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Rules and Regulations Federal Register

72577 

Vol. 70, No. 233 

Tuesday, December 6, 2005 

SMALL BUSINESS ADMINISTRATION 

13 CFR Parts 121 and 123 

RIN 3245–AF41 

Small Business Size Standards, 

Inflation Adjustment to Size Standards; 

Business Loan Program; Disaster 

Assistance Loan Program 

AGENCY: Small Business Administration 

(SBA). 

ACTION: Interim final rule with request 

for comments. 

SUMMARY: SBA is adjusting its monetarybased size standards (e.g., receipts, net 

income, net worth, and financial assets), 

for the effect of inflation that has 

occurred since the last inflation 

adjustment in February 2002. Since the 

last inflation adjustment, the general 

level of prices has increased 8.7%. This 

action would restore small business 

eligibility to businesses that have lost 

that status due to inflation. In addition, 

this rule changes the process for 

determining the size of small business 

concerns applying for SBA Business 

Loans and Economic Injury Disaster 

Loans (EIDL) from a test considering 

only the primary industry of the 

applicant, to a two-part test considering 

both the primary industry of the 

applicant and the primary industry of 

the applicant with affiliates. This rule 

also changes the date on which SBA 

determines size status for purpose of 

EIDL applications for businesses located 

in disaster areas declared as a result of 

Hurricanes Katrina, Rita, and Wilma. 

DATES: Effective Date: December 6, 2005. 

Applicability Dates: For purposes of 

Federal procurements, this rule applies 

to solicitations, except for 

noncompetitive section 8(a) contracts, 

issued on or after January 5, 2006. For 

purposes of noncompetitive section 8(a) 

contracting actions, the new size 

standards are applicable to offers of 

requirements that are accepted by SBA 

on or after January 5, 2006. 

Comment Period: Comments must be 

received by SBA on or before January 5, 

2006. 

ADDRESSES: You may submit comments 

identified by RIN 3245–AF41 by any of 

the following methods: (1) Federal 

eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments; 

(2) Fax: (202) 205–6390; or (3) Mail/ 

Hand Delivery/Courier: Gary M. 

Jackson, Assistant Administrator for 

Size Standards, 409 Third Street, SW., 

Mail Code, 6530, Washington, DC 

20416. 

FOR FURTHER INFORMATION CONTACT: Carl 

Jordan or Diane Heal, Office of Size 

Standards, at (202) 205–6618 or at 

sizestandards@sba.gov. 

SUPPLEMENTARY INFORMATION: 

Inflationary Adjustment 

SBA is adjusting certain monetarybased size standards (e.g., receipts, net 

income, net worth, and financial assets) 

for the effect of inflation that has 

occurred since the last inflation 

adjustment that was effectuated on 

February 22, 2002 (67 FR 3041, January 

23, 2002). From the third quarter of 

2001 (the ending period for the last 

inflation adjustment) to the second 

quarter of 2005, the general level of 

prices in the United States increased 

approximately 8.7 percent as measured 

by the chain-type price index for Gross 

Domestic Product (GDP). The purpose of 

this action is to maintain the value of 

size standards in inflation-adjusted 

terms and to restore eligibility to 

businesses that may have lost their 

small business status due solely to price 

level increases rather than from 

increased business activity. 

While inflationary adjustments are 

not made on a fixed schedule, prior 

adjustments occurred in 2002, 1994 (59 

FR 16513, April 7, 1994), 1984 (49 FR 

5024, February 9, 1984) and 1975 (40 FR 

32824 as corrected by 40 FR 36310, 

August 5, 1975). This interim final rule 

also satisfies 13 CFR 121.102(c) 

requiring SBA to assess the impact of 

inflation on its monetary-based size 

standards at least once every five years. 

This provision provides assurances to 

the public that SBA is monitoring 

inflation and is making a decision 

whether or not to adjust size standards 

within a reasonable period of time since 

its last inflation adjustment. 

In this rule, SBA is modifying its size 

standards after three-and-one-half years 

in recognition that enough inflation has 

occurred to allow for an increase to 

SBA’s ‘‘anchor’’ size standard of $6 

million by a half-million dollar 

increment. SBA believes that this level 

of adjustment to its anchor size 

standard, while small, is nonetheless a 

meaningful increase which affects the 

small business eligibility of a relatively 

significant number of businesses. This 

rule also increases higher monetary size 

standards by $1 million to $2.5 million, 

depending on the current size standard. 

For example, the $21 million size 

standard for Computer Systems Design 

Services increases to $23 million since 

an 8.7 percent increase to that level of 

the size standard supports a $2 million 

increase (as explained in next section). 

As discussed in the regulatory flexibility 

analysis, SBA estimates that 

approximately 12,000 businesses would 

regain small business status as a result 

of this rule. 

Inflation has no impact on industry 

size standards based on number of 

employees, refining capacity, or electric 

generation. Thus, this rule makes no 

adjustment to these non-monetary size 

standards. Any change to a nonmonetary size standard will be as a 

result of a specific review of industry 

characteristics. 

How Does SBA Adjust Size Standards 

for Inflation? 

The methodology for adjusting the 

size standards for inflation is as follows: 

1. Selection of inflation measure: SBA 

used the chain-type price index for GDP 

as published by the U.S. Department of 

Commerce, Bureau of Economic 

Analysis (BEA), which is a broad 

measure of inflation for the economy as 

a whole, and is available on a quarterly 

basis. 

2. Selection of a base period: SBA 

selected the third quarter of 2001 as the 

base period since this was the ending 

period of the last broad-based inflation 

adjustment in 2002. The chain-type 

price index for GDP stood at 102.690 at 

that time. 

3. Selection of an end period: We 

selected the second quarter of 2005 as 

the end period for this inflation 

adjustment since it is the latest available 

quarterly data published by the BEA. 

72578 Federal Register / Vol. 70, No. 233 / Tuesday, December 6, 2005 / Rules and Regulations 

The chain type price index for GDP 

stood at 111.612 at that time. 

4. Calculation of inflation: Based on 

these price indexes, inflation increased 

8.7% between the base and ending 

periods (((111.612/102.690) ¥ 1.00) × 

100 = 8.7%). 

5. Application of the inflation 

adjustment to the monetary-based size 

standards: The current size standards 

were multiplied by 1.087 and rounded 

to the closest $0.5 million. 

Special Situations Regarding Inflation 

Adjustment 

Small Business Investment Company 

(SBIC) Program 

Certain monetary-based size standards 

are not changed in this rule. The size 

standards for agricultural industries and 

for ‘‘smaller enterprises’’ under the SBIC 

Program are set by statute and, 

therefore, cannot be changed through 

rulemaking. SBA has elected not to 

change the alternate net worth and net 

income size standard for the Small 

Business Investment Companies (SBIC) 

Program. In 1994, the average net worth 

and net income criteria were increased 

threefold. Therefore, the current size 

standards remain in place for the SBIC 

Program and no further increase is 

deemed necessary at this time. 

Size Standards Adjusted Since 2002 

SBA has changed several receiptsbased size standards since the last 

inflation adjustment in 2002. SBA is 

applying the full inflation adjustment of 

8.7 percent to those receipts-based size 

standards as well. When SBA 

establishes or revises a size standard, it 

does so in relation to other existing size 

standards to ensure that industries with 

similar characteristics have similar size 

standards. To provide a smaller 

adjustment, while technically precise, 

would be inconsistent with the size 

standards decision-making process. 

Size Standards of $2 Million or Less 

At the time of the 2002 adjustment, 

prices had not increased by an amount 

sufficient to support increasing size 

standards of $2 million or less. The 

cumulative effects of inflation from the 

2002 adjustment of 15.8 percent and the 

current adjustment of 8.7 percent is 

sufficient to increase those size 

standards by a half-million dollar 

increment. Therefore, this interim final 

rule increases size standards of $2 

million or less by $0.5 million. Affected 

industries include real-estate agents and 

cattle feedlots. 

Program-Based Size Standards 

Most SBA programs apply size 

standards established for industries 

defined by the North American Industry 

Classification System (NAICS). This rule 

lists the size standard for each NAICS 

industry with a monetary-based size 

standard (except for the $750,000 

statutorily established agricultural size 

standard). SBA has also established size 

standard(s) on a program basis rather 

than an industry basis, which are 

adjusted in the same manner as the 

industry-based size standards (except 

for the SBIC program as discussed 

above). The following table lists the 

program-based size standards and the 

changes adopted by this rule. 

Program CFR citation 

Size standard 

Current size 

standard 

(in millions) 

Measurement 

New size 

standard 

(in millions) 

504 Program ................................................................ 13 CFR 121.301(b) .......... $7.0 Net Worth ........................ $7.5 

$2.5 Net Income ...................... * $2.5 

(retained) 

Surety Bond Guarantee Assistance ............................ 13 CFR 121.301(d) .......... $6.0 Average Annual Receipts $6.5 

Sales of Government Property Other Than Manufacturing (which uses employee-based size standards).13 CFR 121.502 .............. $6.0 Average Annual Receipts $6.5 

Stockpile Purchases .................................................... 13 CFR 121.512 .............. $48.5 Average Annual Receipts $51.5 

* The $2.5 million size standard is not being adjusted at this time since the inflation rate supports a change significantly less than $0.5 million. 

Determining Size Eligibility for SBA 

Business Loans and Economic Injury 

Disaster Loans 

In 2004, SBA adopted a policy to 

determine size eligibility for its 

Business Loan and EIDL programs based 

on the primary industry of the applicant 

(69 FR 29192, May 21, 2004). Prior to 

that time, SBA utilized a two-step 

process that determined size eligibility 

for these programs based on the primary 

industry of the applicant and the 

primary industry of the applicant 

including its affiliates. SBA 

subsequently concluded that the twostep process was not only unnecessary 

but also the wording was unclear, 

causing confusion in its proper 

application (67 FR 70342, November 22, 

2002). Since the implementation of the 

2004 provision, SBA has come to the 

realization that a two-step size 

eligibility process is necessary to ensure 

that its financial loan programs 

equitably assist small businesses that 

have affiliates. Several loans that would 

have been approved under the previous 

two-step process have been denied 

under the existing regulation. However, 

SBA believes that those businesses 

should have been considered eligible for 

its small business financial assistance 

programs because the size of the 

applicant’s affiliates are within the size 

standard for the industries in which 

they operate. Therefore, SBA is 

establishing a new two-step size 

eligibility provision for its financial 

assistance programs. 

The provision contained in this rule 

is very similar to SBA’s previous 

regulation, but with additional language 

explaining how to determine size 

eligibility. The first step is to determine 

the primary industry and size of the 

applicant alone (i.e., without affiliates). 

If the applicant’s size exceeds the 

applicable size standard, it is deemed 

ineligible. If the applicant’s size does 

not exceed the applicable size standard, 

and has affiliates, the second step is 

triggered. The second step of the 

analysis is to determine the primary 

industry and size of the applicant 

including its affiliates. The applicant is 

eligible if the combined size of the 

applicant and its affiliates does not 

exceed either the size standard for the 

applicant’s primary industry or the size 

standard for the primary industry of the 

applicant and its affiliates, whichever is 

higher. 

The selection of the higher of the two 

size standards under the two-part test 

avoids a number of problems that 

existed when SBA only considered the 

size standard for the primary industry of 

the applicant (as it had done before 

2004). For example, two businesses 

operating in the same group of 

industries with a different distribution 

Federal Register / Vol. 70, No. 233 / Tuesday, December 6, 2005 / Rules and Regulations 72579 

of receipts or employees could result in 

a larger business qualifying for SBA 

assistance while a smaller business is 

denied. Under this rule’s two-step 

process, the applicant must be small 

within its primary industry, but will not 

be found ineligible in cases where the 

size standard for the primary industry of 

the applicant and its affiliates is lower 

than the size standard of the applicant’s 

primary industry. 

In some cases, the primary industry of 

the applicant alone and the primary 

industry of the applicant combined with 

its affiliates may have size standards 

based on a different measure of size. For 

example, a retail store applicant whose 

primary industry including its affiliates 

is wholesale trade will have the primary 

industry of a retail store based on 

average annual receipts while the 

primary industry of the applicant with 

affiliates is wholesale trade which is 

based on number of employees. In 

applying the two-step process, the size 

of the applicant combined with its 

affiliates must be compared against the 

same measure of size (receipts or 

employment) for the applicable size 

standard. Thus, in this scenario, if a 

retail store applicant (with a size 

standard based on receipts) whose 

primary industry including its affiliates 

is wholesale trade (with a size standard 

based on employees) is eligible under 

the receipts-based size standard, but 

ineligible under the employee-based 

size standard, the size standard which 

gives the benefit of the doubt to the 

applicant should be used. 

The above criteria for determining 

size eligibility for SBA’s financial 

assistance programs depend on 

designating the primary industry of the 

applicant with and without affiliates. 

SBA’s regulations at 13 CFR 121.107 

provide the following guidance in 

making this designation: 

In determining the primary industry (kind 

of work) in which a concern or a concern 

combined with its affiliates is engaged, SBA 

considers the distribution of receipts, 

employees and costs of doing business 

among the different industries in which 

business operations occurred for the most 

recently completed fiscal year. SBA may also 

consider other factors, such as the 

distribution of patents, contract awards, and 

assets. 

Under this guidance, a determination 

must first be made of the kind of work 

a business performs and which among 

those activities represents the largest 

activity. Consideration of the percentage 

distribution of receipts and other factors 

among the various business activities 

may be relied upon in identifying the 

business’s main activity. The industry 

this activity falls into is based on the 

industry definitions established by the 

NAICS. These definitions are listed in 

the NAICS United States, 2002 manual 

and may also be found in the U.S. 

Bureau of the Census Web site at 

http://www.census.gov/epcd/naics02/. 

For example, a business generating 70 

percent of receipts from selling carpets 

and vinyl tiles to the general public and 

30 percent of receipts from window 

treatments is primarily a floor covering 

retail store since that represents both a 

majority of its work and is its largest 

single business activity. NAICS 

classifies this activity under the 

industry of ‘‘Floor Covering Stores’’, 

NAICS code 442210. SBA’s size 

standard for this industry is $6.5 million 

in average annual receipts. 

The determination of primary 

industry for applicants with affiliates 

involves a more detailed analysis, but is 

essentially the same process as above. 

For the applicant and each affiliate, 

identify the types of business activities 

performed and the level of revenues, 

employees or other appropriate factors. 

The business activity that accounts for 

the largest single activity represents the 

primary industry of the applicant and 

its affiliates. The examination of 

receipts should be the first 

consideration in determining primary 

industry. In some cases, however, 

receipts may not provide a clear picture, 

and it will be necessary to examine 

number of employees (emphasis should 

be placed on full-time employees) or 

other factors. In every case, the decision 

should be reasonable and justified. 

For example, there is an applicant 

that has two affiliates engaged in five 

business activities as follows: 

Business activity NAICS 

code 

Size 

Company 

Sales Employees 

Carpet sales .................................................................................................. 442210 $1,000,000 10 Applicant. 

Wall covering sales ....................................................................................... 442291 400,000 4 Applicant. 

Blind manufacturing ...................................................................................... 337920 10,000,000 25 Affiliate 1. 

Draperies manufacturing ............................................................................... 314121 500,000 5 Affiliate 1. 

Interior design ............................................................................................... 541410 500,000 8 Affiliate 2. 

The total size of the business is 52 

employees and $12.4 million in sales. 

Blind manufacturing represents its 

largest activity, measured in terms of 

either sales or employees, and therefore, 

is the primary industry of the applicant 

and its affiliates. With a total of 52 

employees, the applicant and its 

affiliates do not exceed the 500 

employee size standard for NAICS 

337920, Blind and Shade 

Manufacturing. 

Justification for Determining the Size 

Status of Businesses Affected by the 

Hurricanes on the Date SBA Accepts 

EIDL Applications From Those 

Businesses 

SBA is also changing the date as of 

which size status is determined for 

purposes of Economic Injury Disaster 

Loan (EIDL) applications submitted by 

businesses located in disaster areas 

declared as a result of Hurricanes 

Katrina, Rita, and Wilma. Existing 

regulations at 13 CFR 123.300(b) require 

an applicant for an EIDL loan to be 

small as of the date the disaster 

commenced, as set forth in the disaster 

declaration. SBA is changing the date on 

which SBA determines size status of 

those businesses to ‘‘the date SBA 

accepts the application for processing.’’

This amendment would provide 

immediate access to SBA’s EIDL 

program to those businesses that would 

have been ineligible prior to Hurricanes 

Katrina, Rita, and Wilma based solely as 

a result of inflation that has occurred 

since the SBA last adjusted its 

monetary-based size standards in 2002. 

Thousands of small businesses suffered 

substantial economic injury as a direct 

result of the hurricanes. EIDLs would 

provide funds to eligible small 

businesses to meet their ordinary and 

necessary operating expenses that they 

are unable to meet as a direct result of 

Hurricanes Katrina, Rita, or Wilma. This 

amendment to the date as of which 

businesses in the declared disaster areas 

are deemed small for purposes of the 

EIDL program would support the 

continuing operation of small 

businesses in the Gulf Coast region and 

in Florida, create jobs, and facilitate 

economic recovery of those 

communities. 

72580 Federal Register / Vol. 70, No. 233 / Tuesday, December 6, 2005 / Rules and Regulations 

Justification for Publication as an 

Interim Final Rule 

In general, SBA publishes a proposed 

rule for public comment before issuing 

a final rule, in accordance with the 

Administrative Procedure Act (APA) 

and SBA regulations, 5 U.S.C. 553 and 

13 CFR 101.108. The APA provides an 

exception to this standard rulemaking 

process, however, in situations where 

an agency finds good cause to adopt a 

rule without prior public participation. 

(See 5 U.S.C. 553(b)(3)(B).) The good 

cause requirement is satisfied when 

prior public participation is 

impracticable, unnecessary, or contrary 

to the public interest. Under those 

conditions, an agency may publish an 

interim final rule without first soliciting 

public comment. 

In applying the good cause exception 

to standard rulemaking procedures, 

Congress recognized that emergencies 

(such as a response to a natural disaster) 

might arise justifying issuance of a rule 

without prior public participation. On 

August 29, 2005, the President declared 

major disaster areas in Louisiana, 

Mississippi, and Alabama in the 

aftermath of Hurricane Katrina. The 

President made the same declarations 

with respect to Louisiana and Texas as 

Hurricane Rita destroyed even more of 

the Gulf Coast region. On October 24, 

2005, the President issued a disaster 

declaration pertaining to the areas in the 

state of Florida struck by Hurricane 

Wilma. These natural disasters have 

affected U.S. businesses in the declared 

disaster areas and across the Nation. 

Some of the affected businesses qualify 

as ‘‘small’’ under SBA size standards 

and are eligible for SBA assistance. 

However, some of the affected 

businesses have lost eligibility solely as 

a result of the inflation that has 

occurred since the SBA last adjusted its 

monetary-based size standards in 2002. 

This rule is necessary to make available 

SBA assistance to those businesses. In 

particular, this rule would make the 

EIDL program available to those 

businesses located in the disaster areas 

declared as a result of Hurricanes 

Katrina, Rita, and Wilma. Any delay in 

the adoption of these inflationary 

adjustments could cause serious harm to 

these businesses. In addition, small 

businesses would benefit from the 

changes to SBA’s method of 

determining size eligibility for SBA’s 

Business Loan and EIDL programs 

because it would expand availability of 

SBA assistance. Immediate 

implementation of this rule would 

facilitate economic recovery of the Gulf 

Coast region and is therefore in the best 

interest of the public. 

Accordingly, SBA finds that good 

cause exists to publish this rule as an 

interim final rule because of the urgent 

need to make disaster loans and other 

SBA assistance available to businesses 

that should be considered small, but no 

longer qualify under SBA’s existing size 

standards due to inflation. Furthermore, 

advance solicitation of comments for 

this rulemaking would be impracticable 

and contrary to the public interest, as it 

would delay the delivery of critical 

assistance to these businesses by a 

minimum of four to six months. It is 

likely that some would be forced to 

cease operations before a rule could be 

promulgated under standard notice and 

comment rulemaking procedures. 

SBA’s rationale for preparing this 

action as an interim final rule is 

consistent with the Agency’s statutory 

obligation to act in the public interest in 

determining eligibility for Federal 

assistance under the Small Business 

Act, 15 U.S.C. 633(d). It is also 

consistent with 13 CFR 123.1, under 

which SBA reserves the right to amend 

the Disaster Loan Program regulations 

without advance notice in response to 

disasters. Pursuant to those authorities, 

SBA has determined that it is in the 

public interest to give immediate effect 

to this rule. The failure to adopt this 

rule could work to the detriment of 

many small businesses. 

Although this rule is being published 

as an interim final rule, comments are 

hereby being solicited from interested 

parties. These comments must be 

received on or before January 5, 2006. 

SBA may then consider these comments 

in making any necessary revisions to 

these regulations. 

Justification for Immediate Effective 

Date of Interim Final Rule 

The APA requires that ‘‘publication or 

service of a substantive rule shall be 

made not less than 30 days before its 

effective date, except * * * as 

otherwise provided by the agency for 

good cause found and published with 

the rule,’’ 5 U.S.C. 553(d)(3). SBA finds 

that good cause exists to make this final 

rule effective the same day it is 

published in the Federal Register. 

The purpose of the APA provision 

delaying the effective date of a rule for 

30 days after publication is to provide 

interested and affected members of the 

public sufficient time to adjust their 

behavior before the rule takes effect. In 

this case, however, the 30-day delay is 

unnecessary because this interim final 

rule would not require businesses or 

SBA to make significant changes to their 

current procedures for applying for SBA 

assistance, or determining the status of 

businesses seeking SBA assistance, 

including Business Loans or EIDLs. SBA 

would begin applying the new size 

standards to businesses and the two-part 

size eligibility test upon publication of 

this interim final rule. For purposes of 

Federal procurements, however, the 

applicability dates are delayed for 30 

days after the date of publication in this 

rule as described in the Dates section of 

the preamble for this rule. SBA believes, 

based on its contacts with interested 

members of the public, that there is 

strong interest in immediate 

implementation of this rule. This action 

is in the public interest and does not 

tend to adversely affect any interested 

parties. SBA expects little if any adverse 

comments on the inflation-adjusted size 

standards. Past inflation adjustments by 

SBA have received widespread support. 

Compliance With Executive Orders 

12866, 12988, and 13132, the 

Regulatory Flexibility Act (5 U.S.C. 

601–612) and the Paperwork Reduction 

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

The Office of Management and Budget 

(OMB) has determined that this rule 

constitutes a ‘‘significant regulatory 

action’’ under Executive Order 12866. A 

general discussion of the need for this 

regulatory action and its potential costs 

and benefits follows. 

Regulatory Impact Analysis 

i. Is there a need for the regulatory 

action? 

SBA’s statutory mission is to aid and 

assist small businesses through a variety 

of financial, procurement, business 

development, and advocacy programs. 

To effectively assist intended 

beneficiaries of these programs, SBA 

must establish distinct definitions of 

which businesses are deemed small 

businesses. The Small Business Act (15 

U.S.C. 632(a)) (Act) delegates to the SBA 

Administrator the responsibility for 

establishing small business definitions. 

The Act also requires that small 

business definitions vary to reflect 

industry differences. The 

supplementary information to this 

interim final rule explains the approach 

SBA follows when adjusting size 

standards for inflation. Based on the rise 

in the general level of prices, SBA 

believes that an inflation adjustment to 

size standards is needed to better reflect 

small businesses in industries with 

monetary-based size standards. 

ii. What are the potential benefits and 

costs of this regulatory action? 

The benefits of a size standard 

increase to a more appropriate level 

would accrue to three groups: (1) 

Businesses that benefit by gaining small 

Federal Register / Vol. 70, No. 233 / Tuesday, December 6, 2005 / Rules and Regulations 72581 

business status from the higher size 

standard that also use small business 

assistance programs; (2) growing small 

businesses that may exceed the current 

size standards in the near future and 

that will retain small business status 

from the higher size standard; and (3) 

Federal agencies that award contracts 

under procurement programs that 

require small business status. 

The most significant benefit to 

businesses obtaining small business 

status as a result of this rule is eligibility 

for Federal small business assistance 

programs. Under this rule, 

approximately 11,600 additional firms 

generating 0.6 percent of sales in the 

adjusted industries will obtain small 

business status and become eligible for 

these programs. These include SBA’s 

financial assistance programs, economic 

injury disaster loans, Federal 

procurement preference programs for 

small businesses (including 8(a) firms, 

small disadvantaged businesses, small 

businesses located in Historically 

Underutilized Business Zones 

(HUBZone), women-owned small 

businesses, and veteran-owned and 

service disabled veteran-owned small 

businesses, and Federal contracts 

awarded through full and open 

competition after application of the 

HUBZone or small disadvantaged 

business price evaluation preference or 

adjustment). Through the assistance of 

these programs, small businesses may 

benefit by becoming more 

knowledgeable, stable, and competitive 

businesses. 

SBA estimates that up to $400 million 

in Federal contracts could be awarded 

to firms becoming newly-designated as 

small businesses under this rule. In 

fiscal year 2004, small businesses 

obtained $39.2 billion out of $170.5 

billion in Federal contracts in industries 

with a monetary-based size standard. 

This estimate assumes that about half of 

the newly-defined small businesses 

participate in Federal contracting and 

they could obtain the same proportion 

of their industry share (one-half of 0.6 

percent) of the remaining large business 

awards (($170.5 billion¥$39.2 

billion¥$131.3 billion) × 0.003 = $0.393 

billion). 

SBA views the additional amount of 

projected contract activity as the 

potential amount of transfer from nonsmall to newly-designated small firms. 

This does not represent the creation of 

new contracting activity by the Federal 

government, merely a possible transfer 

or reallocation to different sized firms. 

Under the SBA’s 7(a) Guaranteed 

Loan Program, SBA estimates that 

approximately $86.5 million in new 

Federal loan guarantees could be made 

to these newly-defined small 

businesses. In fiscal year 2004, small 

businesses received $12.5 billion in loan 

guarantees under the 7(a) loan program 

in industries with a monetary-based size 

standard. Most of the newly-defined 

small businesses have 50 or more 

employees. SBA guaranteed 2,404 loans 

worth $1.1 billion to small businesses 

with 50 or more employees. Based on an 

analysis of the Advocacy-Census Bureau 

data, only about 1.6 percent of 

businesses within the size range of the 

newly-defined small businesses 

participate in the 7(a) program. 

Assuming this level of participation, 

186 additional loans could be 

guaranteed to the 11,600 newly defined 

businesses (11,600 × 0.016 = 186). The 

value of these loans is estimated by 

applying the average size loan to small 

businesses with 50 or more employees 

of $465,000 to the number of additional 

loans ($465,000 × 186 = $86,490). 

The newly defined small businesses 

would also benefit from SBA’s 

Economic Injury Disaster Loan (EIDL) 

Program. Since this program is 

contingent upon the occurrence and 

severity of a disaster, no meaningful 

estimate of benefits can be projected for 

future disasters. 

To the extent that up to 11,600 

additional firms could become active in 

Federal small business programs, this 

may entail some additional 

administrative costs to the Federal 

Government associated with additional 

bidders for Federal small business 

procurement programs, additional firms 

seeking SBA-guaranteed lending 

programs, and additional firms eligible 

for enrollment in Central Contractor 

Registration’s Dynamic Small Business 

Search database. Among businesses in 

this group seeking SBA assistance, there 

could be some additional costs 

associated with compliance and 

verification of small business status and 

protests of small business status. These 

costs are likely to generate minimal 

incremental administrative costs since 

mechanisms are currently in place to 

handle these administrative 

requirements. 

The costs to the Federal Government 

may be higher on some Federal 

contracts as a result of this rule. SBA 

believes, however, that there will be 

only minor distributional effects among 

large and small businesses relating to 

Federal procurement. 

The increase in the number of newly 

eligible small businesses is not enough 

to significantly affect current small 

businesses. Moreover, with a small 

amount of estimated lending to the 

newly defined small businesses as 

discussed above, it is unlikely that 

currently-defined small businesses 

would be denied SBA financial 

assistance due to a larger pool of eligible 

small businesses. These additional loan 

guarantees totaling $86.5 million or less 

will have virtually no impact on the 

overall availability of loans for SBA’s 

financial assistance programs, which 

guaranteed about 88,000 loans totaling 

more than $17 billion in fiscal year 

2004. 

The revision to the current monetarybased size standard is consistent with 

SBA’s statutory mandate to assist small 

business. This regulatory action 

promotes the Administration’s 

objectives. One of SBA’s goals in 

support of the Administration’s 

objectives is to help individual small 

businesses succeed through fair and 

equitable access to capital and credit, 

government contracts, and management 

and technical assistance. Reviewing and 

modifying size standards where 

appropriate, including periodic inflation 

adjustments, ensures that intended 

beneficiaries have access to small 

business programs designed to assist 

them. Size standards do not interfere 

with State, local, and tribal governments 

in the exercise of their government 

functions. In a few cases, state and local 

governments have voluntarily adopted 

SBA’s size standards for their programs 

to eliminate the need to establish an 

administrative mechanism to develop 

their own size standards. 

For purposes of Executive Order 

12988, SBA has determined that this 

rule is drafted, to the extent practicable, 

in accordance with the standards set 

forth in section 3 of that Order. 

This regulation would not have 

substantial direct effects on the States, 

on the relationship between the national 

government and the States, or on the 

distribution of power and responsibility 

among the various levels of government. 

Therefore, under Executive Order 

13132, SBA determines that this rule 

does not have sufficient federalism 

implications to warrant the preparation 

of a federalism assessment. 

SBA has determined that this rule 

does not impose any new information 

collection requirements under the 

Paperwork Reduction Act of 1980, 44 

U.S.C. 3501–3520. 

Under the Regulatory Flexibility Act 

(RFA), an inflation adjustment to 

monetary-based size standards as a 

result of this rule may have a significant 

economic impact on a substantial 

number of small entities. SBA does not 

expect that the implementation of a twostep process to determine small 

business eligibility for its financial 

assistance program will have a 

significant economic impact of a 

72582 Federal Register / Vol. 70, No. 233 / Tuesday, December 6, 2005 / Rules and Regulations 

substantial number of small businesses. 

As discussed in the Regulatory Impact 

Analysis, the vast majority of 7(a) loans 

are made to small businesses well below 

the size standard, and they usually do 

not have complicated organizational 

structures. However, the provision is 

important to equitably evaluate the 

small business status of some applicants 

that do have affiliates that operate in 

various industries. Immediately below, 

SBA sets forth an initial regulatory 

flexibility analysis (IRFA) of the 

inflation adjustment to size standards 

addressing the reasons for promulgating 

the rule and its objectives of the rule; 

SBA’s descriptions and estimate of the 

number of small entities to which the 

rule will apply; the projected reporting 

recordkeeping and other compliance 

requirements of the rule; the relevant 

Federal rules which may duplicate, 

overlap or conflict with the rule; and 

alternatives considered by SBA. 

(1) What is the reason for this action? 

As discussed in the supplemental 

information, the purpose of this rule is 

to restore the small business eligibility 

of businesses that have grown above the 

size standard due to inflation rather 

than due to increased business activity. 

A review of the latest inflation indexes 

indicates that inflation has increased a 

sufficient amount to warrant an increase 

to the current monetary-based size 

standards. 

(2) What are the objectives and legal 

basis for the rule? 

The revision to the monetary-based 

size standards for inflation more 

appropriately defines the size of 

businesses. This rule merely restores 

small business eligibility in real terms. 

Section 3(a) of the Small Business Act 

(15 U.S.C. 632(a)) gives SBA the 

authority to establish and change size 

standards. Within its administrative 

discretion, SBA implemented a policy 

in its regulations to review the effect of 

inflation on size standards at least every 

five years (13 CFR 121.102(c)) and make 

any changes as appropriate. 

(3) What is SBA’s description and 

estimate of the number of small entities 

to which the rule will apply? 

SBA estimates that there will be 

approximately 11,600 newly designated 

small businesses, distributed as follows 

by NAICS Sector: 

Sector Name of sector Number of 

firms 

11 ........... Agriculture .............. 59 

21 ........... Mining ..................... 672 

23 ........... Construction ........... 285 

44–45 ..... Retail Trade ............ 2,159 

Sector Name of sector Number of 

firms 

48–49 ..... Transportation ........ 211 

51 ........... Information ............. 89 

52 ........... Finance and Insurance.520 

53 ........... Real Estate ............. 1,846 

54 ........... Professional Services.2,674 

56 ........... Administration and 

Support.

472 

61 ........... Educational Services.201 

62 ........... Health Care ............ 1,171 

71 ........... Arts, Entertainment 

and Recreation.

184 

72 ........... Accommodation and 

Food Services.

420 

81 ........... Other Services ....... 635 

Total ................ 11,598 

Source: U.S. Small Business Administration, 

Office of Advocacy, 2002 data provided by the 

Statistics of U.S. Business Division of the U.S. 

Census Bureau. 

The percentage increase in the 

number of small businesses that will 

result from this rule, compared to the 

existing base of small businesses, is 

estimated to be about two-tenths of one 

percent. The special tabulation for the 

SBA’s Office of Advocacy obtained from 

the Bureau of the Census reports 

5,043,335 firms in the industries with 

monetary-based size standards. Within 

these industries, 96.0 percent of 

businesses are currently defined as 

small under the existing size standards. 

Under this rule, that percentage will 

increase to 96.2%. The percentage 

increase of annual sales attributed to 

these newly defined small businesses is 

likely to approximate 0.6 percent. 

Currently-defined small businesses 

under monetary-based size standards 

generate 25.7 percent of sales. Under 

this rule, the percentage of sales 

attributable to small businesses will 

increase to 26.4%. 

(4) What are the potential benefits of the 

rule? 

The most significant benefit to small 

businesses obtaining small business 

status is their eligibility for Federal 

small business assistance programs. 

These include SBA’s financial 

assistance programs and Federal 

procurement preference programs for 

small business, 8(a) firms, small 

disadvantaged businesses, and small 

businesses located in historically 

underutilized business zones 

(HUBZone). 

(5) Will this rule impose any additional 

reporting or recordkeeping requirements 

on small businesses? 

This rule does not impose any new 

information collection requirements 

from SBA which require approval by 

OMB under the Paperwork Reduction 

Act of 1980, 44 U.S.C. 3501–3520. A 

new size standard does not impose any 

additional reporting, record keeping or 

compliance requirements on small 

entities. Increasing size standards 

expands access to SBA programs that 

assist small businesses, but does not 

impose a regulatory burden as they 

neither regulate nor control business 

behavior. 

(6) What are the relevant Federal rules 

which may duplicate, overlap or 

conflict with this rule? 

This rule overlaps with other Federal 

rules that use SBA’s size standards to 

define a small business. Under 

§ 3(a)(2)(C) of the Small Business Act, 

unless specifically authorized by 

statute, Federal agencies must use SBA’s 

size standards to define a small 

business. In 1995, SBA published in the 

Federal Register a list of statutory and 

regulatory size standards that identified 

the application of SBA’s size standards 

as well as other size standards used by 

Federal agencies (60 FR 57988–57991, 

dated November 24, 1995). SBA is not 

aware of any Federal rule that would 

duplicate or conflict with establishing 

size standards. 

SBA cannot estimate the impact of a 

size standard change on each and every 

Federal program that uses its size 

standards. In cases where a size 

standard is not appropriate, the Small 

Business Act and SBA’s regulations 

allow Federal agencies to develop 

different size standards with the 

approval of the SBA Administrator (13 

CFR 121.902). For purposes of a 

regulatory flexibility analysis, agencies 

must consult with SBA’s Office of 

Advocacy when developing different 

size standards for their programs. 

(7) What alternatives did SBA consider? 

SBA considered two alternatives to 

this rule. First, SBA considered waiting 

until price levels increased by a greater 

amount before proposing an adjustment 

to its receipt-based size standards. 

Previous inflation adjustments ranged 

between 16 percent and 100 percent, 

whereas this increase is 8.7 percent. 

However, SBA now believes that more 

frequent adjustments are necessary 

since smaller amounts of inflation can 

change the eligibility of significant 

number of businesses. 

Second, SBA considered waiting until 

its review of issues that were raised in 

the Agency’s Advance Notice of 

Proposed Rulemaking of December 3, 

2004 (69 FR 70197) was completed. 

Ultimately, SBA rejected this approach 

as it could not predict with precision 

Federal Register / Vol. 70, No. 233 / Tuesday, December 6, 2005 / Rules and Regulations 72583 

the time for completion of its full 

review, the degree of inflation that 

could occur while the review was 

underway, or the final disposition of the 

issues that were raised in the December 

3, 2004 notice. SBA did not want to 

unnecessarily penalize firms during 

these deliberations. 

List of Subjects 

13 CFR Part 121 

Administrative practice and 

procedure, Government procurement, 

Government property, Loan programs—

business, Small business. 

13 CFR Part 123 

Disaster assistance, Loan programs—

business, Small business. 

■ For the reasons set forth in the 

preamble, amend parts 121 and 123 of 

title 13 Code of Federal Regulations as 

follows: 

PART 121—SMALL BUSINESS SIZE 

REGULATIONS 

■ 1. The authority citation for part 121 

continues to read as follows: 

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

637(a), 644(c), and 662(5); and Sec. 304, Pub. 

L. 103–403, 108 Stat. 4175, 4188. 

■ 2. Amend § 121.201 by revising the 

size standards to the referenced NAICS 

Codes in the table ‘‘SIZE STANDARDS 

BY NAICS INDUSTRY’’ under sections 

11, 21 through 23, 44–45, 48–49, 51 

through 56, 61, 62, 71, 72 and 81 and 

footnotes 9 and 15 to read as follows: 

§ 121.201 What size standards has SBA 

identified by North American Industry 

Classification System codes? 

* * * * * 

SMALL BUSINESS SIZE STANDARDS BY NAICS INDUSTRY

NAICS codes NAICS U.S. industry title Size standards in 

millions of dollars 

Size standards in 

number of 

employees 

Sector 11—Agriculture, Forestry, Fishing and Hunting 

* * * * * * * 

Subsector 112—Animal Production 

* * * * * * * 

112112 ................... Cattle Feedlots ............................................................................................................ $2.00 ............................

* * * * * * * 

112310 ................... Chicken Egg Production .............................................................................................. $11.5 ............................

* * * * * * * 

Subsector 113—Forestry and Logging 

113110 ................... Timber Tract Operations ............................................................................................. $6.5 ............................

113210 ................... Forest Nurseries and Gathering of Forest Products ................................................... $6.5 ............................

* * * * * * * 

Subsector 114—Fishing, Hunting and Trapping 

114111 ................... Finfish Fishing ............................................................................................................. $4.0 ............................

114112 ................... Shellfish Fishing .......................................................................................................... $4.0 ............................

114119 ................... Other Marine Fishing ................................................................................................... $4.0 ............................

114210 ................... Hunting and Trapping .................................................................................................. $4.0 ............................

Subsector 115—Support Activities for Agriculture and Forestry 

115111 ................... Cotton Ginning ............................................................................................................. $6.5 ............................

115112 ................... Soil Preparation, Planting, and Cultivating .................................................................. $6.5 ............................

115113 ................... Crop Harvesting, Primarily by Machine ....................................................................... $6.5 ............................

115114 ................... Postharvest Crop Activities (except Cotton Ginning) .................................................. $6.5 ............................

115115 ................... Farm Labor Contractors and Crew Leaders ............................................................... $6.5 ............................

115116 ................... Farm Management Services ....................................................................................... $6.5 ............................

115210 ................... Support Activities for Animal Production ..................................................................... $6.5 ............................

115310 ................... Support Activities for Forestry ..................................................................................... $6.5 ............................

Except, Forest Fire Suppression 17 .......................................................................................... 17 $16.5 ............................

Except, Fuels Management Services 17 ................................................................................... 17 $16.5 ............................

Sector 21—Mining 

Subsector 212—Mining (except Oil and Gas) 

* * * * * * * 

Subsector 213—Support Activities for Mining 

72584 Federal Register / Vol. 70, No. 233 / Tuesday, December 6, 2005 / Rules and Regulations 

SMALL BUSINESS SIZE STANDARDS BY NAICS INDUSTRY—Continued 

NAICS codes NAICS U.S. industry title Size standards in 

millions of dollars 

Size standards in 

number of 

employees 

* * * * * * * 

213112 ................... Support Activities for Oil and Gas Operations ............................................................ $6.5 ............................

213113 ................... Support Activities for Coal Mining ............................................................................... $6.5 ............................

213114 ................... Support Activities for Metal Mining .............................................................................. $6.5 ............................

213115 ................... Support Activities for Nonmetallic Minerals (except Fuels) ........................................ $6.5 ............................

Sector 22—Utilities 

Subsector 221—Utilities 

* * * * * * * 

221310 ................... Water Supply and Irrigation Systems .......................................................................... $6.5 ............................

221320 ................... Sewage Treatment Facilities ....................................................................................... $6.5 ............................

221330 ................... Steam and Air-Conditioning Supply ............................................................................ $11.5 ............................

Sector 23—Construction 

Subsector 236—Construction of Buildings 

236115 ................... New Single-Family Housing Construction (except Operative Builders) ...................... $31.0 ............................

236116 ................... New Multifamily Housing Construction (except Operative Builders) .......................... $31.0 ............................

236117 ................... New Housing Operative Builders ................................................................................ $31.0 ............................

236118 ................... Residential Remodelers .............................................................................................. $31.0 ............................

236210 ................... Industrial Building Construction ................................................................................... $31.0 ............................

236220 ................... Commercial and Institutional Building Construction .................................................... $31.0 ............................

Subsector 237—Heavy and Civil Engineering Construction 

237110 ................... Water and Sewer Line and Related Structures Construction ..................................... $31.0 ............................

237120 ................... Oil and Gas Pipeline and Related Structures Construction ........................................ $31.0 ............................

237130 ................... Power and Communication Line and Related Structures Construction ..................... $31.0 ............................

237210 ................... Land Subdivision ......................................................................................................... $6.5 ............................

237310 ................... Highway, Street, and Bridge Construction .................................................................. $31.0 ............................

237990 ................... Other Heavy and Civil Engineering Construction ....................................................... $31.0 ............................

Except, Dredging and Surface Cleanup Activities 2 ................................................................. 2 $18.5 ............................

Subsector 238—Specialty Trade Contractors 

238110 ................... Poured Concrete Foundation and Structure Contractors ........................................... $13.0 ............................

238120 ................... Structural Steel and Precast Concrete Contractors .................................................... $13.0 ............................

238130 ................... Framing Contractors .................................................................................................... $13.0 ............................

238140 ................... Masonry Contractors ................................................................................................... $13.0 ............................

238150 ................... Glass and Glazing Contractors ................................................................................... $13.0 ............................

238160 ................... Roofing Contractors ..................................................................................................... $13.0 ............................

238170 ................... Siding Contractors ....................................................................................................... $13.0 ............................

238190 ................... Other Foundation, Structure, and Building Exterior Contractors ................................ $13.0 ............................

238210 ................... Electrical Contractors .................................................................................................. $13.0 ............................

238220 ................... Plumbing, Heating, and Air-Conditioning Contractors ................................................ $13.0 ............................

238290 ................... Other Building Equipment Contractors ........................................................................ $13.0 ............................

238310 ................... Drywall and Insulation Contractors ............................................................................. $13.0 ............................

238320 ................... Painting and Wall Covering Contractors ..................................................................... $13.0 ............................

238330 ................... Flooring Contractors .................................................................................................... $13.0 ............................

238340 ................... Tile and Terrazzo Contractors ..................................................................................... $13.0 ............................

238350 ................... Finish Carpentry Contractors ...................................................................................... $13.0 ............................

238390 ................... Other Building Finishing Contractors .......................................................................... $13.0 ............................

238910 ................... Site Preparation Contractors ....................................................................................... $13.0 ............................

238990 ................... All Other Specialty Trade Contractors 13 ..................................................................... 13 $13.0 ............................

238990 ................... Building and Property Specialty Trade Services 13 ..................................................... 13 $13.0 ............................

* * * * * * * 

Sectors 44–45—Retail Trade 

(Not applicable to Government procurement of supplies. The nonmanufacturer size standard of 500 employees shall be used for purposes of 

Government procurement of supplies.) 

Subsector 441—Motor Vehicle and Parts Dealers 

441110 ................... New Car Dealers ......................................................................................................... $26.5 ............................

441120 ................... Used Car Dealers ........................................................................................................ $21.0 ............................

441210 ................... Recreational Vehicle Dealers ...................................................................................... $6.5 ............................

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SMALL BUSINESS SIZE STANDARDS BY NAICS INDUSTRY—Continued 

NAICS codes NAICS U.S. industry title Size standards in 

millions of dollars 

Size standards in 

number of 

employees 

441221 ................... Motorcycle Dealers ...................................................................................................... $6.5 ............................

441222 ................... Boat Dealers ................................................................................................................ $6.5 ............................

441229 ................... All Other Motor Vehicle Dealers .................................................................................. $6.5 ............................

Except, Aircraft Dealers, Retail ................................................................................................ $9.0 ............................

441310 ................... Automotive Parts and Accessories Stores .................................................................. $6.5 ............................

441320 ................... Tire Dealers ................................................................................................................. $6.5 ............................

Subsector 442—Furniture and Home Furnishings Stores 

442110 ................... Furniture Stores ........................................................................................................... $6.5 ............................

442210 ................... Floor Covering Stores ................................................................................................. $6.5 ............................

442291 ................... Window Treatment Stores ........................................................................................... $6.5 ............................

442299 ................... All Other Home Furnishings Stores ............................................................................ $6.5 ............................

Subsector 443—Electronics and Appliance Stores 

443111 ................... Household Appliance Stores ....................................................................................... $8.0 ............................

443112 ................... Radio, Television and Other Electronics Stores ......................................................... $8.0 ............................

443120 ................... Computer and Software Stores ................................................................................... $8.0 ............................

443130 ................... Camera and Photographic Supplies Stores ................................................................ $6.5 ............................

Subsector 444—Building Material and Garden Equipment and Supplies Dealers 

444110 ................... Home Centers ............................................................................................................. $6.5 ............................

444120 ................... Paint and Wallpaper Stores ........................................................................................ $6.5 ............................

444130 ................... Hardware Stores .......................................................................................................... $6.5 ............................

444190 ................... Other Building Material Dealers .................................................................................. $6.5 ............................

444210 ................... Outdoor Power Equipment Stores .............................................................................. $6.5 ............................

444220 ................... Nursery and Garden Centers ...................................................................................... $6.5 ............................

Subsector 445—Food and Beverage Stores 

445110 ................... Supermarkets and Other Grocery (except Convenience) Stores ............................... $25.0 ............................

445120 ................... Convenience Stores .................................................................................................... $25.0 ............................

445210 ................... Meat Markets ............................................................................................................... $6.5 ............................

445220 ................... Fish and Seafood Markets .......................................................................................... $6.5 ............................

445230 ................... Fruit and Vegetable Markets ....................................................................................... $6.5 ............................

445291 ................... Baked Goods Stores ................................................................................................... $6.5 ............................

445292 ................... Confectionery and Nut Stores ..................................................................................... $6.5 ............................

445299 ................... All Other Specialty Food Stores .................................................................................. $6.5 ............................

445310 ................... Beer, Wine and Liquor Stores ..................................................................................... $6.5 ............................

Subsector 446—Health and Personal Care Stores 

446110 ................... Pharmacies and Drug Stores ...................................................................................... $6.5 ............................

446120 ................... Cosmetics, Beauty Supplies and Perfume Stores ...................................................... $6.5 ............................

446130 ................... Optical Goods Stores .................................................................................................. $6.5 ............................

446191 ................... Food (Health) Supplement Stores ............................................................................... $6.5 ............................

446199 ................... All Other Health and Personal Care Stores ................................................................ $6.5 ............................

Subsector 447—Gasoline Stations 

447110 ................... Gasoline Stations with Convenience Stores ............................................................... $25.0 ............................

447190 ................... Other Gasoline Stations .............................................................................................. $8.0 ............................

Subsector 448—Clothing and Clothing Accessories Stores 

448110 ................... Men’s Clothing Stores ................................................................................................. $8.0 ............................

448120 ................... Women’s Clothing Stores ............................................................................................ $8.0 ............................

448130 ................... Children’s and Infants’ Clothing Stores ....................................................................... $6.5 ............................

448140 ................... Family Clothing Stores ................................................................................................ $8.0 ............................

448150 ................... Clothing Accessories Stores ....................................................................................... $6.5 ............................

448190 ................... Other Clothing Stores .................................................................................................. $6.5 ............................

448210 ................... Shoe Stores ................................................................................................................. $8.0 ............................

448310 ................... Jewelry Stores ............................................................................................................. $6.5 ............................

448320 ................... Luggage and Leather Goods Stores ........................................................................... $6.5 ............................

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

451110 ................... Sporting Goods Stores ................................................................................................ $6.5 ............................

451120 ................... Hobby, Toy and Game Stores .................................................................................... $6.5 ............................

72586 Federal Register / Vol. 70, No. 233 / Tuesday, December 6, 2005 / Rules and Regulations 

SMALL BUSINESS SIZE STANDARDS BY NAICS INDUSTRY—Continued 

NAICS codes NAICS U.S. industry title Size standards in 

millions of dollars 

Size standards in 

number of 

employees 

451130 ................... Sewing, Needlework and Piece Goods Stores ........................................................... $6.5 ............................

451140 ................... Musical Instrument and Supplies Stores ..................................................................... $6.5 ............................

451211 ................... Book Stores ................................................................................................................. $6.5 ............................

451212 ................... News Dealers and Newsstands .................................................................................. $6.5 ............................

451220 ................... Prerecorded Tape, Compact Disc and Record Stores ............................................... $6.5 ............................

Subsector 452—General Merchandise Stores 

452111 ................... Department Stores (except Discount Department Stores) ......................................... $25.0 ............................

452112 ................... Discount Department Stores ....................................................................................... $25.0 ............................

452910 ................... Warehouse Clubs and Superstores ............................................................................ $25.0 ............................

452990 ................... All Other General Merchandise Stores ....................................................................... $10.5 ............................

Subsector 453—Miscellaneous Store Retailers 

453110 ................... Florists ......................................................................................................................... $6.5 ............................

453210 ................... Office Supplies and Stationery Stores ........................................................................ $6.5 ............................

453220 ................... Gift, Novelty and Souvenir Stores ............................................................................... $6.5 ............................

453310 ................... Used Merchandise Stores ........................................................................................... $6.5 ............................

453910 ................... Pet and Pet Supplies Stores ....................................................................................... $6.5 ............................

453920 ................... Art Dealers ................................................................................................................... $6.5 ............................

453930 ................... Manufactured (Mobile) Home Dealers ........................................................................ $12.0 ............................

453991 ................... Tobacco Stores ........................................................................................................... $6.5 ............................

453998 ................... All Other Miscellaneous Store Retailers (except Tobacco Stores) ............................. $6.5 ............................

Subsector 454—Nonstore Retailers 

454111 ................... Electronic Shopping ..................................................................................................... $23.0 ............................

454112 ................... Electronic Auctions ...................................................................................................... $23.0 ............................

454113 ................... Mail-Order Houses ...................................................................................................... $23.0 ............................

454210 ................... Vending Machine Operators ........................................................................................ $6.5 ............................

454311 ................... Heating Oil Dealers ..................................................................................................... $11.5 ............................

454312 ................... Liquefied Petroleum Gas (Bottled Gas) Dealers ......................................................... $6.5 ............................

454319 ................... Other Fuel Dealers ...................................................................................................... $6.5 ............................

454390 ................... Other Direct Selling Establishments ............................................................................ $6.5 ............................

Sectors 48–49—Transportation 

Subsector 481—Air Transportation 

* * * * * * * 

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

Except, Offshore Marine Air Transportation Services .............................................................. $25.5 ............................

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

Except, Offshore Marine Air Transportation Services .............................................................. $25.5 ............................

481219 ................... Other Nonscheduled Air Transportation ...................................................................... $6.5 ............................

* * * * * * * 

Subsector 484—Truck Transportation 

484110 ................... General Freight Trucking, Local .................................................................................. $23.5 ............................

484121 ................... General Freight Trucking, Long-Distance, Truckload ................................................. $23.5 ............................

484122 ................... General Freight Trucking, Long-Distance, Less Than Truckload ............................... $23.5 ............................

484210 ................... Used Household and Office Goods Moving ................................................................ $23.5 ............................

484220 ................... Specialized Freight (except Used Goods) Trucking, Local ......................................... $23.5 ............................

484230 ................... Specialized Freight (except Used Goods) Trucking, Long-Distance .......................... $23.5 ............................

Subsector 485—Transit and Ground Passenger Transportation 

485111 ................... Mixed Mode Transit Systems ...................................................................................... $6.5 ............................

485112 ................... Commuter Rail Systems .............................................................................................. $6.5 ............................

485113 ................... Bus and Motor Vehicle Transit Systems ..................................................................... $6.5 ............................

485119 ................... Other Urban Transit Systems ...................................................................................... $6.5 ............................

485210 ................... Interurban and Rural Bus Transportation .................................................................... $6.5 ............................

485310 ................... Taxi Service ................................................................................................................. $6.5 ............................

485320 ................... Limousine Service ....................................................................................................... $6.5 ............................

485410 ................... School and Employee Bus Transportation .................................................................. $6.5 ............................

485510 ................... Charter Bus Industry ................................................................................................... $6.5 ............................

485991 ................... Special Needs Transportation ..................................................................................... $6.5 ............................

Federal Register / Vol. 70, No. 233 / Tuesday, December 6, 2005 / Rules and Regulations 72587 

SMALL BUSINESS SIZE STANDARDS BY NAICS INDUSTRY—Continued 

NAICS codes NAICS U.S. industry title Size standards in 

millions of dollars 

Size standards in 

number of 

employees 

485999 ................... All Other Transit and Ground Passenger Transportation ........................................... $6.5 ............................

Subsector 486—Pipeline Transportation 

* * * * * * * 

486210 ................... Pipeline Transportation of Natural Gas ....................................................................... $6.5 ............................

* * * * * * * 

486990 ................... All Other Pipeline Transportation ................................................................................ $31.5 ............................

Subsector 487—Scenic and Sightseeing Transportation 

487110 ................... Scenic and Sightseeing Transportation, Land ............................................................ $6.5 ............................

487210 ................... Scenic and Sightseeing Transportation, Water ........................................................... $6.5 ............................

487990 ................... Scenic and Sightseeing Transportation, Other ........................................................... $6.5 ............................

Subsector 488—Support Activities for Transportation 

488111 ................... Air Traffic Control ........................................................................................................ $6.5 ............................

488119 ................... Other Airport Operations ............................................................................................. $6.5 ............................

488190 ................... Other Support Activities for Air Transportation ........................................................... $6.5 ............................

488210 ................... Support Activities for Rail Transportation .................................................................... $6.5 ............................

488310 ................... Port and Harbor Operations ........................................................................................ $23.5 ............................

488320 ................... Marine Cargo Handling ............................................................................................... $23.5 ............................

488330 ................... Navigational Services to Shipping ............................................................................... $6.5 ............................

488390 ................... Other Support Activities for Water Transportation ...................................................... $6.5 ............................

488410 ................... Motor Vehicle Towing .................................................................................................. $6.5 ............................

488490 ................... Other Support Activities for Road Transportation ....................................................... $6.5 ............................

488510 ................... Freight Transportation Arrangement 10 ........................................................................ 10 $6.5 ............................

Except, Non-Vessel Owning Common Carriers and Household Goods Forwarders .............. $23.5 ............................

488991 ................... Packing and Crating .................................................................................................... $23.5 ............................

488999 ................... All Other Support Activities for Transportation ............................................................ $6.5 ............................

Subsector 491—Postal Service 

491110 ................... Postal Service .............................................................................................................. $6.5 ............................

Subsector 492—Couriers and Messengers 

* * * * * * * 

492210 ................... Local Messengers and Local Delivery ........................................................................ $23.5 ............................

Subsector 493—Warehousing and Storage 

493110 ................... General Warehousing and Storage ............................................................................. $23.5 ............................

493120 ................... Refrigerated Warehousing and Storage ...................................................................... $23.5 ............................

493130 ................... Farm Product Warehousing and Storage ................................................................... $23.5 ............................

493190 ................... Other Warehousing and Storage ................................................................................ $23.5 ............................

Sector 51—Information 

Subsector 511—Publishing Industries (except Internet) 

* * * * * * * 

511210 ................... Software Publishers ..................................................................................................... $23.0 ............................

Subsector 512—Motion Picture and Sound Recording Industries 

512110 ................... Motion Picture and Video Production .......................................................................... $27.0 ............................

512120 ................... Motion Picture and Video Distribution ......................................................................... $27.0 ............................

512131 ................... Motion Picture Theaters (except Drive-Ins) ................................................................ $6.5 ............................

512132 ................... Drive-In Motion Picture Theaters ................................................................................ $6.5 ............................

512191 ................... Teleproduction and Other Postproduction Services ................................................... $27.0 ............................

512199 ................... Other Motion Picture and Video Industries ................................................................. $6.5 ............................

512210 ................... Record Production ....................................................................................................... $6.5 ............................

72588 Federal Register / Vol. 70, No. 233 / Tuesday, December 6, 2005 / Rules and Regulations 

SMALL BUSINESS SIZE STANDARDS BY NAICS INDUSTRY—Continued 

NAICS codes NAICS U.S. industry title Size standards in 

millions of dollars 

Size standards in 

number of 

employees 

* * * * * * * 

512240 ................... Sound Recording Studios ............................................................................................ $6.5 ............................

512290 ................... Other Sound Recording Industries .............................................................................. $6.5 ............................

Subsector 515—Broadcasting (except Internet) 

515111 ................... Radio Networks ........................................................................................................... $6.5 ............................

515112 ................... Radio Stations ............................................................................................................. $6.5 ............................

515120 ................... Television Broadcasting .............................................................................................. $13.0 ............................

515210 ................... Cable and Other Subscription Programming .............................................................. $13.5 ............................

* * * * * * * 

Subsector 517—Telecommunications 

* * * * * * * 

517410 ................... Satellite Telecommunications ...................................................................................... $13.5 ............................

517510 ................... Cable and Other Program Distribution ........................................................................ $13.5 ............................

517910 ................... Other Telecommunications .......................................................................................... $13.5 ............................

Subsector 518—Internet Service Providers, Web Search Portals, and Data Processing Services 

518111 ................... Internet Service Providers ........................................................................................... $23.0 ............................

518112 ................... Web Search Portals .................................................................................................... $6.5 ............................

518210 ................... Data Processing, Hosting, and Related Services ....................................................... $23.0 ............................

Subsector 519—Other Information Services 

519110 ................... News Syndicates ......................................................................................................... $6.5 ............................

519120 ................... Libraries and Archives ................................................................................................. $6.5 ............................

519190 ................... All Other Information Services .................................................................................... $6.5 ............................

Sector 52—Finance and Insurance 

Subsector 522—Credit Intermediation and Related Activities 

522110 ................... Commercial Banking 8 ................................................................................................. 8 $165 million in 

assets 

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

522120 ................... Savings Institutions 8 ................................................................................................... 8 $165 million in 

assets

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

522130 ................... Credit Unions 8 ............................................................................................................. 8 $165 million in 

assets 

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

522190 ................... Other Depository Credit Intermediation 8 .................................................................... 8 $165 million in 

assets 

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

522210 ................... Credit Card Issuing 8 ................................................................................................... 8 $165 million in 

assets 

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

522220 ................... Sales Financing ........................................................................................................... $6.5 ............................

522291 ................... Consumer Lending ...................................................................................................... $6.5 ............................

522292 ................... Real Estate Credit ....................................................................................................... $6.5 ............................

522293 ................... International Trade Financing 8 ................................................................................... 8 $165 million in 

assets 

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

522294 ................... Secondary Market Financing ....................................................................................... $6.5 ............................

522298 ................... All Other Non-Depository Credit Intermediation .......................................................... $6.5 ............................

522310 ................... Mortgage and Nonmortgage Loan Brokers ................................................................. $6.5 ............................

522320 ................... Financial Transactions Processing, Reserve, and Clearing House Activities ............ $6.5 ............................

522390 ................... Other Activities Related to Credit Intermediation ........................................................ $6.5 ............................

Subsector 523—Financial Investments and Related Activities 

523110 ................... Investment Banking and Securities Dealing ............................................................... $6.5 ............................

523120 ................... Securities Brokerage ................................................................................................... $6.5 ............................

523130 ................... Commodity Contracts Dealing ..................................................................................... $6.5 ............................

523140 ................... Commodity Contracts Brokerage ................................................................................ $6.5 ............................

523210 ................... Securities and Commodity Exchanges ....................................................................... $6.5 ............................

523910 ................... Miscellaneous Intermediation ...................................................................................... $6.5 ............................

523920 ................... Portfolio Management ................................................................................................. $6.5 ............................

523930 ................... Investment Advice ....................................................................................................... $6.5 ............................

Federal Register / Vol. 70, No. 233 / Tuesday, December 6, 2005 / Rules and Regulations 72589 

SMALL BUSINESS SIZE STANDARDS BY NAICS INDUSTRY—Continued 

NAICS codes NAICS U.S. industry title Size standards in 

millions of dollars 

Size standards in 

number of 

employees 

523991 ................... Trust, Fiduciary and Custody Activities ....................................................................... $6.5 ............................

523999 ................... Miscellaneous Financial Investment Activities ............................................................ $6.5 ............................

Subsector 524—Insurance Carriers and Related Activities 

524113 ................... Direct Life Insurance Carriers ..................................................................................... $6.5 ............................

524114 ................... Direct Health and Medical Insurance Carriers ............................................................ $6.5 ............................

* * * * * * * 

524127 ................... Direct Title Insurance Carriers .................................................................................... $6.5 ............................

524128 ................... Other Direct Insurance (except Life, Health and Medical) Carriers ............................ $6.5 ............................

524130 ................... Reinsurance Carriers ................................................................................................... $6.5 ............................

524210 ................... Insurance Agencies and Brokerages .......................................................................... $6.5 ............................

524291 ................... Claims Adjusting .......................................................................................................... $6.5 ............................

524292 ................... Third Party Administration of Insurance and Pension Funds ..................................... $6.5 ............................

524298 ................... All Other Insurance Related Activities ......................................................................... $6.5 ............................

Subsector 525—Funds, Trusts and Other Financial Vehicles 

525110 ................... Pension Funds ............................................................................................................. $6.5 ............................

525120 ................... Health and Welfare Funds .......................................................................................... $6.5 ............................

525190 ................... Other Insurance Funds ................................................................................................ $6.5 ............................

525910 ................... Open-End Investment Funds ...................................................................................... $6.5 ............................

525920 ................... Trusts, Estates, and Agency Accounts ....................................................................... $6.5 ............................

525930 ................... Real Estate Investment Trusts .................................................................................... $6.5 ............................

525990 ................... Other Financial Vehicles ............................................................................................. $6.5 ............................

Sector 53—Real Estate and Rental and Leasing 

Subsector 531—Real Estate 

531110 ................... Lessors of Residential Buildings and Dwellings ......................................................... $6.5 ............................

531120 ................... Lessors of Nonresidential Buildings (except Miniwarehouses) ................................... $6.5 ............................

531130 ................... Lessors of Miniwarehouses and Self Storage Units ................................................... $23.5 ............................

531190 ................... Lessors of Other Real Estate Property ....................................................................... $6.5 ............................

Except, Leasing of Building Space to Federal Government by Owners 9 ............................... 9 $19.0 ............................

531210 ................... Offices of Real Estate Agents and Brokers 10 ............................................................. 10 $2.0 ............................

531311 ................... Residential Property Managers ................................................................................... $2.0 ............................

531312 ................... Nonresidential Property Managers .............................................................................. $2.0 ............................

531320 ................... Offices of Real Estate Appraisers ............................................................................... $2.0 ............................

531390 ................... Other Activities Related to Real Estate ....................................................................... $2.0 ............................

Subsector 532—Rental and Leasing Services 

532111 ................... Passenger Car Rental ................................................................................................. $23.5 ............................

532112 ................... Passenger Car Leasing ............................................................................................... $23.5 ............................

532120 ................... Truck, Utility Trailer, and RV (Recreational Vehicle) Rental and Leasing .................. $23.5 ............................

532210 ................... Consumer Electronics and Appliances Rental ............................................................ $6.5 ............................

532220 ................... Formal Wear and Costume Rental ............................................................................. $6.5 ............................

532230 ................... Video Tape and Disc Rental ....................................................................................... $6.5 ............................

532291 ................... Home Health Equipment Rental .................................................................................. $6.5 ............................

532292 ................... Recreational Goods Rental ......................................................................................... $6.5 ............................

532299 ................... All Other Consumer Goods Rental ............................................................................. $6.5 ............................

532310 ................... General Rental Centers ............................................................................................... $6.5 ............................

532411 ................... Commercial Air, Rail, and Water Transportation Equipment Rental and Leasing ..... $6.5 ............................

532412 ................... Construction, Mining and Forestry Machinery and Equipment Rental and Leasing .. $6.5 ............................

532420 ................... Office Machinery and Equipment Rental and Leasing ............................................... $23.0 ............................

532490 ................... Other Commercial and Industrial Machinery and Equipment Rental and Leasing .... $6.5 ............................

Subsector 533—Lessors of Nonfinancial Intangible Assets (except Copyrighted Works) 

533110 ................... Lessors of Nonfinancial Intangible Assets (except Copyrighted Works) .................... $6.5 ............................

Sector 54—Professional, Scientific and Technical Services 

Subsector 541—Professional, Scientific and Technical Services 

541110 ................... Offices of Lawyers ....................................................................................................... $6.5 ............................

541191 ................... Title Abstract and Settlement Offices .......................................................................... $6.5 ............................

541199 ................... All Other Legal Services .............................................................................................. $6.5 ............................

541211 ................... Offices of Certified Public Accountants ....................................................................... $7.5 ............................

72590 Federal Register / Vol. 70, No. 233 / Tuesday, December 6, 2005 / Rules and Regulations 

SMALL BUSINESS SIZE STANDARDS BY NAICS INDUSTRY—Continued 

NAICS codes NAICS U.S. industry title Size standards in 

millions of dollars 

Size standards in 

number of 

employees 

541213 ................... Tax Preparation Services ............................................................................................ $6.5 ............................

541214 ................... Payroll Services ........................................................................................................... $7.5 ............................

541219 ................... Other Accounting Services .......................................................................................... $7.5 ............................

541310 ................... Architectural Services .................................................................................................. $4.5 ............................

541320 ................... Landscape Architectural Services ............................................................................... $6.5 ............................

541330 ................... Engineering Services ................................................................................................... $4.5 ............................

Except, Military and Aerospace Equipment and Military Weapons ......................................... $25.0 ............................

Except, Contracts and Subcontracts for Engineering Services Awarded Under the National 

Energy Policy Act of 1992.

$25.0 ............................

Except, Marine Engineering and Naval Architecture ............................................................... $17.0 ............................

541340 ................... Drafting Services ......................................................................................................... $6.5 ............................

Except, Map Drafting ................................................................................................................ $4.5 ............................

541350 ................... Building Inspection Services ....................................................................................... $6.5 ............................

541360 ................... Geophysical Surveying and Mapping Services ........................................................... $4.5 ............................

541370 ................... Surveying and Mapping (except Geophysical) Services ............................................ $4.5 ............................

541380 ................... Testing Laboratories .................................................................................................... $11.0 ............................

541410 ................... Interior Design Services .............................................................................................. $6.5 ............................

541420 ................... Industrial Design Services ........................................................................................... $6.5 ............................

541430 ................... Graphic Design Services ............................................................................................. $6.5 ............................

541490 ................... Other Specialized Design Services ............................................................................. $6.5 ............................

541511 ................... Custom Computer Programming Services .................................................................. $23.0 ............................

541512 ................... Computer Systems Design Services ........................................................................... $23.0 ............................

541513 ................... Computer Facilities Management Services ................................................................. $23.0 ............................

541519 ................... Other Computer Related Services .............................................................................. $23.0 ............................

Except, Information Technology Value Added Resellers 18 ..................................................... ............................ 18 150 

541611 ................... Administrative Management and General Management Consulting Services ........... $6.5 ............................

541612 ................... Human Resources and Executive Search Consulting Services ................................. $6.5 ............................

541613 ................... Marketing Consulting Services .................................................................................... $6.5 ............................

541614 ................... Process, Physical Distribution and Logistics Consulting Services ............................. $6.5 ............................

541618 ................... Other Management Consulting Services .................................................................... $6.5 ............................

541620 ................... Environmental Consulting Services ............................................................................. $6.5 ............................

541690 ................... Other Scientific and Technical Consulting Services ................................................... $6.5 ............................

* * * * * * * 

541720 ................... Research and Development in the Social Sciences and Humanities ........................ $6.5 ............................

541810 ................... Advertising Agencies 10 ............................................................................................... 10 $6.5 ............................

541820 ................... Public Relations Agencies ........................................................................................... $6.5 ............................

541830 ................... Media Buying Agencies ............................................................................................... $6.5 ............................

541840 ................... Media Representatives ................................................................................................ $6.5 ............................

541850 ................... Display Advertising ...................................................................................................... $6.5 ............................

541860 ................... Direct Mail Advertising ................................................................................................. $6.5 ............................

541870 ................... Advertising Material Distribution Services ................................................................... $6.5 ............................

541890 ................... Other Services Related to Advertising ........................................................................ $6.5 ............................

541910 ................... Marketing Research and Public Opinion Polling ......................................................... $6.5 ............................

541921 ................... Photography Studios, Portrait ..................................................................................... $6.5 ............................

541922 ................... Commercial Photography ............................................................................................ $6.5 ............................

541930 ................... Translation and Interpretation Services ...................................................................... $6.5 ............................

541940 ................... Veterinary Services ..................................................................................................... $6.5 ............................

541990 ................... All Other Professional, Scientific and Technical Services .......................................... $6.5 ............................

Sector 55—Management of Companies and Enterprises 

Subsector 551—Management of Companies and Enterprises 

551111 ................... Offices of Bank Holding Companies ........................................................................... $6.5 ............................

551112 ................... Offices of Other Holding Companies .......................................................................... $6.5 ............................

Sector 56—Administrative and Support, Waste Management and Remediation Services 

Subsector 561—Administrative and Support Services 

561110 ................... Office Administrative Services ..................................................................................... $6.5 ............................

561210 ................... Facilities Support Services 12 ...................................................................................... 12 $32.5 ............................

561310 ................... Employment Placement Agencies ............................................................................... $6.5 ............................

561320 ................... Temporary Help Services ............................................................................................ $12.5 ............................

561330 ................... Employee Leasing Services ........................................................................................ $12.5 ............................

561410 ................... Document Preparation Services .................................................................................. $6.5 ............................

561421 ................... Telephone Answering Services ................................................................................... $6.5 ............................

561422 ................... Telemarketing Bureaus ............................................................................................... $6.5 ............................

561431 ................... Private Mail Centers .................................................................................................... $6.5 ............................

561439 ................... Other Business Service Centers (including Copy Shops) .......................................... $6.5 ............................

Federal Register / Vol. 70, No. 233 / Tuesday, December 6, 2005 / Rules and Regulations 72591 

SMALL BUSINESS SIZE STANDARDS BY NAICS INDUSTRY—Continued 

NAICS codes NAICS U.S. industry title Size standards in 

millions of dollars 

Size standards in 

number of 

employees 

561440 ................... Collection Agencies ..................................................................................................... $6.5 ............................

561450 ................... Credit Bureaus ............................................................................................................. $6.5 ............................

561491 ................... Repossession Services ............................................................................................... $6.5 ............................

561492 ................... Court Reporting and Stenotype Services .................................................................... $6.5 ............................

561499 ................... All Other Business Support Services .......................................................................... $6.5 ............................

561510 ................... Travel Agencies 10 ....................................................................................................... 10 $3.510 ............................

561520 ................... Tour Operators 10 ......................................................................................................... 10 $6.5 ............................

561591 ................... Convention and Visitors Bureaus ................................................................................ $6.5 ............................

561599 ................... All Other Travel Arrangement and Reservation Services ........................................... $6.5 ............................

561611 ................... Investigation Services .................................................................................................. $11.5 ............................

561612 ................... Security Guards and Patrol Services .......................................................................... $11.5 ............................

561613 ................... Armored Car Services ................................................................................................. $11.5 ............................

561621 ................... Security Systems Services (except Locksmiths) ........................................................ $11.5 ............................

561622 ................... Locksmiths ................................................................................................................... $6.5 ............................

561710 ................... Exterminating and Pest Control Services ................................................................... $6.5 ............................

561720 ................... Janitorial Services ....................................................................................................... $15.0 ............................

561730 ................... Landscaping Services ................................................................................................. $6.5 ............................

561740 ................... Carpet and Upholstery Cleaning Services .................................................................. $4.5 ............................

561790 ................... Other Services to Buildings and Dwellings ................................................................. $6.5 ............................

561910 ................... Packaging and Labeling Services ............................................................................... $6.5 ............................

561920 ................... Convention and Trade Show Organizers 10 ................................................................ 10 $6.5 ............................

561990 ................... All Other Support Services .......................................................................................... $6.5 ............................

Subsector 562—Waste Management and Remediation Services 

562111 ................... Solid Waste Collection ................................................................................................ $11.5 ............................

562112 ................... Hazardous Waste Collection ....................................................................................... $11.5 ............................

562119 ................... Other Waste Collection ............................................................................................... $11.5 ............................

562211 ................... Hazardous Waste Treatment and Disposal ................................................................ $11.5 ............................

562212 ................... Solid Waste Landfill ..................................................................................................... $11.5 ............................

562213 ................... Solid Waste Combustors and Incinerators .................................................................. $11.5 ............................

562219 ................... Other Nonhazardous Waste Treatment and Disposal ................................................ $11.5 ............................

562910 ................... Remediation Services .................................................................................................. $13.0 ............................

Except, Environmental Remediation Services 14 ...................................................................... ............................ 14 500 

562920 ................... Materials Recovery Facilities ....................................................................................... $11.5 ............................

562991 ................... Septic Tank and Related Services .............................................................................. $6.5 ............................

562998 ................... All Other Miscellaneous Waste Management Services .............................................. $6.5 ............................

Sector 61—Educational Services 

Subsector 611—Educational Services 

611110 ................... Elementary and Secondary Schools ........................................................................... $6.5 ............................

611210 ................... Junior Colleges ............................................................................................................ $6.5 ............................

611310 ................... Colleges, Universities and Professional Schools ........................................................ $6.5 ............................

611410 ................... Business and Secretarial Schools ............................................................................... $6.5 ............................

611420 ................... Computer Training ....................................................................................................... $6.5 ............................

611430 ................... Professional and Management Development Training ............................................... $6.5 ............................

611511 ................... Cosmetology and Barber Schools ............................................................................... $6.5 ............................

611512 ................... Flight Training .............................................................................................................. $23.5 ............................

611513 ................... Apprenticeship Training ............................................................................................... $6.5 ............................

611519 ................... Other Technical and Trade Schools ........................................................................... $6.5 ............................

Except, Job Corps Centers 16 ................................................................................................... 16 $32.5 ............................

611610 ................... Fine Arts Schools ........................................................................................................ $6.5 ............................

611620 ................... Sports and Recreation Instruction ............................................................................... $6.5 ............................

611630 ................... Language Schools ....................................................................................................... $6.5 ............................

611691 ................... Exam Preparation and Tutoring .................................................................................. $6.5 ............................

611692 ................... Automobile Driving Schools ........................................................................................ $6.5 ............................

611699 ................... All Other Miscellaneous Schools and Instruction ........................................................ $6.5 ............................

611710 ................... Educational Support Services ..................................................................................... $6.5 ............................

Sector 62—Health Care and Social Assistance 

Subsector 621—Ambulatory Health Care Services 

621111 ................... Offices of Physicians (except Mental Health Specialists) ........................................... $9.0 ............................

621112 ................... Offices of Physicians, Mental Health Specialists ........................................................ $9.0 ............................

621210 ................... Offices of Dentists ....................................................................................................... $6.5 ............................

621310 ................... Offices of Chiropractors ............................................................................................... $6.5 ............................

621320 ................... Offices of Optometrists ................................................................................................ $6.5 ............................

621330 ................... Offices of Mental Health Practitioners (except Physicians) ........................................ $6.5 ............................

72592 Federal Register / Vol. 70, No. 233 / Tuesday, December 6, 2005 / Rules and Regulations 

SMALL BUSINESS SIZE STANDARDS BY NAICS INDUSTRY—Continued 

NAICS codes NAICS U.S. industry title Size standards in 

millions of dollars 

Size standards in 

number of 

employees 

621340 ................... Offices of Physical, Occupational and Speech Therapists and Audiologists ............. $6.5 ............................

621391 ................... Offices of Podiatrists ................................................................................................... $6.5 ............................

621399 ................... Offices of All Other Miscellaneous Health Practitioners ............................................. $6.5 ............................

621410 ................... Family Planning Centers ............................................................................................. $9.0 ............................

621420 ................... Outpatient Mental Health and Substance Abuse Centers .......................................... $9.0 ............................

621491 ................... HMO Medical Centers ................................................................................................. $9.0 ............................

621492 ................... Kidney Dialysis Centers .............................................................................................. $31.5 ............................

621493 ................... Freestanding Ambulatory Surgical and Emergency Centers ...................................... $9.0 ............................

621498 ................... All Other Outpatient Care Centers .............................................................................. $9.0 ............................

621511 ................... Medical Laboratories ................................................................................................... $12.5 ............................

621512 ................... Diagnostic Imaging Centers ........................................................................................ $12.5 ............................

621610 ................... Home Health Care Services ........................................................................................ $12.5 ............................

621910 ................... Ambulance Services .................................................................................................... $6.5 ............................

621991 ................... Blood and Organ Banks .............................................................................................. $9.0 ............................

621999 ................... All Other Miscellaneous Ambulatory Health Care Services ........................................ $9.0 ............................

Subsector 622—Hospitals 

622110 ................... General Medical and Surgical Hospitals ..................................................................... $31.5 ............................

622210 ................... Psychiatric and Substance Abuse Hospitals ............................................................... $31.5 ............................

622310 ................... Specialty (except Psychiatric and Substance Abuse) Hospitals ................................. $31.5 ............................

Subsector 623—Nursing and Residential Care Facilities 

623110 ................... Nursing Care Facilities ................................................................................................ $12.5 ............................

623210 ................... Residential Mental Retardation Facilities .................................................................... $9.0 ............................

623220 ................... Residential Mental Health and Substance Abuse Facilities ....................................... $6.5 ............................

623311 ................... Continuing Care Retirement Communities .................................................................. $12.5 ............................

623312 ................... Homes for the Elderly .................................................................................................. $6.5 ............................

623990 ................... Other Residential Care Facilities ................................................................................. $6.5 ............................

Subsector 624—Social Assistance 

624110 ................... Child and Youth Services ............................................................................................ $6.5 ............................

624120 ................... Services for the Elderly and Persons with Disabilities ................................................ $6.5 ............................

624190 ................... Other Individual and Family Services ......................................................................... $6.5 ............................

624210 ................... Community Food Services .......................................................................................... $6.5 ............................

624221 ................... Temporary Shelters ..................................................................................................... $6.5 ............................

624229 ................... Other Community Housing Services ........................................................................... $6.5 ............................

624230 ................... Emergency and Other Relief Services ........................................................................ $6.5 ............................

624310 ................... Vocational Rehabilitation Services .............................................................................. $6.5 ............................

624410 ................... Child Day Care Services ............................................................................................. $6.5 ............................

Sector 71—Arts, Entertainment and Recreation 

Subsector 711—Performing Arts, Spectator Sports and Related Industries 

711110 ................... Theater Companies and Dinner Theaters ................................................................... $6.5 ............................

711120 ................... Dance Companies ....................................................................................................... $6.5 ............................

711130 ................... Musical Groups and Artists ......................................................................................... $6.5 ............................

711190 ................... Other Performing Arts Companies .............................................................................. $6.5 ............................

711211 ................... Sports Teams and Clubs ............................................................................................. $6.5 ............................

711212 ................... Race Tracks ................................................................................................................ $6.5 ............................

711219 ................... Other Spectator Sports ................................................................................................ $6.5 ............................

711310 ................... Promoters of Performing Arts, Sports and Similar Events with Facilities ................... $6.5 ............................

711320 ................... Promoters of Performing Arts, Sports and Similar Events without Facilities .............. $6.5 ............................

711410 ................... Agents and Managers for Artists, Athletes, Entertainers and Other Public Figures .. $6.5 ............................

711510 ................... Independent Artists, Writers, and Performers ............................................................. $6.5 ............................

Subsector 712—Museums, Historical Sites and Similar Institutions 

712110 ................... Museums ..................................................................................................................... $6.5 ............................

712120 ................... Historical Sites ............................................................................................................. $6.5 ............................

712130 ................... Zoos and Botanical Gardens ....................................................................................... $6.5 ............................

712190 ................... Nature Parks and Other Similar Institutions ................................................................ $6.5 ............................

Subsector 713—Amusement, Gambling and Recreation Industries 

713110 ................... Amusement and Theme Parks .................................................................................... $6.5 ............................

713120 ................... Amusement Arcades ................................................................................................... $6.5 ............................

713210 ................... Casinos (except Casino Hotels) .................................................................................. $6.5 ............................

Federal Register / Vol. 70, No. 233 / Tuesday, December 6, 2005 / Rules and Regulations 72593 

SMALL BUSINESS SIZE STANDARDS BY NAICS INDUSTRY—Continued 

NAICS codes NAICS U.S. industry title Size standards in 

millions of dollars 

Size standards in 

number of 

employees 

713290 ................... Other Gambling Industries .......................................................................................... $6.5 ............................

713910 ................... Golf Courses and Country Clubs ................................................................................ $6.5 ............................

713920 ................... Skiing Facilities ............................................................................................................ $6.5 ............................

713930 ................... Marinas ........................................................................................................................ $6.5 ............................

713940 ................... Fitness and Recreational Sports Centers ................................................................... $6.5 ............................

713950 ................... Bowling Centers .......................................................................................................... $6.5 ............................

713990 ................... All Other Amusement and Recreation Industries ........................................................ $6.5 ............................

Sector 72—Accommodation and Food Services 

Subsector 721—Accommodation 

721110 ................... Hotels (except Casino Hotels) and Motels .................................................................. $6.5 ............................

721120 ................... Casino Hotels .............................................................................................................. $6.5 ............................

721191 ................... Bed and Breakfast Inns ............................................................................................... $6.5 ............................

721199 ................... All Other Traveler Accommodation ............................................................................. $6.5 ............................

721211 ................... RV (Recreational Vehicle) Parks and Campgrounds .................................................. $6.5 ............................

721214 ................... Recreational and Vacation Camps (except Campgrounds) ........................................ $6.5 ............................

721310 ................... Rooming and Boarding Houses .................................................................................. $6.5 ............................

Subsector 722—Food Services and Drinking Places 

722110 ................... Full-Service Restaurants ............................................................................................. $6.5 ............................

722211 ................... Limited-Service Restaurants ....................................................................................... $6.5 ............................

722212 ................... Cafeterias .................................................................................................................... $6.5 ............................

722213 ................... Snack and Nonalcoholic Beverage Bars ..................................................................... $6.5 ............................

722310 ................... Food Service Contractors ............................................................................................ $19.0 ............................

722320 ................... Caterers ....................................................................................................................... $6.5 ............................

722330 ................... Mobile Food Services .................................................................................................. $6.5 ............................

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

Sector 81—Other Services 

Subsector 811—Repair and Maintenance 

811111 ................... General Automotive Repair ......................................................................................... $6.5 ............................

811112 ................... Automotive Exhaust System Repair ............................................................................ $6.5 ............................

811113 ................... Automotive Transmission Repair ................................................................................ $6.5 ............................

811118 ................... Other Automotive Mechanical and Electrical Repair and Maintenance ..................... $6.5 ............................

811121 ................... Automotive Body, Paint and Interior Repair and Maintenance ................................... $6.5 ............................

811122 ................... Automotive Glass Replacement Shops ....................................................................... $6.5 ............................

811191 ................... Automotive Oil Change and Lubrication Shops .......................................................... $6.5 ............................

811192 ................... Car Washes ................................................................................................................. $6.5 ............................

811198 ................... All Other Automotive Repair and Maintenance ........................................................... $6.5 ............................

811211 ................... Consumer Electronics Repair and Maintenance ......................................................... $6.5 ............................

811212 ................... Computer and Office Machine Repair and Maintenance ............................................ $23.0 ............................

811213 ................... Communication Equipment Repair and Maintenance ................................................. $6.5 ............................

811219 ................... Other Electronic and Precision Equipment Repair and Maintenance ........................ $6.5 ............................

811310 ................... Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance.$6.5 ............................

811411 ................... Home and Garden Equipment Repair and Maintenance ............................................ $6.5 ............................

811412 ................... Appliance Repair and Maintenance ............................................................................ $6.5 ............................

811420 ................... Reupholstery and Furniture Repair ............................................................................. $6.5 ............................

811430 ................... Footwear and Leather Goods Repair .......................................................................... $6.5 ............................

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

Subsector 812—Personal and Laundry Services 

812111 ................... Barber Shops ............................................................................................................... $6.5 ............................

812112 ................... Beauty Salons ............................................................................................................. $6.5 ............................

812113 ................... Nail Salons .................................................................................................................. $6.5 ............................

812191 ................... Diet and Weight Reducing Centers ............................................................................. $6.5 ............................

812199 ................... Other Personal Care Services .................................................................................... $6.5 ............................

812210 ................... Funeral Homes and Funeral Services ........................................................................ $6.5 ............................

812220 ................... Cemeteries and Crematories ...................................................................................... $6.5 ............................

812310 ................... Coin-Operated Laundries and Drycleaners ................................................................. $6.5 ............................

812320 ................... Drycleaning and Laundry Services (except Coin-Operated) ...................................... $4.5 ............................

812331 ................... Linen Supply ................................................................................................................ $13.0 ............................

812332 ................... Industrial Launderers ................................................................................................... $13.0 ............................

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

812921 ................... Photo Finishing Laboratories (except One-Hour) ....................................................... $6.5 ............................

72594 Federal Register / Vol. 70, No. 233 / Tuesday, December 6, 2005 / Rules and Regulations 

SMALL BUSINESS SIZE STANDARDS BY NAICS INDUSTRY—Continued 

NAICS codes NAICS U.S. industry title Size standards in 

millions of dollars 

Size standards in 

number of 

employees 

812922 ................... One-Hour Photo Finishing ........................................................................................... $6.5 ............................

812930 ................... Parking Lots and Garages .......................................................................................... $6.5 ............................

812990 ................... All Other Personal Services ........................................................................................ $6.5 ............................

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

813110 ................... Religious Organizations ............................................................................................... $6.5 ............................

813211 ................... Grantmaking Foundations ........................................................................................... $6.5 ............................

813212 ................... Voluntary Health Organizations ................................................................................... $6.5 ............................

813219 ................... Other Grantmaking and Giving Services .................................................................... $6.5 ............................

813311 ................... Human Rights Organizations ...................................................................................... $6.5 ............................

813312 ................... Environment, Conservation and Wildlife Organizations .............................................. $6.5 ............................

813319 ................... Other Social Advocacy Organizations ......................................................................... $6.5 ............................

813410 ................... Civic and Social Organizations ................................................................................... $6.5 ............................

813910 ................... Business Associations ................................................................................................. $6.5 ............................

813920 ................... Professional Organizations .......................................................................................... $6.5 ............................

813930 ................... Labor Unions and Similar Labor Organizations .......................................................... $6.5 ............................

813940 ................... Political Organizations ................................................................................................. $6.5 ............................

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

Organizations).

$6.5 ............................

Footnotes 

* * * * * * * 

9. NAICS code 531190—Leasing of building space to the Federal Government by Owners: For Government procurement, a size standard of 

$19.0 million in gross receipts applies to the owners of building space leased to the Federal Government. The standard does not apply to an 

agent. 

* * * * * * * 

15. Subsector 483—Water Transportation—Offshore Marine Services: The applicable size standard shall be $25.5 million for firms furnishing 

specific transportation services to concerns engaged in offshore oil and/or natural gas exploration, drilling production, or marine research; such 

services encompass passenger and freight transportation, anchor handling, and related logistical services to and from the work site or at sea. 

* * * * * * * 

■ 3. Amend § 121.301 as follows: 

■ a. Revise paragraphs (a) and (d)(1); 

■ b. Amend paragraph (b)(2) 

introductory text by removing the term 

‘‘$7 million’’ and inserting ‘‘$7.5 

million’’ in its place. 

The revised paragraphs read as 

follows: 

§ 121.301 What size standards are 

applicable to financial assistance 

programs? 

(a) For Business Loans and Disaster 

Loans (other than physical disaster 

loans), an applicant business concern 

must satisfy two criteria: 

(1) The size of the applicant alone 

(without affiliates) must not exceed the 

size standard designated for the 

industry in which the applicant is 

primarily engaged; and 

(2) The size of the applicant combined 

with its affiliates must not exceed the 

size standard designated for either the 

primary industry of the applicant alone 

or the primary industry of the applicant 

and its affiliates, whichever is higher. 

These size standards are set forth in 

§ 121.201. 

* * * * * 

(d) * * * 

(1) Any construction (general or 

special trade) concern or concern 

performing a contract for services is 

small if, together with its affiliates, its 

average annual receipts does not exceed 

$6.5 million. 

* * * * * 

■ 4. Amend § 121.302 by revising 

paragraph (c) to read as follows: 

§ 121.302 When does SBA determine the 

size status of an applicant? 

* * * * * 

(c) For disaster loan assistance (other 

than physical disaster loans), size status 

is determined as of the date the disaster 

commenced, as set forth in the Disaster 

Declaration. For economic injury 

disaster loan assistance under disaster 

declarations for Hurricanes Katrina, 

Rita, and Wilma, size status is 

determined as of the date SBA accepts 

the application for processing, and for 

applications submitted before December 

6, 2005, whether denied because of size 

status or pending, such applications 

shall be deemed resubmitted on 

December 6, 2005. For pre-disaster 

mitigation loans, size status is 

determined as of the date SBA accepts 

a complete Pre-Disaster Mitigation 

Small Business Loan Application for 

processing. Refer to § 123.408 of this 

chapter to find out what SBA considers 

to be a complete Pre-Disaster Mitigation 

Small Business Loan Application. 

* * * * * 

■ 5. Amend § 121.502 by revising 

paragraph (a)(2) to read as follows: 

§ 121.502 What size standards are 

applicable to programs for sales and lease 

of Government property? 

(a) * * * 

(1) * * * 

(2) A concern not primarily engaged 

in manufacturing is small for sales or 

leases of Government property if it has 

annual receipts not exceeding $6.5 

million. 

* * * * * 

■ 6. Amend § 121.512 by revising 

paragraph (b) to read as follows: 

§ 121.512 What is the size standard for 

stockpile purchases? 

(a) * * * 

(b) Its annual receipts, together with 

its affiliates, do not exceed $51.5 

million. 

PART 123—DISASTER LOAN 

PROGRAM 

■ 7. The authority citation for part 123 

continues to read as follows: 

Authority: 15 U.S.C. 634(b)(6), 636(b), 

636(c) and 636(f); Public Law 102–395, 106 

Stat. 1828, 1864; Public Law 103–75, 107 

Stat. 739; and Public Law 106–50, 113 Stat. 

245. 

Federal Register / Vol. 70, No. 233 / Tuesday, December 6, 2005 / Rules and Regulations 72595 

■ 8. Amend § 123.300 by revising 

paragraph (b) to read as follow: 

§ 123.300 Is my business eligible to apply 

for an economic injury disaster loan? 

* * * * * 

(b) Economic injury disaster loans are 

available only if you were a small 

business (as defined in part 121 of this 

chapter) when the declared disaster 

commenced (except disaster 

declarations for Hurricanes Katrina, 

Rita, and Wilma, for which size status 

is determined as of the date SBA accepts 

the application for processing, and for 

applications submitted before December 

6, 2005, whether denied because of size 

status or pending, such applications 

shall be deemed resubmitted on 

December 6, 2005), you and your 

affiliates and principal owners (20% or 

more ownership interest) have used all 

reasonably available funds, and you are 

unable to obtain credit elsewhere (see 

§ 123.104). 

* * * * * 

Dated: November 4, 2005. 

Hector V. Barreto, 

Administrator. 

[FR Doc. 05–23435 Filed 12–5–05; 8:45 am] 

BILLING CODE 8025–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2005–23176; Directorate 

Identifier 2005–NM–220–AD; Amendment 

39–14396; AD 2005–25–03] 

RIN 2120–AA64 

Airworthiness Directives; Boeing 

Model 737–600, –700, –700C, and –800 

Series Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), Department of 

Transportation (DOT). 

ACTION: Final rule; request for 

comments. 

SUMMARY: The FAA is adopting a new 

airworthiness directive (AD) for certain 

Boeing Model 737–600, –700, –700C, 

and –800 series airplanes. This AD 

requires replacing the point ‘‘D’’ splice 

fitting between windows number 1 and 

2 with a new splice fitting, performing 

an eddy current inspection for cracking 

of the holes in the structure common to 

the new splice fitting, including doing 

any related investigative actions; and 

corrective actions if necessary. This AD 

results from full-scale fuselage fatigue 

testing on the splice fitting that failed 

prior to the design objective on Boeing 

Model 737–800 series airplanes, and a 

report of a cracked splice fitting on an 

operational airplane. We are issuing this 

AD to prevent cracking of the existing 

fitting that may result in cracking 

through the skin and consequent 

decompression of the flight cabin. 

DATES: This AD becomes effective 

December 21, 2005. 

The Director of the Federal Register 

approved the incorporation by reference 

of a certain publication listed in the AD 

as of December 21, 2005. 

We must receive comments on this 

AD by February 6, 2006. 

ADDRESSES: Use one of the following 

addresses to submit comments on this 

AD. 

• DOT Docket Web site: Go to 

http://dms.dot.gov and follow the 

instructions for sending your comments 

electronically. 

• Government-wide rulemaking Web 

site: Go to http://www.regulations.gov 

and follow the instructions for sending 

your comments electronically. 

• Mail: Docket Management Facility; 

U.S. Department of Transportation, 400 

Seventh Street, SW., Nassif Building, 

room PL–401, Washington, DC 20590. 

• Fax: (202) 493–2251. 

• Hand Delivery: Room PL–401 on 

the plaza level of the Nassif Building, 

400 Seventh Street, SW., Washington, 

DC, between 9 a.m. and 5 p.m., Monday 

through Friday, except Federal holidays. 

Contact Boeing Commercial 

Airplanes, P.O. Box 3707, Seattle, 

Washington 98124–2207, for service 

information identified in this AD. 

FOR FURTHER INFORMATION CONTACT: Sue 

Lucier, Aerospace Engineer, Airframe 

Branch, ANM–120S, FAA, Seattle 

Aircraft Certification Office, 1601 Lind 

Avenue, SW., Renton, Washington 

98055–4056; telephone (425) 917–6438; 

fax (425) 917–6590. 

SUPPLEMENTARY INFORMATION: 

Discussion 

We have received a report indicating 

that during the Model 737–800 series 

airplanes full-scale fuselage fatigue test, 

the splice fitting failed prior to the 

design service objective. Additionally, 

we have received a report indicating 

that a cracked splice fitting was found 

on an airplane with less than 13,500 

total flight cycles. This condition, if not 

corrected, could result in cracking of the 

existing fitting that may cause cracking 

through the skin and consequent 

decompression of the flight cabin. 

Relevant Service Information 

We have reviewed Boeing Alert 

Service Bulletin (ASB) 737–53A1222, 

Revision 2, dated October 20, 2005. The 

ASB describes procedures for replacing 

the splice fitting between windows 

number 1 and 2, at point ‘‘D’’ on the 

windowsill with a new splice fitting, 

and performing related investigative 

actions. Those investigative actions 

include performing an open hole eddy 

current inspection for cracking of the 

fastener holes, and a special detailed 

inspection for cracking of 12 fasteners in 

the adjacent structure. The ASB also 

describes procedures for repetitive 

external detailed inspections of the skin 

near the six skin fasteners below the 

splice fitting. The ASB specifies that if 

cracking is detected, to contact Boeing 

for further instructions. Accomplishing 

the actions specified in the service 

information is intended to adequately 

address the unsafe condition. 

FAA’s Determination and Requirements 

of This AD 

The unsafe condition described 

previously is likely to exist or develop 

on other airplanes of the same type 

design. For this reason, we are issuing 

this AD to prevent cracking of the 

existing fitting that may result in 

cracking through the skin and 

consequent decompression of the flight 

cabin. This AD requires accomplishing 

the actions specified in the service 

information described previously, 

except as discussed under ‘‘Differences 

Between the AD and the ASB.’’

Differences Between the AD and the 

ASB 

Where the ASB specifies contacting 

Boeing if any cracking is detected, this 

AD requires that, repair of any cracking 

be accomplished before further flight, in 

accordance with a method approved by 

the Manager, Seattle Aircraft 

Certification Office (ACO). 

Although the ASB specifies 

performing repetitive external detailed 

inspections of the skin near the six skin 

fasteners below the splice fitting, this 

AD does not require those inspections. 

These differences have been 

coordinated with the manufacturer. 

Interim Action 

We consider this AD to be an interim 

action. We are currently considering 

requiring repetitive external detailed 

inspections for cracking of the skin near 

the six skin fasteners below the splice 

fitting. However the planned 

compliance time for accomplishing 

those inspections would necessitate 

allowing enough time to provide notice 

and opportunity for prior public 

comment on the merits of requiring 

those inspections.