Source: https://www.federalregister.gov/documents/2005/12/06/05-23435/small-business-size-standards-inflation-adjustment-to-size-standards-business-loan-program-disaster
Timestamp: 2019-06-17 02:40:33
Document Index: 490605266

Matched Legal Cases: ['§\u20093', 'arts 121', '§\u2009121', '§\u2009121', '§\u2009121', 'art 123', 'art 121', '§\u2009123']

A Rule by the Small Business Administration on 12/06/2005
70 FR 72577
72577-72595 (19 pages)
05-23435
How Does SBA Adjust Size Standards for Inflation?
Size Standards Adjusted Since 2002
Size Standards of $2 Million or Less
Program-Based Size Standards
Justification for Determining the Size Status of Businesses Affected by the Hurricanes on the Date SBA Accepts EIDL Applications From Those Businesses
(1) What is the reason for this action?
(2) What are the objectives and legal basis for the rule?
(4) What are the potential benefits of the rule?
(5) Will this rule impose any additional reporting or recordkeeping requirements on small businesses?
(6) What are the relevant Federal rules which may duplicate, overlap or conflict with this rule?
(7) What alternatives did SBA consider?
https://www.federalregister.gov/d/05-23435 https://www.federalregister.gov/d/05-23435
Start Preamble Start Printed Page 72577
SBA is adjusting its monetary-based 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.
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.
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.
Carl Jordan or Diane Heal, Office of Size Standards, at (202) 205-6618 or at sizestandards@sba.gov.
SBA is adjusting certain monetary-based 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 non-monetary size standard will be as a result of a specific review of industry characteristics.
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. Start Printed Page 72578The 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.
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.
SBA has changed several receipts-based 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.
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.
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.
Current size standard (in millions)
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.
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 two-step 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 Start Printed Page 72579of 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:
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.
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. Start Printed Page 72580
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.
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.
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.
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.
The benefits of a size standard increase to a more appropriate level would accrue to three groups: (1) Businesses that benefit by gaining small Start Printed Page 72581business 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 non-small 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).
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 monetary-based 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 two-step process to determine small business eligibility for its financial assistance program will have a significant economic impact of a Start Printed Page 72582substantial 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.
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.
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.
SBA estimates that there will be approximately 11,600 newly designated small businesses, distributed as follows by NAICS Sector:
11 Agriculture 59
21 Mining 672
23 Construction 285
44-45 Retail Trade 2,159
48-49 Transportation 211
51 Information 89
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
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%.
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).
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.
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 Start Printed Page 72583the 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.
For the reasons set forth in the preamble, amend parts 121 and 123 of title 13 Code of Federal Regulations 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:
112112 Cattle Feedlots $2.00
112310 Chicken Egg Production $11.5
113110 Timber Tract Operations $6.5
113210 Forest Nurseries and Gathering of Forest Products $6.5
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
Start Printed Page 72584
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
221310 Water Supply and Irrigation Systems $6.5
221320 Sewage Treatment Facilities $6.5
221330 Steam and Air-Conditioning Supply $11.5
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
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
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
441110 New Car Dealers $26.5
441120 Used Car Dealers $21.0
441210 Recreational Vehicle Dealers $6.5
Start Printed Page 72585
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
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
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
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
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
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
447110 Gasoline Stations with Convenience Stores $25.0
447190 Other Gasoline Stations $8.0
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
451110 Sporting Goods Stores $6.5
451120 Hobby, Toy and Game Stores $6.5
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
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
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
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
Except, Offshore Marine Air Transportation Services $25.5
481219 Other Nonscheduled Air Transportation $6.5
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
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
485999 All Other Transit and Ground Passenger Transportation $6.5
486210 Pipeline Transportation of Natural Gas $6.5
486990 All Other Pipeline Transportation $31.5
487110 Scenic and Sightseeing Transportation, Land $6.5
487210 Scenic and Sightseeing Transportation, Water $6.5
487990 Scenic and Sightseeing Transportation, Other $6.5
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
491110 Postal Service $6.5
492210 Local Messengers and Local Delivery $23.5
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
511210 Software Publishers $23.0
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
512240 Sound Recording Studios $6.5
512290 Other Sound Recording Industries $6.5
515111 Radio Networks $6.5
515112 Radio Stations $6.5
515120 Television Broadcasting $13.0
515210 Cable and Other Subscription Programming $13.5
517410 Satellite Telecommunications $13.5
517510 Cable and Other Program Distribution $13.5
517910 Other Telecommunications $13.5
518111 Internet Service Providers $23.0
518112 Web Search Portals $6.5
518210 Data Processing, Hosting, and Related Services $23.0
519110 News Syndicates $6.5
519120 Libraries and Archives $6.5
519190 All Other Information Services $6.5
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
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
523991 Trust, Fiduciary and Custody Activities $6.5
523999 Miscellaneous Financial Investment Activities $6.5
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
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
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
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
533110 Lessors of Nonfinancial Intangible Assets (except Copyrighted Works) $6.5
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
Start Printed Page 72590
541213 Tax Preparation Services $6.5
541214 Payroll Services $7.5
541219 Other Accounting Services $7.5
541320 Landscape Architectural Services $6.5
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
541350 Building Inspection Services $6.5
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
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
551111 Offices of Bank Holding Companies $6.5
551112 Offices of Other Holding Companies $6.5
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
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
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
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
562920 Materials Recovery Facilities $11.5
562991 Septic Tank and Related Services $6.5
562998 All Other Miscellaneous Waste Management Services $6.5
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
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
Start Printed Page 72592
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
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
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
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
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
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
713110 Amusement and Theme Parks $6.5
713120 Amusement Arcades $6.5
713210 Casinos (except Casino Hotels) $6.5
Start Printed Page 72593
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
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
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
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
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
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
Start Printed Page 72594
812922 One-Hour Photo Finishing $6.5
812930 Parking Lots and Garages $6.5
812990 All Other Personal Services $6.5
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
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:
(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.
(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.
What size standards are applicable to programs for sales and lease of Government property?
(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.
(b) Its annual receipts, together with its affiliates, do not exceed $51.5 million.
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.
End Authority Start Printed Page 72595 Start Amendment Part
(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).
[FR Doc. 05-23435 Filed 12-5-05; 8:45 am]