conjunction with a 

swift decline in the percent of owners reporting taxes as their single most important 

problem in operating their businesss This survey shows similar enthusiasm with 87 

percent of small business owners expecting that the tax law will have a positive impact 

5 NRBSnall Business Economic Trends, (ids.) William C Dunkelberg and Holly Wade, NFIB Research Center, series. 

5 
89 

SBR002 with DISTILLER


Insert offset folio 89 here 31211.052

on the general economy (0#14). Just 4 percent believe it will negatively impact the 

general economy, and 9 percent think it will have no significant impact. 

Business 

Three-fourths of small business owners believe the tax law will positively impact their 

business, 22 percent anticipate it will have no impact, and 3 percent a negative impact 

(0#12). While larger small firms are most enthusiastic about how the law will impact 

their business, they are also most knowledgeable about the law generally. As owners of 

smaller businesses talk to their tax professional, more will likely find the law positively 

impacting their business. 

Personal 

When asked about the law's impact on their personal taxes, 70 percent anticipate it will 

positively impact them while 23 percent expect it to have no impact (0#13). Seven 

percent believe it will have a negative impact on their personal taxes. Owners' 

expectations about how the law will affect their personal tax filing varies little by firm 

size. 

Investment Plans 

About half (51 percent} of small business owners anticipate paying less in federal 

income taxes in 2018 compared to 2017, assuming their business income remains the 

same (0#15). About 37 percent believe they would pay the same amount Only 7 

percent thought they would pay more and 6 percent were unsure. 

Small business owners anticipating a lower tax bill next year plan to allocate the extra 

money across a number of business activities. But because many owners have yet to 

talk with their tax accountant or know how much they will save, about half say it is still 

too soon to know how they will spend the extra cash (0#15a1) 6 Almost half (47 

percent) plan to increase business investments with their tax savings (0#15a5) and 44 

percent plan to increase employee compensation (0#15a6). Another 40 percent of 

small business owners plan to pay down debt obligations (0#15a7), and 32 percent 

plan to retain the funds freed up as higher earnings available to support business 

growth (0#15a4). Over one-quarter (27 percent) of small business owners plan to use 

the extra savings to help hire an additional employee (0#15a3). According to NFIB's 

monthly survey, the percent of owners with an unfilled job opening reached 35 percent 

again in April 2018, the highest reading since November 2000. 7 The tax savings will 

help many in this category in filling open positions. 

6 Respondents who did not answer questions Q1Sa1 -7 are evaluated as answering "no" for ead:J 7 NRB Snail Business Economic Trends, (ids.) William C Dunkelberg and Holly Wade, NFIB Research Center, series. 

Unfilled job openings also reached 35 percent in March 2018, July and October 2017. 

6 
90 

SBR002 with DISTILLER


Insert offset folio 90 here 31211.053

Tax Complexity 

Tax complexity is a major concern for small business owners, with over one-quarter of 

them (27 percent) finding it a critical problem in operating their business 8 Because of 

the complex nature of filing taxes, most small business owners solicit professional tax 

help to assist them with the process. The survey found that 93 percent of small 

business owners use a tax professional to prepare their federal business income tax 

return, resources that could otherwise be used to grow the firm if taxes were simplified 

(0#17). Small business owners do not see the process changing much over the next 

year. About three-fourths of small business owners (73 percent) expect the time and 

money it took to prepare their 2017 return to be about the same in 2018 (0#18). Sixteen 

percent anticipate spending more time and money next year compared to this year, 

likely due to navigating the new tax law. This should then ease after the first year's filing 

once owners learn more about how the new law affects them and their business. More 

owners of larger businesses are anticipating allocating more resources to next year's 

tax filing than smaller businesses. 

About two-thirds (67 percent) of small business owners itemized their personal 

deductions when filing their most recent federal tax return (0#16). Twenty-two percent 

of small business owners took the standard deduction. Eleven percent did not know if 

they itemized or took the standard deduction. Most owners who itemized their 2017 tax 

return plan to itemize again for their 2018 return, anticipating that their deductions will 

continue to be above the new thresholds of $12,700 for single filers and $24,000 for 

joint filers. About 56 percent plan to itemize, and 10 percent anticipate using the 

standard deduction (0#16a) About one-third (34 percent) were not familiar enough with 

the new law to know which choice to make. 

The tax law is widely popular among small business owners, but many of the benefits 

expire at the end of 2025 including the reductions to the individual tax rates and Section 

199A, the up to 20 percent deduction on qualified business income. At this time, the 

January 1, 2026 expiration date is not affecting most small business owners. Only 12 

percent of small business owners, disproportionately larger ones, say that this 

uncertainty will affect current or future business plans (0#19) Another 56 percent say it 

currently does not affect any short- or long-term business plans. The remaining 32 

percent of small business owners don't know. This population will likely transition into 

either the "no" or "yes" categories in future editions of the survey as it gets closer to 

2026 if Congress fails to provide more certainty. 

Evaluation of Changes to Tax Provisions 

The impact of the new tax law on small business owners will vary from business to 

business depending on their unique set of circumstances and business characteristics. 

But even provisions that don't directly affect most small business owners are of great 

'Snail Business A'oblemsand A'iorities, Holly Wade, NFIB Research Center, 2016. 

7 
91 

SBR002 with DISTILLER


Insert offset folio 91 here 31211.054

concern to many more due to future uncertainties and frequent changes in the federal 

and state tax codes. 

Section 199A 

The provision that is most viewed as "very" important to small business owners and 

their business is the creation of the up to 20 percent small business income tax 

deduction, Section 199A. While many small business owners are not familiar with it, the 

mere mention of it provokes a strong, positive reaction with 55 percent of owners saying 

that it's a very important provision and another 29 percent somewhat important 

provision (0#208) to them and their business. 

Corporate Tax Rate 

The next most popular provision is the corporate tax cut with 52 percent of small 

business owners viewing it as very important and 23 percent somewhat important 

(0#20G). Even those small business owners not structured as C corporations endorse 

the lower rate, whether because it now offers a reasonable option for switching legal 

organization or they generally think it's good policy. 

Individual Income Tax Rates 

The changes to the individual income tax brackets and rates are a very important 

provision in the tax law for 45 percent of small business owners and somewhat 

important for another 40 percent of them (Q#20A). 

Estate Tax 

The new tax law increases the estate tax exemption from $5.5 million to $11 million for 

single filers and $11 million to $22 million for joint filers, protecting more small business 

owners from tax preparation related expenses. Forty-one percent view the estate tax as 

a very important issue (0#200). A relatively small percentage of business owners end 

up paying the estate tax but many more seek professional guidance on how to prepare 

for it or evaluate the likelihood of being affected by it in the future. About one-in-five {21 

percent) small business owners have incurred estate tax related expenses in the last 

five years, and another 5 percent plan to in the future (0#21 ). Of those who have 

incurred expenses, 42 percent say that the increased estate tax threshold will reduce or 

eliminate their potential estate tax liability (0#21a). About one quarter (24 percent) say 

that it will have no impact, and another 34 percent don't know. 

AMT 

The expiration of tax provisions (Q#20H) and the AMT (Q#20C) are important to many 

small business owners but fewer compared to other provisions in the new tax law. Fiftythree percent of small business owners find changes to the AMT threshold an important 

tax provision and 57 percent find the expiration of certain tax provisions important. 

8 
92 

SBR002 with DISTILLER


Insert offset folio 92 here 31211.055

SALT 

The new tax law also capped the amount of state and local income and property taxes 

(SALT) filers can deduct from the personal federal income taxes. The new limit is an 

important change for about two-thirds of small business (0#20E). The SALT provision is 

of particular concern for those owners located in high income or property tax states. 

While the personal SALT deduction is capped at $10,000, business related SALT taxes 

are expected to remain deductible. 

Individual Mandate 

Beginning in 2019, the new tax law also eliminates the individual health insurance 

mandate penalty that was created in the Affordable Care Act About 29 percent of small 

business owners purchase their health insurance on the individual market, including on 

an individual health insurance exchange (0#22). Over 70 percent of them say the 

elimination of the penalty will not affect their current coverage status or insurance plan 

(0#22a). About 12 percent will consider purchasing a different insurance plan, 

presumably a cheaper, currently non-compliant plan. Only 3 percent plan to drop their 

coverage altogether. 

Expensing 

The new tax law also increased the business expensing limits from $510,000 to 

$1,000,000 for eligible capital expenditures and expanded the list of eligible 

expenditures Small business owners in capital intensive industries will benefit from this 

change but, overall, fewer than 5 percent spend more than $500,000 in any given year 9 

Seventeen percent of small business owners say that the new expensing limit will affect 

their investment plans over the next 1 - 3 years (0#23). The majority of small business 

owners (60 percent) do not anticipate the change will affect future expenditure plans in 

the near term. Another 23 percent are not sure. 

Small Business Income 

For most small business owners, business income accounts for a significant portion of 

their total household income. Business profits are the sole income source for 39 percent 

of small business owners (0#27). Owners have a substantial amount of their net worth 

tied up in their business, amplifying the importance of tax law changes on their 

economic well-being. These small business owners are totally reliant on the success of 

their business as a source of income. Owners of larger small businesses are more likely 

to have business profits as their sole income source. For one in five owners, business 

earnings contribute to less than half of the overall household income, disproportionally 

more frequent for owners of smaller businesses. About one-quarter (26 percent) of 

'NRB9nall Business6xmomicTrends, (ids.) William C Dunkelberg and Holly Wade, NFIB Research Center, series. 

VVWWJlflb 

9 
93 

SBR002 with DISTILLER


Insert offset folio 93 here 31211.056

small businesses derive most (75-99 percent) of their household income from business 

profits. 

Final Comments 

The data for this survey capture small business owners' initial reaction to the new tax 

law. Taxes and tax related activities play a significant role in the general operations of 

small businesses. Small business owners are now assessing how these changes will 

affect them personally and their business. The new tax law is a significant step forward 

in easing one of the main concerns of small business owners: the impact of federal 

taxes on business income. However, the complexity of the tax code remains. Owners 

will continue to seek professional assistance to understand and comply with the new 

code. But the reduction in taxes will free up resources to support the growth of their 

business and ease issues related to intergenerational changes in management. 

Methodology 

This survey was conducted with a random sample of 20,000 NFIB members between 

February and April2018. The survey was conducted by mail, with an initial mailing and 

a follow-up mailing 3 weeks later. NFIB collected 2, 544 usable responses, a 13 percent 

response rate. Ninety-five percent of respondents were the owner of the business, 4 

percent a manager. 

10 
94 

SBR002 with DISTILLER


Insert offset folio 94 here 31211.057

SMALL BUSINESS TAX SURVEY 2018 

Employee Size of Finn 

No emp. 1-19 emp. 20-99 emp. 100+ emp. 

1. Which best describes your position in this business? Are you a(n):? 

L Owner-manager 89.4% 92.3% 86.2% 84.7% 

2. Owner, but not a manager 4.2 3.8 4.2 1.7 

3. Manager, but not an owner 4.2 2.7 84 11.9 

4. Other 2.1 1.1 1.2 1.7 

Total 100.0% 100.0% 100.0% 100.0% 

N 236 1833 405 59 

2. What is the legal form of your business? 

1. Sole proprietorship 44.4% 20.3% 0.7% --% 

2. Partnership 3.9 3.4 1.2 1.7 

3. LLC 25.4 20.1 13.6 22.0 

4. S-Corporation 19.4 40.8 58.9 50.8 

5. (-Corporation 6.9 15.4 25.5 25.4 

Total 100.0% 100.0% 100.0% 100.0% 

N 232 1827 404 59 

2a. If structured as a (-corporation, what is the main reason it is structured that way:? 

1. Tax purposes --% 

2. Liability purposes 

3. Legacy (always been that way) 

4. Other 

Total 100.0% 

N 38 

32.6% 

33.6 

29.7 

4.1 

100.0% 

309 

30.2% 

25.9 

38.8 

5.2 

100.0% 

116 

--% 

100.0% 

18 

All Firms 

90.9% 

3.9 

4.0 

1.3 

100.0% 

2533 

18.9% 

3.1 

19.6 

42.0 

16.5 

100.0% 

2522 

33.1% 

31.0 

31.0 

4.8 

100.0% 

583 

11 
95 

SBR002 with DISTILLER


Insert offset folio 95 here 31211.058

Employee Size of Firm 

Noemp. 1-19 emp. 20-99 emp. 100+ emp. All Firms 

3. What is the primary industry of your business? 

1. Construction 15.2% 14.1% 24.0% 11.9% 15.8% 

2. Manufacturing 4.2 8.2 19.8 30.5 10.2 

3. Agriculture 31.2 16.2 6.2 10.2 15.9 

4. Retail, Wholesale 13.9 20.7 19.3 15.3 19.7 

5. Finance, Insurance, Real Estate 3.0 7.5 1.7 6.0 

6. Transportation/Warehousing 3.0 2.0 4.9 3.4 2.6 

7. Services (personal/prof.) 16.0 18.0 11.4 10.2 16.5 

8. Other (specify) ___ 13.5 13.2 12.8 18.6 13.3 

Total 100.0% 100.0% 100.0% 100.0% 100.0% 

N 237 1831 405 59 2532 

4. Do you think the current business climate is generally headed a positive or negative direction? 

1. Very positive 9.8% 13.2% 15.2% 20.3% 13.4% 

2. Positive 57.0 62.2 69.9 69.5 63.1 

3. Negative 11.9 10.8 6.7 3.4 10.1 

4. Very negative 2.1 L2 0.5 1.7 1.2 

5. Don'Uhow 19.1 12.7 7.7 5.1 12.3 

Total 100.0% 100.0% 100.0% 100.0% 100.0% 

N 235 1808 402 59 2504 

5. Are you primarily responsible for making financial and tax related decisions for this business? 

1. Yes 95.7% 95.4% 94.6% 88.1% 95.1% 

2. No 4.3 4.6 5.4 11.9 4.9 

Total 100.0% 100.0% 100.0% 100.0% 100.0% 

N 234 1832 405 59 2530 

6. Do you plan to change the legal form of your business in the next 1-3 years? 

1. Yes 3.0% 4.9% 1.5% 1.7% 4.1% 

2. No 86.8 82.2 87.1 74.6 83.3 

3. Not sure 10.2 12.9 11.4 23.7 12.6 

Total 100.0% 100.0% 100.0% 100.0% 100.0% 

N 235 1834 404 59 2532 

12 
96 

SBR002 with DISTILLER


Insert offset folio 96 here 31211.059

Employee Size of Firm 

No emp. 1-19 emo. 20-99 emo. 100+ emp. All Firms 

6a. If you are planning to change the legal form of your business, what are you changing it to? 

1. (-Corporation ---% 14.4% --% --% 18.6% 

2. $-Corporation 27.9 29.3 

3. Partnership 4.8 45 

4. Sole proprietorship 7.9 7.2 

5. LLC 45.0 40.3 

Total 100.0% 100.0% 100.0% 100.0% 100.0% 

N 21 229 32 8 290 

6b. What is the main reason you planning to change it? 

1. Tax purposes --% 44.8% --% --% 48.8% 

2. Liability purposes 24.6 22.2 

3. An ownership change 21.3 19.5 

4. Other 9.3 9.5 

Total 100.0% 100.0% 100.0% 100.0% 100.0% 

N 23 268 38 9 338 

7. The recently passed federal tax law named the Tax Cuts and Jobs Act is currently being implemented. 

How familiar are you with this new law? Are you: 

1. Very familiar 3.4% 4.2% 7.7% 18.6% 5.0% 

2. Somewhat familiar 33.3 34.8 54.1 61.0 38.3 

3. Not too familiar 295 35.0 26.9 13.6 32.7 

4. Not at all familiar 33.8 26.0 11.4 6.8 23.9 

Total 100.0% 100.0% 100.0% 100.0% 100.0% 

N 237 1826 405 59 2527 

13 
97 

SBR002 with DISTILLER


Insert offset folio 97 here 31211.060

Employee Size of Firm 

20-99 emp. 100+ emp. 

8. From which source have you obtained the most useful information about how the new tax law will 

affect your business? 

1. Tax preparer or advisor 53.8% 47.1% 56.0% 70.9% 50.0% 

2. Other business owners 3.8 3.0 1.7 1.8 2.8 

3. Government 3.1 0.7 0.6 0.9 

4. Trade associations or 

business groups 4.4 11.6 9.1 12.7 10.6 

5. General news media 

(TV, radio, newspaper) 30.0 29.8 23.8 14.5 28.3 

6. Internet 5.0 7.7 8.9 7.5 

Total 100.0% 100.0% 100.0% 100.0% 100.0% 

N 160 1347 361 55 1923 

9. Overall, how satisfied are you with the clarity and usefulness of the information received related to 

you and your business? Are you:? 

1. Very satisfied 10.8% 8.2% 12.5% 28.3% 9.6% 

2. Somewhat satisfied 68.2 61.7 64.2 60.4 62.6 

3. Not too satisfied 18.5 27.3 20.6 11.3 24.9 

4. Not at all satisfied 2.5 3.1 2.8 2.9 

Total 100.0% 100.0% 100.0% 100.0% 100.0% 

N 157 1343 360 53 1913 

10. The new tax law allows owners of pass-ITliWugCJlulitle[TI![ij.LC['lari:IieriTIPObie propriellii!DJP 

or S-corporations), with taxable income below $157,500 as a single filer or $315,000 if married and file 

jointly, to deduct 20 percent of qualified business income from taxable income. 

How familiar are you with this new tax provision? 

1. Very familiar 2.5% 6.4% 110% 17.9% 7.3% 

2. Familiar 19.9 18.0 22.4 32.1 19.4 

3. Somewhat familiar 41.0 40.6 37.8 33.9 39.9 

4. Not at all familiar 36.6 34.9 28.7 16.1 33.4 

Total 100.0% 100.0% 100.0% 100.0% 100.0% 

N 161 1369 362 56 1948 

14 
98 

SBR002 with DISTILLER


Insert offset folio 98 here 31211.061

Employee Size of Firm 

20-99 emp. 100+ emp. 

11. Have you talked with a tax professional or advisor to discuss how the new tax law will affect your 

business? 

1. Yes 35.4% 41.0% 54.3% 62.5% 43.7% 

2. No 64.6 59.0 45.7 37.5 56.3 

Total 100.0% 100.0% 100.0% 100.0% 100.0% 

N 158 1358 363 56 1935 

12. Do you think the new tax law will have a positive, negative, or no impact on your business? 

1. Very positive 11.2% 10.7% 15.7% 27.3% 12.1% 

2 Positive 62.5 63.0 62.5 54.5 62.6 

3. No impact 23.0 22.8 20.7 16.4 22.3 

4. Negative 2.0 3.4 1.1 1.8 2.8 

5. Very negative 1.3 0.2 0.2 

Total 100.0% 100.0% 100.0% 100.0% 100.0% 

N 152 1323 357 55 1887 

13. Do you think the new tax law will have a positive, negative, or no impact on your personal taxes? 

1. Very positive 7.9% 7.3% 10.9% 8.9% 8.1% 

2. Positive 61.6 62.6 61.8 58.9 62.2 

3. No impact 24.5 23.2 20.1 23.2 22.7 

4. Negative 6.0 6.2 6.4 7.1 6.2 

5. Very negative 0.8 0.8 1.8 0.7 

Total 100.0% 100.0% 100.0% 100.0% 100.0% 

N 151 1325 359 56 1891 

14. Do you think the new tax law will have a positive, negative, or no impact on the general economy? 

1. Very positive 17.2% 

2. Positive 70.2 

3. No impact 9.3 

4. Negative 2.0 

5. Very negative 1.3 

Total 100.0% 

N 151 

18.9% 

66.1 

10.5 

3.8 

0.7 

100.0% 

1361 

18.8% 

72.4 

5.8 

2.8 

0.3 

100.0% 

362 

20.0% 

74.5 

55 

100.0% 

55 

18.8% 

67.9 

9.4 

3.4 

0.6 

100.0% 

1893 

15 
99 

SBR002 with DISTILLER


Insert offset folio 99 here 31211.062

Employee Size of Firm 

20-99 emp. 100+ emp. 

15. Assuming you have the same level of business income in 2018 as in 2017, do you expect to pay 

more, less, or about the same in federal income taxes in 2018 than in 2017? 

1. A lot more 0.6% 0.6% 0.6% 1.8% 0.6% 

2. More 5.0 6.0 5.2 1.8 5.6 

3. About the same 41.5 37.9 33.1 30.4 37.1 

4. Less 45.3 47.0 53.6 58.9 48.5 

5. A lot less 2.1 3.3 1.8 2.1 

6. Not sure 7.5 6.5 4.1 5.4 6.1 

Total 100.0% 100.0% 100.0% 100.0% 100.0% 

N 159 1361 362 56 1938 

15a. If less or a lot less, how do you plan to spend the cash previously used for taxes? 

("No" allnlindudeDl1lli.e.J,vLoJdid noClihl:iller [ill;]quei:illln) 

1. Too soon to tell 

1. Yes 55.6% 52.1% 42.2% 41.2% 49.9% 

2. No 44.4 47.9 57.8 58.8 50.1 

Total 100.0% 100.0% 100.0% 100.0% 100.0% 

N 72 668 206 34 980 

2. Lower prices 

1. Yes 1.4% 2.5% 3.4% 5.9% 2.8% 

2.No 98.6 97.5 96.6 94.1 97.2 

Total 100.0% 100.0% 100.0% 100.0% 100.0% 

N 72 668 206 34 980 

3. Hire additional employees 

1.Yes 22.2% 25.4% 29.1% 44.1% 26.6% 

2. No 77.8 74.6 70.9 55.9 73.4 

Total 100.0% 100.0% 100.0% 100.0% 100.0% 

N 72 668 206 34 980 

4. Retain as earnings 

1. Yes 34.7% 31.9% 32.5% 38.2% 32.4% 

2. No 65.3 68.1 67.5 61.8 67.6 

Total 100.0% 100:0% 100.0% 100.0% 100.0% 

N 72 668 206 34 980 

16 
100 

SBR002 with DISTILLER


Insert offset folio 100 here 31211.063

Employee Size of Firm 

No emp. 1-19 emp. 20-99 emp. 100+ emp. All Firms 

5. Increase business investment/expansion 

1. Yes 40.3% 46.3% 49.0% 67.6% 47.1% 

2. No 59.7 53.7 51.0 32.4 52.9 

Total 100.0% 100.0% 100.0% 100.0% 100.0% 

N 72 668 206 34 980 

6. Increase employee compensation 

1. Yes 25.0% 44.8% 46.6% 61.8% 44.3% 

2. No 75.0 55.2 53.4 38.2 55.7 

Total 100.0% 100.0% 100.0% 100.0% 100.0% 

N 72 668 206 34 980 

7. Pay down debt obligations 

1. Yes 38.9% 40.6% 36.9% 52.9% 40.1% 

2. No 61.1 59.4 63.1 47.1 59.9 

Total 100.0% 100.0% 100.0% 100.0% 100.0% 

N 72 668 206 34 980 

8. Other 

1. Yes 4.2% 1.5% 0.5% --% 1.4% 

2. No 95.8 98.5 99.5 100.0 98.6 

Total 100.0% 100.0% 100.0% 100.0% 100.0% 

N 72 668 206 34 980 

16. Last year, did you itemize your personal deductions when filing your federal tax return or take the 

standard deduction? 

1. Itemized 50.4% 63.0% 77.3% 84.2% 66.6% 

2. Standard deduction 35.5 24.7 15.3 14.0 22.2 

3. Not sure 14.1 12.3 7.5 1.8 11.1 

Total 100.0% 100.0% 100.0% 100.0% 100.0% 

N 234 1441 400 57 2496 

17 
101 

SBR002 with DISTILLER


Insert offset folio 101 here 31211.064

Employee Size of Firm 

20-99 emp. 100+ emp. 

16a. The new tax law doubled the personal standard deduction. If you itemized last year, do you plan to 

itemize deductions again next year? 

1. Yes 57.5% 54.7% 61.6% 62.2% 56.4% 

2.No 8.3 10.5 8.0 6.7 9.8 

3. D:mfkhow 34.2 34.8 30.4 31.1 33.9 

Total 100.0% 100.0% 100.0% 100.0% 100.0% 

N 120 1124 276 45 1565 

17. Did you use a professional tax preparer, a tax software package, both, or neither to prepare your last 

federal business income tax return? 

1. Used professional 

tax preparer 85.2% 

2. Used tax software package 8.9 

3. Used both a tax professional 

and tax software 3.8 

4. Used neither a tax professional 

nor tax software 1.7 

5. Other 0.4 

Total 100.0% 

N 237 

91.6% 92.8% 

4.4 5.0 

2.4 1.5 

1.0 0.2 

0.7 0.5 

100.0% 100.0% 

1831 403 

94.8% 

3.4 

1.7 

100.0% 

58 

91.3% 

4.9 

2.3 

0.9 

0.6 

100.0% 

2529 

18. In terms of time and money, do you expect tax preparation for you and your business to cost more, 

less, or about the same in 2018 as in 2017? 

1. More 11.4% 16.9% 15.3% 24.1% 16.3% 

2. Less 3.4 3.8 4.4 1.7 3.8 

3. About the same 73.7 73.0 73.3 65.5 72.9 

4. Not sure 11.4 6.4 6.9 8.6 7.0 

Total 100.0% 100.0% 100.0% 100.0% 100.0% 

N 236 1831 405 58 2530 

18 
102 

SBR002 with DISTILLER


Insert offset folio 102 here 31211.065

Employee Size of Firm 

20-99 emp. 100+ emp. 

19. MoiTif lill!lnew [ffi!; law'Li:Jer!:Ohal and pao:J.hrough business (LLCs, S-Corp, Partnerships, Sole 

Proprietors) tax provisions expire in 2025. 

Does this uncertainty, not knowing how tax policy will change after 2025, affect your current or future 

business plans? 

1. Yes 100% 11.8% 11.7% 29.8% 12.1% 

2. No 53.0 55.1 61.6 50.9 55.8 

3. Don'Uhow 37.0 33.1 26.7 19.3 32.1 

Total 100.0% 100.0% 100.0% 100.0% 100.0% 

N 230 1800 393 57 2480 

20. How important are the following changes in the tax law to you and your business? 

A. Changes to the personal income tax brackets and rates 

1. Very important 39.0% 44.8% 49.1% 45.8% 45.0% 

2. Somewhat important 37.3 40.7 39.2 50.8 40.4 

3. Not very important 7.5 5.8 5.7 1.7 5.8 

4. Not at all important 0.4 0.9 1.0 1.7 0.9 

5. Don'Uhow 15.8 7.7 5.0 7.8 

Total 100.0% 1000% 100.0% 100.0% 100.0% 

N 228 1809 401 59 2497 

B. Creation of the 20% small business income tax deduction 

1. Very important 46.5% 56.1% 56.4% 50.8% 55.2% 

2. Somewhat important 33.5 28.8 28.2 23.7 29.0 

3. Not very important 5.2 4.2 6.0 15.3 4.8 

4. Not at all important 0.9 1.2 2.7 6.8 1.5 

5. Don'Lkhow 13.9 9.8 6.7 3.4 9.5 

Total 100.0% 100.0% 100.0% 100.0% 100.0% 

N 230 1812 401 59 2502 

C. Changes to the personal or corporate Alternative Minimum Tax (AMT) threshold 

1. Very important 19.3% 21.8% 31.0% 29.3% 233% 

2. Somewhat important 28.7 28.9 32.0 34.5 29.5 

3. Not very important 13.0 14.0 13.0 20.7 13.9 

4. Not at all important 7.2 4.2 3.8 1.7 4.4 

5. Don'Uhow 31.8 31.0 20,3 13.8 28.9 

Total 100.0% 1000% 100.0% 100.0% 100.0% 

N 223 1790 400 58 2471 

19 
103 

SBR002 with DISTILLER


Insert offset folio 103 here 31211.066

Employee Size of Firm 

No emp. 1-19 emp. 20-99 emp. 100+ emp. All Firms 

D. Changes to the estate tax 

1. Very important 33.6% 39.8% 47.3% 62.7% 40.9% 

2. Somewhat important 26.7 24.4 27.6 18.6 25.0 

3. Not very important 15.5 14.1 13.4 11.9 14.1 

4. Not at all important 5.2 6.0 3.5 3.4 5.5 

5. Don'[lhow 19.0 15.7 8.2 3.4 14.5 

Total 100.0% 100.0% 100.0% 100.0% 100.0% 

N 232 1811 402 59 2504 

E. Limiting the State and Local Tax deduction 

1. Very important 24.5% 32.9% 31.0% 35.6% 31.9% 

2. Somewhat important 36.2 34.1 40.3 37.3 35.4 

3. Not very important 12.7 11.2 14.2 20.3 12.1 

4. Not at all important 3.9 4.5 3.5 5.1 4.3 

5. Don'lliow 22.7 17.2 11.0 1.7 16.4 

Total 100.0% 100.0% 100.0% 100.0% 100.0% 

N 229 1806 400 59 2494 

F. Doubling the standard deduction 

1. Very important 41.6% 44.5% 36.2% 22.0% 42.3% 

2. Somewhat important 34.6 33.3 36.9 39.0 34.1 

3. Not very important 7.8 8.1 13.2 27.1 9.3 

4. Not at all important 1.3 2.4 4.2 8.5 2.7 

5. [))n'Llhow 14.7 1.8 9.5 3.4 11.5 

Total 100.0% 100.0% 100.0% 100.0% 100.0% 

N 231 1804 401 59 2495 

G. Lowering the corporate tax rate 

1. Very important 35.5% 50.9% 62.6% 71.2% 51.8% 

2. Somewhat important 23.2 24.1 20.7 13.6 23.2 

3. Not very important 11.0 8.2 5.7 5.1 8.0 

4. Not at all important 11.8 6.1 4.7 10.2 6.5 

5. [))n'lliow 18.4 10.8 6.2 10.5 

Total 100.0% 100.0% 100.0% 100.0% 100.0% 

N 228 1811 401 59 2499 

20 
104 

SBR002 with DISTILLER


Insert offset folio 104 here 31211.067

Employee Size of Firm 

20-99 emp. 100+ emp. 

H. Expiraildl of II1ilaw'Cill provilliln[(exduding corporaCe::tale:!:md corpor~Tw~re 

permanent) 

1. Very important 

2. Somewhat important 

3. Not very important 

4. Not at all important 

5. Don'ffiow 

Total 

N 

20.4% 

28.8 

15.0 

2.2 

33.6 

100.0% 

226 

22.0% 

33.3 

12.6 

1.7 

30.5 

100.0% 

1796 

26.8% 

41.3 

10.0 

0.3 

21.8 

100.0% 

400 

35.6% 

37.3 

5.1 

3.4 

18.6 

100.0% 

59 

22.9% 

34.3 

12.2 

1.5 

29.1 

100.0% 

2481 

21. Have you incurred any expenses in the last 5 years, such as consulting a tax advisor or purchasing 

more life insurance, etc., than you otherwise would to reduce or eliminate any potential tax liability 

from the estate tax? 

1. Yes 10.0% 

2. No 81.2 

3. No, but expect to 

in the future 4.4 

4. Do not plan to pass 

on the business 4.4 

Total 100.0% 

N 229 

20.4% 26.9% 

71.7 66.8 

5.0 4.3 

3.0 2.0 

100.0% 100.0% 

1796 394 

53.4% 

39.7 

6.9 

100.0% 

58 

21.2% 

71.0 

4.9 

2.9 

100.0% 

2477 

21a. Do you expect the increased estate tax threshold to affect your strategy for reducing or eliminating 

any potential estate tax liability? 

1. Yes 20.6% 40.7% 49.5% 62.1% 42.1% 

2. No 29.4 23.6 24.8 24.1 24.2 

3. Not sure 50.0 35.7 25.7 13.8 33.7 

Total 100.0% 100.0% 100.0% 100.0% 100.0% 

N 34 423 105 29 591 

22. Last year, did you purchase a health insurance plan on the individual market (including on an 

exchange)? 

1. Yes 25.6% 31.6% 22.7% 14.8% 29.3% 

2. No 74.4 68.4 77.3 85.2 70.7 

Total 100.0% 100.0% 100.0% 100.0% 100.0% 

N 219 1738 392 54 2403 

21 
105 

SBR002 with DISTILLER


Insert offset folio 105 here 31211.068

Employee Size of Firm 

20-99 emp. 100+ emp. 

22a. The new tax law repeals the penalty for not having health insurance. Will this change affect your 

decision to purchase health insurance or the type of plan purchased' 

1. Yes, I will likely drop my health 

insurance coverage 4.7% 

2. Yes, I will likely purchase a 

different insurance plan 9.4 

3. No, I will likely keep 

my insurance plan 68.2 

4. Not sure 17.6 

Total 100.0% 

N 85 

2.7% 4.7% 

12.7 7.8 

70.5 75.2 

14.1 12.4 

100.0% 100.0% 

733 129 

--% 

100.0% 

12 

3.1% 

11.8 

71.0 

14.1 

100.0% 

959 

23. The new tax law increases business expensing limits from $510,000 to $1,000,000 for eligible capital 

expenditures. Will this change affect your investment plans over the next 1-3 years? 

1. Yes 11.6% 13.5% 32.3% 51.7% 17.3% 

2. No 69.2 62.8 45.6 41.4 60.1 

3. Not sure 19.2 23.6 22.1 6.9 22.6 

Total 100.0% 100.0% 100.0% 100.0% 100.0% 

N 224 1787 399 58 2468 

24. What is your personal federal income tax filing status? 

1. Single 18.5% 15.9% 9.1% 12.5% 15.0% 

2. Married, filing jointly 76.4 79.6 86.1 85.7 80.5 

3. Married, filing separately 1.7 2.1 2.8 2.1 

4. Head of household 3.4 2.4 2.0 1.8 2.4 

Total 100.0% 100.0% 100.0% 100.0% 100.0% 

N 233 1821 397 56 2507 

22 
106 

SBR002 with DISTILLER


Insert offset folio 106 here 31211.069

Employee Size of Firm 

No emp. 1-19 emp. 20-99 emp. 100+ emp. All Firms 

25. Approximately, what were your gross sales in your last fiscal year? 

1. < $100,000 30.1% 6.6% 0.8% 1.8% 7.7% 

2. $100,000' $249,999 21.7 13.8 4.3 12.7 

3. $250,000 $499,999 14.2 19.5 4.5 16.1 

4. $500,000 $999,999 9.3 22.6 4.0 17.9 

5. $1m· $4.9m 10.2 28.8 37.4 5.4 28.0 

6. $5m- $9.9m 3.1 2.1 25.1 10.7 6.1 

7. $10m plus 1.3 0.9 16.8 76.8 5.2 

8. Prefer not to answer 10.2 5.7 7.0 5.4 6.3 

Total 100.0% 100.0% 100.0% 100.0% 100.0% 

N 226 1791 398 56 2471 

26. If owner, how many businesses (in total) do you have at least a 25% ownership share in? 

1. One 80.7% 68.3% 50.1% 26.5% 65.8% 

2. Two 13.3 21.8 28.3 24.5 22.1 

3. Three 4.1 6.8 14.3 20.4 8.0 

4. More than three 1.8 3.1 7.3 28.6 4.1 

Total 100.0% 100.0% 100.0% 100.0% 100.0% 

N 218 1774 371 49 2412 

27. What percent of your total household income comes from your business(es)? 

1. 1-25% 23.5% 8.7% 4.7% 3.7% 9.3% 

2. 26-50% 12.4 11.6 5.7 3.7 10.5 

3. 51-75% 15.0 16.0 11.9 9.3 15.1 

4. 76-99% 20.4 25.6 30.9 31.5 26.1 

5.100% 28.8 38.1 46.8 51.9 38.9 

Total 100.0% 100.0% 100.0% 100.0% 100.0% 

N 226 1791 385 54 2456 

23 
107 

SBR002 with DISTILLER


Insert offset folio 107 here 31211.070

U.S. House of Representatives Committee on Ways and Means Tax Policy Subcommittee 

"Tax Reform and Small Businesses: Growing Our Economy and Creating .Jobs" 

Wednesday, May 23, 2018 

Statement of Maurice Rahming 

Owner, 0'1'1/eill Construction Group 

4444 S.E. 27th Avenue 

Portland, OR 97202 

(503) 493-6045 

Maurice Rahming is the co-owner o(O 'lie ill Construction Group, a general contracting company located in 

Portland Oregon, employing over 50 individuals. fie serves on the Executive Committee of the Main Street 

Alliance o(Oregon, a statewide networko(small business owners. 

At O'Neill Construction Group, we strive to create quality, living wage careers in construction for all our 

employees, especially people of color who have been traditionally shut out of careers in construction. We've 

been a fixture in our community for over 20 years and have grown from two employees to over 50. 

A large part of our business comes from public contracts. The recent tax changes reduce the SALT deductions, 

putting pressure on public budgets. Public budgets which are already stretched thin. Not only does this mean 

fewer public construction projects, and less business for my company, but it means we won't be able to repair 

our roads and bridges or modernize our schools. In Oregon, and all across tbc country, we have cmmbling 

infrastructure like the Marquam Bridge, We need more public investment to repair the bridge. not less, 

If that's not bad enough, the rollbacks to the SALT deduction also make ovming a home more expensive. This 

will lead to fewer new home purchases and renovation projects, depressing the housing market and hurting 

small contractors like us, and our crews of electricians, carpenters~ painters, and masons. 

If we took the trillions of dollars in tax breaks multinational corporations are receiving and instead invested that 

money into intrastructure projects, we could repair the Marquam Bridge and make many more needed 

infrastructure upgrades. 

For questions, please contact Sapna Mehta, Legislative and Policy Director, at 

sapna,:Jimainstrcctalliancc.org. 

Main Street Alliance 1101 17th St. NW, Suite 1220, Washington, DC 20036 

~~:-.t"~~J:n!Jln.'i!.t~..ttt.tJli\!JlQ_c..:Qrg 
108 

SBR002 with DISTILLER


Insert offset folio 108 here 31211.071
109 

SBR002 with DISTILLER


Insert offset folio 109 here 31211.072
110 

SBR002 with DISTILLER


Insert offset folio 110 here 31211.073

IN::EX~ ....................................... 2 

~Ys:DIUG-ff .............................. 4 

B'vHt3 !\131m C ..................................... 6 

KE.:Y R t-JJ I'!E ........................................ . 

8WU B..BI\ES3 8\M R:N\tB\IT ................... 8 

8WUB..BI\ES3~Al1GS .................. 10 

8WU B..BI\ES3ffiRllJIGS ..................... 12 

I N::EX S\J6f'S-OfS. .................................... 13 

F£3 (J\J6l s::xJffi .................................... 14 

IVETl-IT:XlfX3f. ....................................... 15 

JttrlJT LB .............................................. 19 
111 

SBR002 with DISTILLER


Insert offset folio 111 here 31211.074

LOCAL ECONOMIC OUTLOOK PUSHES OPTIMISM 

TO RECORD HIGH 

Small business sentiment rose for the fifth consecutive quarter as the Met life & U.S. Chamber of Commerce 

Small Bu$irwss Index climbed to 68.7. The rise comes amid the strongest local economic outlook in the 

history of the survey, a frrrner hiring environment, and a stronger backdrop for investing that left nearly two 

out of every three small business owners feeling optimistic about their company and the small business 

environment in the United States. 
112 

SBR002 with DISTILLER


Insert offset folio 112 here 31211.075

Entrepreneurship-it's not just a job, It's a lifestyle. 

Small business owners spend on average more than 

14 hours a day working on their business. That's 

nearly double the 7.8 hour work day for the typical 

American worker. 

Technology matters. 

Companies that feel ahead of the technological 

curve me more likely to feel better about their 

business and cash flow and are planning to hire at 

a higher rate. But only a quarter of small business 

owners feel like they are ahead of the curve. 

The Small Business Index score rose for the fifth 

quarter in a row. 

Strong small businesses sentiment driven by the 

local economic outlook and a solid hiring and 

investment backdrop. 

Small business earning ex)Jectations remain high. 

A majority of small business owners expect higher 

earnings for the fourth consecutive quarter. 

National economic outlook lafls !rom Q l, but remains 

the second highest on Index record. 

Small business owners' positive perception of the 

national economy fell eight percentage points to 

4'7% after jumping ll percentage points in OL 

Perception of local economic conditions on the rise. 

The local economy continues to be the primary 

barometer for the experiences of small businesses. 

In 02 2018. the number rating their local economic 

health as good increased to 48%, tied for the 

strongest mark in the history of the Index. 
113 

SBR002 with DISTILLER


Insert offset folio 113 here 31211.076

ENTREPRENEURSHIP- IT'S NOT JUST A JOB, 

IT'S A liFESTYLE 

Small business owners spend on average 

more lt1an 14 hours a day working on their 

business, That's nearly double the 7.8 hour 

work day for the average American worker. 

according to the Department of Labor 

Statist res. When extrapolated across a typical 

five day work week. small business owners 

put in 70 hours a week compared to the 

40 hours that the average American works. 

The data confirms what is assumed to be true 

about small business owners to own a small 

busmess rt takes long hours and hard work, 

mixed with a solid dose of passion to help the 

business thrive. Business owners that report 

their busrness being in good health work even 

longer at 14.5 hours a day, while business 

owners that report !herr business being in 

poor health work 10.25 hours a day. 

The average work day for a small business owner includes spending 5,6 hours working with clients or 

customers, about 4 hours on administrative tasks. and another 3.7 managing stafi. 

On average, small business owners surveyed sleep 6. 7 hours a night. less than the recommended eight 

hours. When it comes to home life. small business owners with up to four employees spend 8.3 hours a 

day witl1 friends and tamily or addressing home and family needs. Business owners with more than 100 

employees report spend1ng 6, 7 hours a day with fnends and family or addressing home and family needs. 

SUZANNE ClARK 

Senior Executive Vice President. 

U.S. Chamber of Commerce. 

Fonner Srnai! Bus1ness Ownm 

former small business owner, the biggest wins came with 

biggest challenges. I'm proud to work at the U,S. Chamber 

every day we celebrate the tenacity and guts it takes to 

something from nothing and to not give up when the going 

hard, Small business is the strong fibHr that knits our 

nation together." 
114 

SBR002 with DISTILLER


Insert offset folio 114 here 31211.077

KIMBEH.Y AI G£ 

Co-owner, Suds Bar Soap 

Dover, DE 

... 1 went on a vacation last year. But, that was the ffit time 

in 7 years. Because we have never wanted to close the store. 

There's always this fear that you if leave the business with the 

employees, they won't care for the business in the way that you, 

the owner. will care for the business. So, we have always been 

hesitant about closing the store, or being away for too long." 

... The store closes at 6pm. Sometimes we might be here until 

8pm, and there are times we are here from 11 pm-midnight 

[ill ng custom orders." 

... I don't go to sleep with my laptop anymore. I have to make 

a conscious effort to do that." 

Entrepreneurship is not for the faint at heart. I work 18 hours a 

day and I love it -this is my life. I wake up knowing that I am 

more than a good dad, good husband, and good friend .... I went 

to make a solution that is helping millions of people in their daily 

lives. I want to build the best product that can attend to the 

U:liancial needs of people, and I won't stop." 

ETIB'-JNE G Ll..Affi 

CEO. Wlleteros 

Miami, FL 

A typical day starts at Sam for me-the store opens at 1 Oam -

I go over orders for the week, paying bills, reviewing invoices .. 

then it's cleaning the store, working on social media. dealing 

with customers and special orders. I also plan for the week, 

and do cash LilN analysis and event planning. Reading industry 

publications and legal cases concerning regulation and just the 

KATHRYN O:::UG-!UN local news are also really important things I spend my time on." 

ONner, Sherborn Wne & Spirits 

Sherborn. MA 

02 ' 
115 

SBR002 with DISTILLER


Insert offset folio 115 here 31211.078

THE TECH EFFECT: ADOPTION LINKED TO 

STRONGER CONFIDENCE 

Only one in four small business owners <2li%) reports being ahead of the pack when comparing their 

technology use to other businesses in their sector. For the small businesses that report being in good 

health, technological adoption appears to be linked to stronger outcomes and increased confidence. Small 

businesses that report being in good health are more likely to say they are ahead of the curve (32%). 

At the same time, businesses that feel they are behind the pack, technology-wise, are less comfortable with 

cash flow (62%. compared to 87% who say they are ahead of the pack) and less positive about their overall 

business health (39%, compared to 78% of those ahead of the pack). Businesses that report being ahead of 

the pack when it comes to technology are more likely to report increasing staff in the past year (26%) and 

are also more likely to say they are gomg to hire (41 %) compared to just 21% who report being at the back 

of the pack. 

Specifically, businesses that have adopted various tools or technologies like video conference services, 

smart phone apps, big data, cloud computing, computer accounting and CRM systems tend to feel 

significantly better about !he health of their business than those that have not 

A majority (61 %) of small business owners report being in line with other companies' technology use, but 

12% report feeling behind when it comes to adapting to new technology_ 

Some technological use is widespread among small business owners. Nearly all businesses surveyed {93%) 

use at least one form ot technology. The majority of small businesses report using cloud-based services 

(53%), and 51% use smartphone apps for productivity and/or scheduling. Video conferencing (34%) and 

customer relationship management systems (31 %) are used by one in three small businesses. 

Notably lagging behind in technological adoption are Baby Boomer small business owners who are less likely 

to feel like they are ahead of the pack (22%) compared to Millennia! and Gen X -owned busmesses (30%). 
116 

SBR002 with DISTILLER


Insert offset folio 116 here 31211.079

ON Ll 

Expect Revenue 

to Increase 

Good Business 

Health 

Comfortable 

Cash Flaw 

Video Conf 

Service 

Smart phone 

Apps 

Big Data 

Ooud 

Computing 

Computer 

Accounting 

CRM 

Systems 

The ability to be on the forefront of the current and 

emerging technology helps you solve business problems. 

If you know how to use technology, it creates a positive cycle 

and a company culture of innovation and problem solving." 

llMDW 

Senior \!lee President, 

U.S Chamber Technology 

Engagement Center (C_TEC) 

WW AVEN[li'IN() 

Co-owner of 01 

Miami. FL 

Technology is enabling small businesses-regardless of geographic 

location and number of employees-to start, scale, and compete 

in a global economy. As more customers move online to purchase 

goods and services, small businesses that expand their market 

opportunities with new technologies stand to capitalize on higher 

demand for their product." 

lNDF.X 

7 
117 

SBR002 with DISTILLER


Insert offset folio 117 here 31211.080

SMALL BUSINESS ENVIRONMENT 

Optimism regarding the American economy 

steadies to 47% after JUmping to 55% in 01. 

amid tax reform. Small business owners' 

perception of the U.S. economy in 02 is still 

the second highest rating in the history of the 

survey. 

While the perception of the national economy 

remains positive, local economic health 

continues to be the primary barometer for 

the experiences of small businesses. The 

number rating their local economy as good 

increased to 48%, tied for the strongest mark 

on Index record. Small business owners in the 

Midwest (50%) and Northeast (47%) are more 

confident in their local economies, with each 

region increasing by 10 points. Small business 

owners in the West are now the most confident 

(55%, up four points from last quarter), while 

confidence among those in the South has 

dropped 10 points from last quarter to 4?%. 

noose in the Northeast and West feel less 

confident in the national economy compared 

to last quarter and Southern small business 

owners' confidence has dropped significantly 

(19 points to 43%). There has been no 

change in Midwesterners· outlook ot the 

national economy. 

South's perception 

of the national economy 

fell to 43% 

Male small business owners feel more confident in the national economy, with 49% mting the overall health 

of the national economy as good compared to 40% of female small business owners. Male business owners 

rate their local economy as good (49%) compared to female small business owners (45%). 

Three-fourths (75%) report their level of local cornpetition has stayed the same compared to six months ago 

(down from T7% last quarter). In terms of sectors, manufacturers are least likely to report an increase in local 

competition {9%), and retailers and professional service firms are most likely (17% and 18%, respectively). 
118 

SBR002 with DISTILLER


Insert offset folio 118 here 31211.081

75 

50 

25 

02 2017 03 2017 

TC1v1 SUWVAN 

\.lice President. Small Business Policy, 

U.S. Chamber of Commerce 

MISM 

04 2017 01 2018 02 2018 

--- Poor Health 

Five straight quarters of business optimism shows that small 

business owners feel the wind at their back and not in their 

faces, but there is still plenty of work to do. W1en I'm traveling 

the country and meeting with small business owners, they're 

expressing concerns around general national economic 

uncertainty and persistent workforce challenges. These are two 

issues we see across the board at the Chamber and could be 

affecting small business owners' national economic sentiment." 
119 

SBR002 with DISTILLER


Insert offset folio 119 here 31211.082

FINDINGS 

SMALL BUSINESS EXPECTATIONS 

Female small business owners are more optimistic about the year ahead than their male counterparts with 

65% of woman-owned small businesses expecting higher revenue in the next 12 months compared to 61% 

of male-owned small btJsinesses. Women also anticipate more hiring growth (36%) compared to men (:30%} 

and a greater increase in investment (:30% to 28%, respectively). 

A maioritv of small business owners expect higher earnmgs for the fourth quarter in a row, with 62% 

anticipating an increase in revenue one year from now. The increase was one percentage point from last 

quarter. Small businesses with more than 100 employees are the most optimistic, with 72% expecting 

hrgher earnings in the next year. 

About one in three small business 

owners expect to increase 

headcount (tied lor the higllest 

in the history o! the Index), the 

bulk of new hiring will come from 

larger small businesses, 61% 

of businesses with 100 or more 

employees expect to add staff 

(nearly double the :32% ol all 

busineo,ses that expect to hire}. 

More small businesses are 

expecting to keep investment 

activities stable. Only l 0% of 

busmesses report plans to reduce 

investment in the corning year, 

the lowest on Index record. 

of small businesses 

anticipate increasing staff 

If their business starts to struggle, most small business owners feel .ready to deal with the rocky road ahead. 

Nearly nine in 10 small business owners (81%) report they have clear rnetrics to indicate whether their 

business is struggling. Most (86%) have a clear idea of how to pivot to get back on track if they begin to 

struggle. About eight in 10 {81 %} have a business plan to adapt to a changing economy. 

I ND£X 02 
120 

SBR002 with DISTILLER


Insert offset folio 120 here 31211.083

0-4 5-19 20-99 

Ernpl oyee Size 

W3 have nearly six full-time staff members and about 20 parttime staff members, and I am so proud of that. W3 are all about 

building relationships here. W3 have low turnover, which is rare 

in our industry, and I attribute that to the fact that we invest 

in our people. And we plan for growth .. , 

SMALL 

100 + 

PIA CA.RUSCNE 

Co-founder, 

Republic Restoratives 

\N3shington D.C. 
121 

SBR002 with DISTILLER


Insert offset folio 121 here 31211.084

SMALL BUSINESS OPERATIONS 

Small business health remains strong, with 61% reporting good overall health, unchanged for the fifth 

consecutive quarter. Nearly two in five (38%) small business owners report th:1t their businesses are in 

very good health, consistent with last quarter (3/%). 

The overall business health sentiment gap between small busmesses owned by men and women increased 

by two percentage points this quarter. Male-owned small businesses report good overall health (64%), 

versus 51% of female-owned small business owners. Those in manufacturing (66%) and professional 

services (62%) are the most confident about their business' health, while retail continues to be the least 

confident sector (53%). 

Nearly one in five small business owners (18%) reported increasing staff over the past year, up from 16% 

last quarter. The increase in hiring was concentrated in businesses with more than 100 employees, 56% 

of whorn reported adding headcount in the past 12 months. 

Generally, cash flow considerations have remained stable and strong, with more than three-quarters of 

small business owners (79%) feeling comfortable. Women-owned and male-owned small business owners 

report being comfortable with cash flow (70% and 83%, respectively). 

About one in five small business owners (21%) say \hey are spending more time dealing with licensing, 

compliance, and other government requirements, trp three percentage points from last quarter. 

Women small business owners may not be as confident in their 

current outlook, but they are optimistic for the year ahead. The 

U.S. Chamber is here to help them move forward by encouraging 

their engagement in business operations, enabling them to 

build their leadership capacity, and helping shape the future 

business landscupe. More women in business ultimately leads 

to a stronger, more robust national economy." 

susr~Ess 

JONA VAN OEUN V1ce Pre-sidenl, Small Business 

Cnal1tiom. and Engagen1ent, 

U.S. Chamber of Commerce 
122 

SBR002 with DISTILLER


Insert offset folio 122 here 31211.085

oOo~ The MetLife & U.S. 

01amber of Commerce 

Small Business Index 

rose to 68.7, the C'lih 

consecutive quarterly rise. 

The majority of female 

and male-owned small 

businesses report being 

in good health. 

The manuf_acturing sector is the 

most con!2dent in the health of 

their business (66%). 

C9 01 average, small business 

owners spend more than 14 

hours a day working on their 

business. 

47°/o of small businesses 

are optimistic about the health 

olthe U S econllm¥ dCMIJ1 8 

percentage points fran Q1, but 

still the second highest rating 

in the histocy of the surwy. 

The retail sector continues to 

be the least con['&nt 

in the health of their 

business {53%). 

@}) 

Companies that feel ahead of 

the technolcgica! curve are more 

likely to feel better about their 

business and cash l3il.v and are 

planning to hire at a higher rate. 

The number of small 

businesses rating their local 

economic health as good 

increased to 48°/a, 

the strongest mark in the 

histocy of this Index 

Small business OIM'lers 

in the \!\est are now the 

most conC'&nt in their local 

economy (55%), 

up four points from 01. 

SMALL BUSINESS INDEX ! Q2 ! 2018 

D 

c::::::::. I I \ 

1/4 of small 

businesses feel ahead 

of the technology curve. 

A majority of small business 

owners expect higher, though 

tempered, earnings. 

ConC'&nce in the local 

economy among those in 

the South has dropped 

10 points from last 

quarter to 42%. 
123 

SBR002 with DISTILLER


Insert offset folio 123 here 31211.086

REGIONAl. SGORtS 

The rise in the overall Small Business Index sentiment was led by entrepreneurs in the Midwest, which 

JUmped to the top of the four regions surveyed after coming in third last quarter. The Midwest region was also 

the mostly likely to rate the health of the national economy as good (51%), and its small business owners are 

most likely to view their company's cash flow as good (87%) compared to the national average (79%). 

While Midwl'stern businesses had a stronger outlook on the U.S. economy, small business owners in the 

West were th<' most likely to view their local economy as good (~i5%) compared to the country average 

(48%). Western small business owners are also more likely to increase investment (33%) than the national 

average (28%) and are looking to increase staff (36%) at a greater rate than the rest of the country (32%). 

Although small business owners' sentiment in the South toward business health and the economy (both 

local and national) have softened since last quarter, Southern businesses still have a more positive economic 

outlook than they did a year ago. They also remain the most oplirnistrc about their future revenue 

seven in l 0 (69%) small business owners in the South expect their revenue to increase over the next year. 

BUSINESS 20 lB 
124 

SBR002 with DISTILLER


Insert offset folio 124 here 31211.087

These are findings from an fpsos poll conducted March 22 Ailril23, 2018 via telephone in English. For the swvey, a sample 

or 1.002 small business owners and operators were sourced from the continental U.S., Alaska, and Hawaii. 

Small businesses are defined in thrs study as 

companies with fewer than 500 employees that 

are not sole proprietorships. The sample for this 

study is a listed busmess drrectorv of all U.S. 

businesses obtained through Dun & Bradstreet. 

lpsos used fixed sample targets, unique to thrs 

study, in drawing the sample. This sample calibrates 

mspondent charactenslics to be representative of 

the LLS. small business population using standard 

procedures such as raking·ratio adjustments. The 

source of these population targets is lJ .S. Census 

20 l4 Statistics of U.S. Businesses dataset. The 

sample drawn for this study reflects fixed sample 

targets on firmographics. Post· hoc weights were 

made to the population characteristics on region, 

industry sector, and size of business. 

To construct national, regional. employee size, and 

broad industry group level estrmates of the health 

ot small businesses in the U.S, a sequence of 

statistical techniques were applied to the survey 

results, including elastrc net for variable selection 

and multilevel regression with post stratification 

(MRP) from the survey data. 

Since each business may report the stnte of its 

health by different standards. lpsas uses the core 

survey questions to construct a stable, consrstent 

definition of small business status. Each business 

rs then classified into one of three categories: poor, 

neutral, or good. Once each business is measured 

on a consistent scale. the survey results are fed 

into a multilevel regression model to generalize our 

rewlts to a broader set of businesses enabling us to 

measure the health of businesses not just nationally 

but also at the level of state, industry, and business 

SMAll 

All sample surveys and polls may be subject to 

other sources of error, including, but not limited 

to, coverage error and measurement error. The 

poll has a margin of error of plus or minus 3.5 

percentage pomts for all respondents. lpsos 

calculates a design effect (DEFF) for each study 

based on the vanation of the weights, following 

the formula of Kish ( 1965). This study had a 

confidence interval adiusted for design effect of 

the following: (ned ,000, DEFF=L5) adjusted 

Confidence lnterval~-fl.-5 percentage points. Where 

figures do not surn to 1 00, this is due to the effects 

of rounding. 

size, The model uses employee size, industry type, 

and location as individual level predictors, as well 

as datn trom the BLS on job change by industry. 

Next, to ensure that our model results are reflective 

of the small business population in the U.S., we 

adjust our estimates using the number of businesses 

in the over 5,000 possible combinations of state, 

industry, and firm-size categories to ensure that 

the model of business health represents the U.S. 

population of small businesses. 

The process used is known as post-stratification, 

somethmg which was not possible with the original 

sample due to sample-size lirnitat1ons. The 

population estimates for employee size, industry, 

and location were obtained from the 2014 Census 

Survey ol U.S. Businesses. 

INDEX I 
125 

SBR002 with DISTILLER


Insert offset folio 125 here 31211.088

Survey MakeUp Of 1,002 Respondents 

£4!R'atlrm,H<;aiUJC(It(l, 

antlRa:malicm 

SOUTH 

WEST 

MIDWEST 

NORTHEAST 
126 

SBR002 with DISTILLER


Insert offset folio 126 here 31211.089

I, How would you rate thn ovcra!i health of yow 

business? 

? . Over the pasi year, would you say you have 

1ncreas.cd staff. retamed thr. same~ site slaH, or 

reduced staff? 

3. How cornfortab!e are you with your cornpany's 

currC'nt cash flow SltU?ltlon? 

4. !n the next year, do you anticipate Increasing staff, 

retaining the same size staff, or reducing staff? 

for the upcomtng year, do you plan to increase 

mvestment, 1nvest about as much m the busmess 

as you did last year, or reduce investment' 

6. Looking fotward one year, do you expect ne-xt 

revenues to mcrcasc, decrease. or stay the same? 

/_ Hm.\' wo!l!d you rate the overall health of Hw: U.S. 

econorny? 

8. How would you rate the overall health of the 

economy m your lncal area? 

9. Compared to six months ago, does your business 

see more competition. Jess competitmn, or .about 

the samE> !eve! of comretil10n trom smaller or 

cornpnnies? 

10, Compared lo s1x months ago, has the time 

or resources you $pend completing lk:cns1ng, 

comp!itrnce, or other government requirements 

increased, decwased, or stayed tht; same? 

The infographic below charts responses-in percentages-to each of the Index's 10 core questions and 

will provide insights into the changing attitudes and expectations of small business owners over time. 

This infographic reflects responses to the last four surveys, 03 and 04 o! 2017, and Ql and 02 of 2018. 

Responses to the 10 core questions are used to calculate the Me!Ufe & U.S. Chamber of Commerce Small 

!lusmess Index number, whrch currently stands al68.7-meaning 68,7% of small business owners have a 

positive outlook for their companies and the environment in which they operate. 

II 
127 

SBR002 with DISTILLER


Insert offset folio 127 here 31211.090

ABOUT 

The U.S. Chamber of Commerce is the world's largest business federation representing the 

interests of more than 3 million businesses of all sizes, sectors, and regions, as well as state 

and local chambers and industry associations. lts International Affairs Division includes more 

than 70 regional and policy experts and 25 country- and region-specific business councils and 

initiatives. The U.S. Chamber also works closely with 117 American Chambers of Commerce 

abroad. For more information, visit www.uschamber.corn. 

Metlife 

Metlife, Inc. (NYSE: MET), through its subsidiaries and affiliates ("Metlife"), is one of the 

world's leading financial services companies, providing insurance, annuities, employee benefits, 

and asset management to help its individual and institutional customers navigate their changing 

world. Founded in 1868, Metlife has operations in more than 40 countries and holds leading 

market positions in the United States, Japan, Latin America, Asia, Europe, and the Middle East 

For more information, visit www M\"!L_ife.corn. 

BRIDGETI HEBERT 

U.S. CHAMBER OF COMMERCE 

BJ:IfHF;RI@!!SGHAM8f.B"G.QM 

?0? -463-5682 

DAVID HAMMARSTROM 

MfTUFE 

fOR MORE INFORMAfiON ON H11S INDEX, VISIT 11!'\'t\~,S!l!NlllXJJS. 

IND!X' 
128 

SBR002 with DISTILLER


Insert offset folio 128 here 31211.091

NOTES 

SMALL BUSINESS INDEX I Q2 I 2018 

19 
129 

SBR002 with DISTILLER


Insert offset folio 129 here 31211.092

NOTES 

SMALL BUSINESS INDEX I Q2 I 2018 

20 
130 

SBR002 with DISTILLER


Insert offset folio 130 here 31211.093
131 

SBR002 with DISTILLER


Insert offset folio 131 here 31211.094
132 

SBR002 with DISTILLER


Insert offset folio 132 here 31211.095

U. S Snail BusinessAdministration 

Table of Snail Business Sze aandards 

Matdledto 

North American Industry Oassification ~stem Cbdes 

This table lists small business size standards matched to industries described in the North 

.American Industry Oassification '¥stem (NAI~. as modified by the Office of Management and 

fudge! effective ..imuary 1, 2012. The latest NAIC:Srodesare referred to as NAICS2012. 

The size standards are for the most part expressed in either millions of dollars (those 

precern'l\[J)") or number of emplo~C'Oilil.vitC'fiLt tC'i!l"$"). A size standard is the largest 

that a ronoern can be and still qualify as a &nail business for Federal Government programs. For 

the most part, size standards are the average annual receipts or the average employment of a firm. 

How to calrulate average annual receipts and average employment of a firm can be found in 

13 CfR§ 121.104and 13 CfR§ 121.106, respectively. 

$"- alro indudes the table of size standards in the Snail fusiness S;oe ~lations, 

13 CfR§ 121.201. This table indudes si;oe standards that have changed since the last publication of 

13CFR§121. 

For more information on these size standards, please visit http://www.sba.gov/si;oe. 

If you have any other questionsronoerning size standards. rontact a Sze :;pedalist at your 

nearest $"-Government Cbntracting Area Office (list at the end of the table), or rontact the Office 

of Sze aandards by email at sil'estandards@sba.gov or by phone at (202) 205-6618. 

These size standards are effective 

February 26, 2016 
133 

SBR002 with DISTILLER


Insert offset folio 133 here 31211.096

NAICSCodes NAIC:Sindustry Description 

Rshingand 

Sze standards 

S:andards 

in millions 

of dollars 

in number 

of 

employees 

2 
134 

SBR002 with DISTILLER


Insert offset folio 134 here 31211.097

Sze standards 

: S:andards in number 

! in millions of 

NAIQ:> C:O~e~~-----1\JAIC:SI nd~stry~[)e_S(;rij)li()ll ~~ ____ j_Q!.<J()II§£.S~ El_rl1[Jioyees. J 

__ 11~10_~-- _f::kl913f1df'igfarrl1ing_____ ~-- ~------ ___ $0.75 _____ 1 

________ J~~1_Q __ _Qli~l1§:19f!()d~(jj_c>n~-·····- $15.0 . 112320 Broilers and O:her Meat Type 01icken Froduction · -$0.75------~---

112330 Turkey Froduction $0.75 

112340 Fbultry Hatcheries 

. _ ___ __112:39.2.~~- :l:Jther_F\JuJtliFf~a~~ion ~.:- · 

112410 EJle6JJFa.':.lllin_g 

<?oat Farming 

112511 Finfish Farming and Fish Hatcheries l ___ J12_~Q__ ___ 81E)IIfi~ fa_r_rl1i_r19.____- ---~ -- -~ ____ 112_5~1f)- ~- -~-- ~Qtll_E)~<]UOCIJ_I~ur_~ ~~ 

112910 A[liC\JillJ_fE) -------------

112920 1-brses and 0: her Equine Froduct ion 

112930 Fur-BearingAnimal and R:ibbil Froduction 

112990 All Other Animal Froduction 

_ 8Jb~o!_1 !:3:: f"()r_E)~ry and LDgg_irlg______ __ _ _ _______ ------c--~ 

113110 Timber Tract Q:Jerat ions .. . . . i . $11.0 

::=~::J1~]l __ ~_fo_re_s!_Nllfse~13f1dJ?a!t1~:£0~ ~[1=()r~~f't()~ucts~-----v1.9~-- _ 

113310 LDgging 

8Jbsector 114-Fishing, Hunting and Trapping 

_ __114_1_1_1.__ _£infi5h_fi!511in_g ..... 

114112 81~@sll fi~ing_~-----

-----~ __ 11_41j~ ____ Qtht:Jrfv1_13rii1EJ.f'i5hil19 ______ __ 

114210 Hunting and Trapping 

8Jbsect or 115- 8Jpport Activities for Agriculture and Forestry 

115111.-..... ·· O:ltton Gnning . _ $11 0 

c_ '115112__~ §:;[_A-_eparatioflB13_ntirl_g, 13r1.<!9Jili\f(l(if)g_=:_=c- $]§-=~=-------~ 

, ____ 115113 ____ o-op Harvesting,_ Frimarily by_ Machine _____ ~ j _____ !p5 

, ___ 115_1_1:4_ ____ Fbstharvest ([()p~\liti~~J<_oept O:l_t_t()_n_gi11_ni11g) , ______ ~2_7§ 

· 115115 Farm Labor O:lntractorsand Qew leaders · $15.0 

115116 Farm Management S:;rvioes , $7.5 , 

·--~= 11 ~21o=:~::i:3JE[J_()r_t~~~ilie~for~Afilmalf'to~:;i~_o~---=i_______E·L=--==-----=] 115310 8Jpport Activities for Forestry $7.5 

-&c:ep!-:--F0restFire-8l!iilreSSior117 -- : $19.o17 • 

&oe!)t, ·-· F'ueis rviar1896ment S:;rvices17 -~;-- $19. o~-----: 

3 
135 

SBR002 with DISTILLER


Insert offset folio 135 here 31211.098

Natural G3s Uquid Extraction 

SJbrector 212 -Mining (except Oil and Gas) 

8ze 

1,250 

750 

·---~ 212111 __ _E3i!.Llf!lillQ.US Coal and Ugnite SJrfaoe Mining __ ~ f~----- _ J,?!)O 

~212112 . BiJ.ufT1ir1()\JseoaTOl1Cler~roun<ff1~inir19 ~-- L-~ . 1,5()() 

212113 Anthracite Mining 250 

212210 Iron Ore Mining 750 

2J~.21 (?QI.cJ q:"!Vlin~nst____ ~~---- + ~- 1 ,5()() 

_.21?.2?2_~ ____ §11\/E)r()re_Mining . _ _ ___ -~0- 1 

, ___ 2J_2£~L~ ~Lead ()rea~d.zj~c()r.EJIIJllnir1g_ ______ .. 1 _________ 2_5()~ 

21p~ .. ~ Copt:>e_r()r_e_a~~tlji()<eiOre~flllining --~----' _1_,_5QO · 

212291 Uranium-R3dium-Vanadium Ore Mining 250 

212299 All Other Metal Ore Mining 750 

212311~ ___ Dil'll€lll~.911_::lone~IV1inillg and_QuarryLng --~- .... i 500 

Qushed and Broken Umestone Mining and 212312 

212313 

212319 

Quarrying 

Qushed and Broken Granite Mining and Quarrying 

Other Qushed and Broken 8:one Mining and 

Quarrying 

750 

750 

500 

212321 Construction S:lnd and Gravel Mining -~' 500 

[-==--:_212:3f~===~ -~~,-~~ ri_aL§a_nd_@~j,_g_______.-:::::_--=:=-=-- -·- 500 . 

~--~~?12324 __ ~_Kaolin.§ll~dBaiiOayMining~~ ~ ..................... c---- 750 

212325 Oay and Ceramic and ~fractory Minerals Mining .. 500 -

212391 Fbtash, SJda, and Borate Mineral Mining 750 

212392 A1osphate Fbck Mining ... ! 1,000 , 

212393 __Q:_t1_er:~fT1ic:§_IClf1<! filrtili:<:e~f111Jn€Jral_f\lljf)ing ___ j.__.___ _______ !)Q()_j 

212399 ____ ,AJ_I_Other Nonmetallic Mineral Mining__~---~j_____ 500 i 

~--· _ ~ 8Jb§Eldo_r .£13=8JflJlOr!f\c!Jvitie;;f~~flll~l19 __ ~--- _ _ _ ___ _____ --------· 

213111 Drilling Oil and CesWells 1,000 

213112 SJpport Activities for Oil and CesOperations $38.5 

-~-~1:3_1_1_3_ . SJPE()rt _f\ctillities_foreoal Mining ~---······················· ... ~---i --~~%}-----1 i--?'J3114 ___ 8J_p_f)_o_r!f'c!_illi!~e;;_for M_El!§lf\11lnJf19 __________ _ 

21 -----~~frtActivitiesforNonmetallicMinerals(ex~--$?.:_ _____ ~--' 

4 
136 

SBR002 with DISTILLER


Insert offset folio 136 here 31211.099

--~-~~~-----·-·-····-·-·-· 

, SJbsedor 221- Utilities ,,-------·-·--- ...... ·- ·-·-··-

; 221111 HydroeledricFbwer Generation 500 

221112 Fossil Fuel Bed ric Fbwer C£neration 750 

221113 NudearBectricFbwere£neration 750 

. __ 2~_1111 S:ll(>rf:l~!i~!=\:)_~~V_e_r:_C£neratiqrJ ______________ +~--- 250 

---- -~~i~~t----- ::1!:;1i~~~~ ~;:;:nneration -----~- +--- ------~~g~ 221117 BiomassBectricFbwere£neration 250 ! 

221118 OtherBedricFbwere£neration 250 

' ---22n2-:r-~- ~ r:J~Jj_c_l:JUik_~lt\l_ei_-Tran~~();;:~d coil!fol ---- ------soo -, , ___ 2_:!1_1_22 Beet ric Fbwer Di&ribution 1,000 

, _____ _2£121o----------~-Nill~rafGa59~rTbutT0r1-~----=-===- -+ -------=f,ooo : 

221310 Water SJpply and Irrigation ~stems $27.5 

221320 S:lwage Treatment Facilities . $20.5 ____ , 

. -~ 22_1~~Q ___ "~<lam C!f1d£'-ir:CBf1ditionin_g_~___p_pJy___ _ __ _ ____ L_~$1~,o _________ i 

i S::ctor 23-Cbnstruction 

~rector ~~--=_Q)nstructi_cmofBuildill_lt'l _______ ------------==-

: 236115 New Sngle-family Housing Cbn&ruction (B<oept R:>r- i $

36 5 

i --~~--~"-~ii~E)r~L-----------------~--__1 ->---- __ · __ -----·-·-1 

236116 New Multifamily Housing Cbnstruction (except For- 1 $

36_

5 

Slle Builders) _ ____ _ _ ___ f--------- __ , ___________ ; L 

236117 _ N_eW !jou~ng_f'or-:_831_El Bliiide_r!i- , $36.5 -I ~-- -;T36-118 Fesidential ~modelers $36.5 i 

236210 ____ ln~~§tri~i B!Ji@i~iQ)nS!ruction _____ , $36.5 --~~--J 

~-2-36226 _ Cbmmerdal Glndlnstitutional BuildingCbnstruction j $36.5 

8Jbsector237- 1-fElavy and OviiEilgineering Cbn&ruction 

237110 Water and S:lwer Une and ~lated S:ructures 

Cbnst ruct 1on 

237120 

.~' ~--~ 

Oil and Gas Rpeline and ~lated S:ructures 

Cbnst ruction 

$36.5 

$36.5 

----=Fb=w==er and CbmmunTcationDne-and~lated : 237130 S:ructuresCbn&ruction I $

36·

5 

~==~;;;~~- . ~~~:,~;:ef.-a-nd eii<Jg€con~ru<:nc;;;-- --=:·=r---~J--====l 237990 · Other Heavy and Ovil81gineeringCbn!iruction 1 $36.5 j 

f::xcept, [)r~gi!lgand_~rf<lela Q§1a_n__u_[l6ct_ilti_ti_ElL_ _ _ _ _ L $27 5~ __ : 

5 
137 

SBR002 with DISTILLER


Insert offset folio 137 here 31211.100

Sze 

Sze standards 

NAICSCDdes J NAICSindustry Description 

S:andards in number 

in millions of . 

of dollars j employees I 

SJbsector 238- ~ecialty Trade CDnt ractors 

238110 ! Fbured CDncrete Foundation and S:ructure 

' CDnt ract ors $15.0 : 

238120 i S:ructural S:eel and A'ecast cnncretecnntractors $15.0 

238130 , Framing cnntractors- - $15.0 

238170 1 SdingCDntractors -'~$_1c~5-'-'.0--+I ___ -----I 

238190 I Other Foundation, S:ructure, and &lilding B<terior $15.

0 1 

CDnt ract ors , 

L. 238390 i Other &lilding Rnishing CDntractors I $15.0 i 

I 238910 ; Ste R-eparation CDntractors ' $15.0 i 

__ _?~~9_Q__ __L~!Q~e!_~~al_!y_Ir_~e Ce11tract2r~' __ _ _ L__~_~,Q~j .. _ . 

_ ___ _ ___ __ __ fSctor ~1_=.,33- M_§l!l~!.actu~Lf'lg___ I --------- .I 

SJbsector 311-Food Manufacturing 

311111 i Dog and cat Food Manufacturing 1,000 

_ ___1~- I Other Animal Food Manufacturing 500 

_ 311211 I Rour Milling 1--- I 1,000 

---~1121_2 ___ Lf~_~Mi_lli_l'lg___ I- I 500 

.A11?13 ___ : Malt~anllf~llrifl.g_ ----------===-~=-=---=~r~=-=~~~6~ 311221 i Wet CDrn Milling 1 ! 1,250 

311224 d Other Oilseed A'ooessing 1,000 

311225 1 Fats and OilsR:lfiningand Blending 1,000 

6 
138 

SBR002 with DISTILLER


Insert offset folio 138 here 31211.101

&a~:;:~-~ in number , 

of I 

:::: ! r~~~~~~t~=:~;~:~r~~,~~-J ·---C~j I

I I NAICSCbdes 

311412 Frozen ~eaalty Food Manufacturing 1,250 

311411_ ___ fr~~n_FrUI~_JJioe_and\/.egEltable Manuf~u~ing 1,000 ' 

r---3~1:-:1421 frUit andVt tableOlnnm 3 · -~- ____ -1:0oir 

311422 __ ~eaalty Olnnmg _ 1,250 

311423 'pr-ied_ and ~h}'dr§l_ed Food Manufact_uring I -- .. o- -- i50 . . 311511 Ruid Milk Manufacturing 1,000 

t~~J.~t_;~-~~t~~fu£=-un~g__--_~--~--~J __ ~ 1,~;~ 1 311514 Dry, Cbndensed, and Evaporated Dairy ffodud j 750 .

1 

, Manufactunng -·-· ~· . 

311520 i lceQeamandFrozenDessertManufacturing____ ___ I 1,0()~)__ t_311611 'Animal(exceptRJultry)Saughtering _ l 1,000 

I 311612 ' Meat ffooessed from carcasses 1,000 

1 ~H~; -~l~~~~eatElyp.r()~u.c!.f!~.§Sln _ -=-=~~~r~-

~- ;~~~~~ un L=~=~:ct-FfeparatfOnandPad<agi~ n---~~-j 

t 311812 'O:Jmmerdal Bakeries --~· _ _1,()_00_~ 

r

1 

__ . 

11 ~ Fr()zen_9JI<~-~~<lf1dClherf>a&riesfv'IG!f1uf~l)l"ing , 750 1 

_ . __ .. Q:l()kieand Cracker fVianufaduJing_~----- _ . I ,_ 1,25Q._[ 

Dry Pasta, CX>ugh, and Rour MixesManufacturing 1 750 j 

I

I 31183o ~6X~~~t-~Ju~~9 · ·········rL ____ -~---12sol F :;;:;: : ="=::r.;"::~::~':.""""'"'"''"'~-~~ ~ . -, -=-~:;;f~ 311920 i ~ffee~Tea_IIII_Clflljf~_uring --- _ __;_ _ __]§()_ ·1 

l. ~11.§3() JRa\foring ~ru_pand Cbnc;entralfi!Manufact_urif1g _ j__ 1,000 

~··· 

311941 , Mayonnaise, Dressing and Other ffepared Sauce · 

1 Manufacturing"--;-;;c:----;--:--c--------+--- 311942 

311991 

311999 

, ~ice and Extract M8f1ufac:turing _____ _ 

' Perishable Prepared Food Manufacturing ·· ·· iA!I()tllel" @Sc:eu~ne<)u~f{)od~M~n.tJfai;turirlg 

500 

500 

500 

7 
139 

SBR002 with DISTILLER


Insert offset folio 139 here 31211.102

Sze 

1 Sze standards 

i S:andards in number 

[ in millions of , 

.~~ ~ICSCbdes ~ _ ___ _ _ __ f'Jfi,I~Lnc!u_!lt_rt~iplil:)~--~--~~--.. ! of dollar:.s_.....§'I11Ei9Yees [ 

'---~bsect()r 312 :::E3e\/€l~~ and ToiJ.<lcx:;()f1:CJ.dUclryl<Jf1llf<l(jurinl!_~ ~-·~~~~~~---~J 

__11~ 11 . ~- S:lf!_[)rini<Manufacturing___~ L--~- ___ 1,~59 · 

312112 tbttled WaterManufacturing [ 1,000 

312113 · lc;e Manufacturing · ' 750 

--~%~~~~~ --~':~~~-~--- -~---~~- t=-~-~~--:}:~8~---~ 312140 Distilleries-~-~~---~--··--~--···- ~~- ... ___ 1,_()00 i 

312230 TobaccoManufacturing 1,500 l 

Subsector 313-Textile Mills 

i . 313110 Rber,Yarn,andlhreadMills 1,250 I ~~-313iio- · · sroaciwoveilFabriciVIiils ---1~.ooo~ 

[- . 31322o ___ Narrow Fabric Mills and S::hiffliM1:lehineBTibrclidery i - -~~----- ---5oo::: 

f...--313230 Nonwoven Fabric Mills·- ·· ··- ----~---- -~--~~--~-7'501 

313240 Knit Fabric Mills 500 i 

313310 TextileandFabricRnishingMills 1 1,000 ! 

.... 31:3_320 ___ f'abric_():)Cl!irl~~------------ -~~-1_ . _ __1..9QO __ 

i:~~~Er~l:3_1_ ~~~ ;::~12~115=-=~=~~- ~: ----:-··:-~: -i ·~~-_J 314910 · Textile&i9andCanvasMills 500 

Fbpe, Cbrdage, Twine, Tire Cbrd, and Tire Fabric 

Mills 314994 

314999 · All Other Miscellaneous TextileFroduct Mills 

1,000 

500 

l -~~bsector ]J§.:::APParel Manufacturing 

1 315110 Hosery and S:lck Mills ____ :=~-~_:--::F-===::=:-_··-~;;~ ~ 

~=~~~~~ -~~ ~~~t§t~~~~~f~~~~~:r~. . -------=--+--- 750] 

.-~3f5226 ··· -Men'sandtbys; OJ!-arid'§M,-Af)parel Manufacturing-[ --~----750- 1 

Women's, Grls' ,anc! Infants' OJt and SiNv Apparel. ' 

315240 

-~~_,_Manufacturil'19~~·------~--- ... __ -+---·------· 

315280 Other OJt and f£w Apparel Manufacturing 

315990 ·Apparel Accessories and Other Apparel 

Manufacturing 

Subsector 316-LeatherandAJiied Froduc:t Manufacturing 

• 316110 · Leather and Hide Tanning andRnishing . - J 

L_ 316?.:!0~ ___ f'ootV/ear_MCin1Jf<J<:lufing~----------~~~---J 

750 

750 

500 • 

500 

1,000 

8 
140 

SBR002 with DISTILLER


Insert offset folio 140 here 31211.103

I Sze 

I 

Sandards in number 

in millions of 

l~=-NA~;_:s_lw~~~-[@~~~~~~~~:rurin:;g"----+ll_o_f_d_o_lla-rs~·_:~-~550~0 I 316998 ! All Other Leather GJod and Allied Product 

1 • Manufactunng_ 

1 8Jbsedor 321 -Wood Product Manu,.:.fact=u:::r"-in:;og ____ _ 

;~~~~! ! :'C:i~eservation _______ --~---------j_ ;~~ 321211 _ Lfi1lr~w_oodVeneer andAywoodrv1_a_nlJf<3(;tu_ring I 500 

~1_?_1~-~: _____ ~ftiJIIood Veneer ~_<:l_~_o_oQ_ Manufact_!.Jr_lllg___ j,25~ , 321213 Elgmeered Wood Member (except Truss) 1 750 1 

I ;~~~~! - =~~~~~:J Product Manuf~uri;g --t -- ~~ ~~-L--~ Window ant:I_Q:>__o_r:__M_i:lll_l)f§durlng-- ___ -j-----=---1)500-

[ 321912 ~ Q.Jt SQcl<_,_ R3sawing Lumber, and Aaning_ _ _ 1 500 --I 1 321§)1L ___ L9th€lrMIIIwork(mdu~mgf100rif1g)_________ 1 __ _ ; ___ ®Q 

I - ;;~~~~ :~~~f~~r:~~l~~~i~~~~~:,~f~uri~~±-·· __ --_, __ d~%- 1 321992 ; Prefabricated Wood &!ilding!lllanufacturing_ 1 · 500 

1 321999 ! All Other Miscellaneous Wood Product ------r··---- 500 

f

' _ 1 Manufactunr19_______ ___L____ __ _._ ___ _ 

SJbsedor 322- Paper Manufacturing _ -----~ 

1 

---~~~~~ --·-=~~~~~lll~~xint)rv!ills_____ 11 1: I 

i 322130 ·PaperbOard M1llsH - - 1,250 I 

r ;1~~~ =-~~;:~=~~;;~:::~~~~~i~r_lllg:--~1--~-~-~~:~~ !·~~-- l 322219 , Other Pap~rboar~ Qmtame_r_rv1~l!!a;tunng 1,000 

1 322220 Paper Bag and <Dated and Treated Paper 750 f- Manufact_:::ur"-'m3g,___ ___________ J------i---------l 

I 322230 Sationery Product Manufacturing j 750 

I

, 322291 ~ Slnitary Paper Product Manuf~l1rlng__ _ _ _ _ - 1,500 

322299 All Other <Dnverted Paper Produ<:!~anu_!actu_r11119 _- 500 

~bsedor 323- Prmtmg and Related 8Jpport Act1V1t1es _______________________ 1 l. _______ 3£3}_1L ___ <:;o_m~€lraal Prin_t_l_rlg (except S::reen and Books) -r-________ _?_9_9 __ J 

I 323113 • <Dmmerdal S::reen Printing ------r-____ _;_ ___ 500 _j 

Sze 

standards 

9 
141 

SBR002 with DISTILLER


Insert offset folio 141 here 31211.104

~~~~~~~~,~~~ ~~~~ ---~-Sze 

Sze standards 

Sandards in number 

1 in millions of I !_ i'JAICSCocjes~~ _ ~ _ _r:.JJ\IC:S ln_cl_ust_ry~_eti()rl_ ___ ~-L_o_Ld~oll_ar:~~- employees_] 

323117 _ BooksPrinting ~--~-~-- :____ __ 1,250 ' 

l~~==3_?~!?9-=~~-=~ SJ~~~.~~'d!Jesfor PJ"J.nting __ ~··--·-···-··- L_ ----~ -=--~~:~."."~~:§Oo -_· .. " 

' 8Jbsector 324- Petroleum and Coal Products Manufacturing · 

324110 Petroleum R3fineries4 1,5004 i 

324121 Asphalt Paving Mixture and Block Manufacturing_ l 500 1 

~__]~412f~~-~ Asphalt Slingle and CoaiTn9},/18t6QaTS r.A§lluf~_tJrin_9~f=---===----=~Lt~fJ 

1 __ 3?~~~1-~-~r<)j~~rn Lubricating Oil af1.cJ Grea!3EJr.A..<ll1tlfac;turintLl ____ ~~-~-~~- 750 ~ j 

· 324199 All Other Petroleum and Coal Products : 500 1 

~-~~ -----~-~ _ r.Aanufactun~~L------~~-----~-- L__ i 

~_§J_b_S<let()~~2_~_::Q:l€lmic:;al f\A_a_fluf(J(tiJril'19 --, _J 

325110 Petrodlemical Manufad;uring 1,000 : 

, 325120 . Industrial Gas Manufacturing i 1,000 I 

L -~-3?5130 __ __J:¥nthetic Dye and PigrT1E:l[lt_r:Ji_(ll'l_ufa<:(ljrlng ___ ~- l~------~L(l()O -I l~~ __ :3_2_5_1§0 ___ 0i:_h_€Jrl3clsi<; ln()rganic01El_rni<:al_rv1_8flufa(;(_llrl~g 1 1,000 i 

[_ 325193 . Bh)ll Alochol Manufacturing . .. ; ···~··-········· 1,0oo! 

1 32 194 ~. --Otdic Qude, Intermediate, and G.im and wOod-i l 

L _________ 01emiCC1l_Manufac;turing_~---------- l------~1 25~_j ' _}2_5199 --~I_QtQ€lrl3.:lsi_<;()rga~ic_(hernic:all\i1anufactl.lfi_~ ___ J-~-~- .. 1,2_~Q_: 

~~~~~B-- ~;,i~:~~~:6~r~~~~~rfr;ifac;turing_ . i:~~~~ ! 325220 Artificial and ~nthetic Rbersand Rlaments 1

,000 

! Manufactunng _ 1 . . ~~ -~-~ ~I 

f-~~325311~-- -Nitrogenous Rlrfilizer Manufacturing 1,000 , 

325312 RlosphaticRlrtiliZer Manufacturing I 750 i ,_~ 325314 Rlrtilizer (Mixing Only) Manufacturing i ~-50()j Pesticide and Other Agrici.Jitural Olerr1ical---~~--. -----

Manufacturing 

~~~--~~~H--- ~~~~~~~~~~~i~~~~r£i~rin ~-~ · · --t ~ :~~~ ~~ ~~~-_3_2_~13 ln-Vit_roDi<Jg_n_ostic~~st."''1.ce_}1Cl11Llf;;l(;t!J_fing ___ L __ ~-~- 1,250 i 

325414 . Biological Produ_ct(exceptDi<Jgnostic) Manufacturing I ·····-~ {25o ~~ 

325510 Paint and Coating Manufacturing I 1,000 I 

____ ~?5?2Q ____ A~hesiv~~l\i1~nllfacturi11_g___ ____ ~-~~-- L~-~- ~ ___ 50tL~J 

325611 S:laj:)~ and ()t_bE!r_QElt~9E'.fl.LMan_tJ_!ac;l___lltill9~---~-J-- J,O_QQ l 

325320 1,000 

32561_2 R:Jiisl1 13ncl_Oth~e_r_83nita! io~ ~ l\i1a11_ufac;tu~ing · 750 I 

325613 . 8JrfaceActiveAgent Manufacturing ~ ···· ~ --756-l !~~ --325620~~-~Toilet PreparatiOn Manufacturing 1,250 

10 
142 

SBR002 with DISTILLER


Insert offset folio 142 here 31211.105

r--- Sze I 

: Sze standards I 

I Sandards in number ! 

1 in millions of , 

L __ ~ICSO:l_<J_~~-~--- ~~IC§~I'l<Justryj)escription ---~------ L-o_f_(jollar:_s_-_!l_rY1pi<ly~s_! 

~25910 Printif1_9J!'1k_r-/l§nufacturing___- __ --· ----- --~~~ ---·-- -~~~- ;~ -i [_~_32~920 EpLo_sil!~l\llanufactu_rLI'liL ---~ __ _ +----- ~--:::;-:: ~ ' 325991 Cltstom O:lmpounding of R.lrch§SEld ~ns ' 500 

~--~-~-~------ :::;---il:!0;~:~;c>:,-::::,li ___ PreJJ§r_<ltl_on Manufact~m-"'g'--~----c- .....•. _____ •·••··· 

------~~=';;;_,', ____ _ _ __ 

SJbsector 326- Plastics and Rlbber Products Manufacturing ___ _ 

326111 Plastic Bag and Pouch Manufacturing - ] 750 , 

1- ~::~;:------~~fnii~~j~~=;~~~::~:t ·------+~-~---- -·~;-1 1---~- -~--~- Packaging) Manufactur_lfl_g ___ , ___ .____ _ -------····-·) ___ -· ----·~ _ -----·-~~ _ _J ~-~~61~~~-Uil~ll'l§IE'ld f:la:;tics_f!()fi!!l_~.§[JS_I\IIanLJ!act uring __ J ___________ 50_Q_J 

! 326122 , Plastics Pipe and Ape Rtting Manufacturing i 750 I 

, 326130 Laminated Plastics Rate, Sleet (exoept Packaging), I 500 1 

L -------- and Slape_r-/1§!1Ufact uring - - ___ ----·--·--··- ·- ·---- _ [ -~--~~- ____ _I l_~3261iCl_~_J3:lll'!Jttr€lrlE:!foi3111-f!oduc:ti\II§1'1-Ufact_llrJI'1\L_ ____ -1-- 1 ,OO<Jj - 326150 Urethane and Other R:lam Product (exoept 750 ! 

-- --326-Too--~~~ffl:~:~~~~~~~~g---------- ~----- ----1~250--! , 326191 RasticsRumbingRxture Manufacturing 750 I 

I 326199 'All Other Plastics Product Manufacturing 750 I '------~-----·---- ---·------------------·------- -·--,- -----------~---- 15oos! r ___ 3262J1_ _ljreManl!fCl(;luringi€lX:9"Pl~r!l§<Jing) --+ , -·-~ 

· . _____ 3~6212~ ___ ,1i~<l~treadin9 ______ . ---- ___ _ _§_OQ_I 

- ~~~_?20 Rlbb€J~ §ll_ci_F:l_ast ips Hoses afl_d!JEllli!'lgJiil anufact Ufin_gL _ _ _____ Z_5Q_~~ 

326291 __ R.Jbber Product Manufacturing for Mechanical Use 750 ! 

326299 All Other Ribber Product M§nufacturing 500 

SJbsector 327 -Nonmetallic Mineral Product Manufacturin 

- ;;;~:;-- -A:Jtiery: ceramiCs, and Plumbing Rxture -'"'--~-,---- -------1

-,0-0;;-

Manufac!uring 

327120 

327211 

327212 

Qay Building Material and R:lfractories 

Manufacturing 

Rat Glass Manufacturing 

Other Pressed and Blown GlassancJGI~are 

Manufacturing 

' Glass O:lntainer Manufacturing 

750 ' 

1,000 

1,250 

1,250 

11 
143 

SBR002 with DISTILLER


Insert offset folio 143 here 31211.106

NAICSCodes 

327215 

·=------::--:~NAICSin~u~ryQElscription:--:c----c-­

Giass Product Manufacturing Made of Ftlrchased 

Glass 

1 Sze 

1 Sandards 

i in millions 

j_()~_ollars 

standards 

in number 

of 

employees I "-·---··: 

1,000 

~----~~;~~~~---, ~~=~;]i~:~~~ut8ctu-rin9=-===----l--------=~~~ ! 1 327331 Concrete Block and Brick Manufacturing __ j______ 500 I 

·--~7332--Ci:lncre;te Ape Manufacturing 750-, 

327390 Other Concrete Product Manufacturing 500 

327410 UmeMan fact · 1 ·- 750 I ·-------------·-·--·-··----·--···-·u-..... urmg ..... ···---·--·---·-··-·· _. +-----------: ·- _ 3?]''!2Q_ __ ~sum f!(){j(J_c;!l\ll(;lnU~_LJri_ng 1 1,500 1 

_}_?791Q _____ .A.brasive ProdJJCt Manl]facturing ~=:~--~ ____ j5Q] 

327991 OJ! S:one and Sone Product Manufacturing ' 500 1 

327992 G-ound or Treated Mineral and Earth Manufacturing 1 500 

i-~32799~ _ __1\11_inerai_WO()Iflj!anufacturin_IL ____________ · __ , _1,500 1 

327999 All Other Miscellaneous Nonmetallic Mineral Product I 

Manufacturing 

SUbsector 331 -PrimaryMetal Manufacturing . 

[ __ 3311.!Q ____ IrcJ_f1_ and S:eel Mil!~an_{j_B'J:r.()Cllloy f\ll,<lrl_(Jf§c;t(Jiing _ _,1 ____ . 

' 331210 Iron and Seel Ape and Tube Manufacturing from 

Ftlrchased S:eel 

500 

1,000 

I_~-;~~~~ -~ =~~ v!r:e~~rl_(Jt<l'!~i~g-- _-------·L==-==~=J~r~:::j ' 331313 Alumina Refining and Primary Aluminum F>roduction 1 . 1,000 1 

·- ---s31314 Sea:lndary Snelting ari(fAII()yingot AJumim.im -.- --. ----- --756-

331315 Aluminum Sleet, Rate and Foi11\11anufacturing 1,250 

,. ___ 331~?- _____ Qtt1~_,i\l_urnJil.um ~ling, Drawing,Jlfl{j_E:)<truding __ _7~ 

331410 Nonferrous Metal (except Aluminum) Snelling and 1,000 ' 

Refining 

. -· ~314:~G_ ____ O:Jf)p~f'q:)IILn_g,_!Jr_a\'/iQgcE:idr(Jding,_an_<J.f\II()Jii""ng"-c---+--

331491 Nonferrous Metal (except Copper and Aluminum) 

331492 

Fbi ling, Drawing and Extruding 

Secondary Snelling, Refining, and Alloying ()i 

Nonferrous Metal (except Copper and Aluminum) 

--- _11)_()0_: 

750 

750 i 

331511 Iron Foundries 1,000 

331512 S:eellnveStment Foundries 1 1,000 1 r-- 331-513 ___ aeerFOOridries < exrei:ltTrivestmeni) -- --- -. ----- -r------------500' 

L__3:::3c:.1_...523 NoJ:lferro_LJ_~Met,<lf_Oe-~Ln.9~tJ_n{jji~s:_~===---L___ _ _______ §()~ 

12 
144 

SBR002 with DISTILLER


Insert offset folio 144 here 31211.107

Sze standards 

, 3andards in number , 

i in millions of , 

l~NAICSO::ldes ~ _________ NAICSindu~ry Desaipti()_!1_ _J ()f~oll_ar~-~e!llPlOl"~~ j 

L--- 331524 -~~ ~uminum f'o__tJndries @l<C;E)!')!_Q;:)~~ingL __ --·~·~--f--- __ __ . _ §OQ_ ~ 

331529 Other Nonferrous Metal Foundries(exc:ept Die- j 500 . ... _ --·--·~Q!! 1'19L ___ . ___ .. __________________ _[ _______ ··-· 

r- §J~m~r _ _3~2~~~~~:d~-~f~~~till~ Manufacturing~-~-~ 1 

______ 750.--i 

332112 Nonferrous Forging ·---· -~-r---·--- -··756--1 

332114 OJstom Rlll Forming I 500 

332117 Ftlwder M_EJtallu.r_Ql' Part M<!lufacturirJ_g____ __ ' 500 i 

332119 

332215 

332216 

332311 

Metal Qown, Oosure, and Other Metal3amping .. --···- I 

500 (except Automotive) 

Metal Kitchen O::lokware, Utensil, OJtlery, and 

Ratware (except Precious) Manufacturing 

· S:lw Blade and Handtool Manufacturing . 

Prefabricated Metal Building and Component 

Manufacturing 

750 

750 ! 

750 I 

332312 Fabricated 3ructural Metal Manufacturing 1 500 

L_ ~;~~~ ___ L~:;~~;~~~~~rc;~~-~Llf~_~i~g _ . . ........ J ·----~ __ 7

5

7

0

;_

0

t! 

I 332322 Sleet Met;:d Work Manufacturing L-... ·-- -;3232~-~-ornamenial-and -Arci1iled ural iVie!afiNori<- 1 · ·- - -;;;' 

·-··- Manufactunng_·--··-·--------~-~~~-1~~~- ·-· ___ ~I , 332410 Fbwer Ebiler and Heat Ei<chan.9;:)~_r-.1_a.~lJf~llljrl_g , _____ ?:59 -~ 

:~-332426 ___ Metal Tank (Heavy Gauge) Manufactu£ing__~_.L_ ____ .1§.0_~ 

~~~332431 ___ . Metal Can Manufacturing i 1,500 i 

1 332439 Other Metal O::lntainer Manufacturing [ 500 1 

L _ _:3_32510 ___ Hardwar:_er,A_§fllJf~~~i~g __ ··- . . _ ·---~' -~-- 7

5

5

0

0

0

_ -I, i ~~2(313 ____ _§:)~in_g_r,1~lJf_<Jcturi_ng________ _ __ [ ~-----~ 

·~- -~32§1_~- _ _()t_heLF§brLca_led_ Wir;:)£f.2~L)c;tl\il.§I1Ufacturing 500 I 

332710 Machine Slops . ·--~---·ooo1 

332721 R-ecision Turned Product Manufacturing . .. I 500 

.~' _ ~_27_2_2 __ ~_f3ol!cNut,j:l::r~, ~veta11~ W8Sler rv'l_af]ufactl]rirl_9_L_ 500 .. 

1 _ ......... 3~?~11····- .M.l:l!al He<lt}r~i~g·······-······· -~~-- _ -L----~- __l(}Q.J : 332812 Metal O::lating, Engraving (except J:lwelry and 1 500 j 

• ~---·------~Lverw~El{, and Alli_ed ~_rvi~s to~fv1<l!1.lJfa_c;tur~s_ ____ J.__~------~~-~~J 

332813 Bectroplating, Rating, Ftllishing, Anodizing and 500 O::llonng 

332911 Industrial Valve Manufacturing 750 

13 
145 

SBR002 with DISTILLER


Insert offset folio 145 here 31211.108

i Sze I 

I 3andards 

. i in millions of • I L __ NAI<:eQ:>d_~s __ ------~- NAICSindustry~Eti~ ____ _J_(lf_cl_ollar_~_emPI()y~~ 

l __ ~:g912 ___ l'i_Lii(jf1:}\'JerValveai1<JJ:f:l:>e Fitting Manufacturi~~--- ... _1,00Q_J 

i --~?913 ~---Rumbin_g_ Fixture f'ittin_gand_I~ifll_Manuf<l(;turing ..... .,------ __ _ __ _1.()00 ! 

332919 OtherMetaiValveand RpeRttingManufacturing 750 • 

332991 . Ball and R;)ller Baaring Manufacturing 1 1,250 

. }~2§9_2_~ __ 8nai_IArll1~~munition Mil.n.LJf!lC:tlJ.Iir1.9 ______ 1 ___ ·- ~-1..~?9 

332993 --~_rnunitio_njexceJJ!~_all_~!'l'1sL.fv1il~.tJf_Cl(;t_(Jrl11_9 -·-_j 1_,59~ 

332994 Snail Arms, Ordnance, and Ordnance Aooessories 1

, 000 Manufacturing 

--~32996 _ .. ~}abri~t;CJ~R-p~=ai1~BE~f~~~~ar1jf~u~ll..i-~~===-~::::so.o .. J 

332999 All Other Miscellaneous Fabricated Metal Froduct 1 750 i 

L --·-··-···-···--······ ·-·--~ _ --·-· _M~nufact~E_!_Qg ___ ~---::o-----~ -----~- ..... ___ l ------·--···~-·--- ____________ , __ j 

.... :3Jbsect()I}~3- Machi ll_e_I}I_Manufact .tJiirl.\L _________ .......... -··-·-· ··-T···-· ··- ···-·---··-·····-·--··-! 

333111 Far!l1_11f1~inery and Eguip111~n.t._Manuf~uri_ng . 1,250 ; 

333112 

Lawn and Garden Tractor and Home Lawn and -+---~- -·-----1 ~ _____________ Q3rden Eg(Jipment Manufacturi~g-·-----~-·- ....... 1_ ·--·---- 1

·

500 j ~- __ :3_3~1.29 ___ O:mstr_uc:t_ion Machine~ryl\ll§rltJ:f(lC!urirlg____ ___ ~; _ . __ 1._?50.~1 

l--~}1~--~Mining M§Ciliflery_Cifl_(J_Ei:J.lJiPI11e11l tvj_<3~u.fact_LJrif1g _ L_ 500 i 

333132 01 and Cas Reid Machinery and Equipment I ··· -----~,;~;-1 

c. -·-ccccc:-=·-· · tv1§!1Ufact_lJI:IIl.9_ _________ . _____ ._ ·-- ... i 

Food Froduct MachineryManufacturing 500 1 

Semiconductor Machinery Manufacturing 1,500 

333243 8:lwm11l, Woodworkmg. and Paper Machinery 500 ---~- Man_tlf?ctunng__ ______ ~·-~- --+~ ··----~·-·· 333244 Frinting Machinery and B:juipment Manufacturing · 750 

333249 , Other Industrial Machinery M§nufacturing . · I 500 I 

333314 Q:lticallnstrument and Lens Manufacturing i · · 500 ! 

~33316 ---PhOtOgraphiC andPtlOlOOOpylng EquiPment . L-------------1 

Manufacturing i 1

·

0

00 

Other O:>mmercial and Slrvice Industry Machinery 1 

Manufacturing . 333318 1,000 

333413 Industrial and O:>mmercial Fan and Blower and Air 

----~FU~_rifi_cation _E:i:jlJipment rv1.'3~ufact_~if1L__ 

Heating Equipment (except Warm Air Rurnaces) 

--~~::~~~~and warm~r Heatin9Ii:ii.iipment · ··~i --·- and O:>mmercial and Industrial Fefrigeration 

500 

333414 500 

333415 1,250 

Equipment Manufacturing 

14 
146 

SBR002 with DISTILLER


Insert offset folio 146 here 31211.109

NAICSCbdes _ -·---···- -~IQ31n_du!ltrx_QE;scriiJl.i().f! ___ _ I -~3335fl~---lndu~_r.L~LM()I_cjl\i1~Li!actl!!i~L-~----·-

333514 ~ecial Die and Tool, Die S,t, Jg and Rxture 

____ Manufacturi~-~-~· 

333515 Clltting Tool and Machine Tool kcessory 

M~ufac;turing 

Sze 

1 Sze standards 

i S:andards in number 

! in millions of 1 

. L ()f dgllar~- emplo)lees.J 

. 500 ! 

500 

500 I 

333517 ... l\i1ClC:tli~Iool Manuf13<:l.LI.dn_g __ ...... ___ ·~·· ... -~; ~~---~-j)()Q_~ 

i 333519 Fblling Mill and Other Metalworking Machinery 

1-~-------~...11!1~Li!<lCtlJilng ---- --···~ 

333611 Turbine and Turbine Generator S,t Unit 

Manufacturing i 

1 333612 ~eed Olanger, Industrial High-~ Drive and Gear I 

500 i 

1,500 i 

750 

L_~--~----1\11.'llllJfact..U_rlnl!._. __ ~--------- .. ~-----··- I -··· .. _,_,_, _______ ! 

333613 Machanical .Fbwer Transmission Equipment 750 ~-~~ _ Manufactunng . . 1 

· ...... _}~3§1~ ~~~=gjl~rfhgineE!1uipmenlManufacturinL-.=-_=_J ---- 1,500 

333911 Pump and Pumping Equipment Manufacturing : 750 

333912 Air and GesCbmpresror Manufacturing I 1,000 1 

333913 Measuring ar\dDispensingF\JrnpManufacturing I 750 

l_ i;;~1~--- Elevator and Moving_~.'li~§Y 11!1.?~.Lifact1Jri~g---~l--- ... _ :J,_OQQ __ I 

1 __ c:l:>n~t_ey()r.?nd Q::mveyinJLEi].tJiPn:tt:~l .. l\i1~LifactU!ing .... -.l- ~ ---~~ 

1 333923 Overhead Traveling D-ane, Ho1st and Monorail , 1 250 1 

~~· --~------~~Ell11-cl\i1.?n.LI!actunng . --------~~---------· --1 

333924 lndustnal Truck, Tractor, Trailer and Sacker 1 750 ! 

-···-··l\i1Cl<:!lin_Elryr.,~ufact.LIIl_n_g__ _________ .. ····-----·] .. ··------~------1 -~~~1111!__ -~"'~-Driven Hand T()_ol_ri/!<3_QUfactu_ring [___ _ -~----~§_~ 

,_~:391<: ... _.'l'fEli.<Jing_~d~I.<:JE>ring_E:l:luipn:te1'1LIIi1~Lif§<:tl.ll"illiL __ L ______ J.,250 -~ 

333993 . Pack?Qirl.g_ri/!.?Chill~?lllJf~LI.dllll..~-- ~· ' 500 I 

333994 Industrial Process Purnace and Oven Manufacturing I 500 i 

333995 Ruid Fbwer oflinder ancfActuator Manufacturing I 750 I 

, 333996 RuidFbwer F\JrJ1P?Il<lrv1_ot(lri\II§JlLifact_urinlt __ ~ !_ __________ .. __ _1 .~~Q_J I 333997 S::ale and Balance Manufacturing I 500 1 l·-·····- -·--·-···-··-·-···-" ·-·----, ······- -·~ .... -···- .. --·--· --·~·-------- ~ ""--~~·-·----.. ~,--·-,--~--.. ·---~-,-· 1·-------~----·-----1 

333999 All Other Miscellaneous General Purpose Machinery 1 500 ! 

~---· .. -····-- --·- M<')n_ufa<:tunng_ ----------~L __ _ L__ S:Jbsedor 334-Cbmputer and Ba<:~ronic£'1:()~1Jct Manuf_a<:turi~,-~----

~--~~~~ ~}---~~~~~~~ ~~~~~~~~~~Lirin9 ----·---i ------ i _ _1,2_5Q_j 

1,250 I 

15 
147 

SBR002 with DISTILLER


Insert offset folio 147 here 31211.110

---~-~~-~------~~----~---- ---~-~-------------~: 

Standards in number 

I

. Sze standards 1 

! in millions of i 

[~_l'JAIC~3()~d~~-- ________ J'l61Q31nciLJ§t_ry[)escriptlqrJ_ ___ ~_j _()f__d()l!§r~ _ __El!11pjoyees J 

· 334118 Computer Terminal and Other Computer Peripheral 1 1 000 ! 

, . . EqUipment Manufactunng .. i ' 

[ ___ :3_3:'1:2_!Q__ · TeiElEQ()_nE!_I\[lPar~u~~i:ll1t.lf§c:t_l.lrin_L~~--+---~~- ~5Q J 

' 334220 R:tdio and Television Broadcasting and \Mreless ! 1

.

250 ! 

. Communications Equipment Manufacturing . I 

~3:'1~.§l9 ______ ()t Q.~ _Q:l_r1lf11_UI)i<:§!i()n_s_Eq_!Jier!J~f1_t~_af1Lifa<:l urif1g -··· -~--- 750 

·~---:3..3:'!110 ... f~udi()__<l_~ci'lici!3()_f:i:tt.Jiell1€JI111111_ar1ufa<;~.~.~~:iriL~~-:- ---~ ===~:=:=zso] · 334412 Bare R"inted Orcuit l?oard Manufacturing... · 750 I 

334413 Samioonductor and f€1C1ledDevica Manufacturing 1 ,250 i 

334416 03pacitor, Rlsistor, Coil, Transformer, and Other , 500 ! 

ln9uctor fY1aQufa9u~mg --··-·----------- : Bectronic Connector Manufacturing --·-· r ·- -~-(000 -~ 

334418 R"inted Orcuit Assembly (BectronicAssembly) : 750 1 

_

1 ______ Manufacturin I I 

334419 Other BectronicComponent Manufacturing---·--r~---~-~---7501 

, 334510 Bectromedi_cal and BectrotherapeuticApparatus I 1

,

250 I 

··--·-----------~~~~on, Navigation, G.Jidanca, I 

334511 Aeronautical, and Nautical ~stem and Instrument 1,250 

Manufacturing 

334512 Automatic Environmental Control Manufacturing for , 

Rlsid.,ntial, Commercjal(l(1dAp_plianceUse . .. .. . ... j 

Instruments and Rllated R"oducts Manufacturing for i 

334513 Measuring, Displaying, and Controlling Industrial I 

1 R-ocass Variables ! --·--~-----TotaliZfn9Fiuict-IVleierailc! o)iJritir19oeVic:e----~--T-~--

334514 Manufacturing , 

500 

750 

750 

334515 Instrument Manufacturing for Measuring and Testing 1 750 i 

~---- ··-. -·----· Bectricity and Beet rica! Sg_n§ls ___ ~-~-- j_ --~-~--- _c·~--- ___ J 

334516 Analytical Laboratory Instrument Manufacturing 1 _1 ,000 I 

Irradiation Apparatus Manufacturing 1,000 

334519 Other Measuring and Q:mtrolling Devica 5

oo 

Manufacturing 

334613 __ ,_~;~~::~~~~c.:~~~~:_Rlcording Media -----~-1------~--~:~~- j 

334614 S:lftware and Other R-erecorded Compact Disc, l 1 250 1 

.. .. ... .. .... ........ J:ap~._c~n~~_rcl~yrocjl]c:!_ng __ ~~-~--~__L ________________ ...:_ ___ ~ 

16 
148 

SBR002 with DISTILLER


Insert offset folio 148 here 31211.111

I 8ze standards i 

I S:andards in number ! 

. I in millions of ' 

l-·· f\J/\Ig:>Cbde~---·-----··-·~Nfl,ifSindu;;try_~iption _____ ~~Lofdollar; _em__pLq)'('l€S_.j 

· -~bsect~r:3,35_-:.f3ElC:t!i<:ai_Equipmen~plianoe and Cbmpo_rl.entry1an~fac!~fi.f1[ . _, 

c_ 33511Q ____ E3ectri~l<llllP Bulb and Part Manufactuflng _ ---~-- ·- _ _ _1 ,250 _.; 

335121 ResidentiaiBectricUghting Rxture ry1anufacturing 1 750 · 

335122 Cbmmerdal, Industrial and lnstitutionaiBectric ! 500 

~-- --335129 ___ ~~l?~~~~;~~~*:u~:~ufacturing ---~~-L __ ----- - 500 

335210 8'nall Bectrical Applianoe Manufacturing 1,500 . 

____ :3.:3.Ei?~-- __ .f:louSE!~()i(j_~~if1g_Appl@f1oe ManLJ!act_tJ.fi.f1g_____ _L ____ -···· __ 1,~0()_~ 

335222 Household R:lfrigerator and Home Freezer · 1

,

250 , Manufacturing . ... . . i . ... i 

L_ ___ 3,35_~_tjl).tJ.SEJh.Qid Launcjr)'EqUiPill(;)nt M§lliJfact uriniL~_j_ -----~__1250 __ [ 

__ _l3522!L_ _____ ()t~~JIIl_ajg.rf:lo_l!SE!hq~d lj:lpli~c:Eli\Jl<lnufac:t.tJrir19._J ________ 1, ooo __ i 

335311 R:lwer, Distribution and Epedalty Transformer j 750 1 

I M fact 

r- 335312 - _I\Jl;fbran-J~;erato,rMariufactur:if1g ____ -------t----- - -1J56_: 

---;;;-1

; 3Nitchgear and 3Nitchboard Apparatus ·· · ·· T 

Manufacturing 1,250 

1

___ :335:)!4 ___ R:llay and Industrial Cbntr~~ ManLJ!ac!~ring -----+ 750 

___ 3~911 S:orage~_t(;)r:_yManufacturing_ ______ ! ________ !,?~ 

335912 A'imary BatteryManufacturing 1 1,000 : 

335921 Rber (ptic <:able Manufacturing 1,000 ! 

335929 Other Cbmmunication and EhergyWire 1

,000 

Manufacturing : ~---- 33593f____ OJrrent-<:arriingWiring Devire~Man-ufacturing -- -- :- ····-·---------560--

: 335932 . Noncurrent-<:arryingWiringDeviceManufacturing , 1,000 , 

~ ___ 3:3,~(j1__ ___ (8rbon a.£1(jQ'_aphite f!()(ju(j I\Jl.af1ufacturif1£L __ L ___________ 750 : 

! 335999 All Other MisoellaneousBectricaiB:juipment and ! 500 ; 

! Cbmponent Manufactunng I i 

~I:JSE!<i_()r~- Tran~:po_r@tion_~uipment Man,tJfactlJJ:i.ng"____ ., ..... ---· , 

: _ _: ~~}i~--- ~~l,~~~u~ea~:~r~~~e -Manllfac!IJrfrig-~ - - :- j __ ··· -----~H~~j 336120 . HeavyOlltyTruckManufacturing ! 1,500 

336211 Motor Vehide Ebdy Manufacturing , 1,000 

,,., ·-----~-~~-_I~l:I_9<~T~aile~J'jl_~'!~a9-~!ici9.~ .. -~ ~---~-~-·-··· 12 00Q_ , L---~3621~- I\J1otor_tk:Jme M_<3nuf<l(jyring ....... ____ _ __ i ....... ___ 1~()_, 

· 3~6214 ___ _Ir,avel_}'r1Jil~r_and Q3rnP(;)r_fV1ariU_f_acturif1g ____ ~L-~----J..,OOO J 

17 
149 

SBR002 with DISTILLER


Insert offset folio 149 here 31211.112

·-----~-~~-------~- --SZ€1 

! Sze standards 

I Sandards in number I 

! i in millions of i 

LJ-!AJCSO:ldes ~---~--~~Jg:;lndustry_DEJsc:rigti()n~---~LCJfcJ()11<3fS . ef11plo¥'~l>J 1 

336310 Motor Vehide Garoline Engine and Engine Parts ' 1 000 Manufactunng ' 

Motor Vehide Bectrical and Bectronic Equipment 

Manufacturing 336320 

Motor Vehide Seering and 8.Jspension O:lmponents 

(ex(:€lpl_~l119l Manufacturing_~----- _ . 

336340 MotorVehide Brake~stem Manufacturing··· --·-~r--·-·-·· 

336330 

Motor Vehide Transmission and R:lwer Train Parts 

Manufacturing 336350 

336360 Motor Vehide Slating and Interior Trim 

33637o··· ·--~~~~Fi{a;rvliia!aanpin9- ~~-~~· ~1,ooo-~ 33639o ___ Other -Mc£or-Vehide Paris-Manufacturing~· -~L~-~~- 1~ooo ~ 

336411 Aircraft Manufacturing 1,500 

_3~6412 ~- _Ai.r<:r_ElftEf19if1e and Engir1e;_ ~rt,;; Manufact_uj"ing 

336413 

336414 

336415 

336419 

Other Aircraft Part and Auxiliary Equipment 

Manufacturing7 

Glided Missile and ~ace Vehide Manufacturing 

· Glided Missile and ~ace VehiCle Propulsion Unit 

and A'"opulsion Unit PartsManufacturing 

Other Glided Missile and ~ace Vehide Parts and 

Auxiliary Equipment Manufacturing 

1,250 

1,250 

1,000 

336510 R:lilroad Fbi ling Sock Manufacturing 1,500 

~~~~11 ... ..:E!lifJI3(Jil(jingand ~pairif1~L. , 1,250 , 

336612 ........ 13cl<l!Jlllllcji_n.g_ __ .... _ ................ -~~~r--===~--=-=-~1.ogo ~. 336991 Motorcyde, Bicycle and Parts Manufacturing i ----~~ J..,CJQ_Q_; 

Military Afmorecfveilide, Tank and Tank COmponent I 

Manufacturing . ....... . ; 

[:=_--= 33699~--=- AllOt her TranS!J9it.a!i2115::11Jiflml'lnl_f\:1.<!11\Jf_ac:ilJI"~f19=L 

336992 

L~~- SJ~~-EL 337_=f~iJl!.~T~~--~~~ -~-~~t-~.F~r9~-~~--~ anufact u_~_!_Qg ____ ·-~-·-··-T , .. -~~~' • 337110 Wood Kitchen Olbinet and O:lunter Top i 750 i 

Manufactunng I i ·--·--·-------.--~---~----·-- - --- , __ , __ ,, ______ ------------------l------~----·-------·-·--1 

337121 Upholstered ~u_;;ehold furni_tu_rtl_t\ilClllufa<;tu_rin_g _ L---~--~1_,000 J 

337122 Nonupholstered Wood Household Furniture i 750 · 

Manufacturin I 

'-·~ :-:_~~'[124·---· -:MetaiHOLJ_~()Id Fur~tljrEJ__r\faniJf~LJriili==~L-~. 

18 
150 

SBR002 with DISTILLER


Insert offset folio 150 here 31211.113

i Sze standards i 

1 Sandards in number 1 

• in millions of ! 

L __ _!'ll'lg'l(bde~ NAIC.Sindustry Description i of dollars employees ! .... H0urei10id .. Furniture(exceptWood and~Meta6~~~~--~-~~~~;;~ -, 

337125 Manufacturing I ! 

337127 _ .. .lnst it ut iona.Lf=llr:.niture Manufactur:Ln_g~~ ~--~-J ~ 500 · 

337211 Wood Offioe Furniture Manufacturing .! 1,000 

3372 2 -~-- OJstom 7\rCtii!ectural WoOdwork and Millwork - i --;;--; 

.-~~-----~ ___ Manufac::t.tJE1f1g .. ___ ·-~~~.... .. --~-··· .. ···~-~·-·- ~L~~~~·~-~ ~~~ . 337214 . Offioe Furniture (Exoept Wood) Manufacturing 1 ,000_! ·~~~-

3372 --~·-81owcase, Pci.rtiliol\8lelvin-g:and.L0Cie~r-~ .. ~~~-~ ~~~~ -~-

500 1 

c-- Manufacturmg .. . . .! ....•. ···---

_3~f~jQ===:J0:attre_~_flt1anufactuiTng_=====-=-~ c-- 1,ooo • __ _3~?.~20 __ .. _Biindandg,adef111anufacturj11_g___~-- --·~· ~-··=-=--{ooo-~] 

SJbsector 339- Miscellaneous Manufacturing 

339112 SJrgical and Medical instrument Manufacturing 1,000 

i 339113 8Jrgi(;i31_!ppli<l_noe an<j_::lJppli.<'S_Nii!ltJ!ClC!JJring _ -~~~• ~~---·~-_750 _ , 

! __ ~11i.___~~tal frluip~~t _<3nd ~Eeli.~l\t1.f'r1Lifact.u.rirl_L_~~---~-~~--.. ?.~O~_i 

l__~ 33~15 .. ~~Q211thalmic(Oo_()~SMafjuf§l<:t1Jring... ··~····~-~-~ ~-~1,000_~ · 339116 Dentallaboratories , 500 ; ~ ~ 33991-0 . JeWelry anCislverware Manufact-uring - .. ~----, 500 i 

339920 $orting and Athletic Coods Manufacturing 750 · 

: _ ...... ~~~~ [lc)ll, To~.cJ..<?afrle_fVI?nufacturif19~~---· _., -- -~·--····--····- ---¥~f}l ._ _

339950 

.. ~ Offioe SJppHe_s_ (E;xoept -~€lr) _Manufact_IJ!i~g _ _ _ f--- .... _ . _ -~

500----! 

---·-- ...... _ .. ~gnManuf<l(;t.IJI:if1.1L_~~-----~-----~l ... ~--~-··-· ..... -··· 339991 G:lsket, Packing, and S:laling Devioe Manufacturing 500 

339992 Musical instrument Manufacturing 1,000 

339993 Fastener, Button, Needle and Pin Manufacturing L.. ____ .. _ ... . ..... 25~ 

....... =-j~9994~ .... ~-~Cl_om, &u-shan<Hvfop_f\t1.8n_ufactun:ri:_~ .. _ _i_~---··· _ ~-~ 500 _J • _ 339~~~-~ .. --BLJii.<3~...EltNI.f3n1Jfacturing__ _ ···~·~·~---....... __ _1,()()()_ J 

l .... ~~:3~99 ___ ,.t\11 ()tl'le!_M.L~IIa~~usf\t1a~~fa<;turif)g~ ... ~ .~~; ____ .. ~ __ 500 : 

19 
151 

SBR002 with DISTILLER


Insert offset folio 151 here 31211.114

~lg3Codes ----~--~f\Jil.l_Q31nd!J!ltr)l~iEtion_~-----

Eector -Wholesale ----------~- -~- ===---~----~~-------

(These NAJCSoodesshall not be used to dassify <?overnment acquisitions for supplies. 

They also shall not be used by Federal government oontradorswhen suboontrading 

for the acquisition for supplies. The applicable manufaduring NAICSoode shall be 

used to dassify acquisitions for supplies. A \Mlolesale Trade or F€tail Trade business 

oonoern submitting an offer or a quote on a supply acquisition is categorized as a 

nonmanufad urer and deemed small if it has 500 or fewer employees and meets the 

requirements of 13 a=R121.406.) -~8Jbsector423-=- Mer-cch-a-ntc-:\Ml~olesaierS,t:ll1rable<?OoCfs- ·- · --------

---· -··--- -- ---~-Aut(imobileanCiailerMotor Vehfcie -Merchant - - ~-----~---~~-c 

423110 \Mlolesalers 250 - ---~-~ -·~ ~--~-----~~- -~ ~~~------····· 

Motor Vehide 8Jpplies and New Parts Merchant 

\Mlolesalers 423120 200 

423130 Tire and Tube Merchant \Mlolesalers 200 

--- 423i4o · MotorvehiCieP8rt5-(useci)Merdiant IMlolesalers~-i~~~~--- ---160 -42321~o --- Furni!ureMerchant \Mlofe5alers- - -~---- ·-~;-- -- 1 oo 

------- 42322o~···~!:IOJ!l~ -FUrn~i119 .~Elrcila_n_t_ IM1olf3Sai_ers __ ---==-=-[=--~--~ 1 oo 

423310 Lumber, Rywood, Millwork, and Wood Panel 

Merchant \Mlolesalers --~---·-~~·-··- --~--~-- -····~··- j 

Brick, S:one, and F€1ated Construction Material 

Merchant \Mlolesalers : 

· -R:l<:>fii19~8Ciin9,-andlrisulation Materia(riilercllarli-- :--~ 

\Mlolesalers 

4233~~ Other ConStruction Materiaf MerC:hantWlolesalers 

150 

150 

200 

. ~---~-~ ----AlotograplliC 5:1uipment and 3JppliesMerchanl - ' ... 

423410 \Mlolesalers 200 

423430 

~-- 423440 

423450 

423490 

423510 

Offioe B::tuipment Merchant \Mlolesalers i 200 ! 

- QlmpUterandO::lmputer Peripheral El:iuipment and-y----~-----;~~ 

S:Jftware Merchant \Mlolesalers 

Other Commerdal 5:!uipment Merchant Wholesalers 1 

- --ME:ldicai,-Dental~-and H:>~ital Ei.]uit:lmenland-~- -- ~-·· 

8Jpplies Merchant \Mlolesalers 

Ophthalmic <?oods Merchant \Mlolesalers 

~---6therF>roteSSior1aC6:]Uipmen!and i3.Jpplie5 

Merchant \Mlolesalers 

Metal Servioe Centers and Other Matal Merchant 

\Mlolesalers 

100 

200 

150 

200 

20 
152 

SBR002 with DISTILLER


Insert offset folio 152 here 31211.115

Sze 

Sze standards 

i S:andards in number 

i in millions of 

NAICSCbdes -------~---NAICS lndust ry_~~iet_i()n~~~--J ~ofd_ol!ars _ __E;r11~1()y~~ : 

423520 

423610 

423620 

Cbal and Other Mineral and Ore Merchant 

\1\/holesalers 

Electrical Apparatus and B:juipment, Wiring SJpplies, 

and Related B:juipment Merchant \1\/holesalers 

Household Appliancas, Bed ric Housewares, and 

Cbnsumer Sect ronics Merchant \1\/holesalers . ---------~other BectronicPartsand frluipment MerChant ____ !_ 

423690 \1\/holesalers 

423710 Hardware Merchant \1\/holesalers 

423720 Rumbing and Heating B:juipment and SJpplies 

,_____________ (Hydronics) Merchant \1\/holesalers -- -wai-mAiri=leating and Air-Cbndilioning~Uipmenf---_,_~----~---

423730 and SJpplies Merchant \1\/holesalers 

·--~~~-----~frigeration frluipment andSJpPJies rvierchant 

4237 40 \1\/holesalers 

423810 

423820 

423830 

Construction and Mining (except Oil Well) Machinery 

and B:juipment Merchant \1\/holesalers 

Farm and Garden Machinery and B:juipment 

Merchant \1\/holesalers .,_, ___ -.. -----------"···-"-· - ---- ------~-

Industrial Machinery and B:juipment Merchant 

\1\/holesalers 

----~=--4~~~0_ __ -lndustriaiSJppliesMerchant-1/\Jholesalers ----~-=-~==~ ~rvlce E:st8biiSilment~-uipment and SJI:JP!Tes 423850 Merchant \1\/holesalers 

-- ~-~-~ -Tran~ortation frluipmenCand SJpplies (except 423860 

423940 

423990 

Motor Vehide) Merchant \1\/holesalers 

· il)orfingand~eational <?oodsandSJpplies-~­

Merchant \1\/holesalers 

Toy and Hobby Goods and SJpplies Merchant 

J:Jwelry, Watch, Precious Sane, and Precious Metal 

Merchant \1\/holesalers 

· Other Miscellaneous Durable <?oods Merchant 

\1\/holesalers 

100 

21 
153 

SBR002 with DISTILLER


Insert offset folio 153 here 31211.116

NAICSCbdes NAIC:Sindustry Description . , -SJbOOctOr 424 .:.::Merchant VVho!~esalers:'NOndurable~G;OdS·-----------·-··· 

- . --42411o ·-- ········ F'rintlng and writing Paper MerChant vl.tlo1esaiers-~-- ----··----·---------c·, 

4241~~ 3ationary and Office SJppliesMerd1ani vl.tlolesale-rslndustrial and Personal S,rvice Paper Merchant 

150 

100 ----~----- Accessoriesr.J1e_r<:h_?nt V\ltl_ol~!>ale_rs ~--- :___ _ 424340 Footwear Merchant Wholesalers ! ---~- ~-200l 

·- -~~ff-=-~-~~~;~~-~~MJ~~~~~;1:!~~s--~-=r-==-~~===Is~ : 

Dairy A"odud: (except Dried or canned) Merchant 

\1\/holesalers . 424430 200 i 

---- 4?±HQ___ -· ~~~~ry:acn_d~uitr}"_i§~ct~r<:hanf\101oles;3~fS c----

424450 Cbnfed:ionery Merchant Wholesalers 

424460 Rsh and Solafood Merchant Wholesalers - ---- ------··---·-··· -- ---------~-~- ---~--- ---~·----

424470 Meat and Meat A"odud: Merchant Wholesalers -·-~~- -- ------------------·-· ------------ ---------·-···- -- ·----~-

· ___ _1?.44!3Q_ _ fr~_frl)it_and VegeJ.atJ.Ie Me_r_chant IJVholeS§I~1)~ L __________ --·--····· 

424490 Other Grocery and Related A"odud:s Merchant · 

______ ···-VVhol~l~-----------~- ···--- ___ i 

424510 Grain and Reid Bean Merchant Wholesalers ------~~·-· ------· -----~~--- -·-·--------···--···· 

424520 Uvestock Merchant Wholesalers 

·-----~--Other Farm A-oducCR'liNMaterial Merchant 

424590 Wholesalers 

----- · AasticsMaterialsandsaSicFormsand Slapes 424610 Merchant Wholesalers 

-··-------atiei C:hemical and Allied ProductsMercFianl 

424690 

424710 

424720 

Wholesalers 

· Petroleum BulkS:ationsand Terminals 

Fetroleum and-~troleumfir0ductsMerchant ---

Wholesalers (except Bulk Sat ions and Terminals) 

Beer and Ale Merchant Wholesalers 

22 
154 

SBR002 with DISTILLER


Insert offset folio 154 here 31211.117

·· --sze--, 

standards 

i S:andards in number 

i in millions of 

NAICSO::ldes NAICSindustry Description l of dollars . employees ; 

. .... ~;~~;0 ·wne and Distilled Alcoholic severageMerchant ~~·------~-~~---;;--

. Vllholesalers 

~±910 __ Farm~pplies Me_r-cil§r1{\j1Jir()1".~~-~- ......... ___ _ 

424920 Book, Periodical, and Newspaper Merchant 

Vllholesalers 

424930 Rower, NurOOClaock, anmllori~pplie[J 

Merchant Vl/holesalers 100 

424940 · Tobacoo and Tobacoo Product Merchant Vllholesalers ' 250 

· ---424950=~- _F'cllrit. Yar~isl1, <JnSJ ~pp~e~i\11E;FCharir~l.)leSalers -·-- . ....... _ -156- i 

424990 Other Miscellaneous Nondurable Coods Merchant 100 i 

[___~b$El~~j25- ;~:~:~EJ<:I_r<Jn_it;_tv1<3rkE;l~§r1~i.~~nt san~ Broker~ _ _ . _ _ ____ _, 

; 425110 BusinesstoBusinessBectronicMarkets : .. _1()0 ___ j 

_____ 4?~126 Vl/holesalerr?<J~~A9Eints-:§n~}lr-O_kers~~~. ~. ~ .. ~. __ r==-----~~~1_oo__: 

Eedor44-45-Retai1Trade , ,-~----·~(These NAicirodeS-Sh-811not be used tO da$itYC?OVefnm8r1t -OCquisitionstOr supplies. 

They also shall not be used by Federal government contractors when subcontracting 

for the acquisition for supplies The applicable manufacturing NAICScode shall be 

used to dassify acquisitions for supplies. A Vllholesale Tra::Je or Fe! ail Tra::Je business 

concern submitting an offer or a quote on a supply acquisition is categorized as a 

non manufacturer and deemed small if it has 500 or fewer employees and meets the 

_ .. , 

i 1 requirementsof13a=R121.406.) 

, .... aibsector441-=--!Vfo!orvei1iCI-eand Parts"i:5ealers -- ---~----- --·· ---··-··--· ------·-·1 

441 110 New Car Dealers 200 

441120 UsedCarDealers $25.0 

441210 R3creationaJ Vehide .. ~, .. ~--···~·-- -~~2.~ ·~· .. --

441222 Boat Dealers $32.5 .-~~~~ .... 

441228 Motorcyde, A Til, and All Other Motor Vehide ; $32_

5 Dealers • 

,--~~~'!'!Ii1o-_.:=_P\tiliiill9_~y~Pa_r-i~§;,_Cf~~ss;;ri~~gor~s~_=:==~~~t --$1§~6 ~=~~-

-s:;~0~2-:..:~~~i~e~~<TH0me Furni5hingsS:ore5_____ L~-~15()_ · 

442110 Furniture S:ores . ! $20.5 

L ___ 44221() __ ~£1.9()£_~vE;rif)g§to!es_____ $7.5 

i 442291 Window Treatment 8:ores i $7.5 . :-- 4422gg----~lgb~llim_E!I;;rn~f6:"is S:o~"~-~--· -- --,~-$2o-:-5-___ -_ --... -... _-__ -__ -__ 1 

23 
155 

SBR002 with DISTILLER


Insert offset folio 155 here 31211.118

Sze 

i Sandards in number 

1 in millions of 

1 

___ NAICSCbdes_ ~g3_1!1clustryi::X:lsc;ription ________ _L(lf_clolla_t:~ __ E;I11PIO'{ees_j 

SJbsector 443-Bectronicsand Appliance Sores 

-----~-4:'1]141 =_:~~~()~~:.AP1'n ~q,~_<)res:-- ----------- -$1T6 

443142 BectronicsSores --· $32.5 ____ , 

SJbsector 444- Building Material and Garden Equipment and SJpplies Dealers 

444110 HomeCenters , $38.5 , --44412o ---Paint anclwallpaper sores- ------------~-$27.5 . ' ~~~"~~444f30~~~~Hardware3'ores-~~~ ~--- ·--: -~-$i5_,_~~-~~~ 

· ---444190-- OtherBUildiilg Material DealerS____ -c··~$2o-:5 ___ --------c 

, 444210 Outdoor Fbwer Equipment Sores $7.5 

[ __ 444220 ____ Nurser_l_Clnd G:lrder!_~nte£~--- ___ ... ______ . JJLQ__ __ _ · -~_bsector.¥Ji.~fo(ldG!m:Jf3ev~r<JgE! ~()!'~S--··---·· ·--·--

SJpermarketsand Other Qocery (except 

445291 Baked <?oods Sores 

, _____ ±1_~292 ____ Con.fect_19n_ery and Nut Sores 

i ____ ±f5£)(l_ ___ _f\l_l_()ther ~ecialty Food,...::S::.:o:.:..re:::s:__ __ 

• ___ 44:531 0 ____ ~r ,_V'Jine ai1(']J:iqLIO!~OrEl$ ___ _ 

SJbsector 446-Health and Personal Care Sores 

446110 A1armaciesand Drug Sores 

____£jii§_1_2_Q___~~etics, !3El?.ll!Y§J22'iEl5. andf'E)rf_IJJ11§~.0!es 

446130 Optical <?oods Sores 

446191 R:loCI(Realth)8JpPfement Sores __ _ 

446199-· Al1atierHei:li!ll ari<JR:!r;Dnalcareaores 

SJbsector 447 -Gasoline Sat ions 

$27.5 

. $27.5 l-- $20.5 ...... ·+·~ 1-- $1~0___ -

___ l __ $75. 

447110 Gasoline 3ationswith Cbnvenience Sores $29.5 

447190 Other Gasoline Sat ions . $15.0 . 

~~t~~ <14!l=~~~·iaa;f&~t~!~~sso_ries~r:es -----~----------] 

448120 Women'llillot[]ilg 9:oreGJ $27.5 

448130 ~·UlniiihfantUJ::lot[]ilg S:oreCD i $32.5 

~-~§J1Q ___ Family_g~~ing ~~~----~------ ----·····-·J· $38.5 ,--·--~··---·,---~ 44815Q . c:J<:JlbingJ\o:;l3~_rie_s~or_es _ . j_ -$1s:-if--

448190 ____ ()t_h§£.c:Jothing~orEl5. _______ ··---~~j~6L_ ··-~----· 

24 
156 

SBR002 with DISTILLER


Insert offset folio 156 here 31211.119

NewsDealers and Newsstands 

~_:3;b~grj52~(~neraiJJ1erd1ar1CiJs6 a()res. ~----- -~_, --------~-----i 

452111 Department S:ores (except Dis:::ount Department ' $

32.

5 i 

: ................... ·······-~--~--~ 0!~)--~---~-- -~--~--~---~····-------1---~··----·~·-~--~----·······--·~ _ _J 

452112 _[)i&X)unt[)epar!rn!'!nt8:(xes I $29.5 • 

452910 Warehouse Oubsand 8Jperstores ·· ·~-- T $29.5 i __ :1:§2}i~Q ___ ~pjfa__bei~il~ral~~~ti~r1tii$6]:orei_ l. _ s??5 . _____ _, 8Jbsector 453-MiscellaneousS:ore R:ltailers 

453110 

25 
157 

SBR002 with DISTILLER


Insert offset folio 157 here 31211.120

Sze standards 

I S:andards in number 

I in millions of 

l_~f\l.l\le§_QJ_cje~ _ ~ ~ ... f\lt(\lq:ll ndu~ry [)escri pti()n ........... ~- __ j_()f_cjoll.ar:.s..... elilflL()YEl<lS ! 

, ~ ~ . . 83ctor 48 49- Transportation and Warehousing . · ; SJbsector481-Airl'ran$portafion~~~~~- . ~ .. ~-. -~~·---·-·--: 

~--481111~ -~&:he<fule<TR3sseri9er Air~fran~ortation-·-- ·~~--~- ~~~-~Hoo~i 

481112 S::heduled Freight Air Tran~ortation 1,500 I 

1 481211 Nonscheduled 01artered Passenger Air 1

,

500 : . . .... -··--- Tr1:1r1se.Clr!§ti()fl_ ___ ... . . ~ ~- __ ···~··- ·~~ __ 1 

481212 Nonscheduled 01artered Freight Air Tran~ortation 1,500 l 4812!~9 ~ _ __()t_h_er N()f1~-~LJIE)(j .PJ r Tran~.Q.rtel!i()n .~! 5 0----~-~~ 

, SJbsector 482 .~.Rail Tran~ortation ········-----~-· ~ · -·4ii2111-· ·· Lfne-Hai.JIR3ilro8ds- -~ 1,5oo 

482112 S10r1DneRailroads~--~--- ······-~,--~---~~5oo·-, 

SJbsector 483-Water Tran~ortation 

483111 Deep S:la Freight Tran~ortation 500 

-~-4_!3_3!1.L.._~[)eeP. ~a Pa..ssel'lfl6r_Tra_nsp_c>_r(§liof1 1,500 1 

.... ·-4.~_:3113_ ~---():)~_211 andQ:~Cl!l.13!<~s.Fr~ightTranspor(<!ion ·----~·-·--- =:=-?so-' ······~~~~~~ ... ~=~:~de~:9~~~~S:rt~~_rCJ_n_sp~It.atJ()r1 . .. ~~g-=-: 483212 Inland Water Passenger Tran~ortation 500 

SJbsector 484-Truck Tran~ortation 

i ..... 484110 ... · ... Ceneral Freight Trucking, Local . . . .. . i $275 l ! ____ 1.,84121 _....., Gen~'fai Freig_tlt Tr~jf19.._LDn~:[listance: fr~cl<J(,_iJLJ=$27.§ ---~~--~ 

484122 General Freight Trucking, long-Distance, Less Than $

27.

5 Truckload 

·~ --~484210~~=~··:=-~~f~~~~~l~-f36-~~(!~~~?.~.~}~1~t?Yj.~g. - ,. -----+-==~~?!.? ___ ,.~--···~ ... ·--·····! 

484220 $27.5 ~ecialized Freight (except Used G:xlds) Trucking, 

local~~~-c· · · ······-··-·····-~ecialized Freight (ext:ept Dsecfcoods) Tru~,--- ·-c·~-

484230 $27.5 long-Distance 

9Jbsector 485-Transit and Qound Passenger Tran~ortation 

··-··-:~~~~~---- ~~~~~~~@~=~iems~ =~==:--·· ··· ~ ··r~.*~~"~ ~~-------! 

485113 &lsandOther MotorVehide Transit Sfstems $15.0 

485119 Other Urban Transit Sfstems $15.0 

485210 Interurban and Rlral &ls Tran~ortation i $15.0 : , __ 48531~o-~ ·:r<:!Xi·s;;:;.;;C6·· - · · ······ ········ · ~ · ~·-·:s1so--~~----, 

~·4a-532a-·····~· -··-umousineS3rvice ---------;---$-15~0- ; ·--~48541o -···&hoolariCianr)loyeesusfran~orta!Ton-·---:~~$15:0-c---·-- ·-~, 

26 
158 

SBR002 with DISTILLER


Insert offset folio 158 here 31211.121

1 Sze 

i 3:andards 

I in millions 

-~Q3Q:ldes_--~--- ----- NAIC:SindLI_~ty~scrJp_lion-------- -l_()f_ dol!~~-~"mpl()~j 

485510 Glarter Bus Industry : $15.0 · r ~- 485991--~- ~eciafNeeastr=an-s;;or!afioo~-~- -- -----:fls.o~-- · - --I 1 --------·AIIOtherTransit-and&oundPassenger I - --- ·- - I 

485999 $15.0 I 

1_____ Transportation ·-----·-----~~~ __ - ·-~-·--~1 

. 9Jbsector 486- Pipeline Transportation ~~-·-~··486110~-~APeline Tffin~ortatiOn of oude Oil - -··-·~----~ ~-·-- ·-· 1,500 

486210 Apeline Transportation of Natural Gas $27.5 

Apeline Transportation of Fefined Petroleum . j 

A"oducts 1 

t 

486910 1,500 

. 486990 All Other Apeline Transportation 1 $37.5 

~---C1Jbsect_(lr 48i'::~ni_<:Cl_nd_ S_ght~ng T.r_<l!1Sflqr\..§(l_o-n_~-----· -- _ ---· .. 4 

.-4871 _1_0_. ---~lli(: an~-~-g~IS€Jeing I~allsp()rt<lti()ll,.lclnci __ -· L __ F5 - --I 

487210 . ___ :.~~ni.~9~~ ~.9~!.~i~f!T!.~~~.~~~-YY~L~--l ________ $1~~ ··-·-··-·---·-·-------·- -·l 

487990 S:enicand Sghtseeing Transportation, Other [ $7.5 

9Jbsector 488- 9Jpport Activities for Transportation 

488111 AirTrafficControl $32.5 

• 488119 Other Airport ~erations : $32.5 

l-----488190 Other 9Jpport Activities for Air TransportcitTo_n _____ $32.5---~- -··-

~---:-~88216~-~--:.cur!)O~]:;:l;yili_esfor~il Tr~sport<ltion .. , _ $15.o 

488310 Fbrt and Harbor ~rations $38.5 

- 188320 ... _:_r.A<Jijn,ElQlr9() f:!an~ling_ ... --- -- i ___ _$:3_8,~ ---·~-·-···-·· 

488330 Navigational Eervioes to Slipping i $38.5 

·--- 48839o · - aheraif)f)o-rtAC:tivitiesforwciterrrari5Portation ·· ·T ·- $385 -· 

[~.~ ·······4a-~16··-··-·-- Mot~r.veh.i~~EWI·~~~=~==~--~==-~·===-~=·t:·-··--···s~[s ==== 

488490 Other 9Jpport Activities for R:Jad Transportation i $7.5 

488510 FreightTransportation Arrangement 10 . . j $15.010 

Non-Vessel Owning Common Olrriers and 1-busehold 1 

B<oept • G:lods Forwarders I 

488991 Pecking and Qating 1 

$27.5 

$27.5 

$7.5 1 

488999 All Other 9Jpport Activities for Transportation 

:- .9J~~f§j91~_§~c~~: ---~--- ---------==~r-- .$.f?_=--=-== 

9Jbsect or 492 -Couriers and Messengers 

492110 Cburiers and Express Delivery Eervioes 1,500 

492210 Local Messengers and Local Delivery $27.5 

27 
159 

SBR002 with DISTILLER


Insert offset folio 159 here 31211.122

Sze 

Sze standards 

Standards in number 

' in millions of 

NAICSCbdes. ... .... _I\IP,I9=llndust.r.y [)escription ________ ()fdolla!~. €lrnJlloy""s i 8J.~...c:t.CJr4~3:::- Wareh_().tJ...si_!1_9_?nd _i:i()r<>_gEJ_ . 

, ___ .i9_3!1_0_ ...J:3e..r1€lf<li_W._9~e.b.()U_si~gaf1_d3orage .. ·-----~~~~=~~---- -$2IL_·---- 493120 R:lfrigerated Warehousing and S:orage $27.5 

493130 Farm A"oduct Warehousing and S:orage $27.5 

493190 ... Oh!Jryvaret1o_u_sirlg_and 8:~---·-~-- $27.5 ______ , 

Sector -Information 

l ..... SJ.bseci. or 5J1-_~blist1ingJrl_d LJ_st l"i es (E;)((;(9[l! 1~1 ernet) .... ·---· ·--··· -~ 

511110 Newspaper R.Jblishers 1,000 

511120 Periodical R.Jblishers 1,000 

511130 Ebok R.Jblishers 1,000 

51114o-==[)ir~ili:i~6if~ailLiiiiQ~~siiS!lers~~=~-=~=~=~~---{2so 

511191 C:.eetingCard R.Jblishers ~fsoo51119~)··--Aiiah·en~:i~l~ers······ -~~=~=-=·=.=sao~ 

511210 S:Jftware R.Jblishers $38.5 

, 8Jbsector 512- Motion Picture and S:Jund R:loording Industries 

: 512110 ··Motion Picture and Video A"oduction $32.5 

===~1~1~Q==·-Motion Rcturean<f V!deoDi~rli:llliion ... ~~~,9 .... 512131 .. J'Il()tionB(;(ureTh~a!~r~J~~~el§ive-lns} ____ ,_ $38.5 

512132 Drive-In Motion Picture Theaters ··' $7:5. , . ·-··----·· 512191 - ft;ieproduction and Ot-herPO~prOduction-~rvicas -·r---$320 ______ , 

512199 Oher Motion Picture and Video Industries , $20.5 --·-5122_1_0~----R3COr·crR-ocruct!On-- ----~-~-------~-----~-- -~ -$7~5----=~- ------~ 

, ____ 512220- ·-Integrat-ed R300rCff'r:C)Ciuctiont5~ibu\Ton. ···· ·--r--·-· 

' --- 51223o -·r;,tfuSicRJblishers --------· ··· · ·· · 

512240 S:Jund R:loordingSudios 

512290 Oher S:Jund R:loording Industries 

8Jbsector 515- Broadcasting (excapt Internet) 

$7.5 

$110 

····· s15111············· R3dioi\le!worils - ·· ··----· · · · 1 ··s32.5 

1,250 : ?so-· 

··-··515.f12-· ~R3dio3ations ··· T $38.5 i 

-s1s12o ____ reievison&oad~i;:;g · --·-· --·-----;·--$385-----~ 

515210 Cable and Oher 8Jbscription A"ogramming $38.5 

, ___ 8Jbsector_517- Teleco~rnuni_a:lti.CJns~~·~ ~~--·----··-·-~····-·--·------·· 517110 Wired Telecommunications Carriers i 1,500 i "" ·" wreleSs~teTecammunicatiOnS"C.1ir-rlers--(exce~""---------~~--·-~----~~~ 

517210 S:ltellite) 1,500 

51.7416 ·· - 83ielliiereleCOmmliniGa\i()ns~~===~=~--·---=:::=·s3:z:s·" ·~---~ 

28 
160 

SBR002 with DISTILLER


Insert offset folio 160 here 31211.123

Sze 

Sze standards ! 

! Sandards in number 

i in millions of 

NAIC30:Jdes . f\IAIC::Sif1dustr1' ~;;cri[Jti()f1. . ......... Jof_dollars ernployees 

1 517911 Telecommunications R:lsellers ' ------· 1,§29 .. ~---sf7919·---~,c:iiiE!r.'feloo:)mmunicationj ..... ·-·--· .r $32.5 

8Jbsector 518 -:Data Processing, Hosting, and R:JiatedServices 

518210 Data Processing, Hosting, and R:llated S:lrvices $32.5 

8Jbsector 519-0ther Information S:lrvices 5f911o News~ndicates.- ·· ········· -----~.~. ,_,- $2'i:5·-··---.. ~. 

519120 · Oi:lrailesandArchives ------· -· ·T--$15.0~·-----1 

522190 

522210 

·--·····-··-·.--f------·-·--......, 

Internet Publishing and Broadcasting and Web 1 ,OOO 

$550 

O:Jmmercial Banking8 

S:lvings lnstitutions8 

Other Depository Qedit lntermediation8 

Qedit Card lssuing8 

.......... ,, __ ,,., ................ - ......... ------f-·=='.-.--.. ···· 

.. 83i_Elsfinancjng 

O:Jnsumer Lend in 

R:Jal Estate Qedit 

29 
161 

SBR002 with DISTILLER


Insert offset folio 161 here 31211.124

~__NAICSQ:>c!~-----~~j'JAl_<:::)li1c!l1st_IYQEl~iption 

· SJbsector 523- Financial Investments and R31ated Activities 

--~~-523110 --lnvestme~t8anJ<mg~andS:lcuritiesDe8fin9-- -- : $38.5 ~52312o~ · -- SJcurities Brokerage-~--······ - - · ··· ··- -----· ---$38.5~ ----

523130 CommodityO:mtractsDealing $38.5 

---~_!5~3l40 ____ Q:lf1l_fl.l.Ociity C'.cllltra::t_s Br()k€Jr~ $~~- ~----·· _, 

c__ _ 523210~---~curit i€JS '!Jc:J_{):)f1l_f110dity Exchange~ _ j38.5 

__ 5239_1Q__ Miscellaneo_llslntermEJcii~_i()n__ ______ __13_13~ 

523920 Fbrtfolio Management $38.5 

523930 Investment Advioe $38.5 

----~-~~~~1. _lj-_LJ!Jt_,_Fiduci<Jry_a_ncjQJ~()<Jy_~iviti~--

523999 Miscellaneous Financial Investment Activities 

524292 

524298 

SJbsector 525 -Funds, Trusts and Other Financial Vehicles 

525110 R:msion Funds $32.5 

5~5120 __ _tlealth and_\1\/elfa_re F~nds -----+ $32.5 

525190 Other Insurance Funds i $.-::32-3-_-=-5--

. -~=--~ 52-5~lQ_~===~ _____9:Jen-S,d lnv~ment _Fund~-:-_=:::_$32_5~::_=-_, _____ 525920 Trusts, Estates, and Agency A=unts $32 5 -525996-~-0ther Financial veiliCies-- -~~-- ---~~2:s-·~---~---, 

53- ~al EState and ~ntal 

. SJbsector 531 -Real Estate 

~ =-~~1_116··---~L8SS()t's-QiR3siCienti1l~!3tJildif19S_ab_dQNellif1gs9 =-:-.. - $2!s"_::_=- -' 

531120 Lessors of Nonresidential Buildings(exoept $

27_59 

30 
162 

SBR002 with DISTILLER


Insert offset folio 162 here 31211.125

Sze 

• 3andards 

i in millions 

·· ·sze···-, 

standards 

in number 

of 

~-· t<JII~~~e§ - t.e~rsof a:'~f-~~;~~~~~-- , of d~~jr~9 .efT1pi(Jy~sJ ........ ···---·-·· .......... - --. - - ·····~ ---··---~·---·~-10-~---···· ., - -. .. . . lO' .. ···---·! 

5~1210. _ _()ffi.~§_Of Feal t:ist5J!€l69Eln!sandf3rpkers..... . .. --~ $7.5 

531311 ~dential Ffoperty Managers $7.5 

531312 Nonresidential Ffoperty Managers i $75 

. 531320 _ ()ffi~.§.()f_ Feal Est~at€l~IJ.~ai!Jer~ . . --~ _! _ $7 5 -~- __ : 

~-SJ~:~532~~;t~l ~~~v~;~~;~i~~~at.e~~----. -~===-~~~~=:__~==·=: 532111 Passenger car R:mtal 

532112 Passenger03rleasing 

Truck, Utility Trailer, and R\1 (Fecreational Vehicle) 

!:ental and Leasing 532120 

$38.5 

$38.5 

$38.5 

532210 Consumer Beclronics and Appliances !:ental $38.5 

532220 Formal Wear and Co&ume !:ental . $20.5 532230 · \tldOO.rape-andO&:~ntal---~~---~---~-- ----------~----$275---~ 

532291 · · HOme HeaitflEquipment !:ental·-·- ~==~--.==~B2 5=-==--~- " ___ 532292 ·--- P8creationafC?oodsFental________ $7.5 

·· · 532299 --·AiiCitier-consumer Goods Fental- ---- $75 · ·--- -

532310 · General !:ental Centers $7.5 

532411 · Commercial Air, Rlil, and Water Transportation 

Equipment !:ental and Leasing $32.5 

Construction, Mining and Fore&ry Machinery and $

32.

5 

~--,"'~""~-·--'~?''fJ'''""' Fentala~dd~-~ent FentalanCil.eaSing~T' $32.5 

Other Commercial and lndu&rial Machinery and ! $32.5 Equipment !:ental and Leasing i ------" 

8Jbsecl or 533-Lesrors of Nor1finanaallnlangible Assets (except COpyrighted Works) 

532490 

533110 Lessors of NonfinanciallntangibleAssets(except · $

38.

5 i Copyrighted Works) , . 

l.--~=~~=~-=-§:!Ci~r=----~E~I~:;si()nai .. ~en!ifi CiJfi<JT e<f~I~'§Elrviaj~----~-~~· -~! 8Jbseclor 541 - Ffofessional, S:::ientific and Technical Services 

541110 Offices of Lawyers $11.0 

--~ 54

54

1

1

1

1

-9

9

-

9

1 =-:=J:ill~A!Jj.r.~~<lnd'&1ttlerJ1El.nt brfi<::6s·-~=-.. -. --.. ··.=-.-.~. ~=s$ .. =

1

1.-.. 1···'-.oo.·.·.·.-==~=1 jlJI()herleg<ll~_r:\lices ---~ ....... _._.. . ........ . 

541211 Offices of certified R.lblicA=untants $20.5 

541213 Tax Freparation &lrvires · · - - $2o.5- -----~~. 

541214 Payroll Services $20.5 

____ §o4:1~~--- .-Ot~.erA_(;(;()unlil1_9~rvlCE!S ... L.. $20.5 

31 
163 

SBR002 with DISTILLER


Insert offset folio 163 here 31211.126

Sze standards 

! Standards in number 

1 in millions of I 

f\j,l\lg3())_d~~~-------~g:>J_n_dustrrr:Jescription_____ i of dollars employees ! 

541310 Architectural S:lrvices ~=~i1 -~-$$} -=====i _ !ii132Q_=~ri~~~f>.rcili}~_lJ~~fi§rvice~-~-~-- . 

541330 Engineering S;rvices - -r -$15~o 

& t Military and Aerospace Eqwpment and Military $

3

8.5 

cep I Weapons _ --i - Q;nlr8ctsand&bcontrais-for-B19ir1eerin9 i:brvires-r 1 

Except, Awarded Under the National Energy Policy Act of ! $38.5 i 

I 1992 I t 

~~ ~---·~~·~-~~---~~-~~--·--·~---~-~--~-----~-----1--~-~---~--~---~·~--.l 

i Except, Marine Engineering and Naval Architecture I $38.5 i :=_-541340' ~--Drafting S:lrvices -----~---~l=--$7,_5 ______ __, 

~~ _ -~1_350 ___ !3y~.cJill.9 lnsp~~on_ S:lrvi~--------- _ L __ Ec!S__ --------1 

i 541360 Geophysicai8Jrveyingand MappingS:lrvices I $15.0 I 

I 541370 8Jrveyingand Mapping(except Geophysical) $

15_

0 I ~~ i , ~ -~~~--~---+---~~--~~ ---: ~-541380-- restinglaborafories________ ~ $15.o 

541410 . Interior Design S:lrvi~ $7.5 

541420 Industrial Design S:lrvi~ $7.5 

541430 Graphic Design S;rvi~ $7.5 --~-149() =~==~9t5~§:>e<;i~li~El<J})il~9n-=-~r:0ces ________ --+ -$7_5- -· ------

541511 OJstom Cbmputer Programming S:lrvi~ $27.5 

l_. ___ ~~;~~--~· ~;;~:;~~tl:S~~;~~;rvi~ ________ L;~;;__ _________ 1 

541519 Other Cbmputer Felated S:lrvices ! $27.5 : r----·-&re:pc-Tntorma!ionTechnol09YvafUeAddedR:!seliers1"--i------------15QI"l 

I 541611 -Administrative-Managemeni-ancfGeneral - ... r $15.0 

________ tl/l<lr1§9.ement CbnsuJt~rvice~ _ I . . l__ J54J.6.1L __ Hurn~ Fesourt:;e~())rl!:lUiting_S:lrvi_t:;eS. _______ j_ __ $15Q_ ________ I : _______ §'11§1:3__ __M_9r_ket ing_Qlrlsult ing S:lrvjt:Els_ _________ i _ ___!15 0 _ . I 

541614 Process: Rlysical Distribution and Logistics $15_

0 Con5lJilmg~~lces_ __ ___ _ .. ····- _J_ ... ______ ..... --i 

541618 ~~---·--·--·- ---

541620 

541690 

541711 

9tber ll!i(!llla.gt!f11~nL():lnl)IJJtillg~r\/~~ .

1 

__ $15.0 

Environmental ConsultingS;rvi~. $15.0 

~=r~~~~f~~~~~;t~~~;~~;~~~~-\ces 1 --$~~~~~_1_,0QQ11_J 

32 
164 

SBR002 with DISTILLER


Insert offset folio 164 here 31211.127

Sze 

S:andards in number 

in millions of . 

NAICSO::Jdes NAICSindustry Description ---~----- ~-----~arch 8ildDeVElopn100tir1 the FhYSiGa(-· d()jlars ___ elllployeE!~j 

541712 Engineering, and UfeSjences(except 

Biotechnology)11 

... -~~······-······ Aircraft, Alrcrattfugine and Engine Parts 

Other Aircraft Parts and Auxiliary B:Juipment 

G.lided Missiles and ~ace Vehides, Their Propulsion 

Except, Units and Propulsion Parts 

Rosearch and Development in the S::lcial Sjences 

and Humanities 541720 

541810 AdvertisingAgencies10 

541820 AJblic F€1ationsAgencies 

541<l.30~~._f\11.edia~Blly~n[f\~nci€)~ ..... . 

541840 Mediaf€presentatives 

~Is5o -~=~=9J!~9Q~J\dv~:~i~~ti _~-~····- 541860 Direct Mail Advertising 

541870 Advertising Material Distribution Slrvices 

541890 Other Slrvices f€1ated to Advertising 

541910 Marketing ~arch and AJblic Q::>inion, .. ,.:·:'"'"'···· 

~§41~2-1". A1QIOi8Pblau.<Jio~-RJr\r§iC - - · 

541922 O::Jmmercial Alotography 

541930 Translation and Interpretation Slrvices 

541940 \felerirJClf"y§'l_.r.vi~.. . _ .. 

541990 All Other Professional, S::ientific and Technical 

Slrvices 

55 

$20.5 

8Jbsector 561 ::-Administrative and 8Jpport Slrvices --~~~··~~··~ 

561f1o·- · aticeAciminEtr8tive§rvfce5--·-- , $7.5 

561210 -·f'aeili!iesSJppOr\SirviC:e;F·····-·· ~~~~ ·--r~$38512--

561311 Employment Racement Agencies 1 $27.5 

1,00011 ' 

1,250 

561312 Executive Slarch Slrvices I $27.5 

__ 513i~2.(=_.:==Ieini:Joraryr:ielp §rvices- . _ ·~ -~ ~===-~ ~$275-~--~--

33 
165 

SBR002 with DISTILLER


Insert offset folio 165 here 31211.128

.... ~lC:S_Codes.___ .... --~.!_~lr1_dij§try~sc:r.ipti()f1 .. 

, 561330 Frofessional Employer CXganiza!ions 

·· ··-56141o·-__.· D.)~tr1~r1f!'fet>a@tiol1~~i~= ==---~··· 561421 Telephone Answering Slrvices 

561422 Telemarketing Bureaus and Oher contact Centers 

561431 Private Mail Centers 

··· ·aherBUsiness.c:.SJ=rv~.=.·ce~Ce~nt-er-s(induding Copy 561439 Slops) 

L~ -~§§~!-~_Q~·-----~lL~9I!__~~Q_~~-----··· 561450 Qedit &lreaus . ·······-···-····---------

561491 ~.9ssessiO.f1 Slryl~S.. ... 

561492 Court Feporting and S:enotype Slrvices 

561499 All Oher Business 8Jpport Slrvices 

561510 Travel Agent:ies10 

561520--·-·rour Q:Jerators 10 

i _ __..=56159.1. .. Qmvent iof1_<Jnd V!~\_ors E3i.l£eaLis ___ ·-·-

561599 All Oher Travel Arrangement and A3servation 

. Slrvices · ·-- --~----fnvesiTg8tion Slrvices 

- - -~1-iiY::@§rdsar)dP<Jtror~rvi~s. ·····----~-- r--.:c=:c.::.. ______ _ 

Armored Car Slrvices 

$5.5 

Oher Slrvicesto Buildings and Dvvellings . $7.5 

····· -~Ci<~i~9a.n~~i:':ib~in5J~r0ces ~~.~----c==.$11~_- ···--~ 

'·-- .. Convention and Trade Slow Qganizers i $11.0 5619oc!·-·-AIT6i!ler8JP'P0rt 83rvioos ---·------ .. .,-$11:0··---·-: 

' ~8.lbsector562- waSi€i'Mam39emer1t.imCIA:;mediatTOn.§rvTces --··--····---··-·-- ·- ___ , 

562111 S::llid Wa&e Collection 

562112 Hazardous Waste Collection ·· 562119-~ cSiilerlivasteC:Oilecti-on~····--·- ··- ···-------·--·-·----·--- ·-·-·-·-·'---c7::.c.::----·····--···· ·-i , 562211 Hazardous Waste Treatment and Disposal ... -562212 ..... ..fuliciWastelarldfJII . ...... . ....................... . 

562213 S::llid Wa&e Combustors and InCinerators 

34 
166 

SBR002 with DISTILLER


Insert offset folio 166 here 31211.129

8ze 

8ze standards 

i 3andards in number 

[ in millions of 

NAIC§Ql_des__ f\J,l\~Q3!f1c!u!;(ry~l3(;ripti()n~~~-- L()f do_ll_ar-~~ ~r11J>I(l)i~~ i 

562219 Other Nonhazardous Waste Treatment and Disposal · $38.5 · 562910 , Ritledi8tk)r1 E'ei-VI"OOS ,.- .. -. " ___ , -------- -,.-----------------------~-- ---$20~5~- -- --~------ --~ 

-- -B<c;epi,--8lvironmen!,iR3mediation s,rViC:es14 - -----·· ---~ --- -75of4: 

562920 Materials R=covery Facilities $20.5 

·-----::-:e::c.c:c=···-.. ·-- ~ptic Tank and Rllated ~rvioes $7.5 

A1Tc5t-r1er-~isc;elli3n€lQ~sjN~eJ0§n~e_llt~r\/i<;<;~L_- $7.5 

S:lctor 61 

611110 Bementary and Saocndary S:hools $11.0 

. 611210 _,_!lf1Lor~llege~ _ ___ _ _ ---1 $20.5 . ·- --611316 Colleges, UntverSitresand_A:_(l~SSI()f1a18:h()CIS --$27.~5~~--------

611410 Business and ~etariaiS:hools : $7~5---

~ -~ 61_142:0- ·· =~rne.U1~Ji:§ining..:==--=--=--=~·----~===---~::-I1T§ __ :-

611430 Professional and Management Development Training: $11.0 

611511 CoSITiet olo9)1 and Barber S:hool s $7.5 

611512 RightTraini[)g_ -··· _____ _ .. _____ , __ $_2?§_~----

611513 _ ApprE![)li~~ifl!!Eiif1if19 $7.5 •~ -~11519 Other Technical and Trade S:hools $15.-o---------

_ _f:x__c;ept, _ _Eb_():)rj)~c:en_t__er~16 _ --·-$3S.S1

C . 

611610 Fine ArtsS:hools -------~--- ----------$7.5 ______ ---

61!620 __ Ep()rtsand_~e<Jti()_n_l_n§\_rlj(j!on ____ ~ ·····---- ~75 

611630 Language S:h()()IS . __ _____ _ __ -~--------- $11&_ __ ~-----

611691 Ex~ Prepara!ionE!n_d}"Ut()ring $7.5 

611692 Automobile Driving S:hools -$75 

611699 All Other MisoellaneousS:hoolsand Instruction $11.0 

611710 6::iucationai8Jpport ~rvioes $15.0 

S:lctor 62 Health Qlre and ------------- , ____ - ----·-

8Jbsector 621 -Ambulatory Health 03re ~rvioes 

·- ··- - ---- ~atioesofR1ySicians(exoept Menta!HeaJ!Il ~-- -, 621111 $110 • ~ecialists) 

• ____ 6?111l_ ___ ()f~<;<;~of_~y~c:i_af1s,Mel1tal_~?lttl_§:l~alists___ . $11.0 ... .. .. __ _ _ 

621210 Offioesof Dentists ___ ___c __ $T§-___~-~~--: 

621310 

621320 

Offioesof Oliropradors 

Offices of Q:Jtometrists 

Offioesof Mental Health Practitioners(exoept 

$7.5 

$7.5 

35 
167 

SBR002 with DISTILLER


Insert offset folio 167 here 31211.130

NAICSCbdes NAICSindustry Description 

·~ aricesof AlysicaCoxupational.anCi ~eern -~ 621340 Therapists and Audiologists 

621391 Offices of Fbdiatrists 

Offices of All Other Miscellaneous Health 621399 Practitioners 

.. ~?.2J.41Q. __ R3rTJjlyf1!lllf1if1g Cent~er::.:s=c---c~~~ 

621420 Outpatient Mental Health and 8JbstanceAbuse 

Centers ····~·---~···~~ ···~····--·--~~-~·~ ~-- ·~~-·~········· 

621498 All Other Outpatient Care Centers 

$11.0 

Sze 

standards 

·~~··62151f~----rvf€dical Laboratories·--~~~-

··· ...... -· ··-· .. -·· ·~- ·~·. .. ~ -· .. ··~··· ·······-··· ~·-·~C··~··c .:.c.: . ..:-~~·--~-~-~i 

621512 Diagnostic Imaging Centers 

621610 Home Health Care Slrvices 

621910 Ambulance Slrvices 

621991 Blood and Qgan Banks 

All OtherMiocellaneousAmbulatory Health Care 621999 "·~··--~~·--··§l..rvices ·~··~~--~~~ --~~···~~-~· 8Jbsector 622 -Hospitals 

!==~~~~~+f~==~~~=~~~~~~~;;~ur:::~a~~·=-·=-=~··· · L.~i~H·--·-······, 622310 $38.5 ~6dalty(except PsYChiatric and 8.Jb~ance Abuse) 

Hospitals 

·=~b~c:t()r 62.3~·~urSingandRe~a~~tLaiQiiei'aaifu~s ~~==~ ~ · ·-·~ 

623110 Nursing Care Facilities (&illed Nursing Facilities) 

623210 Fesidentiallntellectual and Developmental Disability 

Facilities - ~"··~ 

Fesidential Mental Health and 8JbstanceAbuse 

Other Fesidential Care Facilities 

8Jbsector 624 -S:lcial Assistance ·-~4.11 o .. ~~· 01[d~~ll<J~'(~~t!l..§;r:Viees ·················· ·~-···~···~~·~~~~·· 

62412()_ __ ~rv.Lce~!Cl£ theEJcjerly an•:JR:;rsonswith Disabilities ! 

$11.0 

$11.0 

36 
168 

SBR002 with DISTILLER


Insert offset folio 168 here 31211.131

8..1bsector 712- Museums, Historical 

: 712110 Museums ,~ ~~ ~712f2o ~---Hi5tolicaTStes-

~ ~~-~~ -~~~~ --- -~~-~~-~-~ -~-"~-~ -- - -~--- ~-~-----~ 

712130 Zoos and eotanical Gardens ' ·-· .. --

712190 Nature Parks and Other Smilar Institutions 

~~SJbsector 713-:-Amusement, Gambllngand~eation Industries 

713110 Amusement and Theme Parks 

37 
169 

SBR002 with DISTILLER


Insert offset folio 169 here 31211.132

i 

l .. _f\IAlCS eode.s.. _______ N,4_1CS lrlcltj~y_QElsc:rir>tiol') 713950 Bowling Centers 

Sze 

S:andards 

· · ---71~~96-... :.~LQLf1erAill~:Scinief1t <111.~ R'lcreation lndu!ll r~s ___ L_ 

S,ctor 72 -Aooommodation and FOod 

8.Jbsector 721 -A=mmodation 

721110 Hotels (except 03sino Hotels) and Motels 

•.. _ .. ?~1_1~()- 03sino Hotels 

721191 -- - __________________ 8ed~and-8re8kfa5t , __________ Inns _ 

721199 All Other Traveler A=mmodation 

721211 R./(~eational Vehide) Parks and Campgrounds 

721214 R'lcreational and Vacation Camps(except 

Campgrounds) 

721310 R::loming and Boarding Houses 

8.Jbsector 722- Food S:Jrvices and Drinking Places 

722310 Food S:Jrvice Contractors ~--~-~-~-----~- -~-- -~ ·- ------ - ~ -------------- ··-··----------···--------

722320 Caterers --------------------~~-~-- --------·-··-

722330 Mobile Food S:Jrvices - - -----------·-

72241 0 Drinking Places (Alcoholic Beverages) 

722511 Fuii-S:Jrvice A:;staurants 

722513 

8.Jbsector 811 -R3pair and Maintenance 

$7.5 

$7.5 

811111 GeneraiAutomotive~air $7.5 

811112 Automotive Exhaust 8,1stem R3pair $7.5 --811113 ____ AutomoiTVefransmisSionRepair---·················r---$7.5-·-------, 

........... -·-Other Automotive Med"!anical anctBectricaiR:ij:)!ilr-·+- -;;~----

and Maintenance · ·------------ ·····-· -·-·········-···-· ----------

Automotive Body, Paint and Interior R3pair 

Maintenance $7.5 

AutomotiveGiassR3placement Slops i $110 

.. ______ ==~~~iCJ0~ilV§_910ian~ancil:.ubric8iiQ11 ~()[ls ___ .~l __ $1}=-====--=:=; 

811192 Car Washes i $7.5 

811198 

811211 

811212 

.All eli tier Aut emotive R:lPair anCIMainienance _____ !~-··$7:5·~----~-

Consumer Bectronics R:;pair and Maintenance · $7.5 

Computer and Office Machine ~air and 

Maintenance $27.5 

38 
170 

SBR002 with DISTILLER


Insert offset folio 170 here 31211.133

Sze 

! Sze standards 

i Sandards in number , 

l in millions of ' 

NAICSCodes 

811213 Commuriicati~~u~~~~\~~~~d~aintenance !~of~~~~~a6s ~ ~mpi()Y€leS.~! ~ -· · a~her ·sect ronic and PredSiOn"·ECtuiPnient- ~P~afr a·nd · -"·- ____ , _____________ , 811219 Maintenance , $20.5 , 

-~~~ ~~-~--~com~mercial and lndustriaiMachineri and Equipment(~~~---- - -~~~! 

811310 (except Automotive and Bectronic) Repair and $7.5 

~~··~c~.,-~.....,...~~~ ~~~~ ~-~~ ~ ' [ __ -

811411 

811412 

811420 

811430 

811490 

Maintenance ---- ___________ , ___ _ 

Appliance Rapair and Maintenance 

Raupholstery and Furniture Repair 

FOotwear and Leather G::>ods Repair 

Other Personal and Hourehold G::>ods Rapair and 

Maintenance 

8Jbsector 812- Personal and Laundry S3rvices 

$7.5 

$15.0 

$7.5 

$7.5 

$7.5 

... j)121JL ___ _J3.e,rb~r-~()J::>§ J. $7.5 

812112 Beauty S31ons _ ~----·---~--~~~~~~.1LL ___ ~~-_J - 812113 --Naili'alons-·--·· , $7.5 , 

· --·- 8:1~.-n~r~~~~-[)j~l.flrJ.d wei.9ht~~ar,g~f1!~.s>~--=~-~~~~r~-_~QQ. __ ~----=~~1 812199 Other Personal Care S3rvices · $7.5 

........ 8~210 f'u.ll~§I_Hom~<Jn.<:Jfl.l~@l~~rl!i~~----~- ... _J~ __ Ec5. ~- _8~1?,22()_ ~ ~fr1et~ies.and_():~mat_ories ;... $?0 5. 

812310 (bin~q:>erated Laundries and Drydeaners ....... .J. -~E5_~- _ · · · -Drydeanin9~and t:aur!ciry-a;;:vices(excep-t -··- 812320 Coin-qJerated) $5.5 

--812331--uner! supply $32-:s·--~-~-

----812332·-~ -~TrldUiria!LaUrlderer-s------------~: --$38-.5------. 

-- 8-1-29.10 ____ ---F~Tcare(except .. Veteflnary)~rvices ------ ------$is 

812921 Fhotofinishing Laboratories (except 01e-Hour) $20.5 

,_ 812922 01e-Hour Fhotofinishing $15.0 ' 

.s1293o ·· ··· }arf<iri.iJJDisanCLcerag;,;;:=~:==~==-... --~~==$}s.5 ~---·--- --" 

812990 All Other Personal Services : $7.5 i 

S.lbsector 813-R=ligioi.IS,&antmaking-;-a\iic, ProfesSionalan-cfSmila;:Oi-ganizalions ---·~ 

813110 RaligiousQganizations · $7.5 

39 
171 

SBR002 with DISTILLER


Insert offset folio 171 here 31211.134

Sze 

Sze standards 

; Sandards in number 

! in millions of 

NAICSCodes NAICSindustry Description ---~()f(j_()llars . ernJli()}IEJ62! ~~--~~--- ~ Bwironment, eonrervationancfWiiClliie __ _ ~~2 ~~ O"ganizat ions 

813_:319~--- _Othe_r__~cial ,l\dvoC§9' ()r-g<~~~i_()n~ 

813410 ()vicaf)d 9:Jci~l_()rgan~i()f1S 

813916- BusinessAssociations ------------'"·-

813920 

813930 

813940 

--- -----·----

Professional Qganizations 

Labor Unions and Smilar Labor Qganizations 

A:llitical O"ganizat ions _ _ L--

----Ot her 9miiar o9anizat TOns(ex0ept Bu;-;;ess. 813990 Professional, Labor, and A:llitical Qganizations) 

S:lctor 92 

$7.5 

------~-----~-----~-~--~--------

(Snail business size standards are not establisihed for this S:ldor. Establisihments in 

the Public Administration S:ldor are Federal, state, and local government agencies 

which administer and oversee government programs and activities that are not 

performed by private establisihments.) 

40 
172 

SBR002 with DISTILLER


Insert offset folio 172 here 31211.135

Endnotes 

1. [Reserved]. 

2. NAIC:Scode 237990- Dredging: To be considered small for purposes of G:Jvernment 

procurement, a firm mus perform at leas 40 percent of the volume dredged with it sown 

equipment or equipment owned by another small dredging concern. 

3. NAIC:Scode 311421- For purposes of G:Jvernment procurement for food canning and 

preserving, the &andard of 1, 000 employees exd udes agricultural labor as defined in sect ion 

3306(k) of the Internal Revenue O:lde, 26 U.SC 3306(k). 

4. NAIC:Scode 324110- To qualify as small for purposes of G:Jvernment procurement, the 

petroleum refiner, induding its affiliates, mu& be a concern that has either no more than 1,500 

employees or no more than 200,000 barrels per calendar day total Operctlle Atmospheric 

Qude 01 Dis illation capacity. Capadty includes all dome&icand foreign affiliates, all owned or 

leased fad lilies, and all fadlities under a processing agreement or an arrangement such as an 

exchange agreement or a throughput. To qualify under the capacity size &andard, the firm, 

together with its affiliates, mu& be primarily engaged in refining crude petroleum into refined 

petroleum proGlt[]Jc.. firm'E\Jrimarc::Th~i~ermine!Tih acoorcahce witO 

13 CFR§ 121.107. 

5. NAIC:Scode 326211- For G:Jvernment procurement, a firm is small for bidding on a 

contract for pneumatic tires within Census NAICSA'oduct Oassification codes3262111 and 

3262113, provided that: 

(a) The value of tires within Census NAICSA'oduct Oassification codes3262113 that it 

manufactured in the United S:ates 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 NAICSA'oduct Oassification codes 3262113 

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 S:atesduringthat period, 

and 

(c) The value of the principal product that it manufactured, 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 S:atesduringthat period. 

41 
173 

SBR002 with DISTILLER


Insert offset folio 173 here 31211.136

6. NAICSSJbsectors 333. 334. 335 and 336- For rebuilding machinery or equipment on a 

factory basis, or equivalent, use the NAICScode for a newly manufactured product. Cbncerns 

performing major rebuilding or overhaul activities do not necessarily have to meet the criteria 

for being a "manufacturer" although the activities may be dassified under a manufacturing 

NAICScode. Qdinary repair servioesor preservation are not considered rebuilding. 

7. NAICScode 336413- Cbntracts for the rebuilding or overhaul of aircraft ground support 

equipment on a contract basis are dassified under NAICScode 336413. 

8. NAICSCbdes522110, 522120, 522130, 522190. and 522210-Afinancial institution's 

assets are determined by averagingtheassetsreported 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 RnanciallnstitutionsExamination Cbuncil 041 call 

report form for NAICSCbdes 522110, 522120, 522190, and 522210 and the National Qed it 

Union Administration 5300 call report form for NAICScode 522130. 

9. NAICScodes531110. 531120. 531130. and 531190-leasing of building space to the 

Federal G:wernment by CMmers: For G::>vernment procurement, a size standard of $38.5 million 

in grossreceiptsappliesto the owners of building space leased to the Federal G::>vernment. The 

standard does not apply to an agent. 

10. NAICScodes488510, 531210. 541810. 561510. 561520 and 561920-Asmeasured by 

total revenues, but exdudingfunds received in trust for an unaffiliated third party, sudh as 

bookings or sales subject to commissions. The commissions received are induded as revenue. 

11. NAICScode541711and541712: 

a) "Rlseardh and Development" means laboratory or other physical researdh and 

development. It does not indudeeconomic, educational, engineering, operations, 

systems, or other nonphysical researdh; or computer programming, data processing, 

commercial and/or medical laboratory testing. 

b) For researdh and development contracts requiring the delivery of a manufactured 

product, the appropriate size standard is that of the manufacturing industry. 

c) For purposes of the Snail Business Innovation Rlseardh ($1~ program only, a different 

definition has been estoolished by law. Sle § 121.701 of these regulations. 

d) Rlseardh and Development for guided missiles and space vehides indudes evaluations 

and simulation, and other services requiring thorough knowledge of complete missiles 

and spacecraft. 

42 
174 

SBR002 with DISTILLER


Insert offset folio 174 here 31211.137

12. NA!CS561210-Facllities3Jpport S:;rvices: 

a) If one or more activities of FacllitiesSJpport S:;rvicesasdefined in paragraph (b) (below 

in this footnote) can be identified with a ~ecific indu&ry and that indu&ry acx:ountsfor 

50% or more of the value of an entire procurement, then the proper classification of the 

procurement is that of the specific indu& ry, not Facilities SJpport S:;rvices. 

b) "FacllitiesSJpport S:;rvices" requires the performance of three or more separate 

activities in the areas of services or specialty trade contractorsindu&ries. If services are 

performed, these service activities mu& each be in a separate NA!CSindu&ry. If the 

procurement requires the use of specialty trade contractors (plumbing, painting, 

pla&ering, carpentry, etc.), all such ~ecialtytradecontractorsactivitiesareconsidered 

a single activity and classified as "Building and A-operty ::j:lecialty Trade S:;rvioes" Snce 

"&lilding and A-operty ::j:lecialty Trade S:;rvices'' is only one activity, two additional 

activities of separate NAlCSindu&ries are required for a procurement to be classified as 

"Facilities SJpport S:;rvices." 

13. NA!CScode 238990-&li I ding and A-operty ::j:lecialty Trade S:;rvices: If a procurement 

requires the use of multiple specialty trade contractors (i.e., plumbing, painting, pla&ering, 

carpentry, etc.), and no ~ecialtytradeaccountsfor 50% or more of the value of the 

procurement, all such ~ecialty tradecontractorsactivitiesareconsidered a single activity and 

classified as Building and A-operty ::j:lecialty Trade S:;rvices 

14. NA!CS562910-8wironmental Rmlediation S:;rvices: 

a) For ffiA.a$i&ance as a small business concern in the indu&ry of Bwironmental 

Rmlediation S:;rvices, other than for G::lvernment procurement, a concern mu& 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, te&ing, remedial inve&igation, feasibility 

&udies, regulatory compliance, remedial design, containment, remedial action, removal 

of contaminated materials, nuclear remediation, &orage of contaminated materials and 

security and site closeouts. If one of such activitiesacx:ounts for 50 percent or more of a 

concern's total revenues, employees, or other related factors, the concern's primary 

indu&ry is that of the particular indu&ry and not the Environmental R:lmediation 

S:;rvices lndu&ry. 

b) For purposes of classifying a Q:lvernment procurement as Environmental Rmlediat ion 

S:;rvices, the general purpose of the procurement mu& be to re&ore or directly support 

the re&orat ion of a contaminated environment. This includes activities such as 

preliminary assessment, site inspection, te&ing, remedial inve&igation, feasibility 

&udies, regulatory compliance, remedial design, remediation services, containment, 

nuclear remediation, and removal of contaminated materials or security and site 

closeouts. The general purpose of the procurement need not necessarily include 

43 
175 

SBR002 with DISTILLER


Insert offset folio 175 here 31211.138

remedial actions. AISJ, the procurement must be composed of activities in three or 

more separate industries with separate NAICScodesor, in SJme instances(e.g., 

engineering), smaller sub-components of NAICScodeswith separate and distinct size 

standards. These activities may indude, but are not limited to, separate activities in 

industries such as: Heavy Construction; ~ecial Trade Contractors; 81gineering S:lrvices; 

Architectural S:lrvices; Management ConsultingS:lrvices; Hazardousand Other Waste 

Collection; R:lmediation S:lrvioes; Testing Laboratories; and R:lsearch and Development 

in the Alysical, 81gineering, and Ufe S::ienoes. If any activity in the procurement can be 

identified with a separate NAICSoode, or component of a code with a separate distinct 

size standard, and that industry aooounts for 50 percent or more of the value of the 

entire procurement, then the proper size standard is the one fort hat particular 

industry, and not the 81vironmental R:lmediation S:lrvice size standard. 

16. NAICSoode 611519-..bb Corps CBnters. For dassifying a Federal procurement, the 

purpose of the SJiidtation must be for the management and operation of a U.S Department of 

Labor ..bb CorpsCBnter. The activities involved indudeadmissionsactivities, life skills training, 

educational activities, comprehensive career preparation activities, career development 

activities, career transition activities, as well as the management and support functions and 

servioes needed to operate and maintain the facility. For SA. assistance as a small business 

concern, other than for Federal Government procurements, a concern must be primarily 

engaged in providing the servioes to operate and maintain Federal ..bb Corps CBnters. 

17. NAICScode 115310-SJpport Activities for Forestry- Forest Rre SJppression and FUels 

Management S:lrvioesaretwo components of SJpport Activities for Forestry. Forest Rre 

SJppression indudes establishments which provide servioes to fight forest fires. These firms 

usually havefire-fightingcrewsand equipment. FUels Management S:lrvicesfirmsprovide 

services to dear land of hazardous materials that would fuel forest fires. The treatments used 

by these firms may indude prescribed fire, mechanical removal, establishing fuel breaks, 

thinning, pruning, and piling. 

18. NAICScode 541519-An Information Technology Value Added R:lseller (llV~ provides 

a total SJiution to information technology acquisitions by providing multi-vendor hardware and 

SJftware along with significant value added servioes. Sgnificant value added servioes consist 

of, but are not limited to, configuration consulting and design, systems integration, installation 

of multi-vendor computer equipment, customization of hardware or SJftware, training, product 

technical support, maintenance, and end user support. For purposes of Government 

procurement, an information technology procurement dassified under this exception and 150-

employee size standard must consist of at least 15%and not more than 50% of value added 

services, as measured by the total contract price. In addition, the offeror must comply with the 

manufacturing performance requirements, or comply with the non-manufacturer rule by 

supplying the products of small business concerns, unless SA. has issued a dassor contract 

specific waiver of the non-manufacturer rule. If the contract consists of less than 15%of value 

added services, then it must be dassified under a NAICSmanufacturing industry. If the contract 

44 
176 

SBR002 with DISTILLER


Insert offset folio 176 here 31211.139

consists of more than 50% of value added services, then it must be classified under the NAICS 

industry that best describes the predominate servioe of the procurement. 

19. NAICSS=rlor 92 -Snail business size standards are not established for this sector. 

Establishments in the F\JblicAdministration sector are Federal, Sate, and local government 

agencies which administer and oversee government programs and activities that are not 

performed by private establishments. O::moerns performing operational services for the 

administration of a government program are classified under the NAICSprivate sector industry 

based on the activities performed. Smilarly, procurements for these types of services are 

classified under the NAICSprivate sector industry that best describes the activities to be 

performed. For example, if a government agency issues a procurement for law enforcement 

servioes, the requirement would be classified using one of the NAICSindustry codes under 

NAICSindustry 56161, Investigation, G.Jard, and Armored C:lr S:lrvioes. 

45 
177 

SBR002 with DISTILLER


Insert offset folio 177 here 31211.140

Cbntads 

ffitl'ill'llffice of Glvernment Cbntracting [}Bl]]kioffice5/}it[]fln emplorie ~ateiT:a~ sffiJ~alillil 

Below are the office addresses and telephone numbers. ---

Pv-ea I Pv-ea IV 

Office of Glvernment Cbntracting Office of Glvernment Cbntrading 

Boston Pv-ea Office Chicago Pv-ea Office 

U.S Snail B.Jsiness.Administration U.S Snail B.Jsiness.Administration 

10 causeway Sreet 500West Madison Sreet 

Fbom265 9Jite 1250 

Boston, MA 02222-1093 Chicago, IL 60661-2511 

Tel: (617) 565-5622 Tel: 312.353.7674 

Pv-ea II Pv-eaV Office of GJvernment Cbntracting Office GJvernment Cbntracting Aliladelphia Pv-ea Office Dallashea Office U.S Snail B.Jsiness.Administration U.S Snail Business .Administration 4300 .Amon Carter Parkview Tower Boulevard, 1150 Rrst Avenue 9Jite116 9Jite 1001 Fort Worth, 1X76155 King of R-ussia, PA 19406 Tel: (817)684-5303 Tel: (610) 382-3190 

Pv-ea Ill Pv-eaVI 

Office of Government Cbntrading Office of Glvernment Cbntracting 

Atlanta Pv-ea Office 33n Frandsoohea Office 

U.S Snail B.Jsiness.Administration U.S Snail B.Jsiness.Administration 

233 Peachtree Sreet, NE 455 Market Sreet 

9Jite 1805 6th Roor 

Atlanta, GA. 30309 83n Frandsoo, Gll.94105 

Tel: (404) 331-7587 Tel: (415) 744-8429 

IN WA9-liNGTON, DC, THffiEARETWO OFRCESTHA T YOU MAY OONTACf 

----

Office of Sze Sandards Office of Cbntracting Assistance 

U.S Snail B.Jsiness.Administration U.S Snail Business .Administration 

409 3rd Sreet, SN 409 3rd Sreet, SN 

Washington, DC20416 washington, DC20416 

Tel: (202) 205-6618 Tel: (202) 205-6460 

46 
178 

Æ 

SBR002 with DISTILLER


Insert offset folio 178 here 31211.141