Small Business Size Standards: Adjustment of Monetary-Based Size Standards, Disadvantage Thresholds, and 8(a) Eligibility Thresholds for Inflation, 69118-69154 [2022-24595]

Agencies

• SMALL BUSINESS ADMINISTRATION

[Federal Register Volume 87, Number 221 (Thursday, November 17, 2022)]
[Rules and Regulations]
[Pages 69118-69154]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-24595]



[[Page 69117]]

Vol. 87

Thursday,

No. 221

November 17, 2022

Part III





Small Business Administration





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13 CFR Parts 121, 124, and 127





Small Business Size Standards: Adjustment of Monetary-Based Size 
Standards, Disadvantage Thresholds, and 8(a) Eligibility Thresholds for 
Inflation; Final Rule

Federal Register / Vol. 87, No. 221 / Thursday, November 17, 2022 / 
Rules and Regulations

[[Page 69118]]


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SMALL BUSINESS ADMINISTRATION

13 CFR Parts 121, 124, and 127

RIN 3245-AH93


Small Business Size Standards: Adjustment of Monetary-Based Size 
Standards, Disadvantage Thresholds, and 8(a) Eligibility Thresholds for 
Inflation

AGENCY: U.S. Small Business Administration.

ACTION: Final rule and interim final rule with request for comments.

-----------------------------------------------------------------------

SUMMARY: This rulemaking finalizes, without change, the U.S. Small 
Business Administration's (SBA or Agency) 2019 interim final rule (RIN 
3245-AH17) that adjusted monetary-based industry size standards (i.e., 
receipts- and assets-based) for inflation that occurred since 2014. 
This rulemaking also includes three interim final actions. First, SBA 
adds an additional 13.65 percent inflation increase to the monetary 
small business size standards, which have been recently adjusted as 
part of the second five-year review of size standards pursuant to the 
Small Business Jobs Act of 2010 (Jobs Act). This concurrent additional 
adjustment accounts for the inflation that has occurred since 2019 that 
has not been adequately addressed by the Agency's previous adjustments 
to its small business size standards under the Jobs Act. Second, this 
rulemaking adjusts three program-specific monetary size standards to 
account for inflation: the size standards for sales or leases of 
government property, the size standards for stockpile purchases, and 
alternative size standard based on tangible net worth and net income 
for the Small Business Investment Company (SBIC) program. Third, SBA 
adjusts for inflation the economic disadvantage thresholds applicable 
to the 8(a) Business Development and Economically Disadvantaged Women-
Owned Small Business (EDWOSB) programs, and the dollar limit for 
combined total 8(a) contracts.

DATES: 
    Effective date: This rule is effective on December 19, 2022.
    Comment date: Comments on the interim final provisions of this rule 
must be received on or before January 17, 2023.

FOR FURTHER INFORMATION CONTACT: Khem Sharma, Ph.D., Chief, Office of 
Size Standards, (202) 205-6618 or [email protected]. This phone 
number can also be reached by individuals who are deaf or hard of 
hearing, or who have speech disabilities, through the Federal 
Communications Commission's TTY-Based Telecommunications Relay Service 
teletype service at 711.

SUPPLEMENTARY INFORMATION:

I. Background

    As explained in the SBA's ``Size Standards Methodology'' white 
paper available at https://www.sba.gov/size, SBA reviews small business 
size standards and makes necessary adjustments to them for three 
reasons: (i) changes in industry structure and Federal market 
conditions, (ii) inflation, and (iii) revision to the North American 
Industry Classification System (NAICS). In 2019, SBA published an 
interim final rule (IFR) adjusting for inflation all monetary-based 
industry size standards (84 FR 34261; July 18, 2019) (``July 2019 
IFR''). Certain provisions of this rulemaking finalize, without change, 
the SBA's July 2019 IFR that adjusted monetary-based industry and 
certain program-specific size standards (i.e., receipts- and assets-
based) for inflation that occurred since the previous inflation 
adjustment in 2014 (79 FR 33647; June 12, 2014).
    After the inflation adjustment in the July 2019 IFR, SBA completed 
the second five-year rolling review of all monetary-based industry size 
standards, as required by section 1344 of the Jobs Act (Pub. L. 111-
240, 124 Stat. 2504 (September 27, 2010)). The second five-year review 
of size standards coincided with the ongoing COVID-19 pandemic. In 
response to the pandemic and its impact on small businesses as well as 
the overall economy, SBA adopted the same policy it adopted in the 
first five-year review of size standards (completed in 2016) of only 
increasing size standards when the evaluation of the industry structure 
and Federal market conditions warranted an increase, and to maintain 
the current size standards for the industries where the analytical 
results suggested a reduction in size standard, or a retention of the 
applicable size standards at their current levels.
    SBA is required to assess the impact of inflation on its monetary-
based size standards at least once every five years (67 FR 3041; 
January 23, 2002) and 13 CFR 121.102(c)). In this rule, SBA is 
assessing the impact of the current general price increases on size 
standards before the normal five-year review for inflation is due, 
which would be 2024. Because of the important policy objective of 
maintaining the value of size standards in inflation-adjusted terms, 
this rulemaking contains interim final provisions further adjusting the 
size standards adopted in the recently completed second five-year 
comprehensive size standards review by an additional 13.65 percent, as 
discussed below.
    The interim final provisions of this regulatory action provide 
assurances to the public that the Agency is monitoring inflation to 
determine whether to adjust size standards within a reasonable period 
since its last inflation adjustment and comprehensive size standards 
review as mandated by the Jobs Act. The inflation adjustments in this 
rule are separate from revisions to size standards made during the 
second five-year rolling reviews of size standards under the Jobs Act. 
The SBA's five-year size standards rolling reviews under the Jobs Act 
primarily focus on industry structure (i.e., average firm size, startup 
costs and entry barriers, industry concentration, and distribution of 
firms by business size) and Federal contracting trends (i.e., small 
business share of Federal contract dollars relative to small business 
share of total industry's receipts) for industries with significant 
contracting activities. In other words, SBA does not account for 
inflation as a factor in the five-year reviews of size standards under 
the Jobs Act. The 13.65 percent additional increase ensures that the 
recently reviewed monetary size standards under the Jobs Act are up-to-
date for accurately determining small business status, and restores the 
eligibility of businesses that may have lost their small business 
status due solely to price level increases rather than from increases 
in business activity. Given the current developments in the U.S. 
economy, SBA will continue to monitor the inflation and other economic 
indicators and their impacts on size standards.
    The monetary-based small business size standards adjusted for 
inflation in this rule include receipts-based size standards for 496 
industries and nine subindustries (i.e., ``exceptions'' in the SBA 
Table of Size Standards), as well as assets-based size standards for 
four industries.
    Additionally, the interim final provisions of this rulemaking 
adjust three program-specific receipts-based size standards. These 
include the size standards for sales or leases of government property, 
the size standards for stockpile purchases, and the alternative size 
standard based on tangible net worth and net income for the Small 
Business Investment Company (SBIC) program.
    Besides adjustment of industry and program-based monetary based 
size standards described above, the interim final provisions of this 
rule also adjust

[[Page 69119]]

other monetary thresholds primarily used in the 8(a) Business 
Development program (8(a) BD) and the Economically Disadvantaged Women-
Owned Small Business (EDWOSB) program to determine eligibility of 
applicants and current participants as economically disadvantaged 
business concerns. These monetary thresholds have not previously been 
adjusted for inflation. This adjustment will permit small businesses to 
retain eligibility as economically disadvantaged business concerns for 
the 8(a) BD program and the EDWOSB, despite an increase in inflation. 
Several businesses may have lost small business eligibility for Federal 
assistance under SBA's monetary-based industry size standards or under 
these SBA programs, simply because of inflation-led revenue growth that 
has occurred since the recently finalized second five-year 
comprehensive review of size standards. This rule aims to reinstate 
those firms' small business eligibility for Federal assistance.
    Updating size standards based on inflation--in addition to updating 
size standards based on the latest industry and Federal contracting 
data under the five-year rolling review--not only satisfies the Jobs 
Act's mandate that SBA review all size standards every five years, but 
also is consistent with Executive Order 13563 on improving regulation 
and regulatory review. This also fulfills the SBA's regulatory 
requirement to review size standards for inflation at least one time 
every five years.

II. SBA's Inflation Adjustment Methodology

Adjustment to Industry Size Standards \1\
---------------------------------------------------------------------------

    \1\ On September 29, 2022, SBA published a final rule to adopt 
the Office of Management and Budget (OMB) North American Industry 
Classification System revision for 2022, identified as NAICS 2022, 
for its size standards, effective October 1, 2022 (87 FR 59240). The 
OMB NAICS 2022 revision created 111 new industries with employee- 
and monetary-based size standards by reclassifying, combining, or 
splitting 156 NAICS 2017 industries or their parts. The NAICS 2022 
revision created 71 new industries with monetary-based size 
standards involving 93 NAICS 2017 unique industries and their parts. 
SBA's size standards for those 71 new industries resulted in an 
increase in size standards for 12 industries and 27 parts of two 
industries under NAICS 2017, decrease in size standards for 53 parts 
of two industries, change in one size standard from average annual 
receipts to employees, and no change in size standards for 77 
industries and 6 parts of 3 industries. In this rule, SBA is using 
NAICS 2022 as the basis of industry definitions for adjusting 
monetary-based industry size standards for inflation.
---------------------------------------------------------------------------

    For the additional inflation adjustment of monetary size standards 
in this interim final rule, SBA has used the inflation adjustment 
methodology it describes in its ``Size Standards Methodology'' white 
paper, available at www.sba.gov/size. SBA applied the same methodology 
in its previous inflation adjustments, including the latest inflation 
adjustment in 2019. This methodology can be described in terms of the 
following steps:
    1. Selecting an inflation measure.
    2. Selecting the base and end periods.
    3. Calculating the inflation rate.
    4. Adjusting the monetary based size standards.
1. Selecting an Inflation Measure
    SBA establishes small business size standards to determine the 
eligibility of businesses for a wide variety of SBA's and other Federal 
programs. Many businesses participating in those programs are engaged 
in multiple industries and are producing a wide range of goods and 
services. Therefore, it is important that the Agency use a broad 
measure of inflation to adjust its size standards. SBA's preferred 
measure of inflation has consistently been the chain-type price index 
for the U.S. Gross Domestic Product (GDP price index), published by the 
U.S. Department of Commerce, Bureau of Economic Analysis (BEA) on a 
quarterly basis as part of its National Income and Product Accounts 
(NIPA), available at www.bea.gov.\2\
---------------------------------------------------------------------------

    \2\ As part of the 2014 inflation adjustment (79 FR 33647 (June 
12, 2014)), SBA reviewed various measures of inflation published by 
the Federal Government, including the GDP price index, consumer 
price index (CPI), producer price index (PPI), personal consumption 
expenditures (PCE) price index, and unit labor cost. Based on that 
review, SBA determined that the GDP price index is the most 
appropriate measure of inflation for purposes of adjusting size 
standards for inflation. Historically, SBA has used the GDP price 
index for adjusting size standards for inflation.
---------------------------------------------------------------------------

2. Selecting the Base and End Periods
    For this inflation adjustment, SBA selected the fourth quarter of 
2018 as the base period because it was the end period for the 2019 
inflation adjustment. SBA selected the second quarter of 2022 as the 
end period because it was the latest quarter for which GDP price index 
data were available when this rule was developed.
3. Calculating the Rate of Inflation
    The GDP price index for the base period (i.e., 4th quarter of 2018) 
was 111.191 and, according to the BEA GDP advance estimate released on 
July 28, 2022 (the latest available when this rule was prepared), the 
GDP price index for the end period (i.e., 2nd quarter of 2022) was 
126.367. Accordingly, inflation increased 13.65 percent from the fourth 
quarter of 2018 to the first quarter of 2022 (((126.367 / 111.191) - 1) 
x 100 percent = 13.65 percent).
Making Adjustments to Size Standards
    Adjustment to receipts-based industry size standards: All receipts-
based size standards were adjusted by multiplying their current levels 
by 1.1365 and rounding the results to the nearest $500,000 (except for 
the agricultural industries for which the results were rounded to the 
nearest $250,000).
    Table 1, Receipts-Based Size Standards Adjusted for Inflation 
(NAICS 2022), shows all receipts-based size standards by six-digit 
NAICS 2022 industries. The third column shows the size standards 
adopted based on the second five-year rolling review under the Jobs 
Act, and the fourth column shows the unrounded size standards based on 
the additional 13.65 percent inflation adjustment. Calculated values 
for NAICS codes under Subsectors 111 (Crop Production) and 112 (Animal 
Production and Aquaculture), except NAICS 112112 (Cattle Feedlots) and 
112310 (Chicken Egg Production), were rounded to the nearest $250,000. 
The rest of the industries (including NAICS 112112 and 112310) were 
rounded to the nearest $500,000. The rounded inflation-adjusted size 
standards are shown in the fifth column.

                          Table 1--Receipts-Based Size Standards Adjusted for Inflation
                                                  [NAICS 2022]
----------------------------------------------------------------------------------------------------------------
                                                                                    Inflation-      Inflation-
                                                                   Current size    adjusted size   adjusted size
          NAICS 2022 code             NAICS 2022 industry title    standards ($      standards       standards
                                                                     million)     (unrounded) ($   (rounded) ($
                                                                                     million)        million)
----------------------------------------------------------------------------------------------------------------
111110.............................  Soybean Farming............             2.0            2.27            2.25

[[Page 69120]]

 
111120.............................  Oilseed (except Soybean)                2.0            2.27            2.25
                                      Farming.
111130.............................  Dry Pea and Bean Farming...             2.5            2.84            2.75
111140.............................  Wheat Farming..............             2.0            2.27            2.25
111150.............................  Corn Farming...............            2.25            2.56             2.5
111160.............................  Rice Farming...............            2.25            2.56             2.5
111191.............................  Oilseed and Grain                       2.0            2.27            2.25
                                      Combination Farming.
111199.............................  All Other Grain Farming....             2.0            2.27            2.25
111211.............................  Potato Farming.............            3.75            4.26            4.25
111219.............................  Other Vegetable (except                3.25            3.69            3.75
                                      Potato) and Melon Farming.
111310.............................  Orange Groves..............             3.5            3.98             4.0
111320.............................  Citrus (except Orange)                 3.75            4.26            4.25
                                      Groves.
111331.............................  Apple Orchards.............             4.0            4.55             4.5
111332.............................  Grape Vineyards............             3.5            3.98             4.0
111333.............................  Strawberry Farming.........            4.75            5.40             5.5
111334.............................  Berry (except Strawberry)              3.25            3.69            3.75
                                      Farming.
111335.............................  Tree Nut Farming...........            3.25            3.69            3.75
111336.............................  Fruit and Tree Nut                      4.5            5.11             5.0
                                      Combination Farming.
111339.............................  Other Noncitrus Fruit                   3.0            3.41             3.5
                                      Farming.
111411.............................  Mushroom Production........             4.0            4.55             4.5
111419.............................  Other Food Crops Grown                  4.0            4.55             4.5
                                      Under Cover.
111421.............................  Nursery and Tree Production            2.75            3.13            3.25
111422.............................  Floriculture Production....            3.25            3.69            3.75
111910.............................  Tobacco Farming............            2.25            2.56             2.5
111920.............................  Cotton Farming.............            2.75            3.13            3.25
111930.............................  Sugarcane Farming..........             4.5            5.11             5.0
111940.............................  Hay Farming................            2.25            2.56             2.5
111991.............................  Sugar Beet Farming.........            2.25            2.56             2.5
111992.............................  Peanut Farming.............            2.25            2.56             2.5
111998.............................  All Other Miscellaneous                2.25            2.56             2.5
                                      Crop Farming.
112111.............................  Beef Cattle Ranching and               2.25            2.56             2.5
                                      Farming.
112112.............................  Cattle Feedlots............            19.5           22.16            22.0
112120.............................  Dairy Cattle and Milk                  3.25            3.69            3.75
                                      Production.
112210.............................  Hog and Pig Farming........             3.5            3.98             4.0
112310.............................  Chicken Egg Production.....            16.5           18.75            19.0
112320.............................  Broilers and Other Meat                 3.0            3.41             3.5
                                      Type Chicken Production.
112330.............................  Turkey Production..........            3.25            3.69            3.75
112340.............................  Poultry Hatcheries.........             3.5            3.98             4.0
112390.............................  Other Poultry Production...            3.25            3.69            3.75
112410.............................  Sheep Farming..............             3.0            3.41             3.5
112420.............................  Goat Farming...............            2.25            2.56             2.5
112511.............................  Finfish Farming and Fish               3.25            3.69            3.75
                                      Hatcheries.
112512.............................  Shellfish Farming..........            3.25            3.69            3.75
112519.............................  Other Aquaculture..........            3.25            3.69            3.75
112910.............................  Apiculture.................            2.75            3.13            3.25
112920.............................  Horses and Other Equine                 2.5            2.84            2.75
                                      Production.
112930.............................  Fur-Bearing Animal and                 3.25            3.69            3.75
                                      Rabbit Production.
112990.............................  All Other Animal Production             2.5            2.84            2.75
113110.............................  Timber Tract Operations....            16.5           18.75            19.0
113210.............................  Forest Nurseries and                   18.0           20.46            20.5
                                      Gathering of Forest
                                      Products.
114111.............................  Finfish Fishing............            22.0            25.0            25.0
114112.............................  Shellfish Fishing..........            12.5           14.21            14.0
114119.............................  Other Marine Fishing.......            10.0           11.36            11.5
114210.............................  Hunting and Trapping.......             7.5            8.52             8.5
115111.............................  Cotton Ginning.............            14.0           15.91            16.0
115112.............................  Soil Preparation, Planting,             8.5            9.66             9.5
                                      and Cultivating.
115113.............................  Crop Harvesting, Primarily             12.0           13.64            13.5
                                      by Machine.
115114.............................  Postharvest Crop Activities            30.0           34.09            34.0
                                      (except Cotton Ginning).
115115.............................  Farm Labor Contractors and             16.5           18.75            19.0
                                      Crew Leaders.
115116.............................  Farm Management Services...            13.5           15.34            15.5
115210.............................  Support Activities for                  9.5           10.80            11.0
                                      Animal Production.
115310.............................  Support Activities for                 10.0           11.36            11.5
                                      Forestry.
115310 (Exception 1)...............  Forest Fire Suppression....            30.0           34.09            34.0
115310 (Exception 2)...............  Fuels Management Services..            30.0           34.09            34.0
213112.............................  Support Activities for Oil             41.5           47.16            47.0
                                      and Gas Operations.
213113.............................  Support Activities for Coal            24.0           27.28            27.5
                                      Mining.
213114.............................  Support Activities for                 36.0           40.91            41.0
                                      Metal Mining.
213115.............................  Support Activities for                 18.0           20.46            20.5
                                      Nonmetallic Minerals
                                      (except Fuels).

[[Page 69121]]

 
221310.............................  Water Supply and Irrigation            36.0           40.91            41.0
                                      Systems.
221320.............................  Sewage Treatment Facilities            31.0           35.23            35.0
221330.............................  Steam and Air-Conditioning             26.5           30.12            30.0
                                      Supply.
236115.............................  New Single-family Housing              39.5           44.89            45.0
                                      Construction (Except For-
                                      Sale Builders).
236116.............................  New Multifamily Housing                39.5           44.89            45.0
                                      Construction (except For-
                                      Sale Builders).
236117.............................  New Housing For-Sale                   39.5           44.89            45.0
                                      Builders.
236118.............................  Residential Remodelers.....            39.5           44.89            45.0
236210.............................  Industrial Building                    39.5           44.89            45.0
                                      Construction.
236220.............................  Commercial and                         39.5           44.89            45.0
                                      Institutional Building
                                      Construction.
237110.............................  Water and Sewer Line and               39.5           44.89            45.0
                                      Related Structures
                                      Construction.
237120.............................  Oil and Gas Pipeline and               39.5           44.89            45.0
                                      Related Structures
                                      Construction.
237130.............................  Power and Communication                39.5           44.89            45.0
                                      Line and Related
                                      Structures Construction.
237210.............................  Land Subdivision...........            30.0           34.09            34.0
237310.............................  Highway, Street, and Bridge            39.5           44.89            45.0
                                      Construction.
237990.............................  Other Heavy and Civil                  39.5           44.89            45.0
                                      Engineering Construction.
237990 (Exception).................  Dredging and Surface                   32.5           36.94            37.0
                                      Cleanup Activities.
238110.............................  Poured Concrete Foundation             16.5           18.75            19.0
                                      and Structure Contractors.
238120.............................  Structural Steel and                   16.5           18.75            19.0
                                      Precast Concrete
                                      Contractors.
238130.............................  Framing Contractors........            16.5           18.75            19.0
238140.............................  Masonry Contractors........            16.5           18.75            19.0
238150.............................  Glass and Glazing                      16.5           18.75            19.0
                                      Contractors.
238160.............................  Roofing Contractors........            16.5           18.75            19.0
238170.............................  Siding Contractors.........            16.5           18.75            19.0
238190.............................  Other Foundation,                      16.5           18.75            19.0
                                      Structure, and Building
                                      Exterior Contractors.
238210.............................  Electrical Contractors and             16.5           18.75            19.0
                                      Other Wiring Installation
                                      Contractors.
238220.............................  Plumbing, Heating, and Air             16.5           18.75            19.0
                                      Conditioning Contractors.
238290.............................  Other Building Equipment               19.5           22.16            22.0
                                      Contractors.
238310.............................  Drywall and Insulation                 16.5           18.75            19.0
                                      Contractors.
238320.............................  Painting and Wall Covering             16.5           18.75            19.0
                                      Contractors.
238330.............................  Flooring Contractors.......            16.5           18.75            19.0
238340.............................  Tile and Terrazzo                      16.5           18.75            19.0
                                      Contractors.
238350.............................  Finish Carpentry                       16.5           18.75            19.0
                                      Contractors.
238390.............................  Other Building Finishing               16.5           18.75            19.0
                                      Contractors.
238910.............................  Site Preparation                       16.5           18.75            19.0
                                      Contractors.
238990.............................  All Other Specialty Trade              16.5           18.75            19.0
                                      Contractors.
238990 (Exception).................  Building and Property                  16.5           18.75            19.0
                                      Specialty Trade Services.
441120.............................  Used Car Dealers...........            27.0           30.69            30.5
441210.............................  Recreational Vehicle                   35.0           39.78            40.0
                                      Dealers.
441222.............................  Boat Dealers...............            35.0           39.78            40.0
441227.............................  Motorcycle, ATV, and All               35.0           39.78            40.0
                                      Other Motor Vehicle
                                      Dealers.
441330.............................  Automotive Parts and                   25.0           28.41            28.5
                                      Accessories Retailers.
441340.............................  Tire Dealers...............            22.5           25.57            25.5
444110.............................  Home Centers...............            41.5           47.16            47.0
444120.............................  Paint and Wallpaper                    30.0           34.09            34.0
                                      Retailers.
444140.............................  Hardware Retailers.........            14.5           16.48            16.5
444180.............................  Other Building Material                22.0            25.0            25.0
                                      Dealers.
444230.............................  Outdoor Power Equipment                 8.5            9.66             9.5
                                      Retailers.
444240.............................  Nursery, Garden Center, and            19.0           21.59            21.5
                                      Farm Supply Retailers.
445110.............................  Supermarkets and Other                 35.0           39.78            40.0
                                      Grocery Retailers (except
                                      Convenience Retailers).
445131.............................  Convenience Retailers......            32.0           36.37            36.5
445132.............................  Vending Machine Operators..            18.5           21.02            21.0
445230.............................  Fruit and Vegetable                     8.0            9.09             9.0
                                      Retailers.
445240.............................  Meat Retailers.............             8.0            9.09             9.0
445250.............................  Fish and Seafood Retailers.             8.0            9.09             9.0
445291.............................  Baked Goods Retailers......            14.0           15.91            16.0
445292.............................  Confectionery and Nut                  17.0           19.32            19.5
                                      Retailers.
445298.............................  All Other Specialty Food                9.0           10.23            10.0
                                      Retailers.
445320.............................  Beer, Wine, and Liquor                  9.0           10.23            10.0
                                      Retailers.
449110.............................  Furniture Retailers........            22.0            25.0            25.0
449121.............................  Floor Covering Retailers...             8.0            9.09             9.0
449122.............................  Window Treatment Retailers.            10.0           11.36            11.5

[[Page 69122]]

 
449129.............................  All Other Home Furnishings             29.5           33.53            33.5
                                      Retailers.
449210.............................  Electronics and Appliance              35.0           39.78            40.0
                                      Retailers.
455110.............................  Department Stores..........            35.0           39.78            40.0
455211.............................  Warehouse Clubs and                    41.5           47.16            47.0
                                      Supercenters.
455219.............................  All Other General                      35.0           39.78            40.0
                                      Merchandise Retailers.
456110.............................  Pharmacies and Drug                    33.0           37.50            37.5
                                      Retailers.
456120.............................  Cosmetics, Beauty Supplies,            30.0           34.09            34.0
                                      and Perfume Retailers.
456130.............................  Optical Goods Retailers....            26.0           29.55            29.5
456191.............................  Food (Health) Supplement               20.0           22.73            22.5
                                      Retailers.
456199.............................  All Other Health and                    8.5            9.66             9.5
                                      Personal Care Retailers.
457110.............................  Gasoline Stations with                 32.0           36.37            36.5
                                      Convenience Stores.
457120.............................  Other Gasoline Stations....            29.5           33.53            33.5
458110.............................  Clothing and Clothing                  41.5           47.16            47.0
                                      Accessories Retailers.
458210.............................  Shoe Retailers.............            30.0           34.09            34.0
458310.............................  Jewelry Retailers..........            18.0           20.46            20.5
458320.............................  Luggage and Leather Goods              33.5           38.07            38.0
                                      Retailers.
459110.............................  Sporting Goods Retailers...            23.5           26.71            26.5
459120.............................  Hobby, Toy, and Game                   31.0           35.23            35.0
                                      Retailers.
459130.............................  Sewing, Needlework, and                30.0           34.09            34.0
                                      Piece Goods Retailers.
459140.............................  Musical Instrument and                 20.0           22.73            22.5
                                      Supplies Retailers.
459210.............................  Book Retailers and News                31.5           35.80            36.0
                                      Dealers.
459310.............................  Florists...................             8.0            9.09             9.0
459410.............................  Office Supplies and                    35.0           39.78            40.0
                                      Stationery Retailers.
459420.............................  Gift, Novelty, and Souvenir            12.0           13.64            13.5
                                      Retailers.
459510.............................  Used Merchandise Retailers.            12.5           14.21            14.0
459910.............................  Pet and Pet Supplies                   28.0           31.82            32.0
                                      Retailers.
459920.............................  Art Dealers................            14.5           16.48            16.5
459930.............................  Manufactured (Mobile) Home             16.5           18.75            19.0
                                      Dealers.
459991.............................  Tobacco, Electronic                    10.0           11.36            11.5
                                      Cigarette, and Other
                                      Smoking Supplies Retailers.
459999.............................  All Other Miscellaneous                10.0           11.36            11.5
                                      Retailers.
481219.............................  Other Nonscheduled Air                 22.0            25.0            25.0
                                      Transportation.
484110.............................  General Freight Trucking,              30.0           34.09            34.0
                                      Local.
484121.............................  General Freight Trucking,              30.0           34.09            34.0
                                      Long Distance, Truckload.
484122.............................  General Freight Trucking,              38.0           43.19            43.0
                                      Long Distance, Less Than
                                      Truckload.
484210.............................  Used Household and Office              30.0           34.09            34.0
                                      Goods Moving.
484220.............................  Specialized Freight (except            30.0           34.09            34.0
                                      Used Goods) Trucking,
                                      Local.
484230.............................  Specialized Freight (except            30.0           34.09            34.0
                                      Used Goods) Trucking, Long
                                      Distance.
485111.............................  Mixed Mode Transit Systems.            25.5           28.98            29.0
485112.............................  Commuter Rail Systems......            41.5           47.16            47.0
485113.............................  Bus and Other Motor Vehicle            28.5           32.39            32.5
                                      Transit Systems.
485119.............................  Other Urban Transit Systems            33.0           37.50            37.5
485210.............................  Interurban and Rural Bus               28.0           31.82            32.0
                                      Transportation.
485310.............................  Taxi and Ridesharing                   16.5           18.75            19.0
                                      Services.
485320.............................  Limousine Service..........            16.5           18.75            19.0
485410.............................  School and Employee Bus                26.5           30.12            30.0
                                      Transportation.
485510.............................  Charter Bus Industry.......            16.5           18.75            19.0
485991.............................  Special Needs                          16.5           18.75            19.0
                                      Transportation.
485999.............................  All Other Transit and                  16.5           18.75            19.0
                                      Ground Passenger
                                      Transportation.
486210.............................  Pipeline Transportation of             36.5           41.48            41.5
                                      Natural Gas.
486990.............................  All Other Pipeline                     40.5           46.03            46.0
                                      Transportation.
487110.............................  Scenic and Sightseeing                 18.0           20.46            20.5
                                      Transportation, Land.
487210.............................  Scenic and Sightseeing                 12.5           14.21            14.0
                                      Transportation, Water.
487990.............................  Scenic and Sightseeing                 22.0            25.0            25.0
                                      Transportation, Other.
488111.............................  Air Traffic Control........            35.0           39.78            40.0
488119.............................  Other Airport Operations...            35.0           39.78            40.0
488190.............................  Other Support Activities               35.0           39.78            40.0
                                      for Air Transportation.
488210.............................  Support Activities for Rail            30.0           34.09            34.0
                                      Transportation.
488310.............................  Port and Harbor Operations.            41.5           47.16            47.0
488320.............................  Marine Cargo Handling......            41.5           47.16            47.0
488330.............................  Navigational Services to               41.5           47.16            47.0
                                      Shipping.
488390.............................  Other Support Activities               41.5           47.16            47.0
                                      for Water Transportation.
488410.............................  Motor Vehicle Towing.......             8.0            9.09             9.0
488490.............................  Other Support Activities               16.0           18.18            18.0
                                      for Road Transportation.
488510.............................  Freight Transportation                 17.5           19.89            20.0
                                      Arrangement.

[[Page 69123]]

 
488510 (Exception).................  Non Vessel Owning Common               30.0           34.09            34.0
                                      Carriers and Household
                                      Goods Forwarders.
488991.............................  Packing and Crating........            30.0           34.09            34.0
488999.............................  All Other Support                      22.0            25.0            25.0
                                      Activities for
                                      Transportation.
491110.............................  Postal Service.............             8.0            9.09             9.0
492210.............................  Local Messengers and Local             30.0           34.09            34.0
                                      Delivery.
493110.............................  General Warehousing and                30.0           34.09            34.0
                                      Storage.
493120.............................  Refrigerated Warehousing               32.0           36.37            36.5
                                      and Storage.
493130.............................  Farm Product Warehousing               30.0           34.09            34.0
                                      and Storage.
493190.............................  Other Warehousing and                  32.0           36.37            36.5
                                      Storage.
512110.............................  Motion Picture and Video               35.0           39.78            40.0
                                      Production.
512120.............................  Motion Picture and Video               34.5           39.21            39.0
                                      Distribution.
512131.............................  Motion Picture Theaters                41.5           47.16            47.0
                                      (except Drive Ins).
512132.............................  Drive In Motion Picture                11.0           12.50            12.5
                                      Theaters.
512191.............................  Teleproduction and Other               34.5           39.21            39.0
                                      Postproduction Services.
512199.............................  Other Motion Picture and               25.0           28.41            28.5
                                      Video Industries.
512240.............................  Sound Recording Studios....             9.5           10.80            11.0
512290.............................  Other Sound Recording                  20.0           22.73            22.5
                                      Industries.
513210.............................  Software Publishers........            41.5           47.16            47.0
516110.............................  Radio Broadcasting Stations            41.5           47.16            47.0
516120.............................  Television Broadcasting                41.5           47.16            47.0
                                      Stations.
516210.............................  Media Streaming                        41.5           47.16            47.0
                                      Distribution Services,
                                      Social Networks, and Other
                                      Media Networks and Content
                                      Providers.
517410.............................  Satellite                              38.5           43.75            44.0
                                      Telecommunications.
517810.............................  All Other                              35.0           39.78            40.0
                                      Telecommunications.
518210.............................  Computing Infrastructure               35.0           39.78            40.0
                                      Providers, Data
                                      Processing, Web Hosting,
                                      and Related Services.
519210.............................  Libraries and Archives.....            18.5           21.02            21.0
522220.............................  Sales Financing............            41.5           47.16            47.0
522291.............................  Consumer Lending...........            41.5           47.16            47.0
522292.............................  Real Estate Credit.........            41.5           47.16            47.0
522299.............................  International, Secondary               41.5           47.16            47.0
                                      Market, and All Other
                                      Nondepository Credit
                                      Intermediation.
522310.............................  Mortgage and Nonmortgage               13.0           14.77            15.0
                                      Loan Brokers.
522320.............................  Financial Transactions                 41.5           47.16            47.0
                                      Processing, Reserve, and
                                      Clearinghouse Activities.
522390.............................  Other Activities Related to            25.0           28.41            28.5
                                      Credit Intermediation.
523150.............................  Investment Banking and                 41.5           47.16            47.0
                                      Securities Intermediation.
523160.............................  Commodity Contracts                    41.5           47.16            47.0
                                      Intermediation.
523210.............................  Securities and Commodity               41.5           47.16            47.0
                                      Exchanges.
523910.............................  Miscellaneous                          41.5           47.16            47.0
                                      Intermediation.
523940.............................  Portfolio Management and               41.5           47.16            47.0
                                      Investment Advice.
523991.............................  Trust, Fiduciary and                   41.5           47.16            47.0
                                      Custody Activities.
523999.............................  Miscellaneous Financial                41.5           47.16            47.0
                                      Investment Activities.
524113.............................  Direct Life Insurance                  41.5           47.16            47.0
                                      Carriers.
524114.............................  Direct Health and Medical              41.5           47.16            47.0
                                      Insurance Carriers.
524127.............................  Direct Title Insurance                 41.5           47.16            47.0
                                      Carriers.
524128.............................  Other Direct Insurance                 41.5           47.16            47.0
                                      (except Life, Health and
                                      Medical) Carriers.
524130.............................  Reinsurance Carriers.......            41.5           47.16            47.0
524210.............................  Insurance Agencies and                 13.0           14.77            15.0
                                      Brokerages.
524291.............................  Claims Adjusting...........            22.0            25.0            25.0
524292.............................  Pharmacy Benefit Management            40.0           45.46            45.5
                                      and Other Third Party
                                      Administration of
                                      Insurance and Pension
                                      Funds.
524298.............................  All Other Insurance Related            27.0           30.69            30.5
                                      Activities.
525110.............................  Pension Funds..............            35.0           39.78            40.0
525120.............................  Health and Welfare Funds...            35.0           39.78            40.0
525190.............................  Other Insurance Funds......            35.0           39.78            40.0
525910.............................  Open End Investment Funds..            35.0           39.78            40.0
525920.............................  Trusts, Estates, and Agency            35.0           39.78            40.0
                                      Accounts.
525990.............................  Other Financial Vehicles...            35.0           39.78            40.0
531110.............................  Lessors of Residential                 30.0           34.09            34.0
                                      Buildings and Dwellings.
531120.............................  Lessors of Nonresidential              30.0           34.09            34.0
                                      Buildings (except
                                      Miniwarehouses).
531130.............................  Lessors of Miniwarehouses              30.0           34.09            34.0
                                      and Self Storage Units.
531190.............................  Lessors of Other Real                  30.0           34.09            34.0
                                      Estate Property.
531210.............................  Offices of Real Estate                 13.0           14.77            15.0
                                      Agents and Brokers.

[[Page 69124]]

 
531311.............................  Residential Property                   11.0           12.50            12.5
                                      Managers.
531312.............................  Nonresidential Property                17.0           19.32            19.5
                                      Managers.
531320.............................  Offices of Real Estate                  8.5            9.66             9.5
                                      Appraisers.
531390.............................  Other Activities Related to            17.0           19.32            19.5
                                      Real Estate.
532111.............................  Passenger Car Rental.......            41.5           47.16            47.0
532112.............................  Passenger Car Leasing......            41.5           47.16            47.0
532120.............................  Truck, Utility Trailer, and            41.5           47.16            47.0
                                      RV (Recreational Vehicle)
                                      Rental and Leasing.
532210.............................  Consumer Electronics and               41.5           47.16            47.0
                                      Appliances Rental.
532281.............................  Formal Wear and Costume                22.0            25.0            25.0
                                      Rental.
532282.............................  Video Tape and Disc Rental.            31.0           35.23            35.0
532283.............................  Home Health Equipment                  36.0           40.91            41.0
                                      Rental.
532284.............................  Recreational Goods Rental..             8.0            9.09             9.0
532289.............................  All Other Consumer Goods               11.0           12.50            12.5
                                      Rental.
532310.............................  General Rental Centers.....             8.0            9.09             9.0
532411.............................  Commercial Air, Rail, and              40.0           45.46            45.5
                                      Water Transportation
                                      Equipment Rental and
                                      Leasing.
532412.............................  Construction, Mining and               35.0           39.78            40.0
                                      Forestry Machinery and
                                      Equipment Rental and
                                      Leasing.
532420.............................  Office Machinery and                   35.0           39.78            40.0
                                      Equipment Rental and
                                      Leasing.
532490.............................  Other Commercial and                   35.0           39.78            40.0
                                      Industrial Machinery and
                                      Equipment Rental and
                                      Leasing.
533110.............................  Lessors of Nonfinancial                41.5           47.16            47.0
                                      Intangible Assets (except
                                      Copyrighted Works).
541110.............................  Offices of Lawyers.........            13.5           15.34            15.5
541191.............................  Title Abstract and                     17.0           19.32            19.5
                                      Settlement Offices.
541199.............................  All Other Legal Services...            18.0           20.46            20.5
541211.............................  Offices of Certified Public            23.5           26.71            26.5
                                      Accountants.
541213.............................  Tax Preparation Services...            22.0            25.0            25.0
541214.............................  Payroll Services...........            34.5           39.21            39.0
541219.............................  Other Accounting Services..            22.0            25.0            25.0
541310.............................  Architectural Services.....            11.0           12.50            12.5
541320.............................  Landscape Architectural                 8.0            9.09             9.0
                                      Services.
541330.............................  Engineering Services.......            22.5           25.57            25.5
541330 (Exception 1)...............  Military and Aerospace                 41.5           47.16            47.0
                                      Equipment and Military
                                      Weapons.
541330 (Exception 2)...............  Contracts and Subcontracts             41.5           47.16            47.0
                                      for Engineering Services
                                      Awarded Under the National
                                      Energy Policy Act of 1992.
541330 (Exception 3)...............  Marine Engineering and                 41.5           47.16            47.0
                                      Naval Architecture.
541340.............................  Drafting Services..........             8.0            9.09             9.0
541350.............................  Building Inspection                    10.0           11.36            11.5
                                      Services.
541360.............................  Geophysical Surveying and              25.0           28.41            28.5
                                      Mapping Services.
541370.............................  Surveying and Mapping                  16.5           18.75            19.0
                                      (except Geophysical)
                                      Services.
541380.............................  Testing Laboratories and               16.5           18.75            19.0
                                      Services.
541410.............................  Interior Design Services...             8.0            9.09             9.0
541420.............................  Industrial Design Services.            15.0           17.05            17.0
541430.............................  Graphic Design Services....             8.0            9.09             9.0
541490.............................  Other Specialized Design               12.0           13.64            13.5
                                      Services.
541511.............................  Custom Computer Programming            30.0           34.09            34.0
                                      Services.
541512.............................  Computer Systems Design                30.0           34.09            34.0
                                      Services.
541513.............................  Computer Facilities                    32.5           36.94            37.0
                                      Management Services.
541519.............................  Other Computer Related                 30.0           34.09            34.0
                                      Services.
541611.............................  Administrative Management              21.5           24.43            24.5
                                      and General Management
                                      Consulting Services.
541612.............................  Human Resources Consulting             25.5           28.98            29.0
                                      Services.
541613.............................  Marketing Consulting                   16.5           18.75            19.0
                                      Services.
541614.............................  Process, Physical                      17.5           19.89            20.0
                                      Distribution and Logistics
                                      Consulting Services.
541618.............................  Other Management Consulting            16.5           18.75            19.0
                                      Services.
541620.............................  Environmental Consulting               16.5           18.75            19.0
                                      Services.
541690.............................  Other Scientific and                   16.5           18.75            19.0
                                      Technical Consulting
                                      Services.
541720.............................  Research and Development in            24.5           27.84            28.0
                                      the Social Sciences and
                                      Humanities.
541810.............................  Advertising Agencies.......            22.5           25.57            25.5
541820.............................  Public Relations Agencies..            16.5           18.75            19.0
541830.............................  Media Buying Agencies......            28.5           32.39            32.5
541840.............................  Media Representatives......            18.5           21.02            21.0
541850.............................  Indoor and Outdoor Display             30.5           34.66            34.5
                                      Advertising.

[[Page 69125]]

 
541860.............................  Direct Mail Advertising....            19.5           22.16            22.0
541870.............................  Advertising Material                   25.0           28.41            28.5
                                      Distribution Services.
541890.............................  Other Services Related to              16.5           18.75            19.0
                                      Advertising.
541910.............................  Marketing Research and                 20.0           22.73            22.5
                                      Public Opinion Polling.
541921.............................  Photography Studios,                   14.0           15.91            16.0
                                      Portrait.
541922.............................  Commercial Photography.....             8.0            9.09             9.0
541930.............................  Translation and                        20.0           22.73            22.5
                                      Interpretation Services.
541940.............................  Veterinary Services........             9.0           10.23            10.0
541990.............................  All Other Professional,                17.0           19.32            19.5
                                      Scientific and Technical
                                      Services.
551111.............................  Offices of Bank Holding                34.0           38.64            38.5
                                      Companies.
551112.............................  Offices of Other Holding               40.0           45.46            45.5
                                      Companies.
561110.............................  Office Administrative                  11.0           12.50            12.5
                                      Services.
561210.............................  Facilities Support Services            41.5           47.16            47.0
561311.............................  Employment Placement                   30.0           34.09            34.0
                                      Agencies.
561312.............................  Executive Search Services..            30.0           34.09            34.0
561320.............................  Temporary Help Services....            30.0           34.09            34.0
561330.............................  Professional Employer                  36.5           41.48            41.5
                                      Organizations.
561410.............................  Document Preparation                   16.5           18.75            19.0
                                      Services.
561421.............................  Telephone Answering                    16.5           18.75            19.0
                                      Services.
561422.............................  Telemarketing Bureaus and              22.5           25.57            25.5
                                      Other contact Centers.
561431.............................  Private Mail Centers.......            16.5           18.75            19.0
561439.............................  Other Business Service                 23.5           26.71            26.5
                                      Centers (including Copy
                                      Shops).
561440.............................  Collection Agencies........            17.0           19.32            19.5
561450.............................  Credit Bureaus.............            36.0           40.91            41.0
561491.............................  Repossession Services......            16.5           18.75            19.0
561492.............................  Court Reporting and                    16.5           18.75            19.0
                                      Stenotype Services.
561499.............................  All Other Business Support             19.0           21.59            21.5
                                      Services.
561510.............................  Travel Agencies............            22.0            25.0            25.0
561520.............................  Tour Operators.............            22.0            25.0            25.0
561591.............................  Convention and Visitors                22.0            25.0            25.0
                                      Bureaus.
561599.............................  All Other Travel                       28.5           32.39            32.5
                                      Arrangement and
                                      Reservation Services.
561611.............................  Investigation and Personal             22.0            25.0            25.0
                                      Background Check Services.
561612.............................  Security Guards and Patrol             25.5           28.98            29.0
                                      Services.
561613.............................  Armored Car Services.......            38.0           43.19            43.0
561621.............................  Security Systems Services              22.0            25.0            25.0
                                      (except Locksmiths).
561622.............................  Locksmiths.................            22.0            25.0            25.0
561710.............................  Exterminating and Pest                 15.5           17.62            17.5
                                      Control Services.
561720.............................  Janitorial Services........            19.5           22.16            22.0
561730.............................  Landscaping Services.......             8.5            9.66             9.5
561740.............................  Carpet and Upholstery                   7.5            8.52             8.5
                                      Cleaning Services.
561790.............................  Other Services to Buildings             8.0            9.09             9.0
                                      and Dwellings.
561910.............................  Packaging and Labeling                 17.0           19.32            19.5
                                      Services.
561920.............................  Convention and Trade Show              17.5           19.89            20.0
                                      Organizers.
561990.............................  All Other Support Services.            14.5           16.48            16.5
562111.............................  Solid Waste Collection.....            41.5           47.16            47.0
562112.............................  Hazardous Waste Collection.            41.5           47.16            47.0
562119.............................  Other Waste Collection.....            41.5           47.16            47.0
562211.............................  Hazardous Waste Treatment              41.5           47.16            47.0
                                      and Disposal.
562212.............................  Solid Waste Landfill.......            41.5           47.16            47.0
562213.............................  Solid Waste Combustors and             41.5           47.16            47.0
                                      Incinerators.
562219.............................  Other Nonhazardous Waste               41.5           47.16            47.0
                                      Treatment and Disposal.
562910.............................  Remediation Services.......            22.0            25.0            25.0
562920.............................  Materials Recovery                     22.0            25.0            25.0
                                      Facilities.
562991.............................  Septic Tank and Related                 8.0            9.09             9.0
                                      Services.
562998.............................  All Other Miscellaneous                14.5           16.48            16.5
                                      Waste Management Services.
611110.............................  Elementary and Secondary               17.5           19.89            20.0
                                      Schools.
611210.............................  Junior Colleges............            28.5           32.39            32.5
611310.............................  Colleges, Universities and             30.5           34.66            34.5
                                      Professional Schools.
611410.............................  Business and Secretarial               18.0           20.46            20.5
                                      Schools.
611420.............................  Computer Training..........            14.0           15.91            16.0
611430.............................  Professional and Management            13.0           14.77            15.0
                                      Development Training.
611511.............................  Cosmetology and Barber                 11.5           13.07            13.0
                                      Schools.
611512.............................  Flight Training............            30.0           34.09            34.0
611513.............................  Apprenticeship Training....            10.0           11.36            11.5
611519.............................  Other Technical and Trade              18.5           21.02            21.0
                                      Schools.
611519 (Exception).................  Job Corps Centers..........            41.5           47.16            47.0
611610.............................  Fine Arts Schools..........             8.0            9.09             9.0

[[Page 69126]]

 
611620.............................  Sports and Recreation                   8.0            9.09             9.0
                                      Instruction.
611630.............................  Language Schools...........            18.0           20.46            20.5
611691.............................  Exam Preparation and                   11.0           12.50            12.5
                                      Tutoring.
611692.............................  Automobile Driving Schools.             9.0           10.23            10.0
611699.............................  All Other Miscellaneous                14.5           16.48            16.5
                                      Schools and Instruction.
611710.............................  Educational Support                    21.0           23.87            24.0
                                      Services.
621111.............................  Offices of Physicians                  14.0           15.91            16.0
                                      (except Mental Health
                                      Specialists).
621112.............................  Offices of Physicians,                 12.0           13.64            13.5
                                      Mental Health Specialists.
621210.............................  Offices of Dentists........             8.0            9.09             9.0
621310.............................  Offices of Chiropractors...             8.0            9.09             9.0
621320.............................  Offices of Optometrists....             8.0            9.09             9.0
621330.............................  Offices of Mental Health                8.0            9.09             9.0
                                      Practitioners (except
                                      Physicians).
621340.............................  Offices of Physical,                   11.0           12.50            12.5
                                      Occupational and Speech
                                      Therapists and
                                      Audiologists.
621391.............................  Offices of Podiatrists.....             8.0            9.09             9.0
621399.............................  Offices of All Other                    9.0           10.23            10.0
                                      Miscellaneous Health
                                      Practitioners.
621410.............................  Family Planning Centers....            16.5           18.75            19.0
621420.............................  Outpatient Mental Health               16.5           18.75            19.0
                                      and Substance Abuse
                                      Centers.
621491.............................  HMO Medical Centers........            39.0           44.32            44.5
621492.............................  Kidney Dialysis Centers....            41.5           47.16            47.0
621493.............................  Freestanding Ambulatory                16.5           18.75            19.0
                                      Surgical and Emergency
                                      Centers.
621498.............................  All Other Outpatient Care              22.5           25.57            25.5
                                      Centers.
621511.............................  Medical Laboratories.......            36.5           41.48            41.5
621512.............................  Diagnostic Imaging Centers.            16.5           18.75            19.0
621610.............................  Home Health Care Services..            16.5           18.75            19.0
621910.............................  Ambulance Services.........            20.0           22.73            22.5
621991.............................  Blood and Organ Banks......            35.0           39.78            40.0
621999.............................  All Other Miscellaneous                18.0           20.46            20.5
                                      Ambulatory Health Care
                                      Services.
622110.............................  General Medical and                    41.5           47.16            47.0
                                      Surgical Hospitals.
622210.............................  Psychiatric and Substance              41.5           47.16            47.0
                                      Abuse Hospitals.
622310.............................  Specialty (except                      41.5           47.16            47.0
                                      Psychiatric and Substance
                                      Abuse) Hospitals.
623110.............................  Nursing Care Facilities                30.0           34.09            34.0
                                      (Skilled Nursing
                                      Facilities).
623210.............................  Residential Intellectual               16.5           18.75            19.0
                                      and Developmental
                                      Disability Facilities.
623220.............................  Residential Mental Health              16.5           18.75            19.0
                                      and Substance Abuse
                                      Facilities.
623311.............................  Continuing Care Retirement             30.0           34.09            34.0
                                      Communities.
623312.............................  Assisted Living Facilities             20.5           23.30            23.5
                                      for the Elderly.
623990.............................  Other Residential Care                 14.0           15.91            16.0
                                      Facilities.
624110.............................  Child and Youth Services...            13.5           15.34            15.5
624120.............................  Services for the Elderly               13.0           14.77            15.0
                                      and Persons with
                                      Disabilities.
624190.............................  Other Individual and Family            14.0           15.91            16.0
                                      Services.
624210.............................  Community Food Services....            17.0           19.32            19.5
624221.............................  Temporary Shelters.........            12.0           13.64            13.5
624229.............................  Other Community Housing                16.5           18.75            19.0
                                      Services.
624230.............................  Emergency and Other Relief             36.5           41.48            41.5
                                      Services.
624310.............................  Vocational Rehabilitation              13.0           14.77            15.0
                                      Services.
624410.............................  Child Care Services........             8.5            9.66             9.5
711110.............................  Theater Companies and                  22.0            25.0            25.0
                                      Dinner Theaters.
711120.............................  Dance Companies............            16.0           18.18            18.0
711130.............................  Musical Groups and Artists.            13.0           14.77            15.0
711190.............................  Other Performing Arts                  30.0           34.09            34.0
                                      Companies.
711211.............................  Sports Teams and Clubs.....            41.5           47.16            47.0
711212.............................  Race Tracks................            41.5           47.16            47.0
711219.............................  Other Spectator Sports.....            14.5           16.48            16.5
711310.............................  Promoters of Performing                35.0           39.78            40.0
                                      Arts, Sports and Similar
                                      Events with Facilities.
711320.............................  Promoters of Performing                19.5           22.16            22.0
                                      Arts, Sports and Similar
                                      Events without Facilities.
711410.............................  Agents and Managers for                15.5           17.62            17.5
                                      Artists, Athletes,
                                      Entertainers and Other
                                      Public Figures.
711510.............................  Independent Artists,                    8.0            9.09             9.0
                                      Writers, and Performers.
712110.............................  Museums....................            30.0           34.09            34.0
712120.............................  Historical Sites...........            11.5           13.07            13.0
712130.............................  Zoos and Botanical Gardens.            30.0           34.09            34.0
712190.............................  Nature Parks and Other                 17.0           19.32            19.5
                                      Similar Institutions.
713110.............................  Amusement and Theme Parks..            41.5           47.16            47.0

[[Page 69127]]

 
713120.............................  Amusement Arcades..........             8.0            9.09             9.0
713210.............................  Casinos (except Casino                 30.0           34.09            34.0
                                      Hotels).
713290.............................  Other Gambling Industries..            35.0           39.78            40.0
713910.............................  Golf Courses and Country               16.5           18.75            19.0
                                      Clubs.
713920.............................  Skiing Facilities..........            31.0           35.23            35.0
713930.............................  Marinas....................             9.5           10.80            11.0
713940.............................  Fitness and Recreational               15.5           17.62            17.5
                                      Sports Centers.
713950.............................  Bowling Centers............            11.0           12.50            12.5
713990.............................  All Other Amusement and                 8.0            9.09             9.0
                                      Recreation Industries.
721110.............................  Hotels (except Casino                  35.0           39.78            40.0
                                      Hotels) and Motels.
721120.............................  Casino Hotels..............            35.0           39.78            40.0
721191.............................  Bed and Breakfast Inns.....             8.0            9.09             9.0
721199.............................  All Other Traveler                      8.0            9.09             9.0
                                      Accommodation.
721211.............................  RV (Recreational Vehicle)               9.0           10.23            10.0
                                      Parks and Campgrounds.
721214.............................  Recreational and Vacation               8.0            9.09             9.0
                                      Camps (except Campgrounds).
721310.............................  Rooming and Boarding                   12.5           14.21            14.0
                                      Houses, Dormitories, and
                                      Workers' Camps.
722310.............................  Food Service Contractors...            41.5           47.16            47.0
722320.............................  Caterers...................             8.0            9.09             9.0
722330.............................  Mobile Food Services.......             8.0            9.09             9.0
722410.............................  Drinking Places (Alcoholic              8.0            9.09             9.0
                                      Beverages).
722511.............................  Full-Service Restaurants...            10.0           11.36            11.5
722513.............................  Limited-Service Restaurants            12.0           13.64            13.5
722514.............................  Cafeterias, Grill Buffets,             30.0           34.09            34.0
                                      and Buffets.
722515.............................  Snack and Nonalcoholic                 20.0           22.73            22.5
                                      Beverage Bars.
811111.............................  General Automotive Repair..             8.0            9.09             9.0
811114.............................  Specialized Automotive                  8.0            9.09             9.0
                                      Repair.
811121.............................  Automotive Body, Paint and              8.0            9.09             9.0
                                      Interior Repair and
                                      Maintenance.
811122.............................  Automotive Glass                       15.5           17.62            17.5
                                      Replacement Shops.
811191.............................  Automotive Oil Change and               9.5           10.80            11.0
                                      Lubrication Shops.
811192.............................  Car Washes.................             8.0            9.09             9.0
811198.............................  All Other Automotive Repair             9.0           10.23            10.0
                                      and Maintenance.
811210.............................  Electronic and Precision               30.0           34.09            34.0
                                      Equipment Repair and
                                      Maintenance.
811310.............................  Commercial and Industrial              11.0           12.50            12.5
                                      Machinery and Equipment
                                      (except Automotive and
                                      Electronic) Repair and
                                      Maintenance.
811411.............................  Home and Garden Equipment               8.0            9.09             9.0
                                      Repair and Maintenance.
811412.............................  Appliance Repair and                   16.5           18.75            19.0
                                      Maintenance.
811420.............................  Reupholstery and Furniture              8.0            9.09             9.0
                                      Repair.
811430.............................  Footwear and Leather Goods              8.0            9.09             9.0
                                      Repair.
811490.............................  Other Personal and                      8.0            9.09             9.0
                                      Household Goods Repair and
                                      Maintenance.
812111.............................  Barber Shops...............             8.5            9.66             9.5
812112.............................  Beauty Salons..............             8.5            9.66             9.5
812113.............................  Nail Salons................             8.0            9.09             9.0
812191.............................  Diet and Weight Reducing               24.0           27.28            27.5
                                      Centers.
812199.............................  Other Personal Care                     8.0            9.09             9.0
                                      Services.
812210.............................  Funeral Homes and Funeral              11.0           12.50            12.5
                                      Services.
812220.............................  Cemeteries and Crematories.            22.0            25.0            25.0
812310.............................  Coin Operated Laundries and            11.5           13.07            13.0
                                      Drycleaners.
812320.............................  Drycleaning and Laundry                 7.0            7.96             8.0
                                      Services (except Coin
                                      Operated).
812331.............................  Linen Supply...............            35.0           39.78            40.0
812332.............................  Industrial Launderers......            41.5           47.16            47.0
812910.............................  Pet Care (except                        8.0            9.09             9.0
                                      Veterinary) Services.
812921.............................  Photofinishing Laboratories            26.0           29.55            29.5
                                      (except One Hour).
812922.............................  One Hour Photofinishing....            16.5           18.75            19.0
812930.............................  Parking Lots and Garages...            41.5           47.16            47.0
812990.............................  All Other Personal Services            13.0           14.77            15.0
813110.............................  Religious Organizations....            11.5           13.07            13.0
813211.............................  Grantmaking Foundations....            35.0           39.78            40.0
813212.............................  Voluntary Health                       30.0           34.09            34.0
                                      Organizations.
813219.............................  Other Grantmaking and                  41.5           47.16            47.0
                                      Giving Services.
813311.............................  Human Rights Organizations.            30.0           34.09            34.0
813312.............................  Environment, Conservation              17.0           19.32            19.5
                                      and Wildlife Organizations.
813319.............................  Other Social Advocacy                  16.0           18.18            18.0
                                      Organizations.
813410.............................  Civic and Social                        8.5            9.66             9.5
                                      Organizations.

[[Page 69128]]

 
813910.............................  Business Associations......            13.5           15.34            15.5
813920.............................  Professional Organizations.            20.5           23.30            23.5
813930.............................  Labor Unions and Similar               14.5           16.48            16.5
                                      Labor Organizations.
813940.............................  Political Organizations....            12.5           14.21            14.0
813990.............................  Other Similar Organizations            12.0           13.64            13.5
                                      (except Business,
                                      Professional, Labor, and
                                      Political Organizations).
----------------------------------------------------------------------------------------------------------------

    Adjustment to the assets-based size standards:
    Currently, five industries in NAICS Sector 52, Finance and 
Insurance, have the size standard of $750 million in average assets. 
Following the inflation adjustment methodology described above, the 
assets-based size standard was adjusted by multiplying the current 
value of $750 million by 1.1365. The result was $852.4 million, which 
SBA rounded to $850 million. Table 2, Inflation Adjustment to Assets-
Based Size Standards, shows the four industries with assets-based 
standards.

                          Table 2--Inflation Adjustments to Assets-Based Size Standards
----------------------------------------------------------------------------------------------------------------
                                                                                    Inflation-      Inflation-
                                                                  Current assets-    adjusted        adjusted
                                                                    based size     assets-based    assets-based
          NAICS 2022 code             NAICS 2022 industry title    standard  ($    size standard   size standard
                                                                     million)       (unrounded)    (rounded)  ($
                                                                                    ($ million       million)
----------------------------------------------------------------------------------------------------------------
522110.............................  Commercial Banking.........          $750.0          $852.4          $850.0
522130.............................  Credit Unions..............           750.0           852.4           850.0
522180.............................  Savings Institution and               750.0           852.4           850.0
                                      Other Depository Credit
                                      Intermediation.
522210.............................  Credit Card Issuing........           750.0           852.4           850.0
----------------------------------------------------------------------------------------------------------------

Adjustment to Program-Based Size Standards

    Most SBA and other Federal programs apply size standards 
established for industries, as defined by the NAICS. SBA has also 
established a few size standards on a program basis rather than on an 
industry basis. These include the size standards for sales or leases of 
government property, the size standards for stockpile purchases, and 
the alternative size standard based on tangible net worth and net 
income for the Small Business Investment Company (SBIC) program. Size 
standards for sales or leases of government property and stockpile 
purchases were adjusted for inflation in the same manner as the 
industry-based monetary size standards. These results are presented in 
Table 3, Inflation Adjustment to Program-Based Size Standards, which 
shows the program-based size standards and their corresponding 
inflation-adjusted values. The alternative size standard for the SBIC 
program was not adjusted in the 2019 inflation adjustment but it was 
adjusted in the 2014 inflation adjustment. Thus, the base period for 
adjusting the SBIC alternative size standard is the fourth quarter of 
2013, the end period for the 2014 inflation adjustment of that size 
standard. The end period is the second quarter of 2022. As shown in 
Table 3, the inflation between the base period and end period for the 
adjustment of SBIC alternative size standard is 23.22 percent. Thus, 
following the inflation adjustment methodology described above, the 
SBIC alternative size standard was adjusted by multiplying the current 
tangible net worth value of $19.5 million and net income value of $6.5 
million by 1.2063. The results were $24.029 million in tangible net 
worth and $8.010 million in net income, which were rounded to $24 
million and $8 million, respectively. These results are shown in Table 
3, below. The size standard for ``smaller enterprises'' under the SBIC 
program is set by statute (see 13 CFR 107.710(a)) and, therefore, it is 
not adjusted.

                                                                  Table 3--Inflation Adjustment to Program-Based Size Standards
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
        Threshold name and value  (CFR citation)                Base period and GDP price index             End period and GDP price index
-------------------------------------------------------------------------------------------------------------------------------------------------                    Adjusted        Adjusted
                                                                                         GDP price                                   GDP price    Inflation  (%)     threshold       threshold
                  Name                         Value              Base period              index              End period               index                       (not rounded)   (rounded) \1\
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Sales or leases of government property        $8,000,000  Fourth quarter of 2018....         111.191  Second Quarter of 2022....         126.367           13.65      $9,091,886      $9,000,000
 (13 CFR 121.502).
Stockpile purchases (13 CFR 121.512)....     $67,500,000  Fourth quarter of 2018....         111.191  Second Quarter of 2022....         126.367           13.65     $76,712,796     $76,500,000
SBIC alternative size threshold:

[[Page 69129]]

 
Net worth (13 CFR 121.301(c))...........     $19,500,000  Fourth quarter of 2013....         102.550  Second quarter of 2022....         126.367           23.22     $24,028,830     $24,000,000
Net income (13 CFR 121.301(c))..........      $6,500,000  Fourth quarter of 2013....         102.550  Second quarter of 2022....         126.367           23.22      $8,009,610      $8,000,000
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ If value < 1,000,000, then it was rounded to the nearest 50,000.
If value >= 1,000,000, then it was rounded to the nearest 500,000.

Special Considerations

    Size Standard for Leasing of Building Space to the Federal 
Government by Owners--Footnote 9: The size standard found in Footnote 9 
to 13 CFR 121.201 (Leasing of Building Space to the Federal Government 
by Owners) was also adjusted for inflation. The current size standard 
of $41.5 million was multiplied by 1.1365 to obtain an adjusted size 
standard of $47 million after rounding. This size standard exception 
applies to all four industries in NAICS Industry Group 5311, Lessors of 
Real Estate.
    Alternative Size Standard for 7(a) and 504 Loan Programs: Effective 
September 27, 2010, the Jobs Act established a new temporary 
alternative size standard of tangible net worth of not more than $15 
million and net income of not more than $5 million for SBA's 7(a) and 
504 Loan Programs. On September 29, 2010, SBA issued Notice 5000-1175 
advising lenders and the public that, effective September 27, 2010, the 
new statutory alternative size standard will apply for its 7(a) and 504 
Loan Programs, thereby replacing the existing alternative size standard 
set forth in 13 CFR 121.301(b)(2). The Jobs Act also provided that the 
new temporary alternative size standard would remain in effect for the 
7(a) and CDC/504 Loan Programs until the SBA's Administrator has 
established a different size standard through rulemaking. For this 
reason, in this rule, SBA is not adjusting the new alternative size 
standard for its 7(a) and 504 Loan programs for inflation. SBA will 
issue a different rule to establish a permanent alternative size 
standard for those programs.

Adjustment of Certain Procurement Thresholds for Inflation

    Besides adjustment of industry-based and certain program-based 
monetary based size standards described above, in this rule, SBA is 
also adjusting certain monetary thresholds in its regulations that are 
otherwise not adjusted for inflation under FAR 1.109. These thresholds 
primarily are those used in the 8(a) Business Development (8(a) BD) and 
economically disadvantaged women-owned small business (EDWOSB) programs 
to determine economic disadvantage. Others are used to maintain 
eligibility for the 8(a) BD program. This action will permit small 
businesses to retain eligibility as economically disadvantaged and 
eligible for the 8(a) BD program and the EDWOSB program, despite an 
increase in inflation.
Economic Disadvantage for 8(a) Business Development
    Net worth: Under the current regulations, the net worth of an 
individual claiming economic disadvantage must be less than $750,000 
(13 CFR 124.104(c)(2)). This was implemented in 2020 (85 FR 27650 (May 
11, 2020)), when SBA adopted a common definition for an economically 
disadvantaged individual under the 8(a) BD program as well as under the 
EDWOSB program. Inflation, as measured by change in the GDP price 
index, since then has increased 11.86 percent. These results are 
presented in Table 4, Inflation Adjustments of Certain Procurement 
Thresholds, below. The adjustment of $750,000 by that amount would 
translate to $838,942, rounded to $850,000.
    Aggregate Gross Income (AGI): Currently, SBA presumes that an 
individual is not economically disadvantaged if his or her adjusted 
gross income (AGI) averaged over the three preceding years exceeds 
$350,000 (13 CFR 124.104(c)(3)(i)). This was implemented in 2020 (85 FR 
27650 (May 11, 2020)). Inflation, as measured by change in the GDP 
price index, since then has increased 11.86 percent (see Table 4 
below). The adjustment of $350,000 by that amount would translate to 
$391,506, which is rounded to $400,000.
    Total assets: Currently, an individual is generally not considered 
economically disadvantaged if the fair market value of all his or her 
assets (including his or her primary residence and the value of the 
applicant/Participant firm) exceeds $6,000,000 (13 CFR 124.104(c)(4)). 
This was implemented in 2020 (85 FR 27650 (May 11, 2020)). Inflation, 
as measured by change in the GDP price index, since then has increased 
11.86 percent (see Table 4 below). The adjustment of $6,000,000 by that 
amount would translate to $6,711,534, which is rounded to $6,500,000.
Economic Disadvantage Thresholds for EDWOSB Program
    Net worth: In order to be considered economically disadvantaged, 
the woman's personal net worth must be less than $750,000, excluding 
her ownership interest in the concern and her equity interest in her 
primary personal residence (13 CFR 127.203(b)(1)). SBA implemented this 
threshold in 2020, when the final rule implementing the WOSB and EDWOSB 
certification program was published (85 FR 27650 (May 11, 2020)). 
Inflation, as measured by change in the GDP price index, since then has 
increased 11.86 percent. Adjusting $750,000 with that amount translates 
to $850,000 (rounded). These results are provided in Table 4, below.
    Income: When considering a woman's personal income, if the adjusted 
gross yearly income averaged over the three years preceding the 
certification exceeds $350,000, SBA will presume that she is not 
economically disadvantaged (13 CFR 127.203(c)(3)(i)). This threshold 
was implemented in 2020 (85 FR 27650 (May 11, 2020)). Inflation, as 
measured by change in the GDP price index, since then has increased 
11.86 percent. Adjusting $350,000 with that amount translates to 
$400,000 (rounded). These results are shown in Table 4, below.
    Total Assets: A woman will generally not be considered economically 
disadvantaged if the fair market value of all her assets (including her 
primary residence and the value of the business concern) exceeds 
$6,000,000 (13 CFR 127.203(c)(4)). This threshold was implemented in 
2020 (85 FR 27650 (May 11, 2020)). Inflation, as measured by change in 
the GDP price index, since then has increased 11.86 percent. Adjusting 
$6,000,000 with that amount translates to $6,500,000 (rounded). These 
results are shown in Table 4.

[[Page 69130]]

Dollar Limits for Total 8(a) Contracts
    8(a) BD participants (other than one owned by an Indian Tribe, ANC, 
NHO, or CDC) may not receive sole source 8(a) contract awards where the 
participant has received a combined total of competitive and sole 
source 8(a) contracts in excess of $100,000,000 during its 
participation in the 8(a) BD program (13 CFR 124.519). This threshold 
was implemented in 1998 (63 FR 35739 (June 30, 1998)). This has never 
been adjusted for inflation. Inflation, as measured by change in the 
GDP price index, since then has increased 68.33 percent (see table 
below). Adjusting $100,000,000 with that amount translated to 
$168,500,000 (rounded). These results are provided in Table 4, below.

                                                                Table 4--Inflation Adjustments of Certain Procurement Thresholds
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
     Threshold name and value  (CFR citation)                                   Base period and  GDP price index       End period and  GDP price index                                 Adjusted
---------------------------------------------------     Federal  Register    ---------------------------------------------------------------------------- Inflation     Adjusted      threshold
                                                        citation  (date)                                 GDP price                             GDP price      (%)       threshold     (rounded)
                 Name                     Value                                      Base period           index           End period            index                (not rounded)      \1\
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
8(a) Business Development Economic
 Disadvantage Thresholds:
    Net worth (13 CFR 124.104(c)(2)).     $750,000  85 FR 27650 (May 11,      Second quarter of 2020..      112.97  Second quarter of 2022..     126.367      11.86        $838,942     $850,000
                                                     2020).
    Income (AGI) (13 CFR                   350,000  85 FR 27650 (May 11,      Second quarter of 2020..      112.97  Second quarter of 2022..     126.367      11.86         391,506      400,000
     124.104(c)(3)).                                 2020).
    Total assets (13 CFR                 6,000,000  85 FR 27650 (May 11,      Second quarter of 2020..      112.97  Second quarter of 2022..     126.367      11.86       6,711,534    6,500,000
     124.104(c)(4)).                                 2020).
EDWOSB Thresholds:
    Net worth (13 (CFR 127.203(b)(1))      750,000  85 FR 27650 (May 11,      Second quarter of 2020..      112.97  Second quarter of 2022..     126.367      11.86         838,942      850,000
                                                     2020).
    Income (13 (CFR 127.203(c)(3)          350,000  85 FR 27650 (May 11,      Second quarter of 2020..      112.97  Second quarter of 2022..     126.367      11.86         391,506      400,000
     (i)).                                           2020).
    Total assets (13 CFR                 6,000,000  85 FR 27650 (May 11,      Second quarter of 2020..      112.97  Second quarter of 2022..     126.367      11.86       6,711,534    6,500,000
     127.203(c)(4)).                                 2020).
    Dollar Limits for Sole Source      100,000,000  63 FR 35739 (Jun. 30,     Second Quarter 1998.....       75.07  Second quarter of 2022..     126.367      68.33     168,332,223  168,500,000
     8(a) (13 CFR 124.519).                          1998).
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ If value <1,000,000, then it is rounded to the nearest 50,000.
If value >=1,000,000, then it is rounded to the nearest 500,000.

III. Summary and Discussion of Public Comments on the July 18, 2019, 
IFR

    As discussed above, in this rule, SBA is finalizing the changes to 
size standards contained in the July 2019 IFR. As such, SBA's adoption 
of the changes contained in the July 2019 IFR do not supersede the 
changes recently adopted by SBA as part of the second five-year review 
of size standards under the Jobs Act, nor do they supersede the 
adoption of size standards contained in this IFR which adjust SBA's 
monetary-based size standards for inflation that has occurred since the 
issuance of the July 2019 IFR. The instant rulemaking comprises a 
concurrent interim final rule further adjusting its current monetary-
based size standards by 13.65 percent for additional inflation that has 
occurred since issuing the July 2019 IFR.
    This final rulemaking finalizes, without change, SBA's July 2019 
IFR that adjusted monetary-based industry size standards for inflation 
that occurred since 2014. The July 2019 IFR requested comments from the 
public on SBA's methodology of using the GDP price index for adjusting 
size standards and suggestions for alternative measures of inflation, 
on whether SBA should adjust employee-based size standards for labor 
productivity growth and technical changes similar to adjusting 
monetary-based size standards for inflation, and on changes to program-
specific size standards. Below is a discussion of those comments and 
SBA's responses.
    SBA received 11 comments on the July 2019 IFR, of which seven 
supported SBA's inflation-adjusted changes to size standards, two 
opposed the changes, and two discussed issues outside the scope of the 
IFR or did not state a clear position. All comments are available at 
the Federal Rulemaking Portal, www.regulations.gov, and are summarized 
and discussed by topic below.
Comment on the Effective Date of the July 2019 IFR
    One commenter argued that the August 19, 2019, effective date 
adopted in the July 2019 IFR, which would fall in the middle of the 
fourth quarter of fiscal year 2019, would negatively impact procurement 
actions and recommended postponing the effective date until October 1, 
2019, to minimize the disruptions. The commenter added that the 
procurement actions about to be issued based on market research 
conducted under the old size standards will also be impacted. Finally, 
the commenter contended that contractors would overwhelm the System for 
Award Management (SAM) system as they attempt to update their status in 
order to bid on previously unavailable actions, which will degrade the 
ability of the contracting officers to review the small business status 
of bidders in SAM before making an award.

SBA Response

    SBA disagrees with the commenter that the effective date of the IFR 
will negatively impact procurement actions. SBA believes that the 
effective date for the IFR, which is 30 days from the date of 
publication in the Federal Register, provides businesses and 
contracting professionals adequate time to adjust to the changes 
contained in the rule without causing significant disruptions to the 
procurement process. SBA has a long history of effectuating size 
standards on dates other than the beginning of a new fiscal year with 
few comments opposing the effective dates

[[Page 69131]]

proposed by SBA. This history includes numerous inflation adjustments 
to size standards as far back as February 1984 where the effective 
dates for the adopted changes do not fall on the start of a new fiscal 
year (49 FR 5025 (February 9, 1984)).\3\ Typically, as is the case with 
the July 2019 IFR, SBA's changes to size standards become effective 30 
days after publication of the corresponding final or interim final 
rule.
---------------------------------------------------------------------------

    \3\ See also SBA's Interim Final Rule: Small Business Size 
Standards; Inflation Adjustment to Monetary Based Size Standards 
((79 FR 33647 (June 12, 2014)) (SBA Final Rule (81 FR 3949 (January 
25, 2016))); SBA Final Rule: Small Business Size Standards; 
Inflation Adjustment to Size Standards (73 FR 41237 (July 18, 
2008)); SBA Interim Final Rule: Small Business Size Standards; 
Inflation Adjustment to Size Standards; Business Loan Program; 
Disaster Assistance Loan Program (70 FR 72577 (December 6, 2005)); 
SBA Final Rule: Small Business Size Standards; Inflation Adjustment 
to Size Standards (67 FR 65285 (October 24, 2002)); SBA Interim 
Final Rule: Small Business Size Standards; Inflation Adjustment to 
Size Standards (67 FR 3041 (January 23, 2002)); SBA Final Rule: 
Small Business Size Standards; Inflation Adjustment to Size 
Standards (59 FR 616513 (April 7, 1994))
---------------------------------------------------------------------------

    Moreover, the procedures for incorporating SBA's changes to size 
standards into ongoing procurement actions are codified under small 
business size regulations and are generally well-understood by 
contracting officers. When contracting officers plan their 
procurements, they explore the possibility of setting aside their 
solicitations for small business programs based upon the number of 
small businesses, at that time, able to submit an acceptable proposal 
or bid. However, in accordance with 48 CFR 19.102(c), it is the 
contracting officer's decision whether to amend a solicitation to 
incorporate the new size standards if SBA amends the size standard and 
it becomes effective before the due date for receipt of initial offers. 
In the nearly three years since SBA published the interim final rule 
with the August 2019 effective date, SBA has not received comments that 
the timing of the size standards changes has caused significant 
disruptions to contracting activity or a substantial increase in the 
number of firms accessing SAM to update their size status, thereby 
curtailing the ability of contracting officers to use SAM. Thus, SBA 
believes that its August 19, 2019, effective date is appropriate and 
therefore, SBA is not adopting the changes suggested by the commenter.
Comments on the Impacts of Increased Labor Costs
    Two commenters petitioned SBA to give more consideration to the 
impact of increased labor costs when determining the level of inflation 
for a given industry, either by using a different measure of inflation 
which better reflects increases to labor costs or by reviewing factors 
other than inflation that may capture the impact of increased labor 
costs more directly. One commenter, expressing overall support for the 
rule, believed that the majority of firms serving the Federal 
Government would welcome the adjustment of size standards to reflect 
the impacts of inflation but questioned whether the inflation measure 
applied to the rule accurately reflects the day-to-day realities of 
business conditions. The commenter recommended either using a different 
inflation measure or blending many existing measures to come up with an 
inflation factor which accurately reflects the actual changes in the 
labor costs, which according to the commenter, have increased by 12 
percent to 15 percent over the last five years. Another commenter 
maintained that SBA should consider the availability of personnel with 
top secret clearances in certain NAICS codes that provide services to 
the Federal Government that require high-level clearances for 
administrative, professional and management personnel. The commenter 
added that salaries and benefits of these personnel are increasing at a 
rate much greater than inflation and this factor should be considered 
in addition to inflation when evaluating size standards for those NAICS 
codes.

SBA Response

    SBA establishes small business size standards to determine 
eligibility of businesses for a wide variety of SBA's and other Federal 
programs. The majority of businesses participating in those programs 
are engaged in multiple industries producing a wide range of goods and 
services. Therefore, it is important that SBA use a broad measure of 
inflation to adjust its size standards. SBA's preferred measure of 
inflation has consistently been the chain-type price index for the U.S. 
Gross Domestic Product (GDP price index), published by the Bureau of 
Economic Analysis (BEA) within the U.S. Department of Commerce on a 
quarterly basis as part of its National Income and Product Accounts 
(NIPA).
    In the July 2019 IFR as well as the 2014 IFR (79 FR 33647 (June 12, 
2014)), besides the GDP price index, SBA reviewed several alternative 
inflation measures published by the Federal Government (including the 
consumer price index, the personal consumption expenditures price 
index, the producer price index, and the employment cost index) for 
their appropriateness to use for adjusting SBA's size standards. Among 
all these indexes, SBA determined that the GDP price index is the most 
comprehensive measure to capture movements in the general price level 
in the economy and consequently the most appropriate measure of 
inflation for adjusting SBA's size standards. Thus, as in the previous 
inflation adjustments, SBA decided to use the GDP price index to adjust 
monetary-based size standards for the July 2019 inflation adjustment.
Comments on SBA's Chosen Measure of Inflation
    One commenter maintained that inflation adjustment should be 
considered if the results of the calculations result in revenue 
thresholds that show trends in the industry prices after removing the 
effect of general inflation. The commenter stated that GDP price index 
is a proven measure of inflation, but SBA should continue to review 
whether this is the correct measure to use in today's economy, possibly 
even more frequently than five-year intervals. The commenter noted that 
SBA should always verify results to ensure that there are no biases or 
improper use of algorithms in determining inflation adjustment and that 
SBA should approve the proposal as it is beneficial to small business 
entities.

SBA Response

    SBA agrees with the commenter that it is necessary for SBA to 
continually assess whether its selected measure of inflation is the 
most appropriate measure for adjusting its size standards. As described 
in SBA's response to the previous comment, SBA establishes small 
business size standards to determine eligibility of businesses for a 
wide variety of SBA's and other Federal programs where the majority of 
businesses participating in those programs are engaged in multiple 
industries producing a wide range of goods and services. Therefore, SBA 
uses the GDP price index to adjust its size standards because it is an 
appropriately broad measure of inflation that reflects the 
characteristics of the firms to which it pertains.
    Moreover, SBA agrees with the commenter that SBA should continually 
assess the timing of its adjustments to size standards and consider 
adjustments even more frequently than five-year intervals based on the 
prevailing economic situation conditions. Accordingly, SBA is issuing 
this IFR to adjust monetary-based size standards for

[[Page 69132]]

inflation that has occurred since the July 2019 IFR.
    As stated above, in the July 2019 IFR as well as the 2014 IFR (79 
FR 33647 (June 12, 2014)), besides the GDP price index, SBA reviewed 
several alternative inflation measures published by the Federal 
Government (including the consumer price index, the personal 
consumption expenditures price index, the producer price index, and the 
employment cost index) for their appropriateness to use for adjusting 
SBA's size standards. Among all these indexes, SBA determined that the 
GDP price index is the most comprehensive measure to capture movements 
in the general price level in the economy and consequently the most 
appropriate measure of inflation for adjusting SBA's size standards. 
Thus, as in the previous inflation adjustments, SBA decided to use the 
GDP price index to adjust monetary-based size standards for the August 
2019 inflation adjustment.
Comments on the Size Standard for NAICS 562910 (Remediation Services)
    SBA received one comment from a Service-Disabled Veteran Owned 
Small Business (SDVOSB) concern, operating under NAICS 562910 
(Remediation Services). The commenter petitioned SBA to make certain 
changes to footnote 14 to the SBA's Table of Size Standards, applicable 
to the Environmental Remediation Services (ERS) exception to NAICS 
562910 (Remediation Services), to make it easier for small firms to 
compete under the ERS exception's 750-employee size standard. The 
commenter expressed that, in an effort to work with larger businesses, 
contracting officers may be overusing the ERS exception, classifying 
procurements under the 750-employee size standard applicable to the 
exception rather than the $22 million size standard applicable to the 
general NAICS 562910, even when it may be more appropriate for 
contracting officers to classify a given solicitation under the general 
NAICS. Thus, the commenter petitioned SBA to revise footnote 14 by 
making the requirements more restrictive so that contracting officers 
have less discretion to forgo classifying solicitations under the 
general NAICS 562910 in favor of using the exception.

SBA Response

    SBA's regulations require contracting officers to designate the 
proper NAICS code for a solicitation based on the principal purpose of 
the product or service being acquired (13 CFR 121.402(b)). SBA's 
regulations at 13 CFR 121.1101 allow affected parties to appeal with 
the SBA's Office of Hearings and Appeals (OHA) a NAICS code designation 
made by a contracting officer. SBA encourages impacted firms to follow 
the procedures outlined in SBA's regulations when they believe that a 
contracting officer has categorized a solicitation under an improper 
NAICS code. Moreover, in this final rule, SBA is finalizing the changes 
to the July 2019 IFR which adjusted SBA's monetary-based size standards 
for inflation. Thus, SBA considers changes to industry definitions as 
outside the scope of this rule.
Comments on the Size Standard for NAICS 541330 (Engineering Services)
    SBA received a comment from an engineering firm supporting the 
SBA's adjustment of its size standards for inflation, specifically an 
increase in the size standard for Engineering Services to $16.5 
million. The commenter maintained that the transition from ``small'' to 
``other than small'' status requires significant investments in IT 
processes and equipment, and business capabilities to be able to 
compete with much larger firms. The commenter added that adjusting size 
standards for inflation allows firms necessary time to implement such 
processes and build capabilities before exceeding the size standard. 
SBA received another comment that favored the inflationary adjustments 
to the size standards but expressed concerns that the general inflation 
measure that SBA applied does not sufficiently capture the recent 
business trends and Government buying patterns in NAICS Industry 541330 
(Engineering Services) and NAICS Industry Group 5415 (Computer Systems 
Design and Related Services). The commenter maintained that the growing 
complexity of services in NAICS 5415, recent bundling of these services 
by the Federal Government, and use of these NAICS codes for new 
cybersecurity services are not adequately captured by the adjustment 
for inflation alone. The commenter recommended conducting a full review 
of IT/computer/cybersecurity industry and contracts that have been 
awarded under this industry to ensure that size standards are 
appropriate. The commenter believed that more appropriate size 
standards for industries under NAICS 5415 should be in the $50 million 
range. Another area of concern the commenter expressed related to 
increasing complexity of engineering services provided to military 
under general NAICS 541330 and each of the three exceptions and to the 
number of small businesses needed to maintain the healthy defense 
industrial base. The commenter recommended conducting a thorough review 
of NAICS 541330 and how this NAICS code is being used by the Government 
to purchase engineering services to establish a more appropriate size 
standard, which could be two or three times more than the current size 
standard.

SBA Response

    SBA agrees with the comment that the adjustments to size standards 
for inflation will help small businesses by expanding access to SBA 
programs, thereby allowing small firms within Engineering Services to 
continue building capabilities and experience before exceeding the size 
standard. SBA believes that adjusting size standards for inflation is 
an important tool in ensuring that small businesses can successfully 
compete for Federal contracting opportunities.
    SBA does not agree with comments suggesting that SBA should choose 
different inflation measures for select industries or use industry-
specific methodologies to evaluate size standards for changes due to 
inflation. As explained previously in this final rule, SBA establishes 
small business size standards to determine eligibility of businesses 
for a wide variety of SBA's and other Federal programs. The majority of 
businesses participating in those programs are engaged in multiple 
industries producing a wide range of goods and services. Therefore, it 
is important that SBA use a broad, comprehensive measure of inflation 
to adjust its size standards.
    Moreover, SBA does not agree with comments that SBA should conduct 
a full review of NAICS 541330, or the IT/computer/cybersecurity 
industry using industry specific factors as part of this regulatory 
action. In this final rule, SBA is finalizing the changes to the July 
2019 IFR, which adjusted SBA's monetary-based size standards for 
inflation. Thus, SBA considers the evaluation of size standards for 
specific industries based on industry-specific factors other than 
inflation as outside the scope of this rule. SBA considers industry-
specific characteristics and other non-inflation related factors as 
part of review of size standards under the Jobs Act.
    As discussed earlier in this rule, SBA recently published a series 
of five final rules, after an appropriate notice and comment period, 
evaluating all monetary-based size standards (receipts-based and 
assets-based) and employee-based size standards under Wholesale Trade 
and Retail Trade as part of SBA's second five-year size standards 
review

[[Page 69133]]

as mandated by the Jobs Act.\4\ Revisions to monetary-based size 
standards in those five final rules were in addition to inflationary 
adjustments to size standards adopted in the July 2019 IFR.
---------------------------------------------------------------------------

    \4\ See Small Business Size Standards: Agriculture, Forestry, 
Fishing and Hunting; Mining, Quarrying, and Oil and Gas Extraction; 
Utilities; Construction (87 FR 18607; March 31, 2022), Small 
Business Size Standards: Transportation and Warehousing; 
Information; Finance and Insurance; Real Estate and Rental and 
Leasing (87 FR 18627; March 31, 2022), Small Business Size 
Standards: Professional, Scientific and Technical Services; 
Management of Companies and Enterprises; Administrative and Support 
and Waste Management and Remediation Services (87 FR 18665; March 
31, 2022), Small Business Size Standards: Education Services; Health 
Care and Social Assistance; Arts, Entertainment and Recreation; 
Accommodation and Food Services; Other Services (87 FR 18646; March 
31, 2022), and Small Business Size Standards: Wholesale Trade and 
Retail Trade (87 FR 35869; June 14, 2022).
---------------------------------------------------------------------------

    SBA believes that its five-year comprehensive review of size 
standards under the Jobs Act is the most appropriate regulatory venue 
to evaluate and address industry specific economic characteristics and 
recent Federal contracting trends that may support a size standard 
different from SBA's current size standard. As part of its review of 
size standards, SBA must ensure that small business definitions vary 
from industry to industry to reflect industry differences as required 
by the Small Business Act (15 U.S.C. 632(a)) (Act). To that end, as 
part of the comprehensive review of size standards, SBA evaluates 
characteristics of industry structure at the six-digit NAICS level, 
such as average firm size, startup costs and entry barriers, industry 
concentration, and distribution of firms by business size. SBA also 
evaluates Federal contracting trends (i.e., small business share of 
Federal contract dollars relative to small business share of total 
industry's receipts) for industries with significant contracting 
activities (i.e., industries averaging $20 million or more in Federal 
contracts annually). Based on its analysis of the above industry and 
Federal contracting factors, and after considering all comments 
submitted to SBA during the proposed rule stage, on March 31, 2022, SBA 
adopted an increase to the size standard for NAICS 541330 from $16.5 
million to $22.5 million (87 FR 18665 (March 31, 2022)). Similarly, 
using the same methodology, as part of the second five-year 
comprehensive review of size standards, SBA evaluated the size 
standards for all industries with a receipt-based size standard in the 
IT/computer/cybersecurity industries. Thus, while SBA is not including 
a comprehensive review of industry factors in this final rule, SBA 
believes that it has satisfied the petitions of commenters to consider 
industry-specific factors for NAICS 541330 and the IT/computer/
cybersecurity industries (i.e., industries within NAICS Industry Group 
5415) as part of the second five-year review of size standards under 
the Jobs Act.
Other Comments
    Other comments to SBA's July 2019 IFR mostly expressed broad 
support for SBA's changes to size standards. One comment supporting 
SBA's action stated that adjusting size standards for inflation will 
make the size standards more accurate and beneficial to all 
stakeholders. The commenter added that adjusting size standards for 
inflation will enable SBA to assist all small businesses by allowing 
them to qualify for SBA's loans and other benefits which will spur 
economic growth, increase tax revenues, and promote job growth. Another 
commenter supported the SBA's decision to adjust monetary-based size 
standards for inflation because it will help small businesses continue 
to receive government contracting assistance. The commenter added that 
this is particularly helpful for businesses in industries that require 
high levels of capital investments as it will provide small businesses 
with more time to pursue and win Federal opportunities to support such 
investments. The commenter stated that this will also increase the 
availability of qualified small businesses for the Federal agencies to 
choose from to meet their small business contracting needs. One 
commenter supported the regulation but expressed reservations about 
whether the regulatory change will be implemented equally across all 
states or localities. The commenter also thought that allowing more 
businesses to qualify as small is a good idea, but argued that the 
intent is more taxation rather than helping small businesses. SBA also 
received a comment that opposed the rule on the grounds that it is 
capricious and based on opinion. The commenter petitioned SBA to not 
implement the rule, but did not provide sufficient reasoning or 
evidence for why SBA should rescind the changes contained in the IFR.

SBA Response

    SBA agrees with commenters supporting the rule that there are a 
myriad of benefits of adopting the changes to size standards adopted in 
the July 2019 IFR. The most significant benefits were described in the 
regulatory impact analysis section of the July 2019 IFR. The primary 
benefits include: (1) Some businesses that are above the current size 
standards may gain small business status under the higher, inflation-
adjusted size standards, thereby enabling them to participate in 
Federal small business assistance programs; (2) Growing small 
businesses that are close to exceeding the current size standards will 
be able to retain their small business status under the higher size 
standards, thereby enabling them to continue their participation in the 
programs; and (3) Federal agencies will have a larger pool of small 
businesses from which to draw for their small business procurement 
programs.
    SBA estimated that the changes adopted in the July 2019 IFR enabled 
approximately 89,730 firms in industries and subindustries with 
receipts-based size standards and about 160 firms in industries with 
assets-based size standards, above SBA's size standards at the time, to 
gain small business status and become eligible for SBA programs, 
resulting in between $700 million and $750 million in additional small 
business Federal contract dollars. SBA disagrees with the comment 
suggesting that the primary purpose of SBA's inflation adjustment to 
size standards is to expand the Federal Government's tax base. SBA also 
disagrees with the notion that SBA's inflation adjustments to size 
standards are arbitrary and capricious. As explained in the July 2019 
IFR, SBA is required to assess the impact of inflation on its monetary-
based size standards at least once every five years (see SBA Interim 
Final Rule: Small Business Size Standards: Inflation Adjustment to 
Monetary Based Size Standards (67 FR 3041; January 23, 2002) and 13 CFR 
121.102(c)). Although the provision does not mandate that SBA actually 
adjust size standards for inflation every five years, it does provide 
assurances to the public that the Agency is monitoring inflation to 
determine whether or not to adjust size standards within a reasonable 
period of time since its last inflation adjustment. Thus, SBA believes 
that the changes to size standards adopted in the July 2019 IFR are 
reasonable and satisfy the requirements of 13 CFR 121.102(c).
Conclusion
    With due consideration of all public comments as discussed above, 
SBA is adopting the increases in all industry-specific monetary size 
standards for inflation, as published in the July 2019 IFR. SBA is also 
adopting the increases in two program specific size standards, namely 
the Sales of Government Property from $62.5 million to $67.5

[[Page 69134]]

million, and Stockpile Purchases from $7.5 million to $8 million, which 
are being further increased through the present interim final rule to 
$76.5 million and $9 million, respectively. SBA is also adopting the 
increase to the size standard found in Footnote 9 to 13 CFR 121.201 
(Leasing of Building Space to the Federal Government by Owners) from 
$38.5 million to $41.5 million, which is being further increased to $47 
million in this interim final rule. This size standard exception 
applies to all four industries in NAICS Industry Group 5311, Lessors of 
Real Estate.
    Accordingly, SBA is issuing this final rule to adopt, without 
change, the interim final rule published on July 18, 2019 (84 FR 
34261). SBA's adoption of the changes contained in the 2019 IFR are 
procedural and do not supersede the changes recently adopted by SBA as 
part of the second five-year review of size standards under the Jobs 
Act, nor do they supersede the adoption of size standards contained in 
this IFR which adjust SBA's monetary-based size standards for inflation 
that has occurred since the issuance of the July 2019 IFR.

IV. Justification for Updating Size Standards for Inflation as an 
Interim Final Rule

    In general, to revise or update size standards, SBA publishes a 
proposed rule for public comment before issuing a final rule, in 
accordance with the Administrative Procedure Act (APA), 5 U.S.C. 553, 
and SBA regulations, 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 the 
standard rulemaking process, Congress recognized that special 
circumstances might arise justifying issuance of a rule without prior 
public participation.
    As stated above, the last time SBA made inflation adjustments to 
size standards was 2019. Since then, inflation, as measured by the GDP 
price index, has increased 13.65 percent,\5\ which has caused size 
standards to decrease in real terms thereby causing businesses to lose 
their small business status. Inflation is running at the highest level 
since the early 1980s. For example, according to the U.S. Bureau of 
Labor Statistics, the Consumer Price Index for All Urban Consumers 
(CPI-U), before seasonal adjustment, increased 8.3 percent over the 
last 12 months ending in August 2022.\6\ Similarly, the Producer Price 
Index (PPI) for final demand, on a seasonally unadjusted basis, 
increased 8.7 percent for the 12 months ending in August 2022.\7\ 
According to the GDP second estimate from the Bureau of Economic 
Analysis, the GDP price index increased 7.5 percent in the second 
quarter of 2022 from the second quarter of 2021.\8\ Similarly, the 
price index for personal consumption expenditures (PCE) increased 6.5 
percent in the second quarter of 2022 from the second quarter of 2021.
---------------------------------------------------------------------------

    \5\ For comparison, when SBA implemented the July 2019 IFR 
inflation adjustment, the GDP price index had increased 8.37 percent 
over the previous five-year period.
    \6\ https://www.bls.gov/news.release/cpi.nr0.htm, September 13, 
2022.
    \7\ https://www.bls.gov/news.release/ppi.nr0.htm, September 14, 
2022.
    \8\ https://www.bea.gov/news/2022/gross-domestic-product-second-estimate-and-corporate-profits-preliminary-second-quarter, August 
25, 2022.
---------------------------------------------------------------------------

    Therefore, this rule is necessary to make those businesses eligible 
for Federal assistance immediately. A number of businesses may have 
lost small business eligibility for Federal assistance under SBA's 
monetary-based size standards simply as a result of the inflation that 
has occurred since the previous inflation adjustment in 2019. Any delay 
in the adoption of inflation-adjusted size standards could cause 
significant harm to those businesses and others that are about to 
exceed current size standards simply due to inflation-driven revenue 
growth. Immediate implementation of this rule would enable more 
businesses to qualify under SBA's monetary-based size standards, which 
would enable them to apply for Federal small business assistance and 
thereby create jobs.
    The standard notice and comment rulemaking could delay the 
implementation of this rule by at least 8 months to 12 months. Such a 
delay would be contrary to the public interest as it would delay the 
eligibility of those businesses for Federal small business assistance, 
perhaps forcing some of them to cease operations before a final rule 
could be promulgated under the standard rulemaking process. 
Furthermore, the inflation adjustment will become outdated by the time 
the final rule is published under notice and comment rulemaking.
    For the above reasons, SBA finds that good cause exists to publish 
this rule as an interim final rule. SBA's rationale for preparing this 
action as an interim final rule and giving it immediate effect is 
consistent with the Agency's statutory obligation to protect the 
interests of small businesses, thereby enabling them to maintain 
competitiveness and strengthen the overall economy. Small Business Act, 
15 U.S.C. 631(a). SBA had also implemented inflation adjustments to 
size standards through an interim final rule in 2002 (67 FR 3041), 2005 
(70 FR 72577), and 2014 (79 FR 33647) without any controversies.
    By publishing these adjustments as interim final, SBA is not 
excluding public participation in the rulemaking process. SBA is 
soliciting comments from interested parties on the interim final 
provisions of this rulemaking and on a number of issues, including 
SBA's methodology for inflation adjustment and alternative measures of 
inflation. SBA will evaluate all comments and revise, if necessary, 
this rule, and publish a final rule at a later date.
Request for Comments
    SBA seeks comments on this rule, specifically on the following 
issues:
    1. SBA welcomes comments from interested parties on SBA's size 
standards methodology for inflation adjustment to its size standards. 
Specifically, SBA seeks comment on whether the GDP price index is an 
appropriate measure of inflation for adjusting size standards. The 
Agency invites suggestions, along with supporting data and analysis, if 
a different measure of inflation would be more appropriate.
    2. SBA also invites comments on whether it should adjust employee-
based industry size standards for labor productivity growth and 
technological advancements, similar to adjusting monetary-based 
industry size standards for inflation.
    3. SBA also invites comments on any other aspects of this 
rulemaking, including the changes to program-based and assets-based 
size standards, and economic disadvantage thresholds in its regulations 
that apply to 8(a) BD and EDWOSB programs.

V. Compliance With Executive Order 12866, the Congressional Review Act 
(5 U.S.C. 801-808), the Regulatory Flexibility Act (5 U.S.C. 601-612), 
Executive Orders 13563, 12988, and 13132, and the Paperwork Reduction 
Act (44 U.S.C., Ch. 35)

Executive Order 12866

    The Office of Management and Budget (OMB) has determined that the 
interim final provisions of this rule are not a ``significant 
regulatory action'' for

[[Page 69135]]

purposes of Executive Order 12866. OMB previously determined that the 
July 2019 IFR was also not a ``significant regulatory action'' for 
purposes of Executive Order 12866, and maintains that the final rule 
provisions are also ``not significant''. However, in order to help 
explain the need for this rule and its potential benefits and costs, 
SBA has provided below a Cost Benefit Analysis of this rule.
Cost Benefit Analysis
    1. What is the need for the regulatory action?
    SBA's statutory mission is to aid and assist small businesses 
through a variety of financial, procurement, business development, and 
advocacy programs. To assist the intended beneficiaries of these 
programs effectively, 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 from industry to 
industry to reflect industry differences. SBA is required to assess the 
impact of inflation on its monetary-based size standards at least once 
every five years (67 FR 3041 (January 23, 2002) and 13 CFR 121.102(c)). 
Inflation, as measured by the change in GDP price index, has increased 
13.65 percent from the previous inflation adjustment of size standards 
in 2019.\9\ Inflation has caused monetary based size standards to 
decrease in real terms, thereby forcing businesses to lose small 
business status and eligibility for Federal assistance.
---------------------------------------------------------------------------

    \9\ As stated in the SBA's Inflation Adjustment Methodology 
section above, the GDP price index for the base period (i.e., 4th 
quarter of 2018) was 111.191 and the GDP price index for the end 
period (i.e., 2nd quarter of 2022) was 126.367. Accordingly, 
inflation increased 131.65 percent from the fourth quarter of 2018 
to the first quarter of 2022 (((126.367123.705 / 111.191)-1) x 100 
percent = 13.65 percent).
---------------------------------------------------------------------------

    In addition, SBA intends to adjust economic disadvantage thresholds 
in its regulations that are otherwise not adjusted for inflation under 
FAR 1.109. These thresholds primarily are those used in the 8(a) 
Business Development and economically disadvantaged women-owned small 
business (EDWOSB) programs to determine economic disadvantage. This 
action will permit small businesses to retain eligibility as 
economically disadvantaged and eligible for the 8(a) BD and EDWOSB 
programs, despite an increase in inflation.
    2. What are the potential benefits and costs of this regulatory 
action?
    The size standards adopted by SBA in this rulemaking would enable 
businesses that have exceeded industry size standards or their economic 
disadvantage thresholds simply due to inflation-driven revenue growth 
to regain or maintain eligibility for Federal small business assistance 
programs. The changes would also help businesses about to exceed their 
size standards or to exceed their economic disadvantage thresholds to 
retain small business eligibility for Federal programs for a longer 
period. These programs include SBA's business loan programs, economic 
injury disaster loan (EIDL) program, and Federal procurement programs 
intended for small businesses. Federal procurement programs provide 
targeted opportunities for small businesses under SBA's contracting and 
business development programs, such as 8(a) Business Development (8(a) 
BD) program, small businesses located in Historically Underutilized 
Business Zones (HUBZone) program, women-owned small businesses (WOSB) 
program, economically disadvantaged women-owned small businesses 
(EDWOSB) program, and service-disabled veteran-owned small businesses 
(SDVOSB) program. Federal agencies may also use SBA's size standards 
for a variety of other regulatory and program purposes. These programs 
assist small businesses to become more knowledgeable, stable, and 
competitive.

The Baseline

    For purposes of this regulatory action, the baseline represents 
maintaining the ``status quo,'' i.e., making no changes to the current 
size standards. Using the number of small businesses and levels of 
small business benefits (such as set-aside contracts, SBA's loans, 
disaster assistance, etc.) they receive under the current size 
standards as a baseline, one can examine the potential benefits, costs, 
and transfer impacts of changes to size standards on small businesses 
and on the overall economy.
    Based on the 2017 Economic Census data and the 2022 NAICS adopted 
by SBA, of a total of 7,460,728 firms in the 505 impacted industries 
with receipts-based size standards, 98.1 percent are considered small 
under the current, recently adopted receipts-based size standards based 
on the second five-year review of size standards under the Jobs Act and 
the adoption of the 2022 NAICS structure.
    Similarly, based on the data from Federal Procurement Data System--
Next Generation (FPDS-NG) for fiscal years 2018-2020, 76,323 unique 
firms in 441 industries received at least one Federal contract during 
that period, of which 81.9 percent were found to be small under the 
current and recently adopted receipts-based size standards based on the 
second five-year review of size standards under the Jobs Act.\10\ Of 
about $231.4 billion in total average annual contract dollars awarded 
to businesses in the impacted industries with receipt-based size 
standards during that period, 34.3 percent went to small 
businesses.\11\ Of about $79.4 billion in total small business contract 
dollars awarded in those industries during that period, 72.9 percent 
were awarded through various set-aside programs and 27.1 percent were 
awarded through non-set aside contracts. Table 5, Baseline of 
Industries with Receipts-Based Size Standards Adjusted for Inflation, 
provides these baseline results.
---------------------------------------------------------------------------

    \10\ This analysis excludes 64 industries with receipts-based 
size standards under NAICS Sector 44-45 (Retail Trade) that does not 
apply for Federal contracting.
    \11\ The analysis includes only firms that can be small under 
the SBA criteria.

   Table 5--Baseline of Industries With Receipts-Based Size Standards
                         Adjusted for Inflation
------------------------------------------------------------------------
                     Impact variable                           Value
------------------------------------------------------------------------
Number of industries impacted by adjustment to receipts-             505
 based size standards...................................
Total firms in impacted industries (2017 Economic              7,460,728
 Census)................................................
Total small firms in impacted industries under current         7,319,914
 receipts-based size standards (2017 Economic Census)...
Small firms as % of total firms (2017 Economic Census)..            98.1
Total contract dollars ($ million) (FPDS-NG--fiscal             $231,427
 years 2018-2020) to impacted industries................
Total small business contract dollars under current size         $79,380
 standards ($ million) (FPDS-NG--fiscal years 2018-2020)
Small business dollars as % of total dollars (FPDS-NG               34.3
 fiscal years 2018-2020)................................
Total number of unique firms getting contracts in                 76,157
 impacted industries (FPDS-NG fiscal years 2018-2020))..

[[Page 69136]]

 
Total number of unique small firms getting small                  62,539
 business contracts (FPDS-NG fiscal years 2018-2020))...
Small business firms as % of total firms (FPDS-NG fiscal            81.9
 years 2018-2020).......................................
Annual no. of 7(a) and CDC/504 loans (fiscal years 2018-          50,092
 2020)..................................................
Amount of 7(a) and CDC/504 loans ($ million) (fiscal             $23,909
 years 2018-2020).......................................
Annual no. of EIDL loans (fiscal years 2018-2020) \1\...           4,550
Amount of EIDL loans ($ million) (fiscal years 2018-                $166
 2020) \1\..............................................
------------------------------------------------------------------------
\1\ Excludes COVID-19 related EIDL loans due to their temporary nature.
  Effective January 1, 2022, SBA stopped accepting applications for new
  COVID EIDL loans or advances.

    Based on the SBA's internal data on its loan programs for fiscal 
years 2018-2020, small businesses in those industries received, on an 
annual basis, a total of 50,092 7(a) and Certified Development Company 
(CDC)/504 loans in that period, totaling about $23.9 billion, of which 
82.7 percent was issued through the 7(a) loan guarantee program and 
17.3 percent was issued through the CDC/504 program. During fiscal 
years 2018-2020, small businesses in those industries also received 
4,550 loans through the SBA's EIDL program, totaling about $166 million 
on an annual basis.\12\
---------------------------------------------------------------------------

    \12\ The analysis of the disaster loan data excludes physical 
disaster loans that are available to anyone regardless of size, 
disaster loans issued to nonprofit entities, and EIDLs issued under 
the COVID-19 relief program. Effective January 1, 2022, SBA stopped 
accepting applications for new COVID EIDL loans or advances. Thus, 
the disaster loan analysis presented here pertains to the regular 
EIDL loans only. SBA estimates impacts of size standards changes on 
EIDL loans by calculating the ratio of businesses getting EIDL loans 
to total small businesses (based on the 2017 Economic Census data) 
and multiplying it by the number of impacted small firms. Due to 
data limitations, for FY 2019-20, some loans with both physical and 
EIDL loan components could not be broken into the physical and EIDL 
loan amounts. In such cases, SBA applied the ratio of EIDL amount to 
total (physical loan + EIDL) amount using FY 2016-18 data to the FY 
2019-20 data to obtain the amount attributable to the EIDL loans.
---------------------------------------------------------------------------

Increases to Size Standards

    As stated above, SBA's additional inflation adjustment to receipts-
based size standards have resulted in an increase to the size standards 
for 505 industries and subindustries. Below are descriptions of the 
benefits, costs, and transfer impacts of the adopted size standards 
contained in this IFR.

Benefits of Increases to Size Standards

    The benefits of adopting the inflation-adjusted size standards will 
accrue to three groups in the following ways: (1) Some businesses that 
are currently above their current size standards may gain small 
business status, thereby becoming eligible to participate in Federal 
small business assistance programs, including SBA's 7(a) loan program, 
CDC/504 loan program, EIDL program, Surety Bond Guarantee program, and 
Federal procurement and business development programs intended for 
small businesses; (2) Growing small businesses that are close to 
exceeding the current size standards for their receipts-based 
industries may retain their small business status for a longer period, 
and can continue participating in the above programs; and (3) Federal 
Government agencies will have a larger pool of small businesses from 
which to draw to fulfill their small business procurement requirements.
    The most significant benefit to businesses from increases to size 
standards is gaining or extending eligibility for Federal small 
business assistance programs. As stated above, these include SBA's 7(a) 
loan program, CDC/504 loan program, EIDL program, Surety Bond Guarantee 
program, and Federal procurement business development programs intended 
for small businesses. Federal procurement and business development 
programs provide targeted, set-aside opportunities for small 
businesses. These include the 8(a) BD program, HUBZone program, the 
WOSB program, EDWOSB program, and SDVOSB program.
    In industries with the receipts-based size standards, based on the 
2017 Economic Census data, SBA estimates that 17,713 additional 
businesses would gain small business status under the inflation-
adjusted size standards. That represents about 0.2 percent of the total 
number of small businesses in the affected industries under the current 
size standards. This would result in an increase to the small business 
share of total receipts in those 505 industries/subindustries from 29.0 
percent to 30.0 percent. Table 6, Impacts of Receipts-Based Size 
Standards Adjusted for Inflation, provides impacts of increasing size 
standards for the 505 industries/subindustries with receipts-based size 
standards.

Table 6--Impacts of Receipts-Based Size Standards Adjusted for Inflation
------------------------------------------------------------------------
                     Impact variable                           Value
------------------------------------------------------------------------
Number of industries with increases to receipts-based                485
 size standards.........................................
Total current small businesses in industries with              73,19,914
 increases to receipts-based size standards (2017
 Economic Census).......................................
Additional firms qualifying as small under inflation-             17,713
 adjusted receipts-based size standards (2017 Economic
 Census)................................................
 of additional firms qualifying as small relative to                0.24
 current small businesses in industries with increases
 to size standards (2017 Economic Census)...............
Number of current unique small firms getting small                62,539
 business contracts in industries with increases to size
 standards (FPDS-NG fiscal years 2018-2020) \1\.........
Additional small business firms getting small business               586
 status (FPDS-NG fiscal years 2018-2020) \1\............
 increase to small businesses relative to current unique            0.94
 small firms getting small business contracts in
 industries with increases to size standards (FPDS-NG
 fiscal years 2018-2020)................................
Total small business contract dollars under current              $79,380
 standards in industries with increases to size
 standards ($ million) (FPDS-NG fiscal years 2018-2020).
Estimated additional small business dollars available to          $1,313
 newly-qualified small firms (using avg. dollars
 obligated to small businesses) ($ million) (FPDS-NG
 fiscal years 2018-2020) \2\............................
 increase to small business dollars relative to total               1.65
 small business contract dollars under current standards
 in industries with increases to size standards.........

[[Page 69137]]

 
Estimated number of 7(a) and CDC/504 loans to newly-                   7
 qualified small firms..................................
Estimated 7(a) and CDC/504 loan amounts to newly-                  $4.08
 qualified small firms ($ million)......................
 increase to 7(a) and CDC/504 loan amount relative to               0.02
 the total amount of 7(a) and CDC/504 loans in
 industries with increases to size standards............
Estimated number of EIDL loans to newly qualified small                1
 firms \3\..............................................
Estimated EIDL loan amount to newly qualified small                0.002
 firms ($ million) \3\..................................
 increase to EIDL loan amount relative to the total                0.001
 amount of disaster loans in industries with increases
 to size standards \3\..................................
------------------------------------------------------------------------
\1\ Total impact represents total unique number of firms impacted to
  avoid double counting as some firms are participating in more than one
  industry.
\2\ Additional dollars are calculated multiplying average small business
  dollars obligated per DUNS times change in number of firms. Numbers of
  firms are calculated using the SBA current size standard, not the
  contracting officer's size designation.
\3\ Excludes COVID-19 related EIDL loans due to their temporary nature.
  Effective January 1, 2022, SBA stopped accepting applications for new
  COVID EIDL loans or advances.

    As shown in Table 6, based on the FPDS-NG data for fiscal years 
2018-2020, SBA estimates that 586 firms that are currently active in 
Federal contracting in those industries would gain small business 
status under the higher inflation-adjusted receipts-based size 
standards. Based on the same data, SBA estimates that those newly-
qualified small businesses under the higher inflation-adjusted size 
standards could receive Federal small business contracts totaling about 
$1.3 billion annually. That represents a 1.65 percent increase to 
Federal small business dollars from the baseline. Additionally, due to 
the adjustment of assets-based size standards in four industries, SBA 
estimates that about 170 additional firms will gain small business 
status in those industries, increasing the small business share of 
total assets in those industries from 5.4 percent to 5.9 percent.
    The added competition from more businesses qualifying as small can 
result in lower prices to certain Federal Government procurements set 
aside or reserved for small businesses, but SBA cannot quantify this 
impact precisely. Costs could also be higher when full and open 
contracts are awarded to HUBZone businesses that receive price 
evaluation preferences. However, with agencies likely setting aside 
more contracts for small businesses in response to the availability of 
a larger pool of small businesses under the higher size standards, 
HUBZone firms might receive more set-aside contracts and fewer full and 
open contracts, thereby resulting in some cost savings to agencies. SBA 
cannot estimate such costs savings as it is impossible to determine the 
number and value of unrestricted contracts to be otherwise awarded to 
HUBZone firms will be awarded as set-asides. However, such cost savings 
are likely to be relatively small as only a small fraction of full and 
open contracts are awarded to HUBZone businesses.
    Under SBA's 7(a) and CDC/504 loan programs, with more businesses 
qualifying as small under the higher size standards, SBA will be able 
to guarantee more loans to small businesses. However, SBA expects the 
impact on loans to be minimal since applicants to SBA's financial 
assistance programs are typically much smaller than the industry size 
standard and most businesses that currently participate in the program 
would continue to remain eligible for assistance even after this rule 
is adopted. Moreover, SBA does not anticipate that the increases to 
size standards will have a significant impact on the distribution of 
firms receiving loans by size of firm. Since SBA's size standards 
changes primarily impact firms at the higher margin of size standards, 
SBA estimates the impact on its financial assistance programs by 
estimating the number of loans and the amount of loans to firms larger 
than ten percent below their size thresholds. SBA believes that 
expanding access to SBA's financial assistance programs will help all 
small businesses to adapt to changes in business environment, recover 
from disasters more quickly, and grow successfully, while having no 
impact on the ability of smaller small firms to access financial 
services from SBA.
    Based on its internal data for fiscal years 2018-2020 and the 
amount of loans to firms larger than ten percent below their size 
thresholds, SBA estimates that about seven additional 7(a) and CDC/504 
loans, totaling approximately $4.1 million, could be made to the newly-
defined small businesses under the higher inflation-adjusted size 
standards. That represents a 0.02 percent increase to the loan amount 
compared to the baseline (see Table 6). The actual impact might be even 
smaller as the newly-qualified firms under the higher inflation-
adjusted size standards could have qualified anyway under the tangible 
net worth and net income based alternative size standard that applies 
to the SBA's 7(a) and CDC/504 programs.
    Newly-defined small businesses will also benefit from SBA's EIDL 
program, which, like SBA's 7(a) and CDC/504 loan program, typically 
provides loans to businesses that are much smaller than the industry 
size standard. Since this program is contingent on the occurrence and 
severity of a disaster, SBA cannot make a precise estimate of the 
future EIDL benefit. However, based on its internal disaster loan 
program data for fiscal years 2018-2020 and the amount of loans to 
firms greater than ten percent below their size thresholds, SBA 
estimates that, on an annual basis, one additional EIDL loan, totaling 
approximately $2,000 could be made to the newly-defined small 
businesses under the higher inflation-adjusted size standards.
    Additionally, the newly-defined small businesses under the higher 
inflation-adjusted size standards would also benefit through reduced 
fees, less paperwork, and fewer compliance requirements that are 
available to small businesses through the Federal Government programs, 
but SBA has no data to quantify this impact.

Benefits of Increases to Disadvantage Thresholds, 8(a) Eligibility 
Thresholds, and Dollar Thresholds for 8(a) Sole Source Contracts for 
Inflation

    The increases in the economic disadvantage (ED) eligibility 
thresholds through inflation adjustment support gaining eligibility of 
the new applicants which would otherwise be not approved and 
maintaining eligibility of the existing participants in the 8(a) BD and 
EDWOSB programs. The new applicants affected by inflation impacting the 
value of their net worth (NW), adjusted gross income (AGI) and total 
assets (TA) will be approved into these programs. The

[[Page 69138]]

changes would also help current SBA ED participants who are about to 
exceed their NW, AGI, or TA thresholds to retain ED eligibility for 
Federal programs for a longer period.
    Internal data on applicants to the 8(a) BD program from fiscal 
years 2019 to 2021 shows that since the ED thresholds were increased 
for new applicants in mid-2020 (see Table 7, Increases in ED Thresholds 
Adopted on July 15, 2020), the number of approvals increased by 3.2 
percent, and the number of denials for economic-disadvantage reasons 
decreased by 36.8 percent. Same data also shows that since 2019, the 
applicants' average NW increased by 50 percent, the average AGI by 
about 20 percent, and the average total assets by 40 percent. The 
inflation adjustment to the ED thresholds will permit to mitigate the 
impact of the current high inflation rate on the new applicants to the 
SBA ED programs, maintaining their eligibility opportunities. Also, the 
inflation adjustment of the ED thresholds will help to preserve the 
real value of the current thresholds, and the positive impact that the 
changes pursued by SBA since 2020 have had on these programs. In this 
sense, inflation adjustment of the ED thresholds complements the 
inflation adjustment of the monetary-based size standards proposed in 
this IFR.

                            Table 7--Increases ED Thresholds Adopted on July 15, 2020
----------------------------------------------------------------------------------------------------------------
                                                                     Previous         Current       Percentage
                          ED thresholds                             thresholds      thresholds      change  (%)
----------------------------------------------------------------------------------------------------------------
Net worth (W)...................................................        $250,000        $750,000             200
Aggregated gross income (AGI)...................................         250,000         350,000              40
Total assets (TA)...............................................       4,000,000       6,000,000              50
----------------------------------------------------------------------------------------------------------------

    The number of 8(a) firms totaling more than $100 million in total 
cumulative dollar obligations (i.e., total of sole source and 
competitive 8(a) awards) has been consistently increasing from less 
than ten firms during 2011-2012 to about 130-140 firms during 2020-
2021. Of these 130-140 firms exceeding the $100 million threshold, 
about 87-90 firms totaled between $100 million and $168.5 million in 
cumulative contract awards and would become eligible for sole source 
8(a) contracts again.

Costs of Increases to Size Standards and Economic Disadvantage and 8(a) 
Sole Source Thresholds

    Aside from taking time to register in the System for Award 
Management (SAM) to be eligible to participate in Federal contracting 
and update the SAM profile annually, small businesses incur no direct 
costs to gain or retain their small business status under the inflation 
adjusted size standards. All businesses willing to do business with the 
Federal Government must register in SAM and update their SAM profiles 
annually, regardless of their size status. SBA believes that a vast 
majority of businesses that are willing to participate in Federal 
contracting are already registered in SAM and update their SAM profiles 
annually. 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, and 
update as necessary, 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. More importantly, this 
rule does not establish the new size standards for the very first time; 
rather it intends to modify the existing size standards by adjusting 
them for the inflation that has occurred since the last inflation 
adjustment in 2019.
    To the extent that the newly-defined small firms under the higher 
inflation-adjusted size standards could become active in Federal 
procurement programs, this may entail some additional administrative 
costs to the Federal Government because of more businesses qualifying 
for Federal small business programs. For example, there will be more 
firms seeking SBA's loans, more firms eligible for enrollment in the 
SBA's Dynamic Small Business Search (DSBS) database or in 
certify.sba.gov, more firms seeking certifications as 8(a) BD or 
HUBZone firms, or qualifying for WOSB, EDWOSB, and SDVOSB status, and 
more firms applying for SBA's 8(a) BD mentor-prot[eacute]g[eacute] 
program. SBA expects the costs of additional applicants to the SBA 
programs as a result of changes to size standards in this final rule to 
be minimal because necessary administrative mechanisms for processing 
additional applications are already in place.
    Among those newly-defined small businesses seeking SBA's loans, 
there could be some additional costs associated with verification of 
their small business status. However, small business lenders have an 
option of using the tangible net worth and net income-based alternative 
size standard instead of using the industry-based size standards to 
establish eligibility for SBA's loans. For these reasons, SBA believes 
that these added administrative costs will be minor because necessary 
mechanisms are already in place to handle these added requirements.
    Additionally, some Federal contracts may possibly have higher 
costs. With a greater number of businesses defined as small due to the 
inflation adjustment, Federal agencies may choose to set aside more 
contracts for competition among small businesses only instead of using 
a full and open competition. One may surmise that this might result in 
a higher number of small business size protests and additional 
processing costs to agencies. However, the SBA's historical data on 
size protests shows that the number of size protests actually decreased 
after an increase in number businesses qualifying as small as a result 
of size standards revisions as part of the first five-year review of 
size standards. Specifically, on an annual basis, the number of size 
protests dropped from about 600 during fiscal years 2011-2013 (review 
of most receipts-based size standards was completed by the end of FY 
2013) to about 500 during fiscal years 2018-2020. That represents a 17 
percent decline.
    Moreover, the movement of contracts from unrestricted competition 
to small business set-aside contracts might result in competition among 
fewer total bidders, although there will be more small businesses 
eligible to submit offers under the proposed size standards. However, 
any additional costs associated with fewer bidders are expected to be 
minor since, by law, procurements may be set aside for small

[[Page 69139]]

businesses under the 8(a)/BD, HUBZone, WOSB, EDWOSB, or SDVOSB programs 
only if awards are expected to be made at fair and reasonable prices.
    Costs may also be higher when full and open contracts are awarded 
to HUBZone businesses that receive price evaluation preferences. 
However, with agencies likely setting aside more contracts for small 
businesses in response to the availability of a larger pool of small 
businesses under the higher inflation-adjusted size standards, HUBZone 
firms might receive fewer full and open contracts, thereby resulting in 
some cost savings to agencies. However, such cost savings are likely to 
be minimal as only a small fraction of unrestricted contracts are 
awarded to HUBZone businesses.
    An increase in the number of new applicants to the SBA economic 
disadvantage programs and an increase in the number of participants 
eligible for 8(a) sole source awards has similar costs for the programs 
and for the new applicants and current participants, as discussed in 
the previous paragraphs. The increase in the number of participants in 
the programs will not affect the SBA costs of providing services to 
these business concerns, because the administrative structure is 
already in place.
    For the above reasons, SBA estimates that these added 
administrative costs associated with this rule will be de minimis 
because necessary mechanisms are already in place to handle these added 
requirements.

Transfer Impacts of Increases to Size Standards

    The inflation-adjusted size standards adopted in this rule may 
result in some redistribution of Federal contracts between the newly-
qualified small businesses and large businesses and between the newly-
qualified small businesses and small businesses under the current size 
standards. However, it would have no impact on the overall economic 
activity since total Federal contract dollars available for businesses 
to compete for will not change with changes to size standards. While 
SBA cannot quantify with certainty the actual outcome of the gains and 
losses from the redistribution of contracts among different groups of 
businesses, it can identify several probable impacts in qualitative 
terms. With the availability of a larger pool of small businesses under 
the higher inflation-adjusted size standards, some unrestricted Federal 
contracts that would otherwise be awarded to large businesses may be 
set aside for small businesses. As a result, large businesses may lose 
some Federal contracting opportunities. Similarly, some small 
businesses under the current size standards may obtain fewer set-aside 
contracts due to the increased competition from larger businesses 
qualifying as small under the inflation-adjusted size standards. This 
impact may be offset by a greater number of procurements being set 
aside for small businesses because of more businesses qualifying as 
small under the inflation-adjusted size standards. With larger 
businesses qualifying as small under the higher inflation-adjusted size 
standards, smaller small businesses could face some disadvantage in 
competing for set-aside contracts against their larger counterparts. 
However, SBA cannot quantify these impacts.
Congressional Review Act
    Subtitle E of the Small Business Regulatory Enforcement Fairness 
Act of 1996 (codified at 5 U.S.C. 801-808), also known as the 
Congressional Review Act or CRA, generally provides that before a rule 
may take effect, the agency promulgating the rule must submit a rule 
report, which includes a copy of the rule, to each House of the 
Congress and to the Comptroller General of the United States. SBA will 
submit a report containing this rule and other required information to 
the U.S. Senate, the U.S. House of Representatives, and the Comptroller 
General of the United States. A major rule under the CRA cannot take 
effect until 60 days after it is published in the Federal Register. 
OMB's Office of Information and Regulatory Affairs has determined that 
the final rule provisions and interim rule provisions are not a ``major 
rule'' as defined by 5 U.S.C. 804(2).
Regulatory Flexibility Act
    According to the Regulatory Flexibility Act (RFA), 5 U.S.C. 601-
612, when an agency issues a rulemaking, it must prepare a regulatory 
flexibility analysis to address the impact of the rule on small 
entities. Accordingly, below, the Agency provides final regulatory 
flexibility analysis of the final rule provisions and initial 
regulatory flexibility analysis of the interim provisions of this 
rulemaking.
Regulatory Flexibility Analysis--Final Regulatory Flexibility Analysis
    Under the Regulatory Flexibility Act (RFA), the final rule 
provisions of this rulemaking may have a significant impact on a 
substantial number of small businesses in the industries and 
subindustries with monetary-based size standards. As described in the 
July 2019 IFR, the final rule provisions of this rulemaking may affect 
small businesses in those industries seeking Federal contracts, loans 
under SBA's 7(a), 504 and EIDL programs, and assistance under other 
Federal small business programs.
    SBA prepared an initial regulatory flexibility analysis (IRFA) for 
the July 2019 IFR. A copy of the IRFA can be found at 84 FR 34267 (July 
18, 2019). Immediately below, SBA sets forth a final regulatory 
flexibility analysis (FRFA) of the final provisions of this rulemaking 
addressing the following questions: (1) What are the need for and 
objective of the rule?; (2) What are significant issues raised by the 
public comments in response to the initial regulatory flexibility 
analysis, assessment of the agency of such issues, and any changes made 
in the proposed rule as a result of such comments?; (3) What's the 
agency's response to any comments filed by the Chief Counsel for 
Advocacy of the Small Business Administration in response to the 
proposed rule and description of any change made to the proposed rule 
in the final rule as a result of the comments?; (4) What are SBA's 
description and estimate of the number of small businesses to which the 
rule will apply?; (5) What are the projected reporting, record keeping, 
and other compliance requirements of the rule?; (6) What are the 
relevant Federal Government rules that may duplicate, overlap, or 
conflict with the rule?; and (7) 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 objective of the rule?
    As discussed in the supplemental information above, the revision to 
the monetary-based size standards for inflation more appropriately 
defines small businesses. The Final rule provisions of this rulemaking 
finalizes SBA's July 2019 IFR that adjusted monetary-based industry 
size standards for inflation that occurred since the previous inflation 
adjustment in 2014. The inflation adjustment of size standards for 
inflation restores small business eligibility in real terms to 
businesses that have grown above the existing size standard due to 
inflation-led revenue growth rather than due to increased business 
activity.
    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 once every 
five years (13 CFR 121.102(c)) and

[[Page 69140]]

make any changes as appropriate. A review of the latest data indicated 
that inflation has increased a sufficient amount since the 2014 
inflation adjustment to warrant another inflation adjustment to the 
monetary-based size standards. Adjusting size standards for inflation 
is also consistent with a statutory requirement under the Jobs Act to 
review all size standards and make necessary adjustments to reflect 
current market conditions every five years.
    2. What are significant issues raised by the public comments in 
response to the initial regulatory flexibility analysis, assessment of 
the agency of such issues, and any changes made in the proposed rule as 
a result of such comments?
    SBA did not receive any public comments to the initial regulatory 
flexibility analysis it provided in the July 2019 IFR.
    3. What's the agency's response to any comments filed by the Chief 
Counsel for Advocacy of the Small Business Administration in response 
to the proposed rule and description of any change made to the proposed 
rule in the final rule as a result of the comments?
    SBA did not receive any comments from the Chief Counsel for 
Advocacy of the Small Business Administration in response to the July 
2019 IFR.
    4. What are SBA's description and estimate of the number of small 
businesses to which the rule will apply?
    As discussed in the July 2019 IFR, based on the 2012 Economic 
Census tabulations, about 89,730 additional firms became small because 
of this adjustment to the receipts-based size standards of 518 
industries and eight subindustries. That represented 1.3 percent of the 
total number of firms that were small under the monetary-based size 
standards prior to inflation adjustment. This resulted in an increase 
in the small business share of total industry receipts in those 
industries and subindustries from 29.0 percent under the current size 
standards to 29.7 percent under the inflation-adjusted size standards. 
Due to the adjustment of assets-based size standards in five 
industries, about 160 additional firms gained small business status in 
those industries. That increased the small business share of total 
assets in those industries from 5.7 percent to 6.0 percent. The size 
standards adopted in the final provisions of this rulemaking would 
enable businesses that have exceeded the size standards for their 
industries to regain small business status. It would also help 
currently small businesses retain their small business status for a 
longer period.
    5. What are the projected reporting, record keeping and other 
compliance requirements of the rule?
    The inflation adjustment to size standards imposes no additional 
reporting or record keeping requirements on small businesses. However, 
qualifying for Federal procurement and a number of other programs 
requires that businesses register in the System of Award Management 
(SAM) database and certify in SAM that they are small at least once 
annually (FAR 52.204-13). For existing contracts, small business 
contractors are required to update their SAM registration, as 
necessary, to ensure that they reflect the Contractor's current status 
(FAR 52.219-28). Businesses are also required to verify that their SAM 
registration is current, accurate, and complete with the submission of 
an offer for every new contract (FAR 52.204-7 and 52.204-8). Therefore, 
any newly eligible small businesses opting to participate in those 
programs would have had to comply with SAM requirements. However, SBA 
estimates that there are no additional costs associated with SAM 
registration or certification. While changing size standards alters the 
access to SBA's programs that assist small businesses, it does not 
impose a regulatory burden because such actions on the part of SBA 
neither regulate nor control business behavior.
    6. 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 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). SBA is not aware of any 
Federal rule that would duplicate or conflict with establishing size 
standards.
    However, 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 Regulatory 
Flexibility Act authorizes an agency to establish an alternative small 
business definition for Regulatory Flexibility Analysis purposes, after 
consultation with the Office of Advocacy of the U.S. Small Business 
Administration (5 U.S.C. 601(3)).
    7. 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 size standards by industry and changing 
the size measures, no practical alternative exists to the systems of 
numerical size standards.
    SBA's only other consideration was whether to adopt the size 
standards presented in the July 2019 IFR with no further increase for 
the inflation. However, SBA believes that the 8.37 percent inflation 
that has occurred since the previous inflation adjustment in 2014 (and 
the 40.26 percent inflation increase that has occurred since 2000, when 
the current $750,000 agricultural size standard was established by 
statute) sufficiently affected the real value of the size standards to 
warrant applying an increase at that time.
Regulatory Flexibility Analysis--Initial Regulatory Flexibility 
Analysis
    Under the Regulatory Flexibility Act (RFA), the interim provisions 
of this rulemaking may have a significant impact on a substantial 
number of small businesses in the industries and subindustries with 
monetary-based size standards. As described above, this rule may affect 
small businesses in those industries seeking Federal contracts, loans 
under SBA's 7(a), 504 and EIDL programs, and assistance under other 
Federal small business programs.
    Immediately below, SBA sets forth an initial regulatory flexibility 
analysis (IRFA) of the interim final provisions this rulemaking 
addressing the following questions: (1) What are the need for and 
objective 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, record keeping, and other compliance 
requirements of the rule?; (4) What are the relevant Federal Government 
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 objective of the rule?
    As discussed in the supplemental information above, the revision to 
the monetary-based size standards for inflation more appropriately 
defines small businesses. This rule finalizes SBA's 2019 interim final 
rule that adjusted monetary-based industry size

[[Page 69141]]

standards as a procedural step, and adds a 13.65 percent increase over 
the adopted monetary small business size standards in addition to the 
adjustments made as part of the second five-year review of size 
standards under the Jobs Act.
    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 once every 
five years (13 CFR 121.102(c)) and make any changes as appropriate. A 
review of the latest data indicated that inflation has increased a 
sufficient amount since the 2019 adjustment to warrant another 
inflation adjustment to the monetary-based size standards. Adjusting 
size standards for inflation is also consistent with a statutory 
requirement under the Jobs Act to review all size standards and make 
necessary adjustments to reflect current market conditions every five 
(5) years.
    Additionally, for the first time, SBA is adjusting for inflation 
the economic disadvantage thresholds for the 8(a) Business development 
and the Economic Disadvantage Women Owned Business programs that are 
not covered under FAR 1.109. This action supports the economic policy 
SBA adopted on July 15, 2020, to increase the monetary value of these 
economic thresholds, maintaining their value.
    2. What are SBA's description and estimate of the number of small 
businesses to which the rule will apply?
    Based on the 2017 Economic Census tabulations, SBA estimates that 
about 17,713 additional firms would become small because of adjustment 
to receipts-based size standards of 494 industries and nine 
subindustries (or ``exceptions''). That represents about 0.2 percent of 
total firms that were small under the baseline for all monetary based 
size standards. SBA estimated that the changes resulted in an increase 
in the small business share of total industry receipts in those 
industries and subindustries from 29.0 percent to 30.0 percent. Due to 
the adjustment of assets-based size standards in five industries, SBA 
estimates that about 170 additional firms will gain small business 
status in those industries, increasing the small business share of 
total assets in those industries from 5.4 percent to 5.9 percent. The 
size standards adopted in this rule would enable businesses that have 
exceeded the size standards for their industries to regain small 
business status. It would also help small businesses to retain their 
small business status for a longer period.
    The increases in the economic disadvantage (ED) eligibility 
thresholds through inflation adjustment support gaining eligibility of 
the new applicants which would otherwise be not approved and 
maintaining eligibility of the existing participants in the 8(a) BD and 
EDWOSB programs. However, there is lack of the necessary data to 
estimate the actual number of 8(a) BD and EDWOSB firms impacted by the 
adjustments to the ED thresholds. As a result of adjusting the 8(a) 
sole source threshold, about 87-90 firms totaling between $100 million 
and $168.5 million in cumulative contract awards would become eligible 
for sole source 8(a) contracts again.
    3. What are the projected reporting, record keeping and other 
compliance requirements of the rule?
    The inflation adjustment to size standards imposes no additional 
reporting or record keeping requirements on small businesses. However, 
qualifying for Federal procurement and a number of other programs 
requires that businesses register in the System of Award Management 
(SAM) database and certify in SAM that they are small at least once 
annually (FAR 52.204-13). For existing contracts, small business 
contractors are required to update their SAM registration, as 
necessary, to ensure that they reflect the Contractor's current status 
(FAR 52.219-28). Businesses are also required to verify that their SAM 
registration is current, accurate, and complete with the submission of 
an offer for every new contract (FAR 52.204-7 and 52.204-8). Therefore, 
any newly eligible small businesses opting to participate in those 
programs would have had to comply with SAM requirements. However, SBA 
estimates that there are no additional costs associated with SAM 
registration or certification. While changing size standards alters the 
access to SBA's programs that assist small businesses, it does not 
impose a regulatory burden because such actions on the part of SBA 
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 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)). SBA is not aware of any 
Federal rule that would duplicate or conflict with establishing size 
standards.
    However, 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 Regulatory 
Flexibility Act authorizes an agency to establish an alternative small 
business definition for Regulatory Flexibility Analysis purposes, after 
consultation with the Office of Advocacy of the U.S. Small Business 
Administration (5 U.S.C. 601(3)).
    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 size standards by industry and changing 
the size measures, no practical alternative exists to the systems of 
numerical size standards.
    SBA's only other consideration was whether to adopt the size 
standards presented in the interim final rule with no further increase 
for the inflation. However, SBA believes that the 13.65 percent 
inflation that has occurred since the previous inflation adjustment in 
July 2019 sufficiently affects the real value of the size standards to 
warrant applying an increase at this time. Similarly, SBA considers 
that the higher inflation can adversely impact the intention of 
increasing the ED thresholds adopted by the 8(a) BD and the EDWOSB 
programs on July 15, 2020.
Executive Order 13563
    E.O. 13563 emphasizes the importance of quantifying both costs and 
benefits, reducing costs, harmonizing rules, and promoting flexibility. 
A description of the need for this regulatory action and benefits and 
costs associated with this action including possible distributional 
impacts that relate to Executive Order 13563 is included above in the 
Benefit-Cost Analysis under Executive Order 12866 and in the July 2019 
IFR which adopted the adjustment to size standards effective August 18, 
2019. Additionally, section 6 of E.O. 13563 calls for retrospective 
analyses of existing rules.
    Additionally, SBA issued a revised ``Size Standards Methodology'' 
white paper and published a notice in the April 27, 2018, issue of the 
Federal Register (83 FR 18468) to advise the

[[Page 69142]]

public that the document is available for public review and comments. 
The ``Size Standards Methodology'' white paper explains how SBA 
establishes, reviews, and modifies its receipts-based and employee-
based small business size standards. The white paper also describes how 
SBA adjusts size standards for inflation and updates its table of size 
standards to NAICS revisions. On April 11, 2019, SBA published a 
Federal Register notification (84 FR 14587) advising the public that 
the Agency had issued a revised final ``Size Standards Methodology'' 
white paper.
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. This rule does not 
have retroactive or preemptive effect.
Executive Order 13132
    For purposes of Executive Order 13132, SBA has determined that the 
final provisions and the interim final provisions of this rulemaking 
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 interim final rule 
has 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 rulemaking will not impose any new 
reporting or record keeping requirements.

List of Subjects

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.

13 CFR Part 124

    Administrative practice and procedure, Government procurement, 
Government property, Small businesses.

13 CFR Part 127

    Government contracts, Reporting and recordkeeping requirements, 
Small businesses.

0
For the reasons set forth in the preamble, SBA adopts as final the 
interim rule published July 18, 2019, at 84 FR 34261, and amends 13 CFR 
parts 121, 124, and 127.

PART 121--SMALL BUSINESS SIZE REGULATIONS

0
1. The authority citation for part 121 continues to read as follows:

    Authority: 15 U.S.C. 632, 634(b)(6), 636(a)(36), 662, and 
694a(9); 15 U.S.C. 9012.

0
2. In Sec.  121.201, amend the table ``Small Business Size Standards by 
NAICS Industry'' by revising:
0
a. Subsectors 111 and 112;
0
b. Under subsector 113, the entries for ``113110'' and ``113210'';
0
c. Subsectors 114 and 115;
0
d. Under Subsection 213, the entries for ``213112'' through ``213115'';
0
e. Under subsector 221, the entries for ``221310'', ``221320'', and 
``221330'';
0
f. Subsectors 236 through 238;
0
g. Under subsector 441, the entries for ``441120'', ``441210'', 
``441222'', ``441227'', ``441330'', and ``441340'';
0
h. Subsectors 444, 445, 449, 455, and 456;
0
i. Under subsector 457, the entries for ``457110'' and ``457120'';
0
j. Subsectors 458 and 459;
0
k. Under subsector 481, the entry for ``481219'';
0
l. Subsectors 484 and 485;
0
m. Under subsector 486, the entries for ``486210'' and ``486990'';
0
n. Subsectors 487, 488, and 491;
0
o. Under subsector 492, the entry for ``492210'';
0
p. Subsector 493;
0
q. Under subsector 512, the entries for ``512110'', ``512120'', 
``512131'', ``512132'', ``512191'', ``512199'', ``512240'', and 
``512290'';
0
r. Under subsector 513, the entry for ``513210'';
0
s. Subsector 516;
0
t. Under subsector 517, the entries for ``517410'' and ``517810'';
0
u. Under subsector 518, the entry for ``518210'';
0
v. Under subsector 519, the entry for ``519210'';
0
w. Subsectors 522 and 523;
0
x. Under subsector 524, the entries for ``524113'', ``524114'', 
``524127'', ``524128'', ``524130'', ``524210'', ``524291'', ``524292'', 
and ``524298'';
0
y. Subsectors 525 and 531 through 533;
0
z. Under subsector 541, the entries for ``541110'', ``541191'', 
``541199'', ``541211'', ``541213'', ``541214'', ``541219'', ``541310'', 
``541320'', ``541330'', ``541330 (Exception 1)'', ``541330 (Exception 
2)'', ``541330 (Exception 3)'', ``541340'', ``541350'', ``541360'', 
``541370'', ``541380'', ``541410'', ``541420'', ``541430'', ``541490'', 
``541511'' through ``541513'', ``541519'', ``541611'' through 
``541614'', ``541618'', ``541620'', ``541690'', ``541720'', ``541810'', 
``541820'', ``541830'', ``541840'', ``541850'', ``541860'', ``541870'', 
``541890'', ``541910'', ``541921'', ``541922'', ``541930'', ``541940'', 
and ``541990'';
0
aa. Subsectors 551 and 561;
0
bb. Under subsector 562, the entries for ''562111'', ``562112'', 
``562119'', ``562211'' through ``562213'', ``562219'', ``562910'', 
``562920'', ``562991'', and ``562998''; and
0
cc. Subsectors 611, 621 through 624, 711 through 713, 721, 722, and 811 
through 813; and
0
dd. Revising footnote 9 at the end of the table.
    The revisions read as follows:


Sec.  121.201  What size standards has SBA identified by North American 
Industry Classification System codes?

* * * * *

                                 Small Business Size Standards by NAICS Industry
----------------------------------------------------------------------------------------------------------------
                                                                                               Size standards in
              NAICS codes                 NAICS U.S. industry   Size standards in millions of      number of
                                                 title                     dollars                 employees
----------------------------------------------------------------------------------------------------------------
                              Sector 11--Agriculture, Forestry, Fishing and Hunting
                                         Subsector 111--Crop Production
----------------------------------------------------------------------------------------------------------------
111110................................  Soybean Farming.......  $2.25........................  .................
111120................................  Oilseed (except         $2.25........................  .................
                                         Soybean) Farming.
111130................................  Dry Pea and Bean        $2.75........................  .................
                                         Farming.
111140................................  Wheat Farming.........  $2.25........................  .................
111150................................  Corn Farming..........  $2.5.........................  .................

[[Page 69143]]

 
111160................................  Rice Farming..........  $2.5.........................  .................
111191................................  Oilseed and Grain       $2.25........................  .................
                                         Combination Farming.
111199................................  All Other Grain         $2.25........................  .................
                                         Farming.
111211................................  Potato Farming........  $4.25........................  .................
111219................................  Other Vegetable         $3.75........................  .................
                                         (except Potato) and
                                         Melon Farming.
111310................................  Orange Groves.........  $4.0.........................  .................
111320................................  Citrus (except Orange)  $4.25........................  .................
                                         Groves.
111331................................  Apple Orchards........  $4.5.........................  .................
111332................................  Grape Vineyards.......  $4.0.........................  .................
111333................................  Strawberry Farming....  $5.5.........................  .................
111334................................  Berry (except           $3.75........................  .................
                                         Strawberry) Farming.
111335................................  Tree Nut Farming......  $3.75........................  .................
111336................................  Fruit and Tree Nut      $5.0.........................  .................
                                         Combination Farming.
111339................................  Other Noncitrus Fruit   $3.5.........................  .................
                                         Farming.
111411................................  Mushroom Production...  $4.5.........................  .................
111419................................  Other Food Crops Grown  $4.5.........................  .................
                                         Under Cover.
111421................................  Nursery and Tree        $3.25........................  .................
                                         Production.
111422................................  Floriculture            $3.75........................  .................
                                         Production.
111910................................  Tobacco Farming.......  $2.5.........................  .................
111920................................  Cotton Farming........  $3.25........................  .................
111930................................  Sugarcane Farming.....  $5.0.........................  .................
111940................................  Hay Farming...........  $2.5.........................  .................
111991................................  Sugar Beet Farming....  $2.5.........................  .................
111992................................  Peanut Farming........  $2.5.........................  .................
111998................................  All Other               $2.5.........................  .................
                                         Miscellaneous Crop
                                         Farming.
----------------------------------------------------------------------------------------------------------------
                                Subsector 112--Animal Production and Aquaculture
----------------------------------------------------------------------------------------------------------------
112111................................  Beef Cattle Ranching    $2.5.........................  .................
                                         and Farming.
112112................................  Cattle Feedlots.......  $22.0........................  .................
112120................................  Dairy Cattle and Milk   $3.75........................  .................
                                         Production.
112210................................  Hog and Pig Farming...  $4.0.........................  .................
112310................................  Chicken Egg Production  $19.0........................  .................
112320................................  Broilers and Other      $3.5.........................  .................
                                         Meat Type Chicken
                                         Production.
112330................................  Turkey Production.....  $3.75........................  .................
112340................................  Poultry Hatcheries....  $4.0.........................  .................
112390................................  Other Poultry           $3.75........................  .................
                                         Production.
112410................................  Sheep Farming.........  $3.5.........................  .................
112420................................  Goat Farming..........  $2.5.........................  .................
112511................................  Finfish Farming and     $3.75........................  .................
                                         Fish Hatcheries.
112512................................  Shellfish Farming.....  $3.75........................  .................
112519................................  Other Aquaculture.....  $3.75........................  .................
112910................................  Apiculture............  $3.25........................  .................
112920................................  Horse and Other Equine  $2.75........................  .................
                                         Production.
112930................................  Fur-Bearing Animal and  $3.75........................  .................
                                         Rabbit Production.
112990................................  All Other Animal        $2.75........................  .................
                                         Production.
----------------------------------------------------------------------------------------------------------------
                                       Subsector 113--Forestry and Logging
----------------------------------------------------------------------------------------------------------------
113110................................  Timber Tract            $19.0........................  .................
                                         Operations.
113210................................  Forest Nurseries and    $20.5........................  .................
                                         Gathering of Forest
                                         Products.
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
                                  Subsector 114--Fishing, Hunting and Trapping
----------------------------------------------------------------------------------------------------------------
114111................................  Finfish Fishing.......  $25.0........................  .................
114112................................  Shellfish Fishing.....  $14.0........................  .................
114119................................  Other Marine Fishing..  $11.5........................  .................
114210................................  Hunting and Trapping..  $8.5.........................  .................
----------------------------------------------------------------------------------------------------------------
                         Subsector 115--Support Activities for Agriculture and Forestry
----------------------------------------------------------------------------------------------------------------
115111................................  Cotton Ginning........  $16.0........................  .................
115112................................  Soil Preparation,       $9.5.........................  .................
                                         Planting, and
                                         Cultivating.
115113................................  Crop Harvesting,        $13.5........................  .................
                                         Primarily by Machine.
115114................................  Postharvest Crop        $34.0........................  .................
                                         Activities (except
                                         Cotton Ginning).
115115................................  Farm Labor Contractors  $19.0........................  .................
                                         and Crew Leaders.
115116................................  Farm Management         $15.5........................  .................
                                         Services.
115210................................  Support Activities for  $11.0........................  .................
                                         Animal Production.
115310................................  Support Activities for  $11.5........................  .................
                                         Forestry.

[[Page 69144]]

 
115310 (Exception 1)..................  Forest Fire             $34.0 \1\....................  .................
                                         Suppression \1\.
115310 (Exception 2)..................  Fuels Management        $34.0 \1\....................  .................
                                         Services \1\.
----------------------------------------------------------------------------------------------------------------
                            Sector 21--Mining, Quarrying, and Oil and Gas Extraction
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
                                  Subsector 213--Support Activities for Mining
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
213112................................  Support Activities for  $47.0........................  .................
                                         Oil and Gas
                                         Operations.
213113................................  Support Activities for  $27.5........................  .................
                                         Coal Mining.
213114................................  Support Activities for  $41.0........................  .................
                                         Metal Mining.
213115................................  Support Activities for  $20.5........................  .................
                                         Nonmetallic Minerals
                                         (except Fuels).
----------------------------------------------------------------------------------------------------------------
                                              Sector 22--Utilities
                                            Subsector 221--Utilities
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
221310................................  Water Supply and        $41.0........................  .................
                                         Irrigation Systems.
221320................................  Sewage Treatment        $35.0........................  .................
                                         Facilities.
221330................................  Steam and               $30.0........................  .................
                                         Air[dash]Conditioning
                                         Supply.
----------------------------------------------------------------------------------------------------------------
                                             Sector 23--Construction
                                    Subsector 236--Construction of Buildings
----------------------------------------------------------------------------------------------------------------
236115................................  New Single-family       $45.0........................  .................
                                         Housing Construction
                                         (Except For-Sale
                                         Builders).
236116................................  New Multifamily         $45.0........................  .................
                                         Housing Construction
                                         (except For-Sale
                                         Builders).
236117................................  New Housing For-Sale    $45.0........................  .................
                                         Builders.
236118................................  Residential Remodelers  $45.0........................  .................
236210................................  Industrial Building     $45.0........................  .................
                                         Construction.
236220................................  Commercial and          $45.0........................  .................
                                         Institutional
                                         Building Construction.
----------------------------------------------------------------------------------------------------------------
                             Subsector 237--Heavy and Civil Engineering Construction
----------------------------------------------------------------------------------------------------------------
237110................................  Water and Sewer Line    $45.0........................  .................
                                         and Related
                                         Structures
                                         Construction.
237120................................  Oil and Gas Pipeline    $45.0........................  .................
                                         and Related
                                         Structures
                                         Construction.
237130................................  Power and               $45.0........................  .................
                                         Communication Line
                                         and Related
                                         Structures
                                         Construction.
237210................................  Land Subdivision......  $34.0........................  .................
237310................................  Highway, Street, and    $45.0........................  .................
                                         Bridge Construction.
237990................................  Other Heavy and Civil   $45.0........................  .................
                                         Engineering
                                         Construction.
237900 (Exception)....................  Dredging and Surface    $37.0 \2\....................  .................
                                         Cleanup Activities
                                         \2\.
----------------------------------------------------------------------------------------------------------------
                                   Subsector 238--Specialty Trade Contractors
----------------------------------------------------------------------------------------------------------------
238110................................  Poured Concrete         $19.0........................  .................
                                         Foundation and
                                         Structure Contractors.
238120................................  Structural Steel and    $19.0........................  .................
                                         Precast Concrete
                                         Contractors.
238130................................  Framing Contractors...  $19.0........................  .................
238140................................  Masonry Contractors...  $19.0........................  .................
238150................................  Glass and Glazing       $19.0........................  .................
                                         Contractors.
238160................................  Roofing Contractors...  $19.0........................  .................
238170................................  Siding Contractors....  $19.0........................  .................
238190................................  Other Foundation,       $19.0........................  .................
                                         Structure, and
                                         Building Exterior
                                         Contractors.
238210................................  Electrical Contractors  $19.0........................  .................
                                         and Other Wiring
                                         Installation
                                         Contractors.
238220................................  Plumbing, Heating, and  $19.0........................  .................
                                         Air[dash]Conditioning
                                         Contractors.
238290................................  Other Building          $22.0........................  .................
                                         Equipment Contractors.
238310................................  Drywall and Insulation  $19.0........................  .................
                                         Contractors.
238320................................  Painting and Wall       $19.0........................  .................
                                         Covering Contractors.
238330................................  Flooring Contractors..  $19.0........................  .................
238340................................  Tile and Terrazzo       $19.0........................  .................
                                         Contractors.
238350................................  Finish Carpentry        $19.0........................  .................
                                         Contractors.
238390................................  Other Building          $19.0........................  .................
                                         Finishing Contractors.
238910................................  Site Preparation        $19.0........................  .................
                                         Contractors.
238990................................  All Other Specialty     $19.0........................  .................
                                         Trade Contractors.
238990 (Exception)....................  Building and Property   $19.0 \13\...................  .................
                                         Specialty Trade
                                         Services \13\.
 

[[Page 69145]]

 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
                                           Sector 44--45--Retail Trade
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
                                 Subsector 441--Motor Vehicle and Parts Dealers
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
441120................................  Used Car Dealers......  $30.5........................  .................
441210................................  Recreational Vehicle    $40.0........................  .................
                                         Dealers.
441222................................  Boat Dealers..........  $40.0........................  .................
441227................................  Motorcycle, ATV, and    $40.0........................  .................
                                         All Other Motor
                                         Vehicle Dealers.
441330................................  Automotive Parts and    $28.5........................  .................
                                         Accessories Retailers.
441340................................  Tire Dealers..........  $25.5........................  .................
----------------------------------------------------------------------------------------------------------------
                   Subsector 444--Building Material and Garden Equipment and Supplies Dealers
----------------------------------------------------------------------------------------------------------------
444110................................  Home Centers..........  $47.0........................  .................
444120................................  Paint and Wallpaper     $34.0........................  .................
                                         Retailers.
444140................................  Hardware Retailers....  $16.5........................  .................
444180................................  Other Building          $25.0........................  .................
                                         Material Dealers.
444230................................  Outdoor Power           $9.5.........................  .................
                                         Equipment Retailers.
444240................................  Nursery, Garden         $21.5........................  .................
                                         Center, and Farm
                                         Supply Retailers.
----------------------------------------------------------------------------------------------------------------
                                     Subsector 445--Food and Beverage Stores
----------------------------------------------------------------------------------------------------------------
445110................................  Supermarkets and Other  $40.0........................  .................
                                         Grocery Retailers
                                         (except Convenience
                                         Retailers).
445131................................  Convenience Retailers.  $36.5........................  .................
445132................................  Vending Machine         $21.0........................  .................
                                         Operators.
445230................................  Fruit and Vegetable     $9.0.........................  .................
                                         Retailers.
445240................................  Meat Retailers........  $9.0.........................  .................
445250................................  Fish and Seafood        $9.0.........................  .................
                                         Retailers.
445291................................  Baked Goods Retailers.  $16.0........................  .................
445292................................  Confectionery and Nut   $19.5........................  .................
                                         Retailers.
445298................................  All Other Specialty     $10.0........................  .................
                                         Food Retailers.
445320................................  Beer, Wine, and Liquor  $10.0........................  .................
                                         Retailers.
----------------------------------------------------------------------------------------------------------------
                Subsector 449--Furniture, Home Furnishings, Electronics, and Appliance Retailers
----------------------------------------------------------------------------------------------------------------
449110................................  Furniture Retailers...  $25.0........................  .................
449121................................  Floor Covering          $9.0.........................  .................
                                         Retailers.
449122................................  Window Treatment        $11.5........................  .................
                                         Retailers.
449129................................  All Other Home          $33.5........................  .................
                                         Furnishings Retailers.
449210................................  Electronics and         $40.0........................  .................
                                         Appliance Retailers.
----------------------------------------------------------------------------------------------------------------
                                  Subsector 455--General Merchandise Retailers
----------------------------------------------------------------------------------------------------------------
455110................................  Department Stores.....  $40.0........................  .................
455211................................  Warehouse Clubs and     $47.0........................  .................
                                         Supercenters.
455219................................  All Other General       $40.0........................  .................
                                         Merchandise Retailers.
----------------------------------------------------------------------------------------------------------------
                                Subsector 456--Health and Personal Care Retailers
----------------------------------------------------------------------------------------------------------------
456110................................  Pharmacies and Drug     $37.5........................  .................
                                         Retailers.
456120................................  Cosmetics, Beauty       $34.0........................  .................
                                         Supplies, and Perfume
                                         Retailers.
456130................................  Optical Goods           $29.5........................  .................
                                         Retailers.
456191................................  Food (Health)           $22.5........................  .................
                                         Supplement Retailers.
456199................................  All Other Health and    $9.5.........................  .................
                                         Personal Care
                                         Retailers.
----------------------------------------------------------------------------------------------------------------
                                Subsector 457--Gasoline Stations and Fuel Dealers
----------------------------------------------------------------------------------------------------------------
457110................................  Gasoline Stations with  $36.5........................  .................
                                         Convenience Stores.
457120................................  Other Gasoline          $33.5........................  .................
                                         Stations.
----------------------------------------------------------------------------------------------------------------
                   Subsector 458--Clothing, Clothing Accessories, Shoe, and Jewelry Retailers
----------------------------------------------------------------------------------------------------------------
458110................................  Clothing and Clothing   $47.0........................  .................
                                         Accessories Retailers.
458210................................  Shoe Retailers........  $34.0........................  .................

[[Page 69146]]

 
458310................................  Jewelry Retailers.....  $20.5........................  .................
458320................................  Luggage and Leather     $38.0........................  .................
                                         Goods Retailers.
----------------------------------------------------------------------------------------------------------------
           Subsector 459--Sporting Goods, Hobby, Musical Instrument, Book, and Miscellaneous Retailers
----------------------------------------------------------------------------------------------------------------
459110................................  Sporting Goods          $26.5........................  .................
                                         Retailers.
459120................................  Hobby, Toy, and Game    $35.0........................  .................
                                         Retailers.
459130................................  Sewing, Needlework,     $34.0........................  .................
                                         and Piece Goods
                                         Retailers.
459140................................  Musical Instrument and  $22.5........................  .................
                                         Supplies Retailers.
459210................................  Book Retailers and      $36.0........................  .................
                                         News Dealers.
459310................................  Florists..............  $9.0.........................  .................
459410................................  Office Supplies and     $40.0........................  .................
                                         Stationery Retailers.
459420................................  Gift, Novelty, and      $13.5........................  .................
                                         Souvenir Retailers.
459510................................  Used Merchandise        $14.0........................  .................
                                         Retailers.
459910................................  Pet and Pet Supplies    $32.0........................  .................
                                         Retailers.
459920................................  Art Dealers...........  $16.5........................  .................
459930................................  Manufactured (Mobile)   $19.0........................  .................
                                         Home Dealers.
459991................................  Tobacco, Electronic     $11.5........................  .................
                                         Cigarette, and Other
                                         Smoking Supplies
                                         Retailers.
459999................................  All Other               $11.5........................  .................
                                         Miscellaneous
                                         Retailers.
----------------------------------------------------------------------------------------------------------------
                                  Sector 48-49--Transportation and Warehousing
                                        Subsector 481--Air Transportation
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
481219................................  Other Nonscheduled Air  $25.0........................  .................
                                         Transportation.
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
                                       Subsector 484--Truck Transportation
----------------------------------------------------------------------------------------------------------------
484110................................  General Freight         $34.0........................  .................
                                         Trucking, Local.
484121................................  General Freight         $34.0........................  .................
                                         Trucking,
                                         Long[dash]Distance,
                                         Truckload.
484122................................  General Freight         $43.0........................  .................
                                         Trucking,
                                         Long[dash]Distance,
                                         Less Than Truckload.
484210................................  Used Household and      $34.0........................  .................
                                         Office Goods Moving.
484220................................  Specialized Freight     $34.0........................  .................
                                         (except Used Goods)
                                         Trucking, Local.
484230................................  Specialized Freight     $34.0........................  .................
                                         (except Used Goods)
                                         Trucking,
                                         Long[dash]Distance.
----------------------------------------------------------------------------------------------------------------
                           Subsector 485--Transit and Ground Passenger Transportation
----------------------------------------------------------------------------------------------------------------
485111................................  Mixed Mode Transit      $29.0........................  .................
                                         Systems.
485112................................  Commuter Rail Systems.  $47.0........................  .................
485113................................  Bus and Other Motor     $32.5........................  .................
                                         Vehicle Transit
                                         Systems.
485119................................  Other Urban Transit     $37.5........................  .................
                                         Systems.
485210................................  Interurban and Rural    $32.0........................  .................
                                         Bus Transportation.
485310................................  Taxi and Ridesharing    $19.0........................  .................
                                         Services.
485320................................  Limousine Service.....  $19.0........................  .................
485410................................  School and Employee     $30.0........................  .................
                                         Bus Transportation.
485510................................  Charter Bus Industry..  $19.0........................  .................
485991................................  Special Needs           $19.0........................  .................
                                         Transportation.
485999................................  All Other Transit and   $19.0........................  .................
                                         Ground Passenger
                                         Transportation.
----------------------------------------------------------------------------------------------------------------
                                     Subsector 486--Pipeline Transportation
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
486210................................  Pipeline                $41.5........................  .................
                                         Transportation of
                                         Natural Gas.
 
                                                  * * * * * * *
486990................................  All Other Pipeline      $46.0........................  .................
                                         Transportation.
----------------------------------------------------------------------------------------------------------------
                              Subsector 487--Scenic and Sightseeing Transportation
----------------------------------------------------------------------------------------------------------------
487110................................  Scenic and Sightseeing  $20.5........................  .................
                                         Transportation, Land.
487210................................  Scenic and Sightseeing  $14.0........................  .................
                                         Transportation, Water.
487990................................  Scenic and Sightseeing  $25.0........................  .................
                                         Transportation, Other.
----------------------------------------------------------------------------------------------------------------
                              Subsector 488--Support Activities for Transportation
----------------------------------------------------------------------------------------------------------------
488111................................  Air Traffic Control...  $40.0........................  .................
488119................................  Other Airport           $40.0........................  .................
                                         Operations.

[[Page 69147]]

 
488190................................  Other Support           $40.0........................  .................
                                         Activities for Air
                                         Transportation.
488210................................  Support Activities for  $34.0........................  .................
                                         Rail Transportation.
488310................................  Port and Harbor         $47.0........................  .................
                                         Operations.
488320................................  Marine Cargo Handling.  $47.0........................  .................
488330................................  Navigational Services   $47.0........................  .................
                                         to Shipping.
488390................................  Other Support           $47.0........................  .................
                                         Activities for Water
                                         Transportation.
488410................................  Motor Vehicle Towing..  $9.0.........................  .................
488490................................  Other Support           $18.0........................  .................
                                         Activities for Road
                                         Transportation.
488510................................  Freight Transportation  $20.0 \10\...................  .................
                                         Arrangement \10\.
488510 (Exception)....................  Non[dash]Vessel Owning  $34.0........................  .................
                                         Common Carriers and
                                         Household Goods
                                         Forwarders.
488991................................  Packing and Crating...  $34.0........................  .................
488999................................  All Other Support       $25.0........................  .................
                                         Activities for
                                         Transportation.
----------------------------------------------------------------------------------------------------------------
                                          Subsector 491--Postal Service
----------------------------------------------------------------------------------------------------------------
491110................................  Postal Service........  $9.0.........................  .................
----------------------------------------------------------------------------------------------------------------
                                     Subsector 492--Couriers and Messengers
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
492210................................  Local Messengers and    $34.0........................  .................
                                         Local Delivery.
----------------------------------------------------------------------------------------------------------------
                                     Subsector 493--Warehousing and Storage
----------------------------------------------------------------------------------------------------------------
493110................................  General Warehousing     $34.0........................  .................
                                         and Storage.
493120................................  Refrigerated            $36.5........................  .................
                                         Warehousing and
                                         Storage.
493130................................  Farm Product            $34.0........................  .................
                                         Warehousing and
                                         Storage.
493190................................  Other Warehousing and   $36.5........................  .................
                                         Storage.
----------------------------------------------------------------------------------------------------------------
                                             Sector 51--Information
                          Subsector 512--Motion Picture and Sound Recording Industries
----------------------------------------------------------------------------------------------------------------
512110................................  Motion Picture and      $40.0........................  .................
                                         Video Production.
512120................................  Motion Picture and      $39.0........................  .................
                                         Video Distribution.
512131................................  Motion Picture          $47.0........................  .................
                                         Theaters (except
                                         Drive[dash]Ins).
512132................................  Drive[dash]In Motion    $12.5........................  .................
                                         Picture Theaters.
512191................................  Teleproduction and      $39.0........................  .................
                                         Other Postproduction
                                         Services.
512199................................  Other Motion Picture    $28.5........................  .................
                                         and Video Industries.
 
                                                  * * * * * * *
512240................................  Sound Recording         $11.0........................  .................
                                         Studios.
 
                                                  * * * * * * *
512290................................  Other Sound Recording   $22.5........................  .................
                                         Industries.
----------------------------------------------------------------------------------------------------------------
                                      Subsector 513--Publishing Industries
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
513210................................  Software Publishers     $47.0 \15\...................  .................
                                         \15\.
----------------------------------------------------------------------------------------------------------------
                                Subsector 516--Broadcasting and Content Providers
----------------------------------------------------------------------------------------------------------------
516110................................  Radio Broadcasting      $47.0........................  .................
                                         Stations.
516120................................  Television              $47.0........................  .................
                                         Broadcasting Stations.
516210................................  Media Streaming         $47.0........................  .................
                                         Distribution
                                         Services, Social
                                         Networks, and Other
                                         Media Networks and
                                         Content Providers.
----------------------------------------------------------------------------------------------------------------
                                        Subsector 517--Telecommunications
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
517410................................  Satellite               $44.0........................  .................
                                         Telecommunications.
517810................................  All Other               $40.0........................  .................
                                         Telecommunications.
----------------------------------------------------------------------------------------------------------------
      Subsector 518--Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
----------------------------------------------------------------------------------------------------------------
518210................................  Computing               $40.0........................  .................
                                         Infrastructure
                                         Providers, Data
                                         Processing, Web
                                         Hosting, and Related
                                         Services.
----------------------------------------------------------------------------------------------------------------

[[Page 69148]]

 
             Subsector 519--Web Search Portals, Libraries, Archives, and Other Information Services
----------------------------------------------------------------------------------------------------------------
519210................................  Libraries and Archives  $21.0........................  .................
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
                                        Sector 52--Finance and Insurance
                           Subsector 522--Credit Intermediation and Related Activities
----------------------------------------------------------------------------------------------------------------
522110................................  Commercial Banking \8\  $850 million in assets \8\...  .................
522130................................  Credit Unions \8\.....  $850 million in assets \8\...  .................
522180................................  Savings Institutions    $850 million in assets \8\...  .................
                                         and Other Depository
                                         Credit
                                         Intermediation\8\.
522210................................  Credit Card Issuing     $850 million in assets \8\...  .................
                                         \8\.
522220................................  Sales Financing.......  $47.0........................  .................
522291................................  Consumer Lending......  $47.0........................  .................
522292................................  Real Estate Credit....  $47.0........................  .................
522299................................  International,          $47.0........................  .................
                                         Secondary Market, and
                                         All Other
                                         Nondepository Credit
                                         Intermediation.
522310................................  Mortgage and            $15.0........................  .................
                                         Nonmortgage Loan
                                         Brokers.
522320................................  Financial Transactions  $47.0........................  .................
                                         Processing, Reserve,
                                         and Clearinghouse
                                         Activities.
522390................................  Other Activities        $28.5........................  .................
                                         Related to Credit
                                         Intermediation.
----------------------------------------------------------------------------------------------------------------
     Subsector 523--Securities, Commodity Contracts, and Other Financial Investments and Related Activities
----------------------------------------------------------------------------------------------------------------
523150................................  Investment Banking and  $47.0........................  .................
                                         Securities
                                         Intermediation.
523160................................  Commodity Contracts     $41.5........................  .................
                                         Intermediation.
523210................................  Securities and          $47.0........................  .................
                                         Commodity Exchanges.
523910................................  Miscellaneous           $47.0........................  .................
                                         Intermediation.
523940................................  Portfolio Management    $47.0........................  .................
                                         and Investment Advice.
523991................................  Trust, Fiduciary and    $47.0........................  .................
                                         Custody Activities.
523999................................  Miscellaneous           $47.0........................  .................
                                         Financial Investment
                                         Activities.
----------------------------------------------------------------------------------------------------------------
                            Subsector 524--Insurance Carriers and Related Activities
----------------------------------------------------------------------------------------------------------------
524113................................  Direct Life Insurance   $47.0........................  .................
                                         Carriers.
524114................................  Direct Health and       $47.0........................  .................
                                         Medical Insurance
                                         Carriers.
 
                                                  * * * * * * *
524127................................  Direct Title Insurance  $47.0........................  .................
                                         Carriers.
524128................................  Other Direct Insurance  $47.0........................  .................
                                         (except Life, Health
                                         and Medical) Carriers.
524130................................  Reinsurance Carriers..  $47.0........................  .................
524210................................  Insurance Agencies and  $15.0........................  .................
                                         Brokerages.
524291................................  Claims Adjusting......  $25.0........................  .................
524292................................  Pharmacy Benefit        $45.5........................  .................
                                         Management and Other
                                         Third Party
                                         Administration of
                                         Insurance and Pension
                                         Funds.
524298................................  All Other Insurance     $30.5........................  .................
                                         Related Activities.
----------------------------------------------------------------------------------------------------------------
                            Subsector 525--Funds, Trusts and Other Financial Vehicles
----------------------------------------------------------------------------------------------------------------
525110................................  Pension Funds.........  $40.0........................  .................
525120................................  Health and Welfare      $40.0........................  .................
                                         Funds.
525190................................  Other Insurance Funds.  $40.0........................  .................
525910................................  Open[dash]End           $40.0........................  .................
                                         Investment Funds.
525920................................  Trusts, Estates, and    $40.0........................  .................
                                         Agency Accounts.
525990................................  Other Financial         $40.0........................  .................
                                         Vehicles.
----------------------------------------------------------------------------------------------------------------
                                  Sector 53--Real Estate and Rental and Leasing
                                           Subsector 531--Real Estate
----------------------------------------------------------------------------------------------------------------
531110................................  Lessors of Residential  $34.0\9\.....................  .................
                                         Buildings and
                                         Dwellings \9\.
531120................................  Lessors of              $34.0 \9\....................  .................
                                         Nonresidential
                                         Buildings (except
                                         Miniwarehouses)\ 9\.
531130................................  Lessors of              $34.0 \9\....................  .................
                                         Miniwarehouses and
                                         Self-Storage Units\9\.
531190................................  Lessors of Other Real   $34.0 \9\....................  .................
                                         Estate Property \9\.
531210................................  Offices of Real Estate  $15.0 \10\...................  .................
                                         Agents and
                                         Brokers\10\.
531311................................  Residential Property    $12.5........................  .................
                                         Managers.
531312................................  Nonresidential          $19.5........................  .................
                                         Property Managers.
531320................................  Offices of Real Estate  $9.5.........................  .................
                                         Appraisers.

[[Page 69149]]

 
531390................................  Other Activities        $19.5........................  .................
                                         Related to Real
                                         Estate.
----------------------------------------------------------------------------------------------------------------
                                   Subsector 532--Rental and Leasing Services
----------------------------------------------------------------------------------------------------------------
532111................................  Passenger Car Rental..  $47.0........................  .................
532112................................  Passenger Car Leasing.  $47.0........................  .................
532120................................  Truck, Utility          $47.0........................  .................
                                         Trailer, and RV
                                         (Recreational
                                         Vehicle) Rental and
                                         Leasing.
532210................................  Consumer Electronics    $47.0........................  .................
                                         and Appliances Rental.
532281................................  Formal Wear and         $25.0........................  .................
                                         Costume Rental.
532282................................  Video Tape and Disc     $35.0........................  .................
                                         Rental.
532283................................  Home Health Equipment   $41.0........................  .................
                                         Rental.
532284................................  Recreational Goods      $9.0.........................  .................
                                         Rental.
532289................................  All Other Consumer      $12.5........................  .................
                                         Goods Rental.
532310................................  General Rental Centers  $9.0.........................  .................
532411................................  Commercial Air, Rail,   $45.5........................  .................
                                         and Water
                                         Transportation
                                         Equipment Rental and
                                         Leasing.
532412................................  Construction, Mining    $40.0........................  .................
                                         and Forestry
                                         Machinery and
                                         Equipment Rental and
                                         Leasing.
532420................................  Office Machinery and    $40.0........................  .................
                                         Equipment Rental and
                                         Leasing.
532490................................  Other Commercial and    $40.0........................  .................
                                         Industrial Machinery
                                         and Equipment Rental
                                         and Leasing.
----------------------------------------------------------------------------------------------------------------
               Subsector 533--Lessors of Nonfinancial Intangible Assets (except Copyrighted Works)
----------------------------------------------------------------------------------------------------------------
533110................................  Lessors of              $47.0........................  .................
                                         Nonfinancial
                                         Intangible Assets
                                         (except Copyrighted
                                         Works).
----------------------------------------------------------------------------------------------------------------
                           Sector 54--Professional, Scientific and Technical Services
                         Subsector 541--Professional, Scientific and Technical Services
----------------------------------------------------------------------------------------------------------------
541110................................  Offices of Lawyers....  $15.5........................  .................
541191................................  Title Abstract and      $19.5........................  .................
                                         Settlement Offices.
541199................................  All Other Legal         $20.5........................  .................
                                         Services.
541211................................  Offices of Certified    $26.5........................  .................
                                         Public Accountants.
541213................................  Tax Preparation         $25.0........................  .................
                                         Services.
541214................................  Payroll Services......  $39.0........................  .................
541219................................  Other Accounting        $25.0........................  .................
                                         Services.
541310................................  Architectural Services  $12.5........................  .................
541320................................  Landscape               $9.0.........................  .................
                                         Architectural
                                         Services.
541330................................  Engineering Services..  $25.5........................  .................
541330 (Exception 1)..................  Military and Aerospace  $47.0........................  .................
                                         Equipment and
                                         Military Weapons.
541330 (Exception 2)..................  Contracts and           $47.0........................  .................
                                         Subcontracts for
                                         Engineering Services
                                         Awarded Under the
                                         National Energy
                                         Policy Act of 1992.
541330 (Exception 3)..................  Marine Engineering and  $47.0........................  .................
                                         Naval Architecture.
541340................................  Drafting Services.....  $9.0.........................  .................
541350................................  Building Inspection     $11.5........................  .................
                                         Services.
541360................................  Geophysical Surveying   $28.5........................  .................
                                         and Mapping Services.
541370................................  Surveying and Mapping   $19.0........................  .................
                                         (except Geophysical)
                                         Services.
541380................................  Testing Laboratories    $19.0........................  .................
                                         and Services.
541410................................  Interior Design         $9.0.........................  .................
                                         Services.
541420................................  Industrial Design       $17.0........................  .................
                                         Services.
541430................................  Graphic Design          $9.0.........................  .................
                                         Services.
541490................................  Other Specialized       $13.5........................  .................
                                         Design Services.
541511................................  Custom Computer         $34.0........................  .................
                                         Programming Services.
541512................................  Computer Systems        $34.0........................  .................
                                         Design Services.
541513................................  Computer Facilities     $37.0........................  .................
                                         Management Services.
541519................................  Other Computer Related  $34.0........................  .................
                                         Services.
 
                                                  * * * * * * *
541611................................  Administrative          $24.5........................  .................
                                         Management and
                                         General Management
                                         Consulting Services.
541612................................  Human Resources         $29.0........................  .................
                                         Consulting Services.
541613................................  Marketing Consulting    $19.0........................  .................
                                         Services.
541614................................  Process, Physical       $20.0........................  .................
                                         Distribution and
                                         Logistics Consulting
                                         Services.
541618................................  Other Management        $19.0........................  .................
                                         Consulting Services.
541620................................  Environmental           $19.0........................  .................
                                         Consulting Services.
541690................................  Other Scientific and    $19.0........................  .................
                                         Technical Consulting
                                         Services.
 
                                                  * * * * * * *
541720................................  Research and            $28.0........................  .................
                                         Development in the
                                         Social Sciences and
                                         Humanities.
541810................................  Advertising Agencies    $25.5 \10\...................  .................
                                         \10\.
541820................................  Public Relations        $19.0........................  .................
                                         Agencies.
541830................................  Media Buying Agencies.  $32.5........................  .................

[[Page 69150]]

 
541840................................  Media Representatives.  $21.0........................  .................
541850................................  Indoor and Outdoor      $34.5........................  .................
                                         Display Advertising.
541860................................  Direct Mail             $22.0........................  .................
                                         Advertising.
541870................................  Advertising Material    $28.5........................  .................
                                         Distribution Services.
541890................................  Other Services Related  $19.0........................  .................
                                         to Advertising.
541910................................  Marketing Research and  $22.5........................  .................
                                         Public Opinion
                                         Polling.
541921................................  Photography Studios,    $16.0........................  .................
                                         Portrait.
541922................................  Commercial Photography  $9.0.........................  .................
541930................................  Translation and         $22.5........................  .................
                                         Interpretation
                                         Services.
541940................................  Veterinary Services...  $10.0........................  .................
541990................................  All Other               $19.5........................  .................
                                         Professional,
                                         Scientific and
                                         Technical Services.
----------------------------------------------------------------------------------------------------------------
                               Sector 55--Management of Companies and Enterprises
                             Subsector 551--Management of Companies and Enterprises
----------------------------------------------------------------------------------------------------------------
551111................................  Offices of Bank         $38.5........................  .................
                                         Holding Companies.
551112................................  Offices of Other        $45.5........................  .................
                                         Holding Companies.
----------------------------------------------------------------------------------------------------------------
                Sector 56--Administrative and Support, Waste Management and Remediation Services
----------------------------------------------------------------------------------------------------------------
                               Subsector 561--Administrative and Support Services
561110................................  Office Administrative   $12.5........................  .................
                                         Services.
561210................................  Facilities Support      $47.0 \12\...................  .................
                                         Services \12\.
561311................................  Employment Placement    $34.0........................  .................
                                         Agencies.
561312................................  Executive Search        $34.0........................  .................
                                         Services.
561320................................  Temporary Help          $34.0........................  .................
                                         Services.
561330................................  Professional Employer   $41.5........................  .................
                                         Organizations.
561410................................  Document Preparation    $19.0........................  .................
                                         Services.
561421................................  Telephone Answering     $19.0........................  .................
                                         Services.
561422................................  Telemarketing Bureaus   $25.5........................  .................
                                         and Other Contact
                                         Centers.
561431................................  Private Mail Centers..  $19.0........................  .................
561439................................  Other Business Service  $26.5........................  .................
                                         Centers (including
                                         Copy Shops).
561440................................  Collection Agencies...  $19.5........................  .................
561450................................  Credit Bureaus........  $41.0........................  .................
561491................................  Repossession Services.  $19.0........................  .................
561492................................  Court Reporting and     $19.0........................  .................
                                         Stenotype Services.
561499................................  All Other Business      $21.5........................  .................
                                         Support Services.
561510................................  Travel Agencies \10\..  $25.0 \10\...................  .................
561520................................  Tour Operators \10\...  $25.0 \10\...................  .................
561591................................  Convention and          $25.0........................  .................
                                         Visitors Bureaus.
561599................................  All Other Travel        $32.5........................  .................
                                         Arrangement and
                                         Reservation Services.
561611................................  Investigation and       $25.0........................  .................
                                         Personal Background
                                         Check Services.
561612................................  Security Guards and     $29.0........................  .................
                                         Patrol Services.
561613................................  Armored Car Services..  $43.0........................  .................
561621................................  Security Systems        $25.0........................  .................
                                         Services (except
                                         Locksmiths).
561622................................  Locksmiths............  $25.0........................  .................
561710................................  Exterminating and Pest  $17.5........................  .................
                                         Control Services.
561720................................  Janitorial Services...  $22.0........................  .................
561730................................  Landscaping Services..  $9.5.........................  .................
561740................................  Carpet and Upholstery   $8.5.........................  .................
                                         Cleaning Services.
561790................................  Other Services to       $9.0.........................  .................
                                         Buildings and
                                         Dwellings.
561910................................  Packaging and Labeling  $19.5........................  .................
                                         Services.
561920................................  Convention and Trade    $20.0 \10\...................  .................
                                         Show Organizers\10\.
561990................................  All Other Support       $16.5........................  .................
                                         Services.
----------------------------------------------------------------------------------------------------------------
                            Subsector 562--Waste Management and Remediation Services
----------------------------------------------------------------------------------------------------------------
562111................................  Solid Waste Collection  $47.0........................  .................
562112................................  Hazardous Waste         $47.0........................  .................
                                         Collection.
562119................................  Other Waste Collection  $47.0........................  .................
562211................................  Hazardous Waste         $47.0........................  .................
                                         Treatment and
                                         Disposal.
562212................................  Solid Waste Landfill..  $47.0........................  .................
562213................................  Solid Waste Combustors  $47.0........................  .................
                                         and Incinerators.
562219................................  Other Nonhazardous      $47.0........................  .................
                                         Waste Treatment and
                                         Disposal.
562910................................  Remediation Services..  $25.0........................  .................
 
                                                  * * * * * * *
562920................................  Materials Recovery      $25.0........................  .................
                                         Facilities.
562991................................  Septic Tank and         $9.0.........................  .................
                                         Related Services.
562998................................  All Other               $16.5........................  .................
                                         Miscellaneous Waste
                                         Management Services.
----------------------------------------------------------------------------------------------------------------

[[Page 69151]]

 
                                         Sector 61--Educational Services
                                       Subsector 611--Educational Services
----------------------------------------------------------------------------------------------------------------
611110................................  Elementary and          $20.0........................  .................
                                         Secondary Schools.
611210................................  Junior Colleges.......  $32.5........................  .................
611310................................  Colleges, Universities  $34.5........................  .................
                                         and Professional
                                         Schools.
611410................................  Business and            $20.5........................  .................
                                         Secretarial Schools.
611420................................  Computer Training.....  $16.0........................  .................
611430................................  Professional and        $15.0........................  .................
                                         Management
                                         Development Training.
611511................................  Cosmetology and Barber  $13.0........................  .................
                                         Schools.
611512................................  Flight Training.......  $34.0........................  .................
611513................................  Apprenticeship          $11.5........................  .................
                                         Training.
611519................................  Other Technical and     $21.0........................  .................
                                         Trade Schools.
611519 (Exception)....................  Job Corps Centers \16\  $47.0 \16\...................  .................
611610................................  Fine Arts Schools.....  $9.0.........................  .................
611620................................  Sports and Recreation   $9.0.........................  .................
                                         Instruction.
611630................................  Language Schools......  $20.5........................  .................
611691................................  Exam Preparation and    $12.5........................  .................
                                         Tutoring.
611692................................  Automobile Driving      $10.0........................  .................
                                         Schools.
611699................................  All Other               $16.5........................  .................
                                         Miscellaneous Schools
                                         and Instruction.
611710................................  Educational Support     $24.0........................  .................
                                         Services.
----------------------------------------------------------------------------------------------------------------
                                  Sector 62--Health Care and Social Assistance
                                 Subsector 621--Ambulatory Health Care Services
----------------------------------------------------------------------------------------------------------------
621111................................  Offices of Physicians   $16.0........................  .................
                                         (except Mental Health
                                         Specialists).
621112................................  Offices of Physicians,  $13.5........................  .................
                                         Mental Health
                                         Specialists.
621210................................  Offices of Dentists...  $9.0.........................  .................
621310................................  Offices of              $9.0.........................  .................
                                         Chiropractors.
621320................................  Offices of              $9.0.........................  .................
                                         Optometrists.
621330................................  Offices of Mental       $9.0.........................  .................
                                         Health Practitioners
                                         (except Physicians).
621340................................  Offices of Physical,    $12.5........................  .................
                                         Occupational and
                                         Speech Therapists and
                                         Audiologists.
621391................................  Offices of Podiatrists  $9.0.........................  .................
621399................................  Offices of All Other    $10.0........................  .................
                                         Miscellaneous Health
                                         Practitioners.
621410................................  Family Planning         $19.0........................  .................
                                         Centers.
621420................................  Outpatient Mental       $19.0........................  .................
                                         Health and Substance
                                         Abuse Centers.
621491................................  HMO Medical Centers...  $44.5........................  .................
621492................................  Kidney Dialysis         $47.0........................  .................
                                         Centers.
621493................................  Freestanding            $19.0........................  .................
                                         Ambulatory Surgical
                                         and Emergency Centers.
621498................................  All Other Outpatient    $25.5........................  .................
                                         Care Centers.
621511................................  Medical Laboratories..  $41.5........................  .................
621512................................  Diagnostic Imaging      $19.0........................  .................
                                         Centers.
621610................................  Home Health Care        $19.0........................  .................
                                         Services.
621910................................  Ambulance Services....  $22.5........................  .................
621991................................  Blood and Organ Banks.  $40.0........................  .................
621999................................  All Other               $20.5........................  .................
                                         Miscellaneous
                                         Ambulatory Health
                                         Care Services.
----------------------------------------------------------------------------------------------------------------
                                            Subsector 622--Hospitals
----------------------------------------------------------------------------------------------------------------
622110................................  General Medical and     $47.0........................  .................
                                         Surgical Hospitals.
622210................................  Psychiatric and         $47.0........................  .................
                                         Substance Abuse
                                         Hospitals.
622310................................  Specialty (except       $47.0........................  .................
                                         Psychiatric and
                                         Substance Abuse)
                                         Hospitals.
----------------------------------------------------------------------------------------------------------------
                             Subsector 623--Nursing and Residential Care Facilities
----------------------------------------------------------------------------------------------------------------
623110................................  Nursing Care            $34.0........................  .................
                                         Facilities (Skilled
                                         Nursing Facilities).
623210................................  Residential             $19.0........................  .................
                                         Intellectual and
                                         Developmental
                                         Disability Facilities.
623220................................  Residential Mental      $19.0........................  .................
                                         Health and Substance
                                         Abuse Facilities.
623311................................  Continuing Care         $34.0........................  .................
                                         Retirement
                                         Communities.
623312................................  Assisted Living         $23.5........................  .................
                                         Facilities for the
                                         Elderly.
623990................................  Other Residential Care  $16.0........................  .................
                                         Facilities.
----------------------------------------------------------------------------------------------------------------
                                        Subsector 624--Social Assistance
----------------------------------------------------------------------------------------------------------------
624110................................  Child and Youth         $15.5........................  .................
                                         Services.
624120................................  Services for the        $15.0........................  .................
                                         Elderly and Persons
                                         with Disabilities.
624190................................  Other Individual and    $16.0........................  .................
                                         Family Services.
624210................................  Community Food          $19.5........................  .................
                                         Services.
624221................................  Temporary Shelters....  $13.5........................  .................
624229................................  Other Community         $19.0........................  .................
                                         Housing Services.
624230................................  Emergency and Other     $41.5........................  .................
                                         Relief Services.

[[Page 69152]]

 
624310................................  Vocational              $15.0........................  .................
                                         Rehabilitation
                                         Services.
624410................................  Child Care Services...  $9.5.........................  .................
----------------------------------------------------------------------------------------------------------------
                                  Sector 71--Arts, Entertainment and Recreation
                     Subsector 711--Performing Arts, Spectator Sports and Related Industries
----------------------------------------------------------------------------------------------------------------
711110................................  Theater Companies and   $25.0........................  .................
                                         Dinner Theaters.
711120................................  Dance Companies.......  $18.0........................  .................
711130................................  Musical Groups and      $15.0........................  .................
                                         Artists.
711190................................  Other Performing Arts   $34.0........................  .................
                                         Companies.
711211................................  Sports Teams and Clubs  $47.0........................  .................
711212................................  Racetracks............  $47.0........................  .................
711219................................  Other Spectator Sports  $16.5........................  .................
711310................................  Promoters of            $40.0........................  .................
                                         Performing Arts,
                                         Sports and Similar
                                         Events with
                                         Facilities.
711320................................  Promoters of            $22.0........................  .................
                                         Performing Arts,
                                         Sports and Similar
                                         Events without
                                         Facilities.
711410................................  Agents and Managers     $17.5........................  .................
                                         for Artists,
                                         Athletes,
                                         Entertainers and
                                         Other Public Figures.
711510................................  Independent Artists,    $9.0.........................  .................
                                         Writers, and
                                         Performers.
----------------------------------------------------------------------------------------------------------------
                        Subsector 712--Museums, Historical Sites and Similar Institutions
----------------------------------------------------------------------------------------------------------------
712110................................  Museums...............  $34.0........................  .................
712120................................  Historical Sites......  $13.0........................  .................
712130................................  Zoos and Botanical      $34.0........................  .................
                                         Gardens.
712190................................  Nature Parks and Other  $19.5........................  .................
                                         Similar Institutions.
----------------------------------------------------------------------------------------------------------------
                          Subsector 713--Amusement, Gambling and Recreation Industries
----------------------------------------------------------------------------------------------------------------
713110................................  Amusement and Theme     $47.0........................  .................
                                         Parks.
713120................................  Amusement Arcades.....  $9.0.........................  .................
713210................................  Casinos (except Casino  $34.0........................  .................
                                         Hotels).
713290................................  Other Gambling          $40.0........................  .................
                                         Industries.
713910................................  Golf Courses and        $19.0........................  .................
                                         Country Clubs.
713920................................  Skiing Facilities.....  $35.0........................  .................
713930................................  Marinas...............  $11.0........................  .................
713940................................  Fitness and             $17.5........................  .................
                                         Recreational Sports
                                         Centers.
713950................................  Bowling Centers.......  $12.5........................  .................
713990................................  All Other Amusement     $9.0.........................  .................
                                         and Recreation
                                         Industries.
----------------------------------------------------------------------------------------------------------------
                                   Sector 72--Accommodation and Food Services
                                          Subsector 721--Accommodation
----------------------------------------------------------------------------------------------------------------
721110................................  Hotels (except Casino   $40.0........................  .................
                                         Hotels) and Motels.
721120................................  Casino Hotels.........  $40.0........................  .................
721191................................  Bed[dash]and[dash]Brea  $9.0.........................  .................
                                         kfast Inns.
721199................................  All Other Traveler      $9.0.........................  .................
                                         Accommodation.
721211................................  RV (Recreational        $10.0........................  .................
                                         Vehicle) Parks and
                                         Campgrounds.
721214................................  Recreational and        $9.0.........................  .................
                                         Vacation Camps
                                         (except Campgrounds).
721310................................  Rooming and Boarding    $14.0........................  .................
                                         Houses, Dormitories,
                                         and Workers' Camps.
----------------------------------------------------------------------------------------------------------------
                                Subsector 722--Food Services and Drinking Places
----------------------------------------------------------------------------------------------------------------
722310................................  Food Service            $47.0........................  .................
                                         Contractors.
722320................................  Caterers..............  $9.0.........................  .................
722330................................  Mobile Food Services..  $9.0.........................  .................
722410................................  Drinking Places         $9.0.........................  .................
                                         (Alcoholic Beverages).
722511................................  Full-Service            $11.5........................  .................
                                         Restaurants.
722513................................  Limited-Service         $13.5........................  .................
                                         Restaurants.
722514................................  Cafeterias, Grill       $34.0........................  .................
                                         Buffets, and Buffets.
722515................................  Snack and Nonalcoholic  $22.5........................  .................
                                         Beverage Bars.
----------------------------------------------------------------------------------------------------------------
                            Sector 81--Other Services (Except Public Administration)
                                      Subsector 811--Repair and Maintenance
----------------------------------------------------------------------------------------------------------------
811111................................  General Automotive      $9.0.........................  .................
                                         Repair.
811114................................  Specialized Automotive  $9.0.........................  .................
                                         Repair.
811121................................  Automotive Body, Paint  $9.0.........................  .................
                                         and Interior Repair
                                         and Maintenance.
811122................................  Automotive Glass        $17.5........................  .................
                                         Replacement Shops.
811191................................  Automotive Oil Change   $11.0........................  .................
                                         and Lubrication Shops.
811192................................  Car Washes............  $9.0.........................  .................
811198................................  All Other Automotive    $10.0........................  .................
                                         Repair and
                                         Maintenance.

[[Page 69153]]

 
811210................................  Electronic and          $34.0........................  .................
                                         Precision Equipment
                                         Repair and
                                         Maintenance.
811310................................  Commercial and          $12.5........................  .................
                                         Industrial Machinery
                                         and Equipment (except
                                         Automotive and
                                         Electronic) Repair
                                         and Maintenance.
811411................................  Home and Garden         $9.0.........................  .................
                                         Equipment Repair and
                                         Maintenance.
811412................................  Appliance Repair and    $19.0........................  .................
                                         Maintenance.
811420................................  Reupholstery and        $9.0.........................  .................
                                         Furniture Repair.
811430................................  Footwear and Leather    $9.0.........................  .................
                                         Goods Repair.
811490................................  Other Personal and      $9.0.........................  .................
                                         Household Goods
                                         Repair and
                                         Maintenance.
----------------------------------------------------------------------------------------------------------------
                                  Subsector 812--Personal and Laundry Services
----------------------------------------------------------------------------------------------------------------
812111................................  Barber Shops..........  $9.5.........................  .................
812112................................  Beauty Salons.........  $9.5.........................  .................
812113................................  Nail Salons...........  $9.0.........................  .................
812191................................  Diet and Weight         $27.5........................  .................
                                         Reducing Centers.
812199................................  Other Personal Care     $9.0.........................  .................
                                         Services.
812210................................  Funeral Homes and       $12.5........................  .................
                                         Funeral Services.
812220................................  Cemeteries and          $25.0........................  .................
                                         Crematories.
812310................................  Coin[dash]Operated      $13.0........................  .................
                                         Laundries and
                                         Drycleaners.
812320................................  Drycleaning and         $8.0.........................  .................
                                         Laundry Services
                                         (except
                                         Coin[dash]Operated).
812331................................  Linen Supply..........  $40.0........................  .................
812332................................  Industrial Launderers.  $47.0........................  .................
812910................................  Pet Care (except        $9.0.........................  .................
                                         Veterinary) Services.
812921................................  Photofinishing          $29.5........................  .................
                                         Laboratories (except
                                         One[dash]Hour).
812922................................  One[dash]Hour           $19.0........................  .................
                                         Photofinishing.
812930................................  Parking Lots and        $47.0........................  .................
                                         Garages.
812990................................  All Other Personal      $15.0........................  .................
                                         Services.
----------------------------------------------------------------------------------------------------------------
              Subsector 813--Religious, Grantmaking, Civic, Professional and Similar Organizations
----------------------------------------------------------------------------------------------------------------
813110................................  Religious               $13.0........................  .................
                                         Organizations.
813211................................  Grantmaking             $40.0........................  .................
                                         Foundations.
813212................................  Voluntary Health        $34.0........................  .................
                                         Organizations.
813219................................  Other Grantmaking and   $47.0........................  .................
                                         Giving Services.
813311................................  Human Rights            $34.0........................  .................
                                         Organizations.
813312................................  Environment,            $19.5........................  .................
                                         Conservation and
                                         Wildlife
                                         Organizations.
813319................................  Other Social Advocacy   $18.0........................  .................
                                         Organizations.
813410................................  Civic and Social        $9.5.........................  .................
                                         Organizations.
813910................................  Business Associations.  $15.5........................  .................
813920................................  Professional            $23.5........................  .................
                                         Organizations.
813930................................  Labor Unions and        $16.5........................  .................
                                         Similar Labor
                                         Organizations.
813940................................  Political               $14.0........................  .................
                                         Organizations.
813990................................  Other Similar           $13.5........................  .................
                                         Organizations (except
                                         Business,
                                         Professional, Labor,
                                         and Political
                                         Organizations).
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
Footnotes
 * * * * * * *
1. NAICS code 115310 (Support Activities for Forestry)--Forest Fire Suppression and Fuels Management Services
  are two components of Support Activities for Forestry. Forest Fire Suppression includes establishments which
  provide services to fight forest fires. These firms usually have fire-fighting crews and equipment. Fuels
  Management Services firms provide services to clear land of hazardous materials that would fuel forest fires.
  The treatments used by these firms may include prescribed fire, mechanical removal, establishing fuel breaks,
  thinning, pruning, and piling.
2. NAICS code 237990--Dredging: To be considered small for purposes of Government procurement, a firm must
  perform at least 40 percent of the volume dredged with its own equipment or equipment owned by another small
  dredging concern.
 * * * * * * *
8. NAICS Codes 522110, 522130, 522180, and 522210--A financial institution's assets are determined by averaging
  the assets reported on its four quarterly financial statements for the preceding year. ``Assets'' for the
  purposes of this size standard means the assets defined according to the Federal Financial Institutions
  Examination Council 041 call report form for NAICS codes 522110, 522180, and 522210 and the National Credit
  Union Administration 5300 call report form for NAICS code 522130.
9. NAICS codes 531110, 531120, 531130, and 531190--Leasing of Building Space to the Federal Government by
  Owners: For Government procurement, a size standard of $47 million in gross receipts applies to the owners of
  building space leased to the Federal Government. The standard does not apply to an agent.
10. NAICS codes 488510 (excluding the exception) 531210, 541810, 561510, 561520, and 561920--As measured by
  total revenues, but excluding funds received in trust for an unaffiliated third party, such as bookings or
  sales subject to commissions. The commissions received are included as revenues.
 * * * * * * *
12. NAICS code 561210--Facilities Support Services:
(a) If one or more activities of Facilities Support Services as defined in paragraph (b) (below in this
  footnote) can be identified with a specific industry and that industry accounts for 50 percent or more of the
  value of an entire procurement, then the proper classification of the procurement is that of the specific
  industry, not Facilities Support Services.

[[Page 69154]]

 
(b) ``Facilities Support Services'' requires the performance of three or more separate activities in the areas
  of services or specialty trade contractors industries. If services are performed, these service activities
  must each be in a separate NAICS industry. If the procurement requires the use of specialty trade contractors
  (plumbing, painting, plastering, carpentry, etc.), all such specialty trade contractors activities are
  considered a single activity and classified as ``Building and Property Specialty Trade Services.'' Since
  ``Building and Property Specialty Trade Services'' is only one activity, two additional activities of separate
  NAICS industries are required for a procurement to be classified as ``Facilities Support Services.''
13. NAICS code 238990--Building and Property Specialty Trade Services: If a procurement requires the use of
  multiple specialty trade contractors (i.e., plumbing, painting, plastering, carpentry, etc.), and no specialty
  trade accounts for 50 percent or more of the value of the procurement, all such specialty trade contractors
  activities are considered a single activity and classified as Building and Property Specialty Trade Services.
 * * * * * * *
15. NAICS code 513210--For purposes of Government procurement, the purchase of software subject to potential
  waiver of the nonmanufacturer rule pursuant to Sec.   121.1203(d) should be classified under this NAICS code.
16. NAICS code 611519--Job Corps Centers. For classifying a Federal procurement, the purpose of the solicitation
  must be for the management and operation of a U.S. Department of Labor Job Corps Center. The activities
  involved include admissions activities, life skills training, educational activities, comprehensive career
  preparation activities, career development activities, career transition activities, as well as the management
  and support functions and services needed to operate and maintain the facility. For SBA assistance as a small
  business concern, other than for Federal Government procurements, a concern must be primarily engaged in
  providing the services to operate and maintain Federal Job Corps Centers.
 * * * * * * *


0
3. Amend Sec.  121.301 by revising the first sentence of paragraph 
(c)(2) to read as follows:


Sec.  121.301  What size standards are applicable to financial 
assistance programs?

* * * * *
    (c) * * *
    (2) Including its affiliates, tangible net worth not in excess of 
$24 million, and average net income after Federal income taxes 
(excluding any carry-over losses) for the preceding two completed 
fiscal years not in excess of $8 million. * * *
* * * * *


Sec.  121.502  [Amended]

0
4. Amend Sec.  121.502 in paragraph (a)(2) by removing the number ``$8 
million'' and adding in its place the number ``$9 million''.


Sec.  121.512  [Amended]

0
5. Amend Sec.  121.512 in paragraph (b) by removing the number ``$67.5 
million'' and adding in its place the number ``$76.5 million''.

PART 124--8(a) BUSINESS DEVELOPMENT/SMALL DISADVANTAGED BUSINESS 
STATUS DETERMINATIONS

0
6. The authority citation for part 124 continues to read as follows:

    Authority: 15 U.S.C. 634(b)(6), 636(j), 637(a), 637(d), 644, 42 
U.S.C. 9815; and Pub. L. 99-661, 100 Stat. 3816; Sec. 1207, Pub. L. 
100-656, 102 Stat. 3853; Pub. L. 101-37, 103 Stat. 70; Pub. L. 101-
574, 104 Stat. 2814; Sec. 8021, Pub. L. 108-87, 117 Stat. 1054; and 
Sec. 330, Pub. L. 116-260.


Sec.  124.104  [Amended]

0
7. Amend Sec.  124.104:
0
a. In paragraph (c)(2) introductory text by removing the number 
``$750,000'' and adding in its place the number ``$850,000'';
0
b. In paragraph (c)(3)(i) by removing the number ``$350,000'' and 
adding in its place the number ``$400,000''; and
0
c. In paragraph (c)(4) by removing the number ``$6 million'' and adding 
in its place the number ``$6.5 million''.


Sec.  124.519  [Amended]

0
8. Amend Sec.  124.519 in paragraph (a) by removing the number 
``$100,000,000'' and adding in its place the number ``$168,500,000''.

PART 127--WOMEN-OWNED SMALL BUSINESS FEDERAL CONTRACT PROGRAM

0
9. The authority citation for part 127 continues to read as follows:

    Authority:  15 U.S.C. 632, 634(b)(6), 637(m), 644 and 657r.


Sec.  127.203  [Amended]

0
10. Amend Sec.  127.203:
0
a. In paragraph (b)(1) by removing the number ``$750,000'' and adding 
in its place the number ``$850,000'';
0
b. In paragraph (c)(3)(i) by removing the number ``$350,000'' and 
adding in its place the number ``$400,000''; and
0
c. In paragraph (c)(4) by removing the number ``$6 million'' and adding 
in its place the number ``$6.5 million''.

Isabella Casillas Guzman,
Administrator.
[FR Doc. 2022-24595 Filed 11-16-22; 8:45 am]
BILLING CODE 8026-09-P