44886 Federal Register / Vol. 82, No. 186 / Wednesday, September 27, 2017 / Rules and Regulations 

Amendment Number 7, Revision 1, 

Effective Date: April 25, 2017. 

Renewed Amendment Number 7, 

Revision 1, Effective Date: December 11, 

2017. 

Amendment Number 8 Effective Date: 

December 5, 2005, superseded by 

Amendment Number 8, Revision 1 on 

April 25, 2017, superseded by Renewed 

Amendment Number 8, Revision 1, on 

December 11, 2017. 

Amendment Number 8, Revision 1, 

Effective Date: April 25, 2017. 

Renewed Amendment Number 8, 

Revision 1, Effective Date: December 11, 

2017. 

Amendment Number 9 Effective Date: 

April 17, 2007, superseded by 

Amendment Number 9, Revision 1, on 

April 25, 2017, superseded by Renewed 

Amendment Number 9, Revision 1, on 

December 11, 2017. 

Amendment Number 9, Revision 1, 

Effective Date: April 25, 2017. 

Renewed Amendment Number 9, 

Revision 1, Effective Date: December 11, 

2017. 

Amendment Number 10 Effective 

Date: August 24, 2009, superseded by 

Amendment Number 10, Revision 1, on 

April 25, 2017, superseded by Renewed 

Amendment Number 10, Revision 1, on 

December 11, 2017. 

Amendment Number 10, Revision 1, 

Effective Date: April 25, 2017. 

Renewed Amendment Number 10, 

Revision 1, Effective Date: December 11, 

2017. 

Amendment Number 11 Effective 

Date: January 7, 2014, superseded by 

Amendment Number 11, Revision 1, on 

April 25, 2017, superseded by Renewed 

Amendment Number 11, Revision 1, on 

December 11, 2017. 

Amendment Number 11, Revision 1, 

Effective Date: April 25, 2017. 

Renewed Amendment Number 11, 

Revision 1, Effective Date: December 11, 

2017. 

Amendment Number 12 Effective 

Date: Amendment not issued by the 

NRC. 

Amendment Number 13 Effective 

Date: May 24, 2014, superseded by 

Amendment Number 13, Revision 1, on 

April 25, 2017, superseded by Renewed 

Amendment Number 13, Revision 1, on 

December 11, 2017. 

Amendment Number 13, Revision 1, 

Effective Date: April 25, 2017. 

Renewed Amendment Number 13, 

Revision 1, Effective Date: December 11, 

2017. 

Amendment Number 14 Effective 

Date: April 25, 2017, superseded by 

Renewed Amendment Number 14, on 

December 11, 2017. 

Renewed Amendment Number 14 

Effective Date: December 11, 2017. 

SAR Submitted by: Transnuclear, Inc. 

SAR Title: Final Safety Analysis 

Report for the Standardized NUHOMS®

Horizontal Modular Storage System for 

Irradiated Nuclear Fuel. 

Docket Number: 72–1004. 

Certificate Expiration Date: January 

23, 2015. 

Renewed Certificate Expiration Date: 

January 23, 2055. 

Model Number: NUHOMS®–24P, 

–24PHB, –24PTH, –32PT, –32PTH1, 

–37PTH, –52B, –61BT, –61BTH, and 

–69BTH. 

* * * * * 

Dated at Rockville, Maryland, this 18th day 

of September, 2017. 

For the Nuclear Regulatory Commission. 

Frederick D. Brown, 

Acting Executive Director of Operations. 

[FR Doc. 2017–20710 Filed 9–26–17; 8:45 am] 

BILLING CODE 7590–01–P 

SMALL BUSINESS ADMINISTRATION 

13 CFR Part 121 

RIN 3245–AG84 

Small Business Size Standards; 

Adoption of 2017 North American 

Industry Classification System for Size 

Standards 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Final rule. 

SUMMARY: The U.S. Small Business 

Administration (SBA) is adopting, 

without change, its proposed revisions 

to small business size standards. With 

the adoption of the proposed changes, 

SBA incorporates the U.S. Office of 

Management and Budget’s (OMB) North 

American Industry Classification 

System (NAICS) revision for 2017, 

identified as NAICS 2017, into its table 

of small business size standards. NAICS 

2017 created 21 new industries by 

reclassifying, combining, or splitting 29 

existing industries under changes made 

to NAICS in 2012 (NAICS 2012). SBA’s 

size standards for these 21 new 

industries have resulted in an increase 

to size standards for six NAICS 2012 

industries and part of one industry, a 

decrease to size standards for two, a 

change in the size standards measure 

from average annual receipts to number 

of employees for one, and no change in 

size standards for twenty industries and 

part of one industry. 

DATES: This rule is effective October 1, 

2017. 

FOR FURTHER INFORMATION CONTACT: Dr. 

Jorge Laboy-Bruno, Office of Size 

Standards, (202) 205–6618 or 

sizestandards@sba.gov. 

SUPPLEMENTARY INFORMATION: Effective 

October 1, 2000, SBA adopted NAICS 

1997 industry definitions as a basis for 

its table of small business size 

standards, replacing the 1987 Standard 

Industrial Classification (SIC) (65 FR 

30836 (May 15, 2000)). Since then, OMB 

has issued four revisions to NAICS. 

SBA’s table of size standards adopted 

the OMB’s first revision, NAICS 2002, 

effective October 1, 2002 (67 FR 52597 

(August 13, 2002)), the second revision, 

NAICS 2007, effective October 1, 2007 

(72 FR 49639 (August 29, 2007)), and 

the third revision, NAICS 2012, effective 

October 1, 2012 (77 FR 49991 (August 

20, 2012)). 

OMB published its fourth and latest 

revision, NAICS 2017, ‘‘Notice of NAICS 

2017 final decisions’’ in the Federal 

Register on August 8, 2016 (81 FR 

52584). The OMB notice stated that 

Federal statistical establishment data 

published for reference years beginning 

on or after January 1, 2017, should be 

published using NAICS 2017. 

As with the previous NAICS 

revisions, SBA is adopting the NAICS 

2017 revision at the beginning of the 

new fiscal year (October 1, 2017) 

following the OMB’s release of the 

NAICS revision for reasons as set forth 

under the Justification for the October 1, 

2017 Effective Date section, below: 

Changes in NAICS 2017 

NAICS 2017 created 21 new NAICS 

industries by reclassifying, splitting, or 

merging 29 industries or their parts 

under NAICS 2012. Of those 21 new 

industries, five were created by merging 

two or more of thirteen NAICS 2012 

industries in their entirety, while three 

were created by combining part of one 

industry with another industry. Three 

new industries were created by splitting 

two industries to two parts each with 

one part of each industry defined as a 

separate industry and combining other 

parts of the two industries to form a 

separate new industry. One new 

industry was formed by designating part 

of one industry as a separate industry. 

OMB also changed 6-digit NAICS codes 

for eight industries without changing 

their definitions and titles and amended 

the title of one industry without 

changing its 6-digit code. Table 1, 

‘‘NAICS 2012 Industries or Their Parts 

Matched to NAICS 2017 Industries,’’ 

below, shows the changes from NAICS 

2012 to NAICS 2017. 

Complete information on the 

relationship between NAICS 2012 and 

NAICS 2017 is available on the U.S. 

Bureau of the Census (Census Bureau) 

Web site at http://www.census.gov/eos/ 


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Federal Register / Vol. 82, No. 186 / Wednesday, September 27, 2017 / Rules and Regulations 44887 

www/naics/. The Census Bureau’s Web 

site also provides detailed 

documentation on Federal notices 

involving the replacement of SIC with 

NAICS, and all subsequent NAICS 

updates and revisions, including the 

August 8, 2016 ‘‘Notice of NAICS 2017 

final decisions,’’ as well as 

concordances (i.e., correspondence 

tables) between SIC and NAICS 1997 

and NAICS 2002, and between 

subsequent NAICS revisions. 

TABLE 1—NAICS 2012 INDUSTRIES OR THEIR PARTS MATCHED TO NAICS 2017 INDUSTRIES

NAICS 2012 

code NAICS 2012 industry title Status code 

NAICS 2017 

code NAICS 2017 industry title 

211111 ........ Crude Petroleum and Natural Gas Extraction. 

crude petroleum extraction ............................. ........... 211120 Crude Petroleum Extraction. 

natural gas extraction ............................................. pt. 211130 Natural Gas Extraction. 

211112 ........ Natural Gas Liquid Extraction ................................ pt. 211130 Natural Gas Extraction. 

212231 ........ Lead Ore and Zinc Ore Mining .............................. pt. 212230 Copper, Nickel, Lead, and Zinc Mining. 

212234 ........ Copper Ore and Nickel Ore Mining ....................... pt. 212230 Copper, Nickel, Lead, and Zinc Mining. 

333911 ........ Pump and Pumping Equipment Manufacturing ..... pt. 333914 Measuring, Dispensing, and Other Pumping 

Equipment Manufacturing. 

333913 ........ Measuring and Dispensing Pump Manufacturing .. pt. 333914 Measuring, Dispensing, and Other Pumping 

Equipment Manufacturing. 

335221 ........ Household Cooking Appliance Manufacturing ....... pt. 335220 Major Household Appliance Manufacturing. 

335222 ........ Household Refrigerator and Home Freezer Manufacturing.pt. 335220 Major Household Appliance Manufacturing. 

335224 ........ Household Laundry Equipment Manufacturing ...... pt. 335220 Major Household Appliance Manufacturing. 

335228 ........ Other Major Household Appliance Manufacturing pt. 335220 Major Household Appliance Manufacturing. 

452111 ........ Department Stores (except Discount Department 

Stores).

pt. 452210 Department Stores. 

452112 ........ Discount Department Stores. 

insignificant perishable grocery sales ............. pt. 452210 Department Stores. 

significant perishable grocery sales ................ pt. 452311 Warehouse Clubs and Supercenters. 

452910 ........ Warehouse Clubs and Supercenters ..................... pt. 452311 Warehouse Clubs and Supercenters. 

452990 ........ All Other General Merchandise Stores .................. nc. 452319 All Other General Merchandise Stores. 

454111 ........ Electronic Shopping ............................................... pt. 454110 Electronic Shopping and Mail-Order Houses. 

454112 ........ Electronic Auctions ................................................. pt. 454110 Electronic Shopping and Mail-Order Houses. 

454113 ........ Mail-Order Houses ................................................. pt. 454110 Electronic Shopping and Mail-Order Houses. 

512210 ........ Record Production ................................................. pt. 512250 Record Production and Distribution. 

512220 ........ Integrated Record Production/Distribution ............. pt. 512250 Record Production and Distribution. 

517110 ........ Wired Telecommunications Carriers ...................... nc. 517311 Wired Telecommunications Carriers. 

517210 ........ Wireless Telecommunications Carriers (except 

Satellite).

nc. 517312 Wireless Telecommunications Carriers (except 

Satellite). 

532220 ........ Formal Wear and Costume Rental ........................ nc. 532281 Formal Wear and Costume Rental. 

532230 ........ Video Tape and Disc Rental .................................. nc. 532282 Video Tape and Disc Rental. 

532291 ........ Home Health Equipment Rental ............................ nc. 532283 Home Health Equipment Rental. 

532292 ........ Recreational Goods Rental .................................... nc. 532284 Recreational Goods Rental. 

532299 ........ All Other Consumer Goods Rental ........................ nc. 532289 All Other Consumer Goods Rental. 

541711 ........ Research and Development in Biotechnology. 

nanobiotechnologies research and experimental development laboratories.pt. 541713 Research and Development in Nanotechnology. 

except nanobiotechnologies research and experimental development laboratories............ 541714 Research and Development in Biotechnology (except Nanobiotechnology). 

541712 ........ Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology). 

nanotechnology research and experimental 

development laboratories.

pt. 541713 Research and Development in Nanotechnology. 

except nanotechnology research and experimental development laboratories............ 541715 Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology). 

721310 ........ Rooming and Boarding Houses ............................. nt. 721310 Rooming and Boarding Houses, Dormitories, and 

Workers’ Camps. 

Key to Abbreviations. 

pt. = Part of 2017 industry. 

nc. = 6-digit NAICS codes changed without changing industries’ definitions and titles. 

nt. = NAICS industry title amended without changing the 6-digit code. 

Size Standards for New Industries in 

NAICS 2017 

On October 22, 1999, SBA proposed 

to replace SIC with NAICS 1997 as the 

basis of industry definitions for its table 

of small business size standards (64 FR 

57188). The proposed rule included a 

set of guidelines or rules that SBA 

applied to convert the size standards for 

industries under SIC to NAICS. The 

guidelines aimed to minimize the 

impact of applying a new industry 

classification system on SBA’s size 

standards and on small businesses that 

qualified as small under the SIC based 

size standards. SBA received no 

negative comments against the proposed 

guidelines. SBA published its final rule 

on May 15, 2000 (65 FR 30386) 

(corrected on September 5, 2000, 65 FR 

53533) adopting the resulting table of 

size standards based on NAICS 1997, as 

proposed. To be consistent, SBA used 

the same guidelines when it updated its 


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44888 Federal Register / Vol. 82, No. 186 / Wednesday, September 27, 2017 / Rules and Regulations 

table of size standards to adopt NAICS 

2002, NAICS 2007, and NAICS 2012 

revisions. In those updates as well, SBA 

received no adverse comments on using 

those guidelines, or on the resulting 

changes to the size standards. For the 

April 18, 2017 proposed rule to adopt 

NAICS 2017 for its size standards table, 

SBA also generally followed the same 

guidelines, as shown below in Table 2, 

‘‘General Guidelines to Establish Size 

Standards for New Industries under 

NAICS 2017.’’ 

TABLE 2—GENERAL GUIDELINES TO ESTABLISH SIZE STANDARDS FOR NEW INDUSTRIES UNDER NAICS 2017 

If the NAICS 2017 industry is composed of: The size standard for the NAICS 2017 industry code will be: 

1. A single NAICS 2012 industry or part of a single NAICS 2012 industry.The same size standard as for the NAICS 2012 industry or part. 

2. Two or more NAICS 2012 industries; two or more parts of an NAICS 

2012 industry; parts of two or more NAICS 2012 industries; or one or 

more NAICS 2012 industries and part(s) of one or more NAICS 2012 

industries, and.

2a. they all have the same size standard ......................................... The same size standard as for the NAICS 2012 industries or parts. 

2b. they all have the same size measure (e.g., receipts, employees, etc.) but do not all have the same size standard.The same size standard as for the NAICS 2012 industry or part that 

most closely matches the economic activity described by the NAICS 

2017 industry, or 

The highest size standard among the NAICS 2012 industries and 

part(s) that comprise the NAICS 2017 industry, provided that the 

highest size standard does not include dominant or potentially dominant firms. 

2c. they have different size measures (i.e., for example, some are 

based on receipts and others on employees) and hence do not 

all have the same size standard.

The same size standard as for the NAICS 2012 industry or part that 

most closely matches the economic activity described by the NAICS 

2017 industry, or 

The highest size standard among the NAICS 2012 industries and 

part(s) that comprise the NAICS 2017 industry, provided that the 

highest size standard does not include dominant or potentially dominant firms. 

To apply this rule, SBA converts all size standards to a single measure (e.g., receipts, employees, etc.) using the size measure for the NAICS 

2012 industry or part(s) that most closely match the economic activity described by the NAICS 2017 industry or using the size measure that applies to most of the NAICS industries or parts comprising the NAICS 2017 industry. 

In addition to the above general 

guidelines, in cases where a new 

industry is formed by merging multiple 

industries or their parts with 

substantially different levels or different 

measures of size standards, as detailed 

in the April 18, 2017 proposed rule, 

SBA also examined the relevant latest 

industry and Federal procurement data 

to determine an appropriate size 

standard for the new industry. 

Developed based on the above 

guidelines and analyses of the relevant 

data, where necessary, SBA’s size 

standards for the new industries under 

NAICS 2017 are shown in Table 3, ‘‘Size 

Standards for New Industries in NAICS 

2017.’’ Also shown in the table are the 

current size standards for the affected 

NAICS 2012 industries and their parts. 

As shown in Table 3, the size 

standards for most of the affected 

NAICS 2012 industries are not impacted 

and therefore remain unchanged under 

NAICS 2017. The majority of the 

changes consist of revisions to industry 

codes or titles, or mergers of two or 

more NAICS 2012 industries or their 

parts to new industries without 

impacting their size standards. Of the 29 

NAICS 2012 industries affected by the 

revision, adopting NAICS 2017 

increases size standards for six 

industries and part of one industry and 

decreases for two. This would also 

result in changing the size standard 

measure for one industry from average 

annual receipts to number of employees. 

Size standards for twenty industries and 

part of one industry do not change. 

Discussion of Comments 

For the April 18, 2017 proposed rule, 

SBA provided a 60-day comment period 

for the public to comment on proposed 

changes to size standards from the 

adoption of the NAICS 2017, which 

ended on June 19, 2017. SBA received 

three comments to the proposed rule, 

two of which were outside the scope of 

the proposed rule as discussed below. 

One commenter recommended that 

SBA change the size standard for the 

Military and Aerospace Equipment and 

Military Weapons exception to NAICS 

541330 (Engineering Services) from 

average annual revenues to the number 

of employees. 

TABLE 3—SIZE STANDARDS FOR NEW INDUSTRIES IN NAICS 2017 

NAICS 2012 

code NAICS 2012 industry title 

Current size 

standard 

(employees) 

Current size 

standard 

($ million) 

NAICS 2017 

size standard 

(employees) 

NAICS 2017 

size standard 

($ million) 

NAICS 2017 

code NAICS 2017 industry title 

211111 ............ Crude Petroleum and Natural 

Gas Extraction.

1,250 

crude petroleum extraction.1,250 ........................ 1,250 ........................ 211120 Crude Petroleum Extraction. 

natural gas extraction .... 1,250 ........................ 1,250 ........................ 211130 Natural Gas Extraction. 

211112 ............ Natural Gas Liquid Extraction 750 

212231 ............ Lead Ore and Zinc Ore Mining.750 ........................ 750 ........................ 212230 Copper, Nickel, Lead, and 

Zinc Mining. 

212234 ............ Copper Ore and Nickel Ore 

Mining.

1,500 


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TABLE 3—SIZE STANDARDS FOR NEW INDUSTRIES IN NAICS 2017—Continued 

NAICS 2012 

code NAICS 2012 industry title 

Current size 

standard 

(employees) 

Current size 

standard 

($ million) 

NAICS 2017 

size standard 

(employees) 

NAICS 2017 

size standard 

($ million) 

NAICS 2017 

code NAICS 2017 industry title 

333911 ............ Pump and Pumping Equipment Manufacturing.750 ........................ 750 ........................ 333914 Measuring, Dispensing, and 

Other Pumping Equipment 

Manufacturing. 

333913 ............ Measuring and Dispensing 

Pump Manufacturing.

750 

335221 ............ Household Cooking Appliance Manufacturing.1,500 ........................ 1,500 ........................ 335220 Major Household Appliance 

Manufacturing. 

335222 ............ Household Refrigerator and 

Home Freezer Manufacturing.

1,250 

335224 ............ Household Laundry Equipment Manufacturing.1,250 

335228 ............ Other Major Household Appliance Manufacturing.1,000 

452111 ............ Department Stores (except 

Discount Department 

Stores).

........................ $32.5 ........................ $32.5 452210 Department Stores. 

452112 ............ Discount Department Stores ........................ 29.5 

insignificant perishable 

grocery sales.

........................ 29.5 

452112 ............ Discount Department Stores ........................ 29.5 

significant perishable 

grocery sales.

........................ 29.5 ........................ 29.5 452311 Warehouse Clubs and 

Supercenters. 

452910 ............ Warehouse Clubs and 

Supercenters.

........................ 29.5 

452990 ............ All Other General Merchandise Stores......................... 32.5 ........................ 32.5 452319 All Other General Merchandise Stores. 

454111 ............ Electronic Shopping .............. ........................ 32.5 ........................ 38.5 454110 Electronic Shopping and 

Mail-Order Houses. 

454112 ............ Electronic Auctions ............... ........................ 38.5 

454113 ............ Mail-Order Houses ............... ........................ 38.5 

512210 ............ Record Production ................ ........................ 7.5 250 ........................ 512250 Record Production and Distribution. 

512220 ............ Integrated Record Production/Distribution.1,250 

517110 ............ Wired Telecommunications 

Carriers.

1,500 ........................ 1,500 ........................ 517311 Wired Telecommunications 

Carriers. 

517210 ............ Wireless Telecommunications Carriers (except 

Satellite).

1,500 ........................ 1,500 ........................ 517312 Wireless Telecommunications Carriers (except 

Satellite). 

532220 ............ Formal Wear and Costume 

Rental.

........................ 20.5 ........................ 20.5 532281 Formal Wear and Costume 

Rental. 

532230 ............ Video Tape and Disc Rental ........................ 27.5 ........................ 27.5 532282 Video Tape and Disc Rental. 

532291 ............ Home Health Equipment 

Rental.

........................ 32.5 ........................ 32.5 532283 Home Health Equipment 

Rental. 

532292 ............ Recreational Goods Rental .. ........................ 7.5 ........................ 7.5 532284 Recreational Goods Rental. 

532299 ............ All Other Consumer Goods 

Rental.

........................ 7.5 ........................ 7.5 532289 All Other Consumer Goods 

Rental. 

541711 ............ Research and Development 

in Biotechnology.

1,000 

nanobiotechnologies research and experimental development 

laboratories.

1,000 ........................ 1,000 ........................ 541713 Research and Development 

in Nanotechnology. 

except 

nanobiotechnologies 

research and experimental development 

laboratories.

1,000 ........................ 1,000 ........................ 541714 Research and Development 

in Biotechnology (except 

Nanobiotechnology). 

541712 ............ Research and Development 

in the Physical, Engineering, and Life Sciences (except Biotechnology).

1,000 

nanotechnology research and experimental development 

laboratories.

1,000 ........................ 1,000 ........................ 541713 Research and Development 

in Nanotechnology. 

except nanotechnology 

research and experimental development 

laboratories.

1,000 ........................ 1,000 ........................ 541715 Research and Development 

in the Physical, Engineering, and Life Sciences (except Nanotechnology and 

Biotechnology). 

721310 ............ Rooming and Boarding 

Houses.

........................ 7.5 ........................ 7.5 721310 Rooming and Boarding 

Houses, Dormitories, and 

Workers’ Camps. 


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Similarly, another commenter 

recommended that SBA consider 

changing the size standard for NAICS 

488190 (Other Support Activities for Air 

Transportation) from revenues to 

employees. The commenters argued that 

the change would allow small 

businesses providing those services to 

continue to compete and succeed in a 

market dominated by large businesses 

which provide similar services as an 

ancillary function to their primary 

business. They provided an analysis of 

the Federal Procurement Data System— 

Next Generation (FPDS–NG) data to 

describe the competitive structure of 

their respective industries to support 

their recommendations. 

Since NAICS 541330 and 488190 

were not impacted by the NAICS 2017 

revision, SBA did not review those 

industries nor did it propose any 

changes to their size standards in the 

April 2017 proposed rule. As part of the 

first five-year comprehensive review of 

size standards under the Small Business 

Jobs Act of 2010 (Jobs Act) (Pub. L. 111– 

240, September 27, 2010), in 2012, SBA 

increased the size standard for the 

Aerospace Equipment and Military 

Weapons exception to NAICS 541330 

from $27 million to $35.5 million (77 FR 

7489, (February 10 2012)) and increased 

the size standard for NAICS 488190 

from $7 million to $30 million (77 FR 

10943, (February 24, 2012)). In 2014, 

they were further increased to $38.5 

million and $32.5 million, respectively, 

for inflation (79 FR 33647 (June 12, 

2014)). SBA will review these size 

standards again in the coming years as 

part of the second five-year review of 

size standards, as required by the Jobs 

Act. Interested parties, including the 

commenters, will have an opportunity 

to comment when SBA publishes the 

proposed rule for their industries. 

The third commenter recommended 

that SBA consider raising the small 

business size standard for the Home 

Health Equipment and Rental industry 

from $32.5 million to $35 million, an 

increase of 7.7 percent. The commenter 

argued the increase reflects the 

anticipated inflation and the cost of 

doing business over the next five years. 

The commenter also noted that a higher 

size standard for NAICS 532283 would 

allow some large firms to gain small 

business status and help some small 

firms retain their small business status 

into the future. Thus, as a result, that 

Federal agencies will have a larger pool 

of small businesses from which to draw 

for their small business procurement 

programs, the commenter concluded. 

The NAICS 2017 revision changed the 

6-digit code for the Home Health 

Equipment and Rental industry from 

532291 to 532283 without changing the 

industry definition. Accordingly, for 

new NAICS 532283, SBA applied the 

same $32.5 million that currently 

applies to NAICS 532291. The adoption 

of NAICS 2017 led to changes in size 

standards only when the new industry 

was formed by merging the existing 

industries or industry parts with 

different size standards, not when only 

the 6-digit code changed. 

Every five years, SBA reviews all 

monetary based size standards for 

inflation and makes necessary 

adjustments. SBA’s latest inflationary 

adjustment to size standards was in 

2014, which resulted in an increase to 

the size standard for NAICS 532291 

from $30 million to $32.5 million. SBA 

anticipates issuing the next inflationary 

adjustment of all monetary based size 

standards sometime in 2019 and 

interested parties will have an 

opportunity to comment at that time. 

Additionally, as part of the second fiveyear review of size standards under the 

Jobs Act, SBA will also review all size 

standards in the coming years against 

the latest available industry and Federal 

market data and make appropriate 

adjustments. (In the first five-year 

review, SBA increased the size standard 

for NAICS 532291 from $7 million to 

$30 million (77 FR 58747 (September 

24, 2012)). The commenter will have an 

opportunity to comment when SBA 

publishes the proposed rule for NAICS 

Sector 53, Real Estate and Rental and 

Leasing. 

SBA considered each comment and 

determined that they were not germane 

to the purpose of the proposed rule, 

which was to adopt NAICS 2017 as a 

basis for its table of size standards. The 

intent and methodology of the proposed 

rule did not provide for changing the 

size standard for an industry whose 

NAICS code was not affected by the 

NAICS revision, nor did it provide for 

adjusting a size standard for inflation or 

the cost of doing business. Accordingly, 

SBA is not modifying its April 18, 2017 

proposed rule based on the comments 

received and is adopting the proposed 

rule, as published. 

Justification for the October 1, 2017 

Effective Date 

The Administrative Procedure Act 

(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). 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. For the 

reasons set forth below, SBA finds that 

good cause exists to make this final rule 

become effective on October 1, 2017, 

less than 30 days after it is published in 

the Federal Register. 

• In its August 8, 2016 notice, OMB 

stated that Federal statistical 

establishment data published for 

reference years beginning on or after 

January 1, 2017, should be published 

using NAICS 2017. October 1, 2017 is 

the start of the new Federal Government 

fiscal year following OMB’s adoption of 

NAICS 2017 effective January 1, 2017, 

and is consistent with SBA’s adoption 

of previous NAICS revisions effective at 

the start of the next fiscal year after the 

OMB’s effective date. Federal 

contracting data and related statistics 

will be more consistent and comparable 

with past data for analyzing future small 

business activity if the revised size 

standards are adopted at the beginning 

of a new fiscal year. Similarly, users of 

size standards and Federal contracting 

data, such as Federal prime contractors 

developing their subcontracting plans, 

can have more consistent data to 

examine the past and future Federal 

contracting trends. 

• Small business size standards apply 

to most Federal agencies and their 

programs involving small businesses; 

the time lag between the OMB’s 

effective date and SBA’s update to its 

size standards has already given them 

time to implement the changes and 

develop training tools, if necessary. For 

instance, in July 2017, SBA provided 

Integrated Award Environment with an 

advance copy of the updated size 

standards table to update the Federal 

contracting databases such as the 

System for Award Management. 

• The rule is not significant under 

Executive Order 12866 and the impacts 

from changes to size standards due to 

the adoption of the NAICS 2017 are 

minimal. This final rule impacts size 

standards for less than 10 industries 

involving about 60 firms, with a vast 

majority of them gaining small business 

status under the revised size standards. 

Those firms will benefit from an earlier 

effective date. 

• The impacted firms have had an 

opportunity to review the changes and 

submit comments during the notice and 

comment period for this rule. None of 

the three comments SBA received on 

the April 18, 2017 proposed rule 

opposed the changes. The affected firms 

and other interested parties have had 

ample time to adjust their behavior, if 

necessary. 


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Compliance With Executive Orders 

12866, 13563, 13771, 12988, and 13132, 

the Paperwork Reduction Act (44 

U.S.C., Ch. 35) and the Regulatory 

Flexibility Act (5 U.S.C. 601–612) 

Executive Order 12866 

OMB has determined that this final 

rule is not a ‘‘significant regulatory 

action’’ for purposes of Executive Order 

12866. This rule incorporates the OMB’s 

2017 revisions of NAICS, which SBA 

uses to identify industries in the United 

States for purposes of establishing small 

business size standards. As discussed in 

the Supplementary Information above, 

the size standard of some industries 

would change because of the NAICS 

2017 revisions. However, SBA has 

determined that virtually all businesses 

currently defined as small under the 

NAICS 2012 based size standards will 

continue to be small under the NAICS 

2017 based size standards. This rule 

will also affect other Federal 

Government programs that provide a 

benefit for small businesses. In order to 

help explain the need of this rule and 

the rule’s potential benefits and costs, 

SBA is providing below a Cost Benefit 

Analysis. This final rule is also not a 

‘‘major rule’’ under the Congressional 

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

Cost Benefit Analysis 

1. Is there a need for the regulatory 

action? 

SBA believes that adopting small 

business size standards based on NAICS 

2017 is in the best interests of small 

businesses. SBA’s mission is to aid and 

assist small businesses through a variety 

of financial, procurement, business 

development, and advocacy programs. 

To assist the intended beneficiaries of 

these programs effectively, SBA 

establishes numerical definitions to 

determine which businesses are deemed 

eligible for Federal small business 

assistance. NAICS 2017 provides the 

latest industry definitions reflecting the 

latest changes in industry structure. The 

Small Business Act (the Act) provides 

SBA’s Administrator with the 

responsibility for establishing 

definitions for small business. The Act 

also requires that small business 

definitions vary from industry to 

industry reflecting differences among 

the various industries. 15 U.S.C. 632(a). 

By analyzing and reviewing size 

standards based on the latest NAICS 

definitions, SBA can more accurately 

and appropriately fulfill its mandate. If 

SBA does not use the latest industry 

definitions, size standards would not 

accurately reflect differences among 

industries. In addition, the Jobs Act 

requires SBA to review all size 

standards and make necessary 

adjustments to reflect current industry 

and market conditions at least every five 

years. To better serve this mandate, SBA 

needs to evaluate industry data based on 

the latest NAICS industry definitions 

available. In this final rule, SBA 

generally followed the same guidelines 

that the Agency used for adopting prior 

NAICS revisions for its size standards, 

as spelled out under the Supplemental 

Information section, above. For certain 

NAICS 2017 industries involving NAICS 

2012 industries with substantially 

different size standards, SBA also 

analyzed the relevant industry and 

program data to determine the size 

standards for them. Size standards 

based on NAICS 2017 industry 

definitions and corresponding data will 

serve SBA’s mission more effectively. 

2. What are the potential benefits and 

costs of this regulatory action? 

The vast majority of the changes from 

NAICS 2012 to NAICS 2017 consist of 

revisions to industry titles or 6-digit 

codes or mergers of some NAICS 2012 

industries or their parts to form the 

industries in NAICS 2017 without 

impacting their size standards. Of the 29 

affected NAICS 2012 industries or their 

parts, SBA’s size standards using NAICS 

2017 will result in increases to size 

standards for six NAICS 2012 industries 

and part of one industry, decreases for 

two industries, and the change of size 

standard from average annual receipts to 

number of employees for one industry. 

The size standards will remain 

unchanged for other affected industries 

or parts. 

Based on the 2012 Economic Census 

data for the affected NAICS 2012 

industries, SBA estimates that 

approximately 60 additional businesses 

would gain small business status under 

the revised size standards. That 

represents about 0.1 percent of the 

number of small businesses in the 

affected industries. For the two 

industries for which the size standard 

will decrease, SBA also estimates that 

fewer than five firms that qualify as 

small under current size standards 

under NAICS 2012 will no longer 

qualify. However, almost all of those 

firms do not currently participate in any 

small business programs. 

The benefits of adopting NAICS 2017 

and the resulting revisions to size 

standards will accrue to three groups in 

the following ways: (1) Some businesses 

that are above their current size 

standards may gain small business 

status, thereby becoming eligible to 

participate in Federal small business 

assistance programs, including SBA’s 

financial assistance programs, economic 

injury disaster loans, and Federal 

procurement opportunities intended for 

small businesses; (2) growing small 

businesses that are close to exceeding 

the current size standards for their 

NAICS 2012 industry may retain their 

small business status under NAICS 

2017, and can continue participating in 

the above programs; and (3) Federal 

agencies will have a larger pool of small 

businesses from which to draw for their 

small business procurement programs 

because they will be able to define more 

accurately the principal purposes of 

their procurements under NAICS 2017, 

as required by 13 CFR 121.402(b). 

Additional firms gaining small 

business status under NAICS 2017 may 

benefit under SBA’s various business 

development and contracting programs. 

These include the 8(a) Business 

Development program and programs 

benefiting small businesses located in 

Historically Underutilized Business 

Zones (HUBZones), Women Owned 

Small Businesses (WOSBs), and Service 

Disabled Veteran Owned Small 

Businesses (SDVOSBs). Added 

competition may also result in lower 

prices for some Federal contracts 

reserved for small businesses, although 

SBA cannot quantify this benefit. Based 

on data for fiscal years 2013–2015, SBA 

estimates that approximately $700,000 

in Federal contracts could be awarded 

to the newly defined small businesses 

under the size standards revisions due 

to the adoption of NAICS 2017. 

Under SBA’s 7(a) and 504 Loan 

Programs, SBA would be able to 

guarantee more loans, although, in this 

case too, the number and amount of 

additional loans cannot be estimated 

accurately. Based on the Agency 7(a) 

and 504 loan data for fiscal years 2014– 

2016, SBA estimates that about two 

additional loans, totaling approximately 

$200,000, could be made to the newly 

defined small businesses under the 

NAICS 2017 size standards. Under the 

Jobs Act, SBA can now guarantee 

substantially larger loans than in the 

past. Additionally, the Jobs Act 

established an alternative size standard 

for SBA’s 7(a) and 504 Loan Programs 

for applicants that do not meet the size 

standards for their industries. 

Specifically, section 1116 of the Jobs 

Act provides that if a firm applying for 

a 7(a) or 504 loan does not meet the size 

standard for its industry, it might still 

qualify if it has a tangible net worth that 

does not exceed $15 million and an 

average net income after Federal income 

taxes (excluding any carry-over losses) 

for its preceding two completed fiscal 

years that does not exceed $5 million. 

Thus, the updated size standards may 


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44892 Federal Register / Vol. 82, No. 186 / Wednesday, September 27, 2017 / Rules and Regulations 

result in an increase in SBA’s loan 

guarantees to small businesses in the 

affected industries, but SBA cannot 

quantify this impact. 

Newly defined small businesses will 

also benefit from SBA’s Economic Injury 

Disaster Loan (EIDL) Program. Since this 

program is contingent on the occurrence 

and severity of a disaster, SBA cannot 

make a meaningful estimate of future 

EIDL benefit. 

To the extent that newly defined 

small firms under NAICS 2017 could 

become active in Federal procurement 

programs, this may entail some 

additional administrative costs to the 

Federal Government associated with 

additional bidders for Federal small 

business procurement opportunities. 

More firms may seek SBA’s guaranteed 

loans. More will be enrolled in the 

SBA’s Dynamic Small Business Search 

database. Since more firms will qualify 

as small, more may also seek 

certification as 8(a) or HUBZone firms, 

or qualify for WOSB, SDVOSB, and/or 

small disadvantaged business (SDB) 

status. It is important to point out that 

most business entities that are already 

registered in SAM will not be required 

to update their SAM profiles. However, 

it will be incumbent on registrants to 

review their profiles to ensure that they 

have the correct NAICS codes. SAM 

requires that registered companies 

review and update their profiles 

annually, and therefore, businesses will 

need to pay particular attention to the 

changes to determine if they might 

affect them. They will also have to 

verify and update, if necessary, their 

Representations and Certifications in 

SAM. Further, firms are required to 

verify that their size representation in 

SAM is accurate prior to submitting an 

offer for a contract. FAR 52.204–8(d). 

Among the newly qualified 

businesses seeking SBA’s assistance, 

there could be some additional costs 

associated with compliance and 

verification of small business status and 

protests of small business status. These 

added costs are likely to be minimal 

because mechanisms are already in 

place to handle these administrative 

requirements. 

The costs to the Federal Government 

may be higher on some Federal 

contracts under the higher revised size 

standards under NAICS 2017. With 

more businesses defined as small, 

Federal agencies might choose to set 

aside more contracts for competition 

among small businesses rather than 

using full and open competition. The 

movement from unrestricted to set-aside 

contracting will likely result in 

competition among fewer total bidders, 

although there will be a larger pool of 

small businesses to submit offers. In 

addition, higher costs may result when 

additional full and open contracts are 

awarded to HUBZone businesses 

because of a price evaluation preference. 

The additional costs associated with 

fewer bidders, however, will likely be 

minor since, as a matter of law, 

procurements may be set aside for small 

businesses or reserved for the 8(a), 

HUBZone, WOSB, or SDVOSB Programs 

only if awards are expected to be made 

at fair and reasonable prices. 

The revised size standards may have 

some distributional effects among large 

and small businesses. Although SBA 

cannot estimate with certainty the 

actual outcome of gains and losses 

among small and large businesses, there 

are several likely impacts. There may be 

a transfer of some Federal contracts 

from large businesses to small 

businesses. Large businesses may have 

fewer Federal contract opportunities as 

Federal agencies decide to set aside 

more Federal contracts for small 

businesses. In addition, some agencies 

may award more Federal contracts to 

HUBZone firms instead of large 

businesses since HUBZone concerns 

may be eligible for price evaluation 

adjustments when they compete on full 

and open procurement opportunities. 

Similarly, currently defined small 

businesses may receive fewer Federal 

contracts due to the increased 

competition from more businesses 

defined as small under NAICS 2017. 

This transfer may be offset by more 

Federal procurements set aside for all 

small businesses. The number of newly 

defined and expanding small businesses 

that are willing and able to sell to the 

Federal Government will limit the 

potential transfer of contracts away from 

large and small businesses under the 

existing size standards. SBA cannot 

estimate with precision the potential 

distributional impacts of these transfers. 

SBA’s adoption of NAICS 2017 and 

resulting revisions to size standards is 

consistent with SBA’s statutory mandate 

to assist small business by providing 

access to capital and credit, Government 

contracts, and management and 

technical assistance. Updated size 

standards based on the latest industry 

definitions ensure that Federal small 

business assistance is more effectively 

targeted to its intended beneficiaries. 

The Small Business Act states that ‘‘the 

Administrator shall ensure that the size 

standard varies from industry to 

industry to the extent necessary to 

reflect the differing characteristics of the 

various industries.’’ 15 U.S.C. 632(a)(3). 

With the adoption of the latest industry 

definitions in NAICS 2017, SBA’s size 

standards are more consistent with the 

differing characteristics among the 

various industries. 

Executive Order 13563 

A description of the need for this 

regulatory action and benefits and costs 

associated with this action including 

possible distribution impacts that relate 

to Executive Order 13563 are included 

above in the Cost Benefit Analysis. 

To engage interested parties in this 

action, SBA reached out to all Federal 

agencies advising them that the Agency 

plans to update its table of size 

standards to NAICS 2017, effective 

October 1, 2017, and that agencies must 

continue using the current size 

standards until that date. Adopting the 

updated size standards on October 1, 

2017 is consistent with SBA’s adoptions 

of previous NAICS revisions at the 

beginning of the new fiscal year 

following the OMB’s January 1 effective 

date of NAICS revisions for Federal 

statistical agencies. 

Unlike the previous NAICS revisions 

which SBA adopted for its size 

standards either through a direct final 

rule or through an interim final rule, for 

the adoption of NAICS 2017 revision, 

SBA issued a proposed rule, seeking 

comments to better engage the public in 

the process. SBA received no germane 

adverse comments to the proposed rule. 

SBA is adopting the updated table of 

size standards, effective October 1, 

2017. SBA will also issue a press release 

on the publication of the final rule and 

update the ‘‘What’s New with Size 

Standards’’ page on its Web site at 

www.sba.gov/size. 

Executive Order 13771 

This rule is not an E.O. 13771 

regulatory action because this rule is not 

significant under Executive Order 

12866. 

Executive Order 12988 

This action meets applicable 

standards set forth in Sections 3(a) and 

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

Justice Reform, to minimize litigation, 

eliminate ambiguity, and reduce 

burden. The action does not have 

retroactive or preemptive effect. 

Executive Order 13132 

For purposes of Executive Order 

13132, SBA has determined that this 

final rule will not have substantial, 

direct effects on the States, on the 

relationship between the national 

government and the States, or on the 

distribution of power and 

responsibilities among the various 

levels of government. Therefore, SBA 

has determined that this final rule has 


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Federal Register / Vol. 82, No. 186 / Wednesday, September 27, 2017 / Rules and Regulations 44893 

no Federalism implications warranting 

preparation of a Federalism assessment. 

Paperwork Reduction Act 

For the purpose of the Paperwork 

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

has determined that this final rule 

would not impose any new reporting or 

recordkeeping requirements. 

Final Regulatory Flexibility Analysis 

Under the Regulatory Flexibility Act 

(RFA), this final rule may have an 

impact on some small businesses in 

industries for which size standards have 

been revised. As described above, this 

rule may affect small businesses 

applying for Federal government 

contracts, loans under SBA’s 7(a), 504, 

and Economic Injury Disaster Loan 

Programs, and assistance under other 

Federal small business programs. 

Immediately below, SBA sets forth a 

final regulatory flexibility analysis 

(FRFA) of this final rule addressing the 

following questions: (1) What are the 

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

What are SBA’s description and 

estimate of the number of small 

businesses to which the rule will 

apply?; (3) What are the projected 

reporting, recordkeeping, and other 

compliance requirements of the rule?; 

(4) What are the relevant Federal rules 

that may duplicate, overlap, or conflict 

with the rule?; and (5) What alternatives 

will allow the Agency to accomplish its 

regulatory objectives while minimizing 

the impact on small businesses? 

1. What are the need for and objectives 

of the rule? 

The Small Business Act requires that 

small business size standards vary from 

industry to industry reflecting the 

differing characteristics of the various 

industries. SBA uses the latest NAICS as 

a basis of industry definitions for its 

table of size standards. As part of its 

five-year review of and revisions to 

NAICS industry definitions, OMB 

published its latest NAICS revision, 

NAICS 2017, on August 8, 2016. 

According to OMB’s notice, Federal 

establishment and industry data for 

reference years beginning on or after 

January 1, 2017 should be published 

using NAICS 2017. This rule amends 

SBA’s small business size regulations to 

incorporate NAICS 2017 into its table of 

size standards. This not only makes 

SBA’s size standards more reflective of 

the latest industry differences but also 

makes them more consistent with latest 

industry data the Agency uses to 

establish, review or adjust size 

standards. Updating size standards to 

the latest industry definitions also 

serves the SBA’s mandate to review all 

size standards and make appropriate 

adjustments to reflect market conditions 

under the Jobs Act. 

2. What are SBA’s description and 

estimate of the number of small 

businesses to which the rule will apply? 

With the update of size standards to 

the latest industry definitions under 

NAICS 2017, Federal small business 

assistance is more effectively targeted to 

its intended beneficiaries. The adoption 

of NAICS 2017 will result in increases 

in size standards for six industries and 

part of one industry under NAICS 2012 

and decreases for two. The size 

standards for the rest of the 29 affected 

industries will remain unchanged. In 

industries whose size standards have 

increased due to the adoption of NAICS 

2017, about 60 firms above the current 

size standards will qualify as small 

under the updated size standards, 

thereby making them eligible for Federal 

small business assistance programs. 

Based on the recent data, SBA estimates 

that approximately $700,000 in Federal 

contracts and about $200,000 in SBA 

loans could be awarded to the newly 

defined small businesses under the 

updated size standards. The updated 

size standards will enable more small 

businesses to maintain their small 

business size status for a longer period. 

In the two NAICS 2012 industries for 

which the size standard will decrease, 

about 3–4 firms below the current size 

standards will lose their small business 

size status under the NAICS 2017 based 

size standards. However, the program 

data suggests that this will not cause 

much impact on them. Currently, they 

are not participating in any small 

business programs. Additionally, in 

both industries, Federal contracting and 

SBA’s loan activities are quite 

insignificant. 

3. What are the projected reporting, 

recordkeeping and other compliance 

requirements of the rule? 

The size standard changes due to the 

adoption of NAICS 2017 impose no 

additional reporting or recordkeeping 

requirements on small businesses. 

However, qualifying for Federal small 

business contracting and other programs 

may require businesses to register in 

SAM and recertify in SAM that they are 

small at least once annually. Therefore, 

the newly qualified small businesses 

opting to participate in those programs 

must comply with SAM requirements. 

There are no costs associated with either 

SAM registration or annual 

recertification. Changing size standards 

alters the access to SBA’s financial and 

other Federal programs that assist small 

businesses, but does not impose a 

regulatory burden because size 

standards neither regulate nor control 

business behavior. 

4. What are the relevant Federal rules, 

which may duplicate, overlap, or 

conflict with the rule? 

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

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

Federal agencies must generally use 

SBA’s size standards to define a small 

business, unless specifically authorized 

by statute to do otherwise. In 1995, SBA 

published in the Federal Register a list 

of statutory and regulatory size 

standards that identified the application 

of SBA’s size standards as well as other 

size standards used by Federal agencies 

(60 FR 57988 (November 24, 1995)). The 

Small Business Act and SBA’s 

regulations allow Federal agencies to 

develop different size standards if they 

believe that SBA’s size standards are not 

appropriate for their programs, with the 

approval of SBA’s Administrator (13 

CFR 121.903). The RFA authorizes a 

Federal agency to establish an 

alternative small business definition, 

after consultation with the Office of 

Advocacy of the U.S. Small Business 

Administration (5 U.S.C. 601(3)). SBA is 

not aware of any Federal rule that 

would duplicate or conflict with 

establishing or updating size standards. 

5. What alternatives will allow the 

Agency to accomplish its regulatory 

objectives while minimizing the impact 

on small entities? 

By law, SBA is required to develop 

numerical size standards for 

establishing eligibility for Federal small 

business assistance programs. Other 

than varying levels of size standards by 

industry and changing the size 

measures, no practical alternative exists 

to the systems of numerical size 

standards. SBA considered continuing 

to use NAICS 2012 as a basis of industry 

definitions for its table of size standards. 

However, that would render SBA’s table 

of size standards incompatible with 

Federal industry and establishment 

statistics and other databases. 

List of Subjects in 13 CFR Part 121 

Administrative practice and 

procedure, Government procurement, 

Government property, Grant programs— 

business, Individuals with disabilities, 

Loan programs—business, Reporting 

and recordkeeping requirements, Small 

businesses. 

For the reasons set forth in the 

preamble, SBA amends 13 CFR part 121 

as follows: 


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44894 Federal Register / Vol. 82, No. 186 / Wednesday, September 27, 2017 / Rules and Regulations 

PART 121—SMALL BUSINESS SIZE 

REGULATIONS 

■ 1. The authority citation for part 121 

continues to read as follows: 

Authority: 15 U.S.C. 632, 634(b)(6), 662, 

and 694a(9). 

■ 2. In § 121.201, amend the table, 

‘‘Small Business Size Standards by 

NAICS Industry’’ as follows: 

■ a. Remove the entries for 211111 and 

211112; 

■ b. Add entries for 211120 and 211130; 

■ c. Remove the entries for 212231 and 

212234; 

■ d. Add an entry for 212230; 

■ e. Remove the entry 333911; 

■ f. Remove the entry 333913; 

■ g. Add an entry for 333914; 

■ h. Add an entry for 335220; 

■ i. Remove the entries for 335221, 

335222, 335224, and 335228; 

■ j. Remove the entries for 452111, 

452112, 452910, and 452990; 

■ k. Add entries for 452210, 452311, 

and 452319; 

■ l. Add an entry for 454110; 

■ m. Remove the entries for 454111, 

454112, and 454113; 

■ n. Remove the entries for 512210 and 

512220; 

■ o. Add an entry for 512250; 

■ p. Remove the entries for 517110 and 

517210; 

■ q. Add entries for 517311 and 517312; 

■ r. Remove the entries for 532220, 

532230, 532291, 532292, and 532299; 

■ s. Add entries for 532281, 532282, 

532283, 532284, and 532289; 

■ t. Remove the entry for 541711; 

■ u. Remove the entry for 541712; 

■ v. Add entries for 541713 and 541714; 

■ w. Add an entry for 541715; 

■ x. Revise the NAICS industry title of 

the entry for 721310 to read, ‘‘Rooming 

and Boarding Houses, Dormitories, and 

Workers’ Camps’’; and 

■ y. Revise footnote 11 at the end of the 

table. 

The additions and revisions read as 

follows: 

§ 121.201 What size standards has SBA 

identified by North American Industry 

Classification System codes? 

* * * * * 

NAICS codes NAICS U.S. industry title 

Size standards 

in millions of 

dollars 

Size standards 

in number of 

employees 

*******

211120 ................... Crude Petroleum Extraction ................................................................................................ ........................ 1,250 

211130 ................... Natural Gas Extraction ........................................................................................................ ........................ 1,250 

* * * * * * * 

212230 ................... Copper, Nickel, Lead, and Zinc Mining ............................................................................... ........................ 750 

* * * * * * * 

333914 ................... Measuring, Dispensing, and Other Pumping Equipment Manufacturing ............................ ........................ 750 

* * * * * * * 

335220 ................... Major Household Appliance Manufacturing ........................................................................ ........................ 1,500 

* * * * * * * 

452210 ................... Department Stores .............................................................................................................. 32.5 ........................

452311 ................... Warehouse Clubs and Supercenters .................................................................................. 29.5 ........................

452319 ................... All Other General Merchandise Stores ............................................................................... 32.5 ........................

* * * * * * * 

454110 ................... Electronic Shopping and Mail-Order Houses ...................................................................... 38.5 ........................

* * * * * * * 

512250 ................... Record Production and Distribution .................................................................................... ........................ 250 

* * * * * * * 

517311 ................... Wired Telecommunications Carriers ................................................................................... ........................ 1,500 

517312 ................... Wireless Telecommunications Carriers (except Satellite) .................................................. ........................ 1,500 

* * * * * * * 

532281 ................... Formal Wear and Costume Rental ..................................................................................... 20.5 ........................

532282 ................... Video Tape and Disc Rental ............................................................................................... 27.5 ........................

532283 ................... Home Health Equipment Rental ......................................................................................... 32.5 ........................

532284 ................... Recreational Goods Rental ................................................................................................. 7.5 ........................

532289 ................... All Other Consumer Goods Rental ..................................................................................... 7.5 ........................

* * * * * * * 

541713 ................... Research and Technology in Nanotechnology 11 ............................................................... ........................ 11 1,000 

541714 ................... Research and Technology in Biotechnology (except Nanobiotechnology) 11 .................... ........................ 11 1,000 

541715 ................... Research and Development in the Physical, Engineering, and Life Sciences (except 

Nanotechnology and Biotechnology) 11.

........................ 11 1,000 

Except, ................... Aircraft, Aircraft Engine and Engine Parts 11 ...................................................................... ........................ 11 1,500 

Except, ................... Other Aircraft Parts and Auxiliary Equipment 11 ................................................................. ........................ 11 1,250 

Except, ................... Guided Missiles and Space Vehicles, Their Propulsion Units and Propulsion Parts 11 ..... ........................ 11 1,250 

* * * * * * * 

Footnotes 

* * * * * * * 11NAICS codes 541713, 541714, and 541715 — 


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Federal Register / Vol. 82, No. 186 / Wednesday, September 27, 2017 / Rules and Regulations 44895 

(a) ‘‘Research and Development’’ means laboratory or other physical research and development. It does not include economic, educational, engineering, operations, systems, or other nonphysical research; or computer programming, data processing, commercial and/or medical laboratory 

testing. 

(b)For research and development contracts requiring the delivery of a manufactured product, the appropriate size standard is that of the manufacturing industry. 

(c)For purposes of the Small Business Innovation Research (SBIR) and Small Business Transfer Technology (STTR) programs, the term ‘‘research’’ or ‘‘research and development’’ means any activity which is (A) a systematic, intensive study directed toward greater knowledge or understanding of the subject studied; (B) a systematic study directed specifically toward applying new knowledge to meet a recognized need; or (C) 

a systematic application of knowledge toward the production of useful materials, devices, and systems or methods, including design, development, and improvement of prototypes and new processes to meet specific requirements. See 15 U.S.C. 638(e)(5) and section 3 of the SBIR and 

STTR policy directives available at www.sbir.gov. For size eligibility requirements for the SBIR and STTR programs, see § 121.702 of this part. 

(d) ‘‘Research and Development’’ for guided missiles and space vehicles includes evaluations and simulation, and other services requiring thorough knowledge of complete missiles and spacecraft. 

* * * * * 

Dated: September 8, 2017. 

Linda E. McMahon, 

Administrator. 

[FR Doc. 2017–20705 Filed 9–26–17; 8:45 am] 

BILLING CODE 8025–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2016–9386; Product 

Identifier 2016–NM–056–AD; Amendment 

39–19055; AD 2017–19–25] 

RIN 2120–AA64 

Airworthiness Directives; Airbus 

Defense and Space S.A. (Formerly 

Known as Construcciones 

Aeronauticas, S.A.) Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), Department of 

Transportation (DOT). 

ACTION: Final rule. 

SUMMARY: We are adopting a new 

airworthiness directive (AD) for all 

Airbus Defense and Space S.A. Model 

CN–235, CN–235–100, CN–235–200, 

and CN–235–300 airplanes; and Model 

C–295 airplanes. This AD was prompted 

by reports of leakage of motorized crossfeed fuel valves. This AD requires 

repetitive inspections and operational 

checks of the affected fuel valves, and 

corrective actions if necessary. We are 

issuing this AD to address the unsafe 

condition on these products. 

DATES: This AD is effective November 1, 

2017. 

The Director of the Federal Register 

approved the incorporation by reference 

of certain publications listed in this AD 

as of November 1, 2017. 

ADDRESSES: For service information 

identified in this final rule, contact 

Airbus Defense and Space Services/ 

Engineering Support, Avenida de 

Arago ́n 404, 28022 Madrid, Spain; 

telephone +34 91 585 55 84; fax +34 91 

585 31 27; email 

MTA.TechnicalService@airbus.com.; 

Internet http://www.eads.net. You may 

view this referenced service information 

at the FAA, Transport Standards 

Branch, 1601 Lind Avenue SW., Renton, 

WA. For information on the availability 

of this material at the FAA, call 425– 

227–1221. It is also available on the 

Internet at http://www.regulations.gov 

by searching for and locating Docket No. 

FAA–2016–9386. 

Examining the AD Docket 

You may examine the AD docket on 

the Internet at http://

www.regulations.gov by searching for 

and locating Docket No. FAA–2016– 

9386; or in person at the Docket 

Management Facility between 9 a.m. 

and 5 p.m., Monday through Friday, 

except Federal holidays. The AD docket 

contains this AD, the regulatory 

evaluation, any comments received, and 

other information. The street address for 

the Docket Office (telephone 800–647– 

5527) is Docket Management Facility, 

U.S. Department of Transportation, 

Docket Operations, M–30, West 

Building Ground Floor, Room W12–140, 

1200 New Jersey Avenue SE., 

Washington, DC 20590. 

FOR FURTHER INFORMATION CONTACT: 

Shahram Daneshmandi, Aerospace 

Engineer, International Section, 

Transport Standards Branch, FAA, 1601 

Lind Avenue SW., Renton, WA 98057– 

3356; telephone 425–227–1112; fax 

425–227–1149. 

SUPPLEMENTARY INFORMATION: 

Discussion 

We issued a supplemental notice of 

proposed rulemaking (SNPRM) to 

amend 14 CFR part 39 by adding an AD 

that would apply to all Airbus Defense 

and Space S.A. Model CN–235, CN– 

235–100, CN–235–200, and CN–235– 

300 airplanes; and Model C–295 

airplanes. The SNPRM published in the 

Federal Register on June 21, 2017 (82 

FR 28274) (‘‘the SNPRM’’). We preceded 

the SNPRM with a notice of proposed 

rulemaking that published in the 

Federal Register on November 25, 2016 

(81 FR 85169) (‘‘the NPRM’’). The 

NPRM proposed to require an 

inspection of motorized cross-feed fuel 

valves and, depending on findings, 

applicable corrective action(s). The 

NPRM was prompted by leakage of a 

motorized cross-feed fuel valve. The 

SNPRM proposed to require a reduced 

compliance time for the initial 

inspection, the addition of repetitive 

inspections and operational checks, and 

corrective actions if necessary. We are 

issuing this AD to detect and correct 

leaks in a motorized fuel valve, which 

could lead to failure of the fuel valve 

and consequent improper fuel system 

functioning or, in case of the presence 

of an ignition source, an airplane fire. 

The European Aviation Safety Agency 

(EASA), which is the Technical Agent 

for the Member States of the European 

Union, has issued EASA Airworthiness 

Directive 2017–0004, dated January 9, 

2017 (referred to after this as the 

Mandatory Continuing Airworthiness 

Information, or ‘‘the MCAI’’), to correct 

an unsafe condition for all Airbus 

Defense and Space S.A. Model CN–235, 

CN–235–100, CN–235–200, and CN– 

235–300 airplanes; and Model C–295 

airplanes. The MCAI states: 

Leakage of a motorised cross-feed fuel 

valve Part Number (P/N) 7923227F was 

reported on a CN–235–100M aeroplane. The 

leakage was observed through the valve 

electrical connectors and detected during 

accomplishment of a functional check in 

accordance with task 28.007 of the CN–235 

Maintenance Review Board Report (MRB 

CN–235–PV01). Identical motorised fuel 

valves are installed on civilian CN–235 and 

C–295 aeroplanes, as cross-feed, shut-off and 

defueling valves. 

This condition, if not detected and 

corrected, could lead to failure of a motorised 

fuel valve and consequent improper 

functioning of the fuel system or, in case of 

an ignition source, could lead to a fire, 

possibly resulting in damage to the aeroplane 

and injury to occupants. 

To address this potentially unsafe 

condition, Airbus Defence & Space (D&S) 

issued Alert Operators Transmission (AOT)– 

CN235–28–0001 and AOT–C295–28–0001 to 

provide inspection instructions. 

Consequently, EASA issued AD 2016–0071 

to require a one-time inspection of the 

affected motorised fuel valves and, 

depending on findings, accomplishment of 

applicable corrective action(s). 

Since that [EASA] AD was issued, new 

occurrences of fuel leakage involving the 


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