# Small Business Size Standards; Restructuring of Size Standards

> Briefs, arguments, decisions, and more.

URL: https://www.frixlaw.com/law-library/documents/fr%3A04-5049

## Record

- **Collection:** Federal Register
- **Document type:** Proposed Rule
- **Published:** March 19, 2004
- **Citation:** 69 FR 13130

## Text

SMALL BUSINESS ADMINISTRATION
13 CFR Part 121
RIN 3245-AF11
Small Business Size Standards; Restructuring of Size Standards

AGENCY:

Small Business Administration (SBA).

ACTION:

Proposed rule.

SUMMARY:

The U.S. Small Business Administration (SBA) proposes to modify its small business size standards by establishing size standards in terms of the number of employees of a business concern for most industries and SBA programs. This change will reduce the number of different size standard levels and at the same time simplify size standards and their application to Federal Government programs. Under this proposal, size standards will range between 50 employees and 1,500 employees, depending on the industry or SBA program.

For a limited number of industries, SBA proposes to establish a maximum average annual receipts amount (referred to as a receipts cap) along with the employee-based size standard. Concerns in those industries that meet the employee-based size standard also cannot exceed a specific receipts cap to qualify as an eligible small business.

To further simplify size standards, SBA also proposes the following: (1) modify the size standard for the Surety Bond Guarantee (SBG) Program by replacing the $6 million size standard with the requirement that the contractor meet the size standard for its primary industry; (2) extend the 125,000 barrels per calendar day component of the size standard for petroleum refiners beyond Federal Government procurement to all Federal small business programs using SBA's size standards; (3) eliminate the special size standard based on market share for tire manufacturers that applies to only Federal Government procurement; (4) modify three receipts-based size standards and one employee-based size standard for the sale or lease of Government property; and (5) revise the nonmanufacturer size standard applicable to Federal procurements from 500 employees to 100 employees, the size standard that applies to wholesale trade businesses for all other SBA programs.

DATES:

Comments must be received on or before May 18, 2004.

ADDRESSES:

Send comments to Gary M. Jackson, Assistant Administrator for Size Standards, 409 Third Street, SW., Mail Code 6530, Washington DC 20416; by email to
restructure.sizestandards@sba.gov;
or by facsimile at (202) 205-6390. You may also submit comments to
www.regulations.gov.
Upon receipt of a written request under the Freedom of Information Act, SBA will make all public comments available.

FOR FURTHER INFORMATION CONTACT:

Contact the SBA's Office of Size Standards at (202) 205-6618 or
sizestandards@sba.gov.

SUPPLEMENTARY INFORMATION:

SBA's 37 small business size standards have evolved over the past 40 years from a considerably smaller number that applied only to SBA's financial assistance programs and to Federal procurement programs. Presently, there are size standards for 1,151 industries and 11 special financial and procurement programs. Many of these size standards resulted from the expansion and development of new SBA programs, the increasing size and complexity of the U.S. economy, and demands from small businesses to address unique situations.

SBA's current size standards use two primary measures of business size—number of employees and average annual receipts. Financial assets, electric generation, and refining capacity are used for a few specialized industries. In addition, SBA's Small Business Investment Company (SBIC) and the Certified Development Company (CDC) Programs determine small business eligibility based on either the industry-based size standards or net worth and net income size standards.

The current structure of SBA's size standards has worked well. However, several recurring criticisms suggest that SBA should consider improving their current structure. These criticisms raise questions about the complexity of determining if a business is small, the fairness of defining a business as small in some industries but not others, the influence of Federal procurement programs in establishing size standards, and the intentional misclassification of Federal contracts or the primary industry activity of a business to apply a different, and usually a much higher, size standard.

SBA's last comprehensive attempt to address size standards was in the late 1970s and early 1980s. Although SBA considered several approaches, it made only a few minor changes. The most important change replaced two sets of size standards, one for procurement programs and one for financial programs, with a single set for all programs. SBA also adjusted receipts-based size standards for inflation and formalized a methodology for evaluating size standards.

In the early 1990s, SBA proposed to streamline size standards with nine levels of size standards (four receipts-based size standards and five employee-based size standards) similar to one aspect of this proposed rule. Public comments tended to favor this approach. However, SBA determined that converting receipts-based size standards in effect at that time to one of four proposed receipts levels created a number of unacceptable anomalies and, therefore, did not adopt it as a final rule.

Currently, SBA's size standards consist of 37 different size levels which apply to 1,151 industries and 13 sub-industry activities in the North American Industry Classification System (NAICS). In addition, a size standard has been established for 11 financial and procurement programs. Thirty size standards are based on annual receipts, five are based on number of employees, and two are based on other measures. Table 1a below summarizes the current receipts-based size standards and Table 1b summarizes the current employee-based and other size standards.

Table 1
a.
—Size Standards Based on Annual Receipts

Range of receipts-based size standards

Number of different
receipts-
based size standards in the range

Number of industries covered by size
standards in
this range

$48.5 million
1
1

$21.5 million to $30 million
8
52

$12.5 million to $21 million
7
24

$12 million
1
24

$7 million to $11 million
7
46

$6 million
1
337

$1.5 million to $4 million
4
18

$0.75 million
1
46

Table 1
b.
—Employee-based and Other Size Standards

Size standard
Number of industries covered by the size standard

1,500 employees
17

1,000 employees
66

750 employees
63

500 employees
388

100 employees
71

$150 million in assets
6

4 million megawatt hours
6

Most variations in size standards occur among those based on annual receipts. In many cases, a specific receipts-based size standard applies to only one or a few industries. SBA believes it can simplify size standards and make them less complicated by establishing a single size standard measure and reducing the number of different size standard levels. With fewer size standards, they will be clearer, more consistent, and easier to understand, resulting in less confusion to users, particularly the non-governmental users, such as small businesses. In addition, a single size measure eliminates a problem that some concerns encounter when they operate in different industries that have different size standard measures. The information technology industries provide a good example of this situation. Many information technology businesses provide both goods and services. Yet, SBA's size standards are based on number of employees for providers of computer and peripheral equipment and receipts for providers of computer services. Consequently, an information technology business may be small for one type of work but not small for a related activity.

Proposal to Use Employee-based Size Standards for All Industries

SBA proposes to restructure its size standards by establishing an employee-based size standard for each industry. The number of employees of a business concern is its average number of persons employed for each pay period over the firm's latest 12 months and includes the employees of all affiliates. Any person on the payroll must be included as one employee regardless of hours worked or temporary status. The number of employees of a firm in business under 12 months is based on the average for each pay period it has been in business. For more information on how SBA calculates the employment size of a business, see 13 CFR 121.106.

The size standards currently based on number of employees will be retained at their current levels. This proposal converts the current size standards that are based on receipts, financial assets, or generating capacity to employee-based size standards. SBA proposes to establish an employee-based size standard which varies for each industry, but is limited to one of the following ten employee levels:

Table 2.—Proposed Employee Size Standard Levels

50
100
150
200
300

400
500
750
1,000
1,500

SBA believes that fewer size standard levels also help to simplify size standards. In converting receipts-based size standards to employee-based size standards (described further below), five new employee size levels (50, 150, 200, 300, and 400) along with the current five employee size levels (100, 500, 750, 1,000 and 1,500) results in employee-based size standards that equate to about the same number of eligible small businesses as does the current receipts-based size standards. A fewer number of employee size levels would result in a much larger number of businesses gaining or losing small business eligibility while a greater number of employee size levels would apply to only a small number of businesses and not simplify the size standards to the same degree.

Why the SBA Proposes Employee-Based Size Standards for All Industries

SBA believes that a single measure of size helps make size standards less complex. Having a single size measure simplifies the structure and enables SBA to establish fewer size standard levels. Under a structure composed of one size measure and fewer size standard levels, many small businesses that currently operate in several industries each with different size standards would in many cases be subject to only one or two different size standards under the proposed employee-based size standards. SBA believes that the benefits of simplification that come from having a single size measure outweigh the benefits of retaining multiple size measures.

Proposing number of employees as the only measure of business size departs from SBA's long tradition of using receipts and other non-employee size measures. SBA has generally utilized receipts as a preferred size measure because it constitutes the value of a concern's output. Other measures of size are used where receipts tend to skew the value added by a concern in the production of goods and services. For example, SBA uses number of employees to define a small manufacturing concern. For manufacturing, two manufacturers in the same industry with the same number of employees can generate significantly different receipts depending on the number of stages in their production operations. Receipts for a manufacturer in its final production stage include the value added by the manufacturer(s) in its earlier production stages. This is true even though the value added by the final manufacturer may be minor relative to the value of the final product. Because of this characteristic of manufacturing, number of employees has a stronger correlation to value added than do receipts.

Several aspects of employee-based size standards support SBA's decision to use them as the single measure of size

for all industries. The single best reason to do so is that they do not vary with changing economic conditions. Inflation, for example, has no direct impact on employee-based size standards. Similarly, rising costs unique to an industry have no direct impact on employee-based size standards. An ideal size standard would not affect eligibility, unless a company's level of real output of goods and services changes.

Employment also tends to be a more stable measure of business size. Businesses have economic incentives to maintain their workforce as business fluctuates to avoid recruitment and training costs. Using overtime can satisfy short-term increases in output until management is convinced that a permanent increase in business activity justifies adding personnel. Most businesses, especially small businesses, display a strong commitment to their employees and they are reluctant to change employment levels frequently in response to short-term business considerations.

Finally, number of employees is a widely accepted measure of business size. More than half of the present SBA size standards are expressed in employees. Although employment is an input into the production of goods and services, it generally accounts for a significant portion of total costs. A business's employment level is a representative indicator of its resources as well as its scale of operations. In one of the few studies conducted on an appropriate size standard measure, two researchers concluded that the number of employees of a business had a stronger correlation with the qualitative description of a small business (an approach to defining a small business preferred by many small business analysts) than did receipts. (
See
“Definition of Small Business,” Scott Holmes and Brian Gibson, The University of Newcastle, April 5, 2001. The report is available at
http://www.smallbusiness.org.au/sbc/publications/sbc004a.htm.
)

How SBA Determined the Number of Employees for Size Standards With Annual Receipts and Other Size Measures

SBA developed criteria for deciding which of the ten employee size standard levels to apply to an industry that currently has a receipts-based size standard. These criteria were designed to convert a receipts-based size standard to an equivalent employee-based size standard. The primary tool used to calculate the equivalent employee size standard associated with a receipts-based size standard is the receipts-to-employee ratio for an industry. Data to calculate these ratios were provided to the SBA by the U.S. Bureau of the Census in a special tabulation of the 1997 Economic Census (The 1997 Economic Census is available at

http://www.census.gov/epcd/www/econ97.html).
Since total receipts in an industry are provided along with employees in the industry, SBA was able to calculate receipts per employee ratios for almost all industries covered by this rule. These ratios were next adjusted 8.54% to account for inflation that occurred from 1997 to 2002 (the year in which receipts-based size standards were last adjusted for inflation). SBA used the chain-type price index for gross domestic product (GDP) (as published by the U.S. Department of Commerce, Bureau of Economic Analysis, and is available at

http://www.bea.gov/bea/ARTICLES/2003/10October/D-Pages/1003DpgC.pdf),
which is a broad measure of inflation for the economy as a whole. The resulting figure was divided into the present receipt-based size standard for the industry under review to calculate an employee equivalent size standard. This employee equivalent size standard was then rounded to the closest of the ten employee size standard levels to minimize the difference between the current receipts-based size standard and the calculated employee-based size standard.

The criteria also preserve the common size standard level that SBA currently has established for related industries. That is, for closely related industries that have the same receipts size standard, SBA has proposed an employee size standard that best represents an equivalent employee size standard for that group of industries, such as the computer services industries.

Below are the criteria and how SBA applied them to receipts-based size standards.

Selection of Employment Size Standard for Industries With a $6 Million Size Standard

For industries with a $6 million size standard, SBA had three considerations. The first consideration was whether to propose a 50 employee size standard for those industries. SBA's methodology for evaluating a size standard for a nonmanufacturing industry presumes that $6 million in average annual receipts is an appropriate size standard. This size standard is generally referred to as the “nonmanufacturing anchor size standard.” SBA considers a size standard higher or lower than the anchor level as appropriate for an industry when the structural economic characteristics of the industry are significantly different from the typical nonmanufacturing industry. SBA has decided to retain the concept of an anchor size standard for the nonmanufacturing industries as part of its restructuring and simplification of size standards. However, SBA proposes that the anchor size standard will be expressed in number of employees rather than receipts. Based on the ratio of receipts to employees in the nonmanufacturing industries, 50 employees is the employee anchor size standard for the nonmanufacturing industries. SBA is proposing a 50 employee size standard for industries currently with a $6 million size standard, unless the criteria discussed in the second and third considerations are present within an industry.

SBA's second consideration was whether the size standard should be higher than the 50 employee size standard anchor for industries where the conversion of receipts to employees produces a figure significantly above 50 employees. The SBA has decided to propose a size standard of 50 employees for industries where the conversion produces an equivalent size standard from 51 to 74 employees, since these levels round to the closest of the ten proposed employee size standards. For industries where the receipts to employees conversion results in a figure of 75 employees or more, the SBA selected a size standard above 50 employees, but only if other information justified the higher size standard. In these cases, a higher size standard is appropriate to (1) reflect the industrial structure of the industry, or (2) avoid a significant reduction in the number of small businesses currently eligible to compete for Federal procurements.
1

1
Federal procurement is an appropriate consideration because of the special support provided by SBA to small businesses through the 8(a) Business Development Program, the Small Disadvantaged Business Program, the HUBZone Program, the Small Business Set-Aside program and subcontracting programs. Not only has SBA implemented policies to assist small businesses to develop through these Federal procurement programs, but the businesses themselves have made economic and business decisions affecting their eligibility for these programs. The SBA wants to avoid taking away small business eligibility for Federal procurement programs from a large number of small businesses that could otherwise result from this size standards restructuring proposal. This consideration is limited to industries in which significant Federal Government contracting opportunities exist, or with approximately $100 million or more in Federal contracting.

SBA's third consideration examined the relationship of the size standard with other size standards within an

industry subsector or industry group (three-digit and four-digit NAICS codes, respectively). For several industries with a $6 million size standard, SBA decided to propose a size standard greater than 50 employees in order to maintain the size standard relationship within their industry group (such as for the Land Subdivision and Land Development industry, NAICS 236110).

An example of the decision process utilizing the three criteria is Barber Shops (NAICS 81211), whose present size standard is $6 million. Dividing $6 million by the inflation-adjusted figure of $34,700 receipts per employee resulted in the equivalent size standard of 172 employees. This level rounds to 150 employees using the preselected employee size standards. However, the SBA believes that a 150 employee size standard for barber shops is too high, and that the 50 employee proposed anchor size standard better matches the industry structure for barber shops, as well as public perception of what constitutes a small business in this industry. This industry has one of the largest concentrations of very small businesses, where the average size barber shop is only three employees.

By contrast, the present size standard for the Other Airport Operations industry (NAICS 488119) has the same $6 million anchor size standard. Dividing $6 million by the $56,969 receipts per employee resulted in the equivalent size standard of 105 employees, which the SBA rounded to 100 employees. The average size firm in this industry has 49 employees—more than four times the average size firm of 11 employees for the nonmanufacturing industries with a $6 million size standard. In addition, the 50 employee anchor size standard would render approximately 50 currently defined small businesses ineligible to compete for Federal procurements that require small business status. In FY 2002, the Federal Government awarded more than $280 million in contract awards, with small businesses obtaining less than $17 million in contracts. A 50 employee size standard would have the unintended result of further diminishing the participation of small businesses in Federal contracting within this industry activity.

Three hundred and thirty-seven industries have a size standard of $6 million. In applying the above considerations, SBA proposes a 50 employee size standard for 315 industries, and a higher size standard for the remaining 21 industries. The chart below identifies the 21 industries with a size standard higher than 50 employees and the basis for proposing a higher size standard.

Table 3.—Industries Currently With a $6 Million Size Standard That SBA Proposes a Size Standard Higher Than 50 Employees

NAICS codes
NAICS industry

Proposed
employee
size
standard

Reason for employee size standard different from
anchor size standard

237210
Land Subdivision
200
Common size standard for all industries in Subsector 237 and impact on Federal procurement.

485111
Mixed Mode Transit Systems
100
Common size standard for most transit industries (NAICS Subsector 485).

485112
Commuter Rail Systems
100
Common size standard for most transit industries.

485113
Bus and Other Motor Vehicle Transit Systems
100
High average firm size.

485119
Other Urban Transit Systems
100
Common size standard for most transit industries.

485210
Interurban and Rural Bus Transportation
100
High average firm size.

485410
School and Employee Bus Transportation
100
High average firm size and common size standard for most transit industries.

485510
Charter Bus Service
100
Common size standard for most transit industries.

486210
Pipeline Transportation of Natural Gas
100
High average firm size and common size standard with NAICS 486990, All Other Pipeline Transportation.

488119
Other Airport Operations
100
High average firm size and impact on Federal procurement.

488190
Other Support Activities for Air Transportation
100
Common size standard with NAICS 488119 and impact on Federal procurement.

512131
Motion Picture Theatres (except Drive-In)
100
High average firm size.

518112
Web Search Portals
150
Common size standard for all industries in Subsector 518 and impact on Federal procurement.

561422
Telemarketing Bureaus
150
High average firm size.

621910
Ambulance Services
100
High average firm size and common size standard with other ambulatory health services.

711310
Promoters of Performing Arts, Sports, & Similar Events with Facilities
100
High average firm size.

713110
Amusement and Theme Parks
100
High average firm size.

713920
Skiing Facilities
200
High average firm size.

721110
Hotels (except Casino Hotels) and Motels
100
High average firm size and impact on Federal procurement.

721120
Casino Hotels
100
High average firm size and common size standard with hotels and motels.

812930
Parking Lots and Garages
100
High average firm size.

Selection of Employment Size Standard for Industries Size Standards Above or Below $6 Million

For industries that have a size standard below $6 million, SBA has proposed 50 employees. This would establish the policy that any business with 50 or fewer employees is a small business regardless of its industry. Only a few industries would be affected by this proposal, and we strongly believe that the benefits of simplification outweigh any impact on SBA's programs or on other Federal small business programs.

For industries with a size standard above $6 million, SBA calculated an equivalent employee size standard based on the ratio of receipts to employees. For example, the receipts per employee of a computer systems design firm is $152,000. A firm of $21 million equates to a firm with 127 employees. Because SBA is proposing to have size standards at one of ten employee levels, SBA rounded this figure to the nearest employee size standard, or 150 employees.

For most of these industries, SBA proposes the size standard resulting from the receipts per employee ratio. For closely related industries (those within the same 4-digit NAICS Industry Group or 3-digit NAICS Subsector) that currently have a common receipts-based size standard, SBA proposes a common employee-based size standard, even though a different size standard could be established for each closely related industry based on the receipts-to-employee calculation. SBA recognizes that small businesses are often eligible for SBA assistance in a number of closely related industries, and it simplifies size standards if closely related industries have the same size standard. An example of this pattern is the computer services industries in which businesses typically operate in at least several of the nine computer services industries. After reviewing the equivalent employee-based size standards for the nine computer services industries, SBA is recommending a common size standard of 150 employees for all nine computer services industries. Examples of other industries where SBA proposes a common size standard include the consulting service industries, the trucking industries, the warehousing industries, and the waste management industries.

Summary of Proposed Employee Size Standards

In summary, the major factors influencing the proposed employee size standard are:

• A size standard of 50 employees generally applies when an industry receipt-based size standard is at the present anchor of $6 million in average annual receipts or is less than $6 million;

• An employee size standard above 50 employees applies to an industry with a $6 million size standard if the calculated equivalent employee size standard is above 76 employees and industry structure, existing size standards relationships, or Federal procurement implications merited a size standard above 50 employees.

• An employee size standard for an industry above $6 million is based on the calculated equivalent employee-based size standard.

• Exceptions to these rules occurred when SBA attempted to maintain traditional size standards relationships within closely related industries.

Selection of Employment Size Standard for Industries With Size Standards Based on Electric Generation and Financial Assets

The size standard for the industries involved in the generation, transmission, or distribution of electric energy (NAICS 221111-221122) is 4 million megawatts of total electric output (
see
footnote 1 of the table to size standards in § 121.210). The U.S. Bureau of the Census does not publish capacity data on businesses in this industry. SBA identified small electric utilities from the U.S. Department of Energy's publication “Financial Statistics of Investor-Owned Electric Utilities, 1996” (available at

http://www.eia.doe.gov/cneaf/electricity/invest/invest _sum.html)
. SBA reviewed publicly available information, such as Security and Exchange Commission 10-K reports, to determine the employment levels of small electric utilities. Based on this review, SBA is proposing a 1,000 employee size standard for the electrical generation, transmission, and distribution industries. At that employment size, electric utilities under the current 4 million megawatt size standard would continue to be defined as small without adding other electric utilities as small.

The size standard for the banking and other credit intermediation industries (NAICS 522110—522210, and 522293) is $150 million in financial assets (
see
footnote 8 to the table of size standards in § 21.201). The U.S. Bureau of the Census does not publish industry financial data on the banking and credit industries. Using asset and employment data published by the Federal Deposit Insurance Corporation's Statistics on Depository Institutions (available at
http://www2.fdic.gov/SDI/main4.asp
), the average assets per employee of smaller banks is about $2.5 million. Based on those data, a $150 million bank would have, on average, about 60 employees. Applying the methodology described above, SBA is proposing a 50 employee size standard for banking and other credit intermediation industries since that is the nearest of the ten employee size standards proposed by this rule.

Proposal To Add a Maximum Average Annual Receipts Cap as an Additional Component of the Size Standard for Certain Industries

SBA further proposes that 31 industries will have a maximum average annual receipts amount (referred to as a receipts cap) along with the employee-based size standard. To qualify as small, concerns in those industries would have to be no greater in size than the employee-based size standard and have average annual receipts less than the receipts cap amount. SBA proposes that 36 size standards in the following 31 industries have an annual receipts cap along with the proposed employee size standard. Table 4, below, lists those industries and SBA's proposed employee size standards and receipts caps.

Table 4.—Industries With Proposed Receipts Caps

NAICS codes
NAICS U.S. industry title

Proposed number of
employees

Proposed maximum
annual
receipts
($ million)

115310
Support Activities for Forestry
50
N/A

Except,
Forest Fire Suppression
400
$20.0

Except,
Fuels Management Services
400
$20.0

236115
New Single-Family Housing Construction (except Operative Builders)
150
$35.0

236116
New Multifamily Housing Construction (except Operative Builders)
150
$35.0

236117
New Housing Operative Builders
150
$35.0

236118
Residential Remodelers
150
$35.0

236210
Industrial Building Construction
150
$35.0

236220
Commercial and Institutional Building Construction
150
$35.0

237110
Water and Sewer Line and Related Structures Construction
200
$35.0

237120
Oil and Gas Pipeline and Related Structures Construction
200
$35.0

237130
Power and Communication Line and Related Structures Construction
200
$35.0

237210
Land Subdivision
200
$35.0

237310
Highway, Street, and Bridge Construction
200
$35.0

237990
Other Heavy and Civil Engineering Construction
200
$35.0

Except,
Dredging and Surface Cleanup Activities
150
$22.0

518210
Data Processing, Hosting, and Related Services
150
$30.0

541310
Architectural Services
50
$7.0

541330
Engineering Services
50
$7.0

Except,
Military and Aerospace Equipment and Military Weapons
200
$30.0

Except,
Contracts and Subcontracts for Engineering Services Awarded Under the National Energy Policy Act of 1992
200
$30.0

Except,
Marine Engineering and Naval Architecture
150
$30.0

541511
Custom Computer Programming Services
150
$30.0

541512
Computer Systems Design Services
150
$30.0

541513
Computer Facilities Management Services
150
$30.0

541519
Other Computer Related Services
150
$30.0

541611
Administrative Management and General Management Consulting Services
50
$10.0

541612
Human Resources and Executive Search Consulting Services
50
$10.0

541613
Marketing Consulting Services
50
$10.0

541614
Process, Physical Distribution and Logistics Consulting Services
50
$10.0

541618
Other Management Consulting Services
50
$10.0

541620
Environmental Consulting Services
50
$10.0

541690
Other Scientific and Technical Consulting Services
50
$10.0

541990
All Other Professional, Scientific and Technical Services
50
$10.0

561110
Office Administrative Services
50
$10.0

561210
Facilities Support Services
400
$40.0

611519
Other Technical and Trade Schools
50
N/A

Except,
Job Corps Centers
400
$30.0

In some industries, businesses have more latitude in deciding whether to hire employees to perform work or to subcontract the work to others. For example, general contractors can decide what and how much construction work to perform themselves and what work to subcontract to others. Under an employee-based size standard, a business may exceed the size standard because it decided to perform more work in-house while another business performing the same level of work stays under the employee size standard because more work is subcontracted. Under SBA's Small Business Size Regulations, the employees of a subcontractor are not included in counting the number of employees of a business (unless affiliation was found between the business and subcontractor). SBA recognizes that such decisions and their implications on small business status are best made by the management of concerns that will be affected. SBA is concerned, however, about cases where businesses operating in industries that have greater latitude in subcontracting significant portions of work purposely subcontract an unusual amount of work relative to customary industry practices to retain small business status. Because of this potential, SBA proposes to establish an average annual receipts cap along with employee size standards in the 31 industries listed in Table 4, above.

In the industries for which SBA proposes an employee-based size standards and receipts cap size standard, it expects that most businesses which are small under the applicable employee size standard will also meet the corresponding receipts cap. The purpose of the receipts cap is to prevent businesses from creatively manipulating their employment levels to remain small. Without such a receipts cap requirement, SBA might otherwise, and inappropriately, provide large businesses with assistance that is intended for small businesses, and put small businesses in the position of competing against businesses that by any consideration are not small. As discussed further below, the receipts cap will include almost all businesses under the employee size standard, but exclude those businesses that have an inordinate amount of receipts for their level of employment.

How the SBA Determined the Maximum Annual Receipts Cap Level for the Industry Activities in Table 4 (Above)

The methodology in determining the receipts caps was to first examine the size distribution of firms that are presently in SBA's Procurement Marketing and Access (PRO-Net) database which was merged with the Department of Defense Central Contractor Registration—the SBA's list of small businesses interested in doing business with the Federal Government. For each of the 31 industries under review, it has data on the number of

employees and the annual receipts of each firm in that database that is active in the industry. SBA analyzed employment and receipts data of small businesses near the proposed employee size standard. By calculating a receipts to employee ratio for each of these small businesses, and then multiplying that ratio by the proposed size standard in employees, the SBA was able to estimate at what point a small business would lose eligibility under a receipt cap if it were to expand to the new size standard limit based on employees. In other words, if a business has 110 employees, what level of receipts would it produce if it expanded to a proposed 150 employee size standard.

The proposed receipt caps were designed to permit a majority of the small businesses that are presently under the size standard to expand to the proposed employee-based size standard without exceeding the dollar caps. The receipts caps proposed generally range from 22% to 35% higher than the current receipts size standards for those industries with a size standard of $15 million or higher, and from 67% to 74% higher than the current receipts size standard for those industries that have a receipts size standard of $6 million or less. The only exemption to this analysis was for the newly established Job Corps Centers size standard (part of NAICS 611519). This sub-industry consists of a small number of businesses. The current receipts size standard fully captures all small businesses under the proposed employee size standard for this sub-industry category and is retained as the receipts cap.

Simplification of Other Program and Special Size Standards

SBA has established a number of size standards to meet the needs of specific programs or to address special Federal procurement considerations. SBA proposes to eliminate or modify six of these size standards in an attempt to further simplify size standards and to apply consistent size standards for all Federal Government programs and purposes.

1. Surety Bond Guarantee (SBG) Program size standard: SBA proposes that any construction (general or special trade) concern or a concern performing a contract for services is small provided it meets the size standard for the NAICS code for its primary industry. Currently, the size standard for the SBG Program is $6 million for performing contracts for construction (general or special trades) or services (see 13 CFR 121.301(d)(1)).

Federal procurement regulations require a contractor to meet the size standard for the NAICS code that best describes the principal purposes of the procurement. Therefore, if a contractor bids and is successful as a prime contractor on a Federal procurement, it may qualify as a small business if it meets the size standard for the procurement, even if the size standard exceeds $6 million. Further, § 121.305 states “A concern qualified as small for a particular procurement, including an 8(a) subcontract, is small for financial assistance directly and primarily relating to the performance of the particular procurement.” SBA's SBG Program is a financial assistance program, and contractors awarded Federal contracts requiring a surety bond are therefore eligible for SBA's guarantee on the bond, if a guarantee is needed, including those with size standards in excess of $6 million, provided the contractor meets the size standard for its industry.

However, for SBA to guarantee a surety bond involving a subcontract or a bond running to an obligee other than the Federal Government, such as a private owner or non-Federal political subdivision or agency, a contractor is not eligible for an SBA guarantee unless it meets the current $6 million size standard. SBA believes this is inconsistent with the intent of its SBG Program because it does not provide assistance to small businesses otherwise eligible as small for SBA's other financial assistance programs. SBA proposes to eliminate the $6 million size standard. SBA proposes, rather, that a contractor applying for SBA's guarantee meet the size standard for its primary industry for any bond (§ 121.301(d)). This is consistent with the intent of this proposed rule, which is to base all size standards on number of employees and have a single size standard for all programs.

2. Petroleum refining size standard: The size standard for the Petroleum Refineries industry (NAICS 324110) is 1,500 employees. In addition, for purposes of the Federal Government's procurement of refined petroleum products, the refiner may not have more than 125,000 barrels per calendar day (bpcd) capacity of petroleum-based inputs, including crude oil or bona fide feedstocks. This is included in Footnote 4 to SBA's current table of small business size standards. SBA increased the refining capacity from 75,000 bpcd to 125,000 bpcd, effective April 28, 2003 (see 68 FR 15047 dated March 28, 2003, available at
http://www.sba.gov/size/indexwhatsnew.html#petrol-fr
).

SBA proposes to extend the 125,000 bpcd size standard component to all Federal Government programs. Before the April 28, 2003 revision, SBA had progressively increased the refining capacity component over a number of years. In its last two rulemaking actions pertaining to the petroleum refining size standard, SBA's proposed rules included a request for comments on whether SBA should retain or eliminate the refining capacity component. SBA retained it because industry comments have always been very strong in favor of doing so. The petroleum refining industry has always affirmed that refining capacity is the single best measure of a refiner's size. Further, it is the same measure that the U.S. Department of Energy, Energy Information Administration, uses to assess the size of refiners and their refineries.

Before proposing to increase the refining capacity component, SBA studied the petroleum refining industry to analyze the effect that it would have on existing small businesses. The final rule increasing it to 125,000 bpcd did not increase the number of small businesses, nor did any small businesses lose eligibility. That is, there was no change in the number of small refiners. There were other reasons for the rule, more fully described in the
Federal Register
notice cited above. This proposed change (footnote 5, § 121.201) is consistent with SBA's intention to simplify size standards, by having a single size standard apply to an industry for all Federal Government programs and purposes.

Because the remaining eligibility requirements for petroleum refiners are Federal procurement specific, and not part of the size standard, SBA does not propose to extend them to other Federal programs.

3. Tire manufacturing size standard: The size standard for the Tire Manufacturing (except Retreading) industry (NAICS 326211) is 1,000 employees. For the Federal Government's procurement of pneumatic tires under this NAICS code and within Census Classification codes 30111 and 30112, SBA has established an alternative size standard based on a concern's share of the worldwide tire market (see Footnote 5 to SBA's current table of size standards). Tire manufacturers satisfying the provisions of this alternative size standard exceed 1,000 employees in size. SBA implemented these requirements effective January 18, 1967 (see 31 FR 15737). SBA believes, based on Federal procurement data, that this footnote is no longer necessary. A review of Federal

contract awards in fiscal years 2001 and 2002 found that all small businesses receiving tire supply contracts met the current 1,000 employee size standard. SBA therefore proposes to eliminate this alternative size standard.

4. Sales or lease of Federal Government property: SBA proposes to modify the following three receipts-based and one employee-based size standards that pertain to programs involving the sale and lease of Federal Government property:

(a) Size standards for sales or leases of Government property: The current size standard for concerns not primarily engaged in manufacturing is $6 million (see § 121.502(a)(2)). SBA proposes to establish a size standard of 50 employees for those concerns. This is consistent with the intent of this proposed rule, which is to base all size standards on number of employees. Also, this proposal is consistent with the criteria to propose a 50 employee size standard for industries that currently have a $6 million size standard unless certain conditions exits. SBA does not believe industry or procurement factors exist to warrant a different size standard.

(b) Size standards for the purchase of Government-owned Special Salvage Timber: To purchase Government-owned Special Salvage Timber from the U.S. Forest Service or the U.S. Bureau of Land Management, a concern, with its affiliates, can have no more than 25 employees during any of its pay periods for the last twelve months, and must meet other requirements as well (see § 121.508). SBA proposes to increase this size standard to 50 employees. SBA believes that applying the 50 employee anchor size standard as a minimum size standard is warranted to achieve its overall goal of simplicity and uniformity among the various size standards. SBA does not propose to amend any other parts of § 121.508, since they are Federal procurement specific requirements and not part of the size standard.

(c) Size standard for leasing of Government land for coal mining: Under the current size standard, a concern, together with its affiliates, may have no more than 250 employees (see § 121.509(a)). SBA proposes increasing this to 300 employees. Retaining 250 employees as a size standard would increase the number of size standards overall (from 10 to 11), and this would be the only 250 employee size standard. SBA has decided to round up this size standard to the 300 employee level instead of rounding down to 250 employees to avoid eliminating eligibility of currently defined small businesses for this program.

(d) Size standard for stockpile purchases: Under the current standard, a concern, together with its affiliates, may not have average annual receipts that exceed $48.5 million (§ 121.512(b)). SBA proposes to establish a size standard of 400 employees for those concerns. Based on the ratio of receipts to employees of businesses with $48.5 million or less in receipts ($109,000 receipts per employee), this size standard equates to 445 employees. Four hundred employees is the closest of the 10 employee-based size standards proposed in this rule. SBA believes that the proposed size standard would not eliminate the eligibility of currently defined small businesses for this program

5. Nonmanufacturer size standard: The SBA proposes to revise the nonmanufacturer size standard from 500 employees to 100 employees. A nonmanufacturer is a business that provides a manufactured product to the Federal Government that it itself did not manufacture (see § 121.406(b)). Substantially all nonmanufacturers are in industries categorized within the Wholesale Trade industries (NAICS Sector 42). A size standard of 100 employees applies to wholesalers for SBA and Federal Government programs, except for Federal procurement programs. Therefore, to further the simplification of small business size standards, the SBA is proposing to eliminate the special 500 employee nonmanufacturer size standard by applying the 100 employee size standard for Wholesale Trade to Federal procurement programs.

SBA continues to believe that 100 employees is an appropriate size standard for the Wholesale Trade Sector. The average size of a wholesaler is 16 employees. Wholesalers with fewer than 100 employees comprise 97% of all wholesalers, employ about 50% of all employees, and generate one-third of total industry receipts. The relatively small share of total industry receipts generated by small wholesalers, however, reflects the significantly higher receipts per employee generated by larger wholesalers in the industry than by small wholesalers. Given the industry share of firms and employment of wholesalers with fewer than 100 employees, SBA believes a current Wholesale Trade Sector size standard of 100 employees would be an appropriate size standard.

Exceptions to the SBA's Proposal To Simplify Size Standards by Basing All of Them on Number of Employees

This proposed rule does not change three size standards, because they are either established by statute or reflect unique program objectives. To ensure that the public is aware of the reasons for not modifying these size standards, SBA explains why it does not propose to modify the following:

1. Agricultural Enterprises: The Small Business Act (15 U.S.C. 632(a)(1)) states in section 3(a)(1) “an agricultural enterprise shall be deemed to be a small business concern if it (including its affiliates) has annual receipts not in excess of $750,000.” This provision applies to concerns in the Crop Production (NAICS Subsector 111) and Animal Production (NAICS Subsector 112) industries. SBA has no authority to modify this Congressionally-mandated size standard.

2. Net Worth/Net Income: Size standards based on the net worth and net income of a business concern are an alternative to SBA's industry-based size standards for the CDC and SBIC financial assistance programs authorized under Title III and Title V of the Small Business Investment Act (Pub. L. 100-107). That is, an applicant may qualify as a small business if it meets the size standard for its primary industry or the net worth and net income size standards. For the CDC program, an applicant must meet either: (a) SBA's size standard established for its primary industry activity; or (b) have tangible net worth not in excess of $7 million and average net income after Federal income taxes for its two preceding completed fiscal years not in excess of $2.5 million (§ 121.301(b)). For assistance under SBA's SBIC Program, an applicant must meet either: (a) SBA's size standard established for its primary industry activity; or, (b) with its affiliates, have tangible net worth not in excess of $18 million and average net income after Federal income taxes for its two preceding completed fiscal years not in excess of $6 million (§ 121.301(c)).

The alternative net worth and net income size standards for the CDC and SBIC programs have been in place for many years and have worked well in serving the intended beneficiaries. Most small businesses qualifying under the net worth and net income size standards also qualify under the industry-based size standards. However, the option to qualify as small under the industry-based size standards ensures that a small business eligible for other SBA programs is also eligible for assistance under the CDC and SBIC Programs. Therefore, SBA believes that the net worth and net income size standards should be retained for these programs.

Impact on Small Business Eligibility of the Proposed Rule

This proposed rule would change the 514 size standards that are based on receipts, financial assets, or electric generation. As discussed above, the proposed conversion of these receipts-based size standards to employee-based size standards attempts to establish an employment level that is generally equivalent to the receipts-based size standard. Because of variation within industries, some businesses will gain or lose small business eligibility. The decision to establish only ten employee size standard levels also results in some businesses gaining or losing small business eligibility. An analysis of the impact of the proposed rule on small business eligibility shows that a relatively small number of businesses will be affected. Out of approximately 4.4 million businesses in the industries with revised size standards, 35,200 businesses could gain and 34,100 could lose small business eligibility, with the net effect of 1,110 additional businesses defined as small. The 69,300 businesses affected by this proposal represent 1.6% of the 4.4 million businesses in industries with changing size standards. The regulatory impact and regulatory flexibility analyses discussed below describe the impact of this proposal in greater detail.

Alternatives to This Proposed Rule

SBA considered a number of alternative approaches to simplify and restructure its size standards. These are briefly described below. SBA welcomes comments on these alternatives or other alternatives to restructure and simplify size standards.

1. Retain the existing employee-based size standards, while reducing the 30 receipts-based size standards to a fewer number of size standard levels, such as four to eight different receipts size standards. This approach is similar to SBA's proposals of December 31, 1992 (57 FR 62522) and September 2, 1993 (58 FR 46573), which SBA did not adopt as final rules. As discussed above in this proposed rule, SBA believes a single size measure (with a receipts size standards cap for a limited number of industries) represents a less complicated set of size standards.

2. Establish size standards by industry category that would generally be based on NAICS Industry Sectors or Subsectors, such as the size standards of the three Construction Subsectors. Under this approach, SBA could establish a size standard by number of employees and/or receipts for each industry group, and size standards across industries would vary considerably less. This approach would limit SBA's ability to fully assess the need for distinct size standards for specific industries, especially in the Professional, Scientific, and Technical Services Industry Sector.

3. Base all size standards on number of employees, with no receipts cap component. SBA discusses above in this proposed rule why it believes a receipts cap along with an employee size standard is needed for certain industries.

Request for Comments

SBA requests comments on its proposal to simplify and restructure size standards. Specifically, SBA requests comments on the following issues:

1. Are SBA's small business size standards complex, confusing or difficult to use? If so, please describe to what extent the proposed rule addresses this concern.

2. Should all small business size standards be based on number of employees?

3. Do the proposed size standards essentially maintain the level of small business eligibility within an industry that currently exists under the current receipts-based size standards?

4. Should there be a receipts cap component for those industries where subcontracting and outsourcing opportunities may allow a business to remain small but generate an unusually large amount of receipts?

5. Is it appropriate to apply an additional receipts cap requirement for the 31 industries in Table 4, above? Are there other industries that SBA should have a receipts cap?

6. Are the proposed receipts cap levels an appropriate or acceptable way to exclude large businesses?

7. Is one or more of the alternatives that SBA considered preferable to the proposed rule? If so, please explain why. What would be the impact of SBA's adopting one of the alternatives in place of the proposed rule?

8. Should SBA modify the size standard for its SBG Program and require that any construction (general or special trade) concern or concern performing a contract for services is small provided it meets the size standard for its primary industry?

9. Should SBA extend to all Federal Programs the 125,000 bpcd component of the size standard applicable to the Federal Government's procurement of refined petroleum, as described above?

10. Should the SBA eliminate the 500 employee size standard for nonmanufacturers applicable to Federal procurement programs and apply the Wholesale Trade Sector size standard of 100 employees?

11. Should SBA eliminate the special market share size standard for tire manufacturers, as described above?

12. Does the expanded use of employee-based size standards result in additional burdens on businesses verifying small business status or on Federal agencies that use SBA's size standards? These issues are discussed as part of SBA's regulatory impact and regulatory flexibility analyses of this proposed rule (see following two sections).

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

The Office of Management and Budget (OMB) has determined that this rule is a significant regulatory action for purposes of Executive Order 12866. Size standards determine which businesses are eligible for Federal small business programs. This is not a major rule under the Congressional Review Act, 5 U.S.C. 800. For purposes of Executive Order 12988, SBA has determined that this rule is drafted, to the extent practicable, in accordance with the standards set forth in that order. For purposes of Executive Order 13132, SBA has determined that this rule does not have any federalism implications warranting the preparation of a Federalism Assessment.

For purposes of the Paperwork Reduction Act, 44 U.S.C. Ch. 35, SBA has determined that this rule would not impose new reporting or record keeping requirements. It is important to note, however, that while there are no new reporting and record keeping requirements, the size status of a business in industries that currently have a receipts-based size standard will no longer be based on a concern's Federal Income Tax returns, except for those industries whose size standards have receipts caps. Rather, proof of eligibility as a small business will be a concern's payroll records for the period of measurement specified in § 121.106. SBA acknowledges that, in the event it must determine a business' employment size status, it may be more difficult to verify the accuracy of the payroll records submitted. At times, SBA may request a business provide more information to substantiate its employment information. SBA estimates that it takes four hours, on average, to complete an “Application for Small Business Size Determination” (SBA Form 355, OMB Approval No. 3245-0101). SBA invites comments on

whether using employee-based size standards for new industries would be significantly more burdensome on small businesses and result in additional time to complete SBA Form 355. If so, how could SBA reduce the burden?

Regulatory Impact Analysis

1. Need for This Regulatory Action

Small business size standards have become complicated and burdensome for many users. Because size standards have become more complex over time, SBA believes that they should be made more uniform and easier to use. SBA believes that these simplified size standards will be less of a hindrance to small businesses that would like to participate in Federal small business programs and to personnel involved in small business Federal procurement and lending programs.

SBA is chartered to aid and assist small businesses through a variety of financial, procurement, business development, and advocacy programs. To effectively assist intended beneficiaries of these programs, SBA must establish distinct definitions by which businesses are deemed small businesses. The Small Business Act (Act) gives the SBA Administrator responsibility for establishing small business definitions. The Act also requires that small business definitions vary to reflect industry differences. The supplementary information to this proposed rule explains how SBA proposes to modify size standards, and why it believes that establishing employee-based size standards for all industries will be simpler while defining small businesses as equally well as the current structure.

2. Potential Benefits and Costs of This Regulatory Action

Small businesses will benefit because they will find it easier to use the small business size standards to determine if they are a small business. Also, there will be more common size standards among similar industries. Because size standards will be perceived as being less confusing and more straightforward, more small businesses will be encouraged to participate in Federal Government small business programs.

Other users of SBA's small business size standards, such as Federal Government Contracting Officers and commercial lenders that participate in SBA's financial assistance programs, will also benefit. There will be fewer size standards and they will be able to apply them more easily to their needs, and provide better and faster service to small businesses in need of assistance.

In the Federal Government, SBA's size standards are used for procurement programs, the Small Business Innovation Research Program (SBIR), loan programs, and regulatory flexibility analyses; plus, agencies use the size standards for other programmatic purposes. Currently, six agencies use small business size standards for various programs specific to their agencies. After discussions with each of these agencies, SBA believes that this proposed revision of its size standards would not negatively impact any of the program objectives of these agencies. Three agencies viewed positively the objective of simplifying size standards.

The U.S. Department of Transportation pointed out that certain Federal, state and local disadvantaged businesses enterprise (DBE) programs administer programs to certify businesses as small DBEs. Most of the businesses seeking DBE certification come from the construction and services industries that currently have receipts-based size standards. The change to employee size standards from receipts size standards will require applicants for small DBE certification to state their size in terms of number of employees. If a certification office questions the employment size of an applicant, the applicant will have to substantiate their employment size based on payroll records. A review of payroll records is a more time-consuming process than reviewing an applicant's Federal Income Tax return when questions arise concerning the applicant's receipts size. SBA believes that in most cases, the additional time to request and evaluate an applicant's employment size will not be substantial. SBA requests comments on the use of employee size standards on the DBE certification process and how to minimize an additional burden, if any, on the DBE process.

If an agency believes that a size standard different from an SBA's size standard is appropriate for its programs, it must contact SBA. If the agency seeks to change size standards in a general rulemaking context, then the agency should contact SBA's Office of Size Standards (see 13 CFR 121.901-904). If the agency seeks to change size standards for the purposes of its analysis under the Regulatory Flexibility Act (RFA), then the agency should contact SBA's Office of Advocacy (Advocacy) pursuant to section 601(3) of the RFA. Section 601(3) of the RFA requires the agency to consult with Advocacy and provide opportunity for public comment when it uses a different size standard for the RFA analysis.

Additional costs to the Federal Government will be negligible, if any. There will be approximately 1,100 additional small businesses under the proposed restructured size standards. This is less than 0.03% of the businesses in the affected industries. SBA believes that there will be a savings to the Federal Government because there will be fewer size standards, all having employee-based measures, which will reduce administrative costs.

In this rule, the SBA also proposes to revise the nonmanufacturer size standard from 500 employees to 100 employees. The great majority of nonmanufacturers are categorized under Wholesale Trade Sector (NAICS Sector 42) in which the size standard for all industries is 100 employees, except for Federal procurements. To further the simplification, SBA is proposing the same size standard of 100 employees for Federal procurement for wholesale trade industries under the nonmanufacturer size standard. This shift from a 500 employee size standard to one of 100 employees is estimated to affect 744 firms active in Federal procurement based on the SBA's Pro-Net data base of firms interested in doing business with the Federal Government. This data base includes a total of 30,700 firms in the wholesale trade NAICS codes, and a percentage loss of 2.4% would occur if the 100 employee size standard were finalized.

SBA estimates that there will be little distributional effects if this proposed rule is adopted. Small business size standards primarily serve Federal Government agencies in their procurement programs. Federal prime contractors also use them in their subcontracting plans. Since there will be less than a 0.03% increase in newly eligible small businesses, it is possible that a very limited amount of the Federal contracts will transfer from non-small businesses to small businesses.

The proposed revision to the current size standard structure is consistent with SBA's statutory mandate to assist small business. This regulatory action promotes the Administration's objectives. One of SBA's goals in support of the Administration's objectives is to help individual small businesses succeed through fair and equitable access to capital and credit. Reviewing and modifying size standards, when appropriate, ensures that intended beneficiaries have access to small business programs designed to assist them. Size standards do not interfere with State, local, or tribal governments in the exercise of their government functions. In a few cases, State and local governments and

political subdivisions have voluntarily adopted SBA's size standards for their programs to eliminate the need to establish an administrative mechanism to develop their own size standards.

Initial Regulatory Flexibility Analysis

Under the RFA, this rule, if finalized, could have a significant impact on a substantial number of small entities because 35,200 businesses could gain and 34,100 could lose small business eligibility for Federal Government programs. SBA estimates that the net effect will be approximately 1,100 more eligible small businesses than at present. Immediately below, SBA sets forth an initial regulatory flexibility analysis of this rule addressing the following: (1) Need for and objective of the rule; (2) description and estimate of the number of small entities to which the rule will apply; (3) projected reporting, record keeping, and other compliance requirements of the rule; (4) relevant Federal rules that may duplicate, overlap, or conflict with the rule; and (5) alternatives to allow the Agency to accomplish its regulatory objectives while minimizing the impact on small entities.

1. Need for and Objective of the Rule

Small business size standards have become complicated and difficult to apply for many users. Because size standards have become so complex and confusing, SBA believes size standards should be more uniform and consistent, easier to use, and more reliable. SBA believes that these simplified size standards will be less of a hindrance to small businesses that would like to participate in Federal small business programs. In addition, it will reduce perceived impediments for providers of small business assistance who use them, such as personnel involved in Federal procurement and commercial lending, and possibly increase small business participation in Federal programs.

2. Description and Estimate of the Number of Small Entities To Which the Rule Will Apply

The SBA estimates that the simplification of size standards by converting receipt-based size standards to employee-based size standards will have a net impact of increasing the number of businesses eligible for SBA assistance by 1,100 firms. This includes an additional 35,200 businesses in 196 industries and the loss of 34,100 businesses in 229 industries. Overall, the SBA estimates that a total of 69,300 businesses could be impacted by this rule in terms of eligibility for SBA's programs. Since approximately 4.4 million businesses are active in industries covered by this rule, SBA estimates that 1.6% of businesses could be affected. However, the great majority of these businesses are not involved in SBA's programs in any one year, and the actual impact is likely to be only a small proportion of the 69,300 estimate. SBA's guaranteed loan program, for example, generated approximately 55,000 loans in FY 2002, indicating that just over one percent of eligible small businesses seek out SBA financial assistance in a given year. The SBA's PRO-Net database of small businesses interested in Federal procurement includes approximately 200,000 businesses—again, only a small proportion (about 4%) of businesses considered small by the SBA. Overall, SBA estimates that fewer than 3,000 businesses out of 4.4 million firms will be directly affected if these proposed changes were to be finalized, and that about half of these businesses would gain eligibility while the other half would lose eligibility.

Although the overall impact will be small relative to the number of businesses with revised size standards, certain industries will be impacted more than others. In particular, the SBA notes that the two restaurant industries, Full Service Restaurants (NAICS 722110) and Limited Service Restaurants (NAICS 722211), have the largest number of businesses losing eligibility for SBA assistance if this rule were to be finalized. In total, these two industries would lose about 14,600 businesses out of 272,000 businesses in both industries, a loss of 5.4% of the total. This stems from SBA's moving from a $6 million size standard to a 50 employee size standard in these industries. However, even under the new anchor size standard of 50 employees, 252,000 out of 272,000 businesses in these two restaurant industries would remain small and eligible for SBA assistance, almost 93% of the total. Other industries with relatively higher proportion of small businesses that could lose eligibility include Child Day Care Services (NAICS 624410), with a loss of 3.1% of businesses; Golf Courses and Country Clubs (NAICS 7138910), with a loss of 10.7% of businesses; Vocational Rehabilitation Services (NAICS 624310), with a loss of 20.7% of businesses; and Fitness and Recreational Sports Centers (NAICS 713940), with a loss of 5.4% of businesses. Among industries gaining eligibility, the biggest impact is Offices of Real Estate Agents and Brokers (NAICS 531210), with an additional 3,600 businesses out of a total of 54,700, or 6.6%.

Overall, SBA estimates that most industries will experience a very small impact from this rule relative to the total number of businesses that are active in industries covered by this rule. Among industries for which the SBA has industry data provided by the U.S. Bureau of the Census, there are a total of 440 industries with 4.4 million businesses, or approximately 10,000 businesses in the average industry. Of these 440 industries, 198 would have a total impact of fewer than 20 businesses, while 288 would have a total impact of fewer than 50 businesses.

Also in this rule, the SBA proposes to revise the nonmanufacturer size standard from 500 employees to 100 employees. The great majority of nonmanufacturers are categorized under Wholesale Trade Sector (NAICS Sector 42) in which the size standard for all industries is 100 employees, except for Federal procurements. To further the simplification, SBA is proposing the same size standard of 100 employees for Federal procurements for wholesale trade industries under the nonmanufacturer size standard. This shift from a 500 employee size standard to one of 100 employees is estimated to affect 744 firms active in Federal procurement based on the SBA's PRO-Net data base of firms interested in doing business with the Federal Government. This data base includes a total of 30,700 firms in the wholesale trade NAICS codes, and a percentage loss of 2.4% would occur if the 100 employee size standard were finalized.

3. Projected Reporting, Record Keeping, and Other Compliance Requirements of the Rule

The new table with all size standards based on number of employees does not impose any additional reporting, record keeping, or compliance requirements on small entities. Users may need to revise existing data bases that use current size standards. However, this is true anytime SBA changes or otherwise modifies a size standard. For example, a much more extensive change occurred when SBA converted from the Standard Industrial Classification (SIC) system to NAICS effective October 1, 2000, and later adopted, effective October 1, 2002, the U.S. Office of Management and Budget's 2002 modifications to NAICS. SBA was not made aware of any user problems with those actions.

It is important to note, however, that while there are no new reporting and record keeping requirements, the size status of a business in industries that currently have a receipts-size standard will no longer be based on a concern's Federal Income Tax returns, except for

those industries whose size standards have receipts caps. Rather, proof of eligibility as a small business will be a concern's payroll records for the period of measurement specified in § 121.106. SBA acknowledges that, in the event it must determine a business' employment size status, it may be more difficult to verify the accuracy of the payroll records submitted. At times, SBA may request a business to provide more information to substantiate its employment information. SBA estimates that it takes four hours, on average, to complete an “Application for Small Business Size Determination” (SBA Form 355). SBA invites comments as to whether using employee-based size standards for new industries would be significantly more burdensome on small businesses and result in additional time to complete a SBA Form 355 and, if so, how SBA could reduce the burden.

4. Relevant Federal Rules That May Duplicate, Overlap, or Conflict With the Rule

In the Federal Government, SBA's size standards are used for procurement programs, the SBIR Program, loan programs, and regulatory flexibility analysis; plus, agencies use the size standards for other programmatic purposes. Currently, six agencies use small business size standards for various programs specific to their agencies. After discussions with each of these agencies, SBA believes that this proposed revision of its size standards will not negatively impact any of the program objectives of these agencies. Three agencies viewed positively the objective of simplifying size standards.

The U.S. Department of Transportation pointed out that certain Federal, state, and local governments administer programs to certify businesses as small disadvantaged business enterprises (DBE). Most of the businesses seeking DBE certification come from the construction and services industries that currently have receipts-based size standards. The change to employee size standards from receipts size standards will require applicants for small DBE certification to state their size in terms of number of employees. If a certification office questions the employment size of an applicant, the applicant will have to substantiate its employment size based on payroll records. A review of payroll records is a more time-consuming process than reviewing an applicant's Federal Income Tax return when questions arise concerning the applicant's receipts size. SBA believes that in most cases, the additional time to request and evaluate an applicant's employment size will not be substantial. SBA requests comments on the use of employee size standards on the DBE certification process and how to minimize an additional burden, if any, on the DBE process.

5. Alternatives To Allow the Agency To Accomplish Its Regulatory Objectives While Minimizing the Impact on Small Entities

As discussed above in the
Supplementary Information,
there are three alternatives to the proposed rule: (a) Retain the existing employee-based size standards, while reducing the 30 receipts-based size standards to a fewer number of size standard levels, such as four to eight different receipts size standards; (b) establish size standards by industry category that would generally be based on NAICS Industry Sectors or Subsectors, such as the size standards of the three Construction Subsectors; and (c) base all size standards on number of employees, with no receipts cap component.

SBA believes the proposed size standards based on number of employees will simplify size standards and will likely have a minimal adverse impact on small entities. The other alternatives SBA considered would achieve fewer benefits in terms of simplifying size standards or have a much greater impact on the number of businesses either gaining or losing small business eligibility.

List of Subjects in 13 CFR Part 121

Administrative practice and procedure, Government procurement, Government property, Grant programs—business, Individuals with disabilities, Loan programs—business, Reporting and recordkeeping requirements, Small businesses.

For the reasons set forth in the preamble, SBA proposes to amend part 13 CFR Part 121.

PART 121—SMALL BUSINESS SIZE REGULATIONS

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

Authority:

15 U.S.C. 632(a), 634(b)(6), 636(b), 637(a), 644(c), and 662(5); and Sec. 304, Pub. L. 103-403, 108 Stat. 4175, 4188, Pub. L. 106-24, 113 Stat. 39.

2. Revise § 121.201 to read as follows:

3.
§ 121.201 What size standards has SBA identified by North American Industry Classification System codes?

The size standards set forth in this section apply to all SBA programs unless otherwise specified in this part. The size standards themselves are expressed in number of employees. Some of the NAICS industries have an additional maximum annual receipts amount. For those NAICS industries with additional annual receipts amounts, the business concern must not exceed the employee-based size standard and the annual receipts amount to qualify as a small business. The number of employees and annual receipts amount are together a single size standard, and they indicate the maximum allowed for a concern, together with its affiliates, to be considered a small business.

NAICS codes
NAICS U.S. industry title
Size standards in number of employees

Maximum
average
annual
receipts
($ million)

Sector 11—Agriculture, Forestry, Fishing and Hunting

Subsector 111—Crop Production

111110
Soybean Farming

$0.75

111120
Oilseed (except Soybean) Farming

$0.75

111130
Dry Pea and Bean Farming

$0.75

111140
Wheat Farming

$0.75

111150
Corn Farming

$0.75

111160
Rice Farming

$0.75

111191
Oilseed and Grain Combination Farming

$0.75

111199
All Other Grain Farming

$0.75

111211
Potato Farming

$0.75

111219
Other Vegetable (except Potato) and Melon Farming

$0.75

111310
Orange Groves

$0.75

111320
Citrus (except Orange) Groves

$0.75

111331
Apple Orchards

$0.75

111332
Grape Vineyards

$0.75

111333
Strawberry Farming

$0.75

111334
Berry (except Strawberry) Farming

$0.75

111335
Tree Nut Farming

$0.75

111336
Fruit and Tree Nut Combination Farming

$0.75

111339
Other Noncitrus Fruit Farming

$0.75

111411
Mushroom Production

$0.75

111419
Other Food Crops Grown Under Cover

$0.75

111421
Nursery and Tree Production

$0.75

111422
Floriculture Production

$0.75

111910
Tobacco Farming

$0.75

111920
Cotton Farming

$0.75

111930
Sugarcane Farming

$0.75

111940
Hay Farming

$0.75

111991
Sugar Beet Farming

$0.75

111992
Peanut Farming

$0.75

111998
All Other Miscellaneous Crop Farming

$0.75

Subsector 112—Animal Production

112111
Beef Cattle Ranching and Farming

$0.75

112112
Cattle Feedlots
50

112120
Dairy Cattle and Milk Production

$0.75

112210
Hog and Pig Farming

$0.75

112310
Chicken Egg Production
50

112320
Broilers and Other Meat Type Chicken Production

$0.75

112330
Turkey Production

$0.75

112340
Poultry Hatcheries

$0.75

112390
Other Poultry Production

$0.75

112410
Sheep Farming

$0.75

112420
Goat Farming

$0.75

112511
Finfish Farming and Fish Hatcheries

$0.75

112512
Shellfish Farming

$0.75

112519
Other Animal Aquaculture

$0.75

112910
Apiculture

$0.75

112920
Horse and Other Equine Production

$0.75

112930
Fur-Bearing Animal and Rabbit Production

$0.75

112990
All Other Animal Production

$0.75

Subsector 113—Forestry and Logging

113110
Timber Tract Operations
50

113210
Forest Nurseries and Gathering of Forest Products
50

113310
Logging
500

Subsector 114—Fishing, Hunting and Trapping

114111
Finfish Fishing
50

114112
Shellfish Fishing
50

114119
Other Marine Fishing
50

114210
Hunting and Trapping
50

Subsector 115—Support Activities for Agriculture and Forestry

115111
Cotton Ginning
50

115112
Soil Preparation, Planting, and Cultivating
50

115113
Crop Harvesting, Primarily by Machine
50

115114
Postharvest Crop Activities (except Cotton Ginning)
50

115115
Farm Labor Contractors and Crew Leaders
50

115116
Farm Management Services
50

115210
Support Activities for Animal Production
50

115310
Support Activities for Forestry
50

Except,

Forest Fire Suppression
1

1
400

1
$20.0

Except,

Fuels Management Services
1

1
400

1
$20.0

Sector 21—Mining

Subsector 211—Oil and Gas Extraction

211111
Crude Petroleum and Natural Gas Extraction
500

211112
Natural Gas Liquid Extraction
500

Subsector 212—Mining (except Oil and Gas)

212111
Bituminous Coal and Lignite Surface Mining
500

212112
Bituminous Coal Underground Mining
500

212113
Anthracite Mining
500

212210
Iron Ore Mining
500

212221
Gold Ore Mining
500

212222
Silver Ore Mining
500

212231
Lead Ore and Zinc Ore Mining
500

212234
Copper Ore and Nickel Ore Mining
500

212291
Uranium-Radium-Vanadium Ore Mining
500

212299
All Other Metal Ore Mining
500

212311
Dimension Stone Mining and Quarrying
500

212312
Crushed and Broken Limestone Mining and Quarrying
500

212313
Crushed and Broken Granite Mining and Quarrying
500

212319
Other Crushed and Broken Stone Mining and Quarrying
500

212321
Construction Sand and Gravel Mining
500

212322
Industrial Sand Mining
500

212324
Kaolin and Ball Clay Mining
500

212325
Clay and Ceramic and Refractory Minerals Mining
500

212391
Potash, Soda, and Borate Mineral Mining
500

212392
Phosphate Rock Mining
500

212393
Other Chemical and Fertilizer Mineral Mining
500

212399
All Other Nonmetallic Mineral Mining
500

Subsector 213—Support Activities for Mining

213111
Drilling Oil and Gas Wells
500

213112
Support Activities for Oil and Gas Operations
50

213113
Support Activities for Coal Mining
50

213114
Support Activities for Metal Mining
50

213115
Support Activities for Nonmetallic Minerals (except Fuels)
50

Sector 22—Utilities

Subsector 221—Utilities

221111
Hydroelectric Power Generation
1,000

221112
Fossil Fuel Electric Power Generation
1,000

221113
Nuclear Electric Power Generation
1,000

221119
Other Electric Power Generation
1,000

221121
Electric Bulk Power Transmission and Control
1,000

221122
Electric Power Distribution
1,000

221210
Natural Gas Distribution
500

221310
Water Supply and Irrigation Systems
50

221320
Sewage Treatment Facilities
50

221330
Steam and Air-Conditioning Supply
50

Sector 23—Construction

Subsector 236—Construction of Buildings

236115
New Single-Family Housing Construction (except Operative Builders)
150
$35.0

236116
New Multifamily Housing Construction (except Operative Builders)
150
$35.0

236117
New Housing Operative Builders
150
$35.0

236118
Residential Remodelers
150
$35.0

236210
Industrial Building Construction
150
$35.0

236220
Commercial and Institutional Building Construction
150
$35.0

Subsector 237—Heavy and Civil Engineering Construction

237110
Water and Sewer Line and Related Structures Construction
200
$35.0

237120
Oil and Gas Pipeline and Related Structures Construction
200
$35.0

237130
Power and Communication Line and Related Structures Construction
200
$35.0

237210
Land Subdivision
200
$35.0

237310
Highway, Street, and Bridge Construction
200
$35.0

237990
Other Heavy and Civil Engineering Construction
200
$35.0

Except,

Dredging and Surface Cleanup Activities
2

2
150

2
$22.0

Subsector 238—Specialty Trade Contractors

238110
Poured Concrete Foundation and Structure Contractors
100

238120
Structural Steel and Precast Concrete Contractors
100

238130
Framing Contractors
100

238140
Masonry Contractors
100

238150
Glass and Glazing Contractors
100

238160
Roofing Contractors
100

238170
Siding Contractors
100

238190
Other Foundation, Structure, and Building Exterior Contractors
100

238210
Electrical Contractors
100

238220
Plumbing, Heating, and Air-Conditioning Contractors
100

238290
Other Building Equipment Contractors
100

238310
Drywall and Insulation Contractors
100

238320
Painting and Wall Covering Contractors
100

238330
Flooring Contractors
100

238340
Tile and Terrazzo Contractors
100

238350
Finish Carpentry Contractors
100

238390
Other Building Finishing Contractors
100

238910
Site Preparation Contractors
100

238990
All Other Specialty Trade Contractors
100

Except,

Building and Property Specialty Trade Services
3

3
100

Sectors 31—33—Manufacturing

Subsector 311—Food Manufacturing

311111
Dog and Cat Food Manufacturing
500

311119
Other Animal Food Manufacturing
500

311211
Flour Milling
500

311212
Rice Milling
500

311213
Malt Manufacturing
500

311221
Wet Corn Milling
750

311222
Soybean Processing
500

311223
Other Oilseed Processing
1,000

311225
Fats and Oils Refining and Blending
1,000

311230
Breakfast Cereal Manufacturing
1,000

311311
Sugarcane Mills
500

311312
Cane Sugar Refining
750

311313
Beet Sugar Manufacturing
750

311320
Chocolate and Confectionery Manufacturing from Cacao Beans
500

311330
Confectionery Manufacturing from Purchased Chocolate
500

311340
Non-Chocolate Confectionery Manufacturing
500

311411
Frozen Fruit, Juice and Vegetable Manufacturing
500

311412
Frozen Specialty Food Manufacturing
500

311421

Fruit and Vegetable Canning
4

4
500

311422
Specialty Canning
1,000

311423
Dried and Dehydrated Food Manufacturing
500

311511
Fluid Milk Manufacturing
500

311512
Creamery Butter Manufacturing
500

311513
Cheese Manufacturing
500

311514
Dry, Condensed, and Evaporated Dairy Product Manufacturing
500

311520
Ice Cream and Frozen Dessert Manufacturing
500

311611
Animal (except Poultry) Slaughtering
500

311612
Meat Processed from Carcasses
500

311613
Rendering and Meat By-product Processing
500

311615
Poultry Processing
500

311711
Seafood Canning
500

311712
Fresh and Frozen Seafood Processing
500

311811
Retail Bakeries
500

311812
Commercial Bakeries
500

311813
Frozen Cakes, Pies, and Other Pastries Manufacturing
500

311821
Cookie and Cracker Manufacturing
750

311822
Flour Mixes and Dough Manufacturing from Purchased Flour
500

311823
Dry Pasta Manufacturing
500

311830
Tortilla Manufacturing
500

311911
Roasted Nuts and Peanut Butter Manufacturing
500

311919
Other Snack Food Manufacturing
500

311920
Coffee and Tea Manufacturing
500

311930
Flavoring Syrup and Concentrate Manufacturing
500

311941
Mayonnaise, Dressing and Other Prepared Sauce Manufacturing
500

311942
Spice and Extract Manufacturing
500

311991
Perishable Prepared Food Manufacturing
500

311999
All Other Miscellaneous Food Manufacturing
500

Subsector 312—Beverage and Tobacco Product Manufacturing

312111
Soft Drink Manufacturing
500

312112
Bottled Water Manufacturing
500

312113
Ice Manufacturing
500

312120
Breweries
500

312130
Wineries
500

312140
Distilleries
750

312210
Tobacco Stemming and Redrying
500

312221
Cigarette Manufacturing
1,000

312229
Other Tobacco Product Manufacturing
500

Subsector 313—Textile Mills

313111
Yarn Spinning Mills
500

313112
Yarn Texturizing, Throwing and Twisting Mills
500

313113
Thread Mills
500

313210
Broadwoven Fabric Mills
1,000

313221
Narrow Fabric Mills
500

313222
Schiffli Machine Embroidery
500

313230
Nonwoven Fabric Mills
500

313241
Weft Knit Fabric Mills
500

313249
Other Knit Fabric and Lace Mills
500

313311
Broadwoven Fabric Finishing Mills
1,000

313312
Textile and Fabric Finishing (except Broadwoven Fabric) Mills
500

313320
Fabric Coating Mills
1,000

Subsector 314—Textile Product Mills

314110
Carpet and Rug Mills
500

314121
Curtain and Drapery Mills
500

314129
Other Household Textile Product Mills
500

314911
Textile Bag Mills
500

314912
Canvas and Related Product Mills
500

314991
Rope, Cordage and Twine Mills
500

314992
Tire Cord and Tire Fabric Mills
1,000

314999
All Other Miscellaneous Textile Product Mills
500

Subsector 315—Apparel Manufacturing

315111
Sheer Hosiery Mills
500

315119
Other Hosiery and Sock Mills
500

315191
Outerwear Knitting Mills
500

315192
Underwear and Nightwear Knitting Mills
500

315211
Men's and Boys' Cut and Sew Apparel Contractors
500

315212
Women's, Girls', and Infants' Cut and Sew Apparel Contractors
500

315221
Men's and Boys' Cut and Sew Underwear and Nightwear Manufacturing
500

315222
Men's and Boys' Cut and Sew Suit, Coat and Overcoat Manufacturing
500

315223
Men's and Boys' Cut and Sew Shirt (except Work Shirt) Manufacturing
500

315224
Men's and Boys' Cut and Sew Trouser, Slack and Jean Manufacturing
500

315225
Men's and Boys' Cut and Sew Work Clothing Manufacturing
500

315228
Men's and Boys' Cut and Sew Other Outerwear Manufacturing
500

315231
Women's and Girls' Cut and Sew Lingerie, Loungewear and Nightwear Manufacturing
500

315232
Women's and Girls' Cut and Sew Blouse and Shirt Manufacturing
500

315233
Women's and Girls' Cut and Sew Dress Manufacturing
500

315234
Women's and Girls' Cut and Sew Suit, Coat, Tailored Jacket and Skirt Manufacturing
500

315239
Women's and Girls' Cut and Sew Other Outerwear Manufacturing
500

315291
Infants' Cut and Sew Apparel Manufacturing
500

315292
Fur and Leather Apparel Manufacturing
500

315299
All Other Cut and Sew Apparel Manufacturing
500

315991
Hat, Cap and Millinery Manufacturing
500

315992
Glove and Mitten Manufacturing
500

315993
Men's and Boys' Neckwear Manufacturing
500

315999
Other Apparel Accessories and Other Apparel Manufacturing
500

Subsector 316—Leather and Allied Product Manufacturing

316110
Leather and Hide Tanning and Finishing
500

316211
Rubber and Plastics Footwear Manufacturing
1,000

316212
House Slipper Manufacturing
500

316213
Men's Footwear (except Athletic) Manufacturing
500

316214
Women's Footwear (except Athletic) Manufacturing
500

316219
Other Footwear Manufacturing
500

316991
Luggage Manufacturing
500

316992
Women's Handbag and Purse Manufacturing
500

316993
Personal Leather Good (except Women's Handbag and Purse) Manufacturing
500

316999
All Other Leather Good Manufacturing
500

Subsector 321—Wood Product Manufacturing

321113
Sawmills
500

321114
Wood Preservation
500

321211
Hardwood Veneer and Plywood Manufacturing
500

321212
Softwood Veneer and Plywood Manufacturing
500

321213
Engineered Wood Member (except Truss) Manufacturing
500

321214
Truss Manufacturing
500

321219
Reconstituted Wood Product Manufacturing
500

321911
Wood Window and Door Manufacturing
500

321912
Cut Stock, Resawing Lumber, and Planing
500

321918
Other Millwork (including Flooring)
500

321920
Wood Container and Pallet Manufacturing
500

321991
Manufactured Home (Mobile Home) Manufacturing
500

321992
Prefabricated Wood Building Manufacturing
500

321999
All Other Miscellaneous Wood Product Manufacturing
500

Subsector 322—Paper Manufacturing

322110
Pulp Mills
750

322121
Paper (except Newsprint) Mills
750

322122
Newsprint Mills
750

322130
Paperboard Mills
750

322211
Corrugated and Solid Fiber Box Manufacturing
500

322212
Folding Paperboard Box Manufacturing
750

322213
Setup Paperboard Box Manufacturing
500

322214
Fiber Can, Tube, Drum, and Similar Products Manufacturing
500

322215
Non-Folding Sanitary Food Container Manufacturing
750

322221
Coated and Laminated Packaging Paper and Plastics Film Manufacturing
500

322222
Coated and Laminated Paper Manufacturing
500

322223
Plastics, Foil, and Coated Paper Bag Manufacturing
500

322224
Uncoated Paper and Multiwall Bag Manufacturing
500

322225
Laminated Aluminum Foil Manufacturing for Flexible Packaging Uses
500

322226
Surface-Coated Paperboard Manufacturing
500

322231
Die-Cut Paper and Paperboard Office Supplies Manufacturing
500

322232
Envelope Manufacturing
500

322233
Stationery, Tablet, and Related Product Manufacturing
500

322291
Sanitary Paper Product Manufacturing
500

322299
All Other Converted Paper Product Manufacturing
500

Subsector 323—Printing and Related Support Activities

323110
Commercial Lithographic Printing
500

323111
Commercial Gravure Printing
500

323112
Commercial Flexographic Printing
500

323113
Commercial Screen Printing
500

323114
Quick Printing
500

323115
Digital Printing
500

323116
Manifold Business Forms Printing
500

323117
Books Printing
500

323118
Blankbook, Loose-leaf Binder and Device Manufacturing
500

323119
Other Commercial Printing
500

323121
Tradebinding and Related Work
500

323122
Prepress Services
500

Subsector 324—Petroleum and Coal Products Manufacturing

324110

Petroleum Refineries
5

5
1,500

324121
Asphalt Paving Mixture and Block Manufacturing
500

324122
Asphalt Shingle and Coating Materials Manufacturing
750

324191
Petroleum Lubricating Oil and Grease Manufacturing
500

324199
All Other Petroleum and Coal Products Manufacturing
500

Subsector 325—Chemical Manufacturing

325110
Petrochemical Manufacturing
1,000

325120
Industrial Gas Manufacturing
1,000

325131
Inorganic Dye and Pigment Manufacturing
1,000

325132
Synthetic Organic Dye and Pigment Manufacturing
750

325181
Alkalies and Chlorine Manufacturing
1,000

325182
Carbon Black Manufacturing
500

325188
All Other Basic Inorganic Chemical Manufacturing
1,000

325191
Gum and Wood Chemical Manufacturing
500

325192
Cyclic Crude and Intermediate Manufacturing
750

325193
Ethyl Alcohol Manufacturing
1,000

325199
All Other Basic Organic Chemical Manufacturing
1,000

325211
Plastics Material and Resin Manufacturing
750

325212
Synthetic Rubber Manufacturing
1,000

325221
Cellulosic Organic Fiber Manufacturing
1,000

325222
Noncellulosic Organic Fiber Manufacturing
1,000

325311
Nitrogenous Fertilizer Manufacturing
1,000

325312
Phosphatic Fertilizer Manufacturing
500

325314
Fertilizer (Mixing Only) Manufacturing
500

325320
Pesticide and Other Agricultural Chemical Manufacturing
500

325411
Medicinal and Botanical Manufacturing
750

325412
Pharmaceutical Preparation Manufacturing
750

325413
In-Vitro Diagnostic Substance Manufacturing
500

325414
Biological Product (except Diagnostic) Manufacturing
500

325510
Paint and Coating Manufacturing
500

325520
Adhesive Manufacturing
500

325611
Soap and Other Detergent Manufacturing
750

325612
Polish and Other Sanitation Good Manufacturing
500

325613
Surface Active Agent Manufacturing
500

325620
Toilet Preparation Manufacturing
500

325910
Printing Ink Manufacturing
500

325920
Explosives Manufacturing
750

325991
Custom Compounding of Purchased Resins
500

325992
Photographic Film, Paper, Plate and Chemical Manufacturing
500

325998
All Other Miscellaneous Chemical Product and Preparation Manufacturing
500

Subsector 326—Plastics and Rubber Products Manufacturing

326111
Unsupported Plastics Bag Manufacturing
500

326112
Unsupported Plastics Packaging Film and Sheet Manufacturing
500

326113
Unsupported Plastics Film and Sheet (except Packaging) Manufacturing
500

326121
Unsupported Plastics Profile Shapes Manufacturing
500

326122
Plastics Pipe and Pipe Fitting Manufacturing
500

326130
Laminated Plastics Plate, Sheet and Shape Manufacturing
500

326140
Polystyrene Foam Product Manufacturing
500

326150
Urethane and Other Foam Product (except Polystyrene) Manufacturing
500

326160
Plastics Bottle Manufacturing
500

326191
Plastics Plumbing Fixture Manufacturing
500

326192
Resilient Floor Covering Manufacturing
750

326199
All Other Plastics Product Manufacturing
500

326211
Tire Manufacturing (except Retreading)
1,000

326212
Tire Retreading
500

326220
Rubber and Plastics Hoses and Belting Manufacturing
500

326291
Rubber Product Manufacturing for Mechanical Use
500

326299
All Other Rubber Product Manufacturing
500

Subsector 327—Nonmetallic Mineral Product Manufacturing

327111
Vitreous China Plumbing Fixture and China and Earthenware Bathroom Accessories Manufacturing
750

327112
Vitreous China, Fine Earthenware and Other Pottery Product Manufacturing
500

327113
Porcelain Electrical Supply Manufacturing
500

327121
Brick and Structural Clay Tile Manufacturing
500

327122
Ceramic Wall and Floor Tile Manufacturing
500

327123
Other Structural Clay Product Manufacturing
500

327124
Clay Refractory Manufacturing
500

327125
Nonclay Refractory Manufacturing
750

327211
Flat Glass Manufacturing
1,000

327212
Other Pressed and Blown Glass and Glassware Manufacturing
750

327213
Glass Container Manufacturing
750

327215
Glass Product Manufacturing Made of Purchased Glass
500

327310
Cement Manufacturing
750

327320
Ready-Mix Concrete Manufacturing
500

327331
Concrete Block and Brick Manufacturing
500

327332
Concrete Pipe Manufacturing
500

327390
Other Concrete Product Manufacturing
500

327410
Lime Manufacturing
500

327420
Gypsum Product Manufacturing
1,000

327910
Abrasive Product Manufacturing
500

327991
Cut Stone and Stone Product Manufacturing
500

327992
Ground or Treated Mineral and Earth Manufacturing
500

327993
Mineral Wool Manufacturing
750

327999
All Other Miscellaneous Nonmetallic Mineral Product Manufacturing
500

Subsector 331—Primary Metal Manufacturing

331111
Iron and Steel Mills
1,000

331112
Electrometallurgical Ferroalloy Product Manufacturing
750

331210
Iron and Steel Pipe and Tube Manufacturing from Purchased Steel
1,000

331221
Cold-Rolled Steel Shape Manufacturing
1,000

331222
Steel Wire Drawing
1,000

331311
Alumina Refining
1,000

331312
Primary Aluminum Production
1,000

331314
Secondary Smelting and Alloying of Aluminum
750

331315
Aluminum Sheet, Plate and Foil Manufacturing
750

331316
Aluminum Extruded Product Manufacturing
750

331319
Other Aluminum Rolling and Drawing
750

331411
Primary Smelting and Refining of Copper
1,000

331419
Primary Smelting and Refining of Nonferrous Metal (except Copper and Aluminum)
750

331421
Copper Rolling, Drawing and Extruding
750

331422
Copper Wire (except Mechanical) Drawing
1,000

331423
Secondary Smelting, Refining, and Alloying of Copper
750

331491
Nonferrous Metal (except Copper and Aluminum) Rolling, Drawing and Extruding
750

331492
Secondary Smelting, Refining, and Alloying of Nonferrous Metal (except Copper and Aluminum)
750

331511
Iron Foundries
500

331512
Steel Investment Foundries
500

331513
Steel Foundries (except Investment)
500

331521
Aluminum Die-Casting Foundries
500

331522
Nonferrous (except Aluminum) Die-Casting Foundries
500

331524
Aluminum Foundries (except Die-Casting)
500

331525
Copper Foundries (except Die-Casting)
500

331528
Other Nonferrous Foundries (except Die-Casting)
500

Subsector 332—Fabricated Metal Product Manufacturing

332111
Iron and Steel Forging
500

332112
Nonferrous Forging
500

332114
Custom Roll Forming
500

332115
Crown and Closure Manufacturing
500

332116
Metal Stamping
500

332117
Powder Metallurgy Part Manufacturing
500

332211
Cutlery and Flatware (except Precious) Manufacturing
500

332212
Hand and Edge Tool Manufacturing
500

332213
Saw Blade and Handsaw Manufacturing
500

332214
Kitchen Utensil, Pot and Pan Manufacturing
500

332311
Prefabricated Metal Building and Component Manufacturing
500

332312
Fabricated Structural Metal Manufacturing
500

332313
Plate Work Manufacturing
500

332321
Metal Window and Door Manufacturing
500

332322
Sheet Metal Work Manufacturing
500

332323
Ornamental and Architectural Metal Work Manufacturing
500

332410
Power Boiler and Heat Exchanger Manufacturing
500

332420
Metal Tank (Heavy Gauge) Manufacturing
500

332431
Metal Can Manufacturing
1,000

332439
Other Metal Container Manufacturing
500

332510
Hardware Manufacturing
500

332611
Spring (Heavy Gauge) Manufacturing
500

332612
Spring (Light Gauge) Manufacturing
500

332618
Other Fabricated Wire Product Manufacturing
500

332710
Machine Shops
500

332721
Precision Turned Product Manufacturing
500

332722
Bolt, Nut, Screw, Rivet and Washer Manufacturing
500

332811
Metal Heat Treating
750

332812
Metal Coating, Engraving (except Jewelry and Silverware), and Allied Services to Manufacturers
500

332813
Electroplating, Plating, Polishing, Anodizing and Coloring
500

332911
Industrial Valve Manufacturing
500

332912
Fluid Power Valve and Hose Fitting Manufacturing
500

332913
Plumbing Fixture Fitting and Trim Manufacturing
500

332919
Other Metal Valve and Pipe Fitting Manufacturing
500

332991
Ball and Roller Bearing Manufacturing
750

332992
Small Arms Ammunition Manufacturing
1,000

332993
Ammunition (except Small Arms) Manufacturing
1,500

332994
Small Arms Manufacturing
1,000

332995
Other Ordnance and Accessories Manufacturing
500

332996
Fabricated Pipe and Pipe Fitting Manufacturing
500

332997
Industrial Pattern Manufacturing
500

332998
Enameled Iron and Metal Sanitary Ware Manufacturing
750

332999
All Other Miscellaneous Fabricated Metal Product Manufacturing
500

Subsector 333—Machinery Manufacturing
6

333111
Farm Machinery and Equipment Manufacturing
500

333112
Lawn and Garden Tractor and Home Lawn and Garden Equipment Manufacturing
500

333120
Construction Machinery Manufacturing
750

333131
Mining Machinery and Equipment Manufacturing
500

333132
Oil and Gas Field Machinery and Equipment Manufacturing
500

333210
Sawmill and Woodworking Machinery Manufacturing
500

333220
Plastics and Rubber Industry Machinery Manufacturing
500

333291
Paper Industry Machinery Manufacturing
500

333292
Textile Machinery Manufacturing
500

333293
Printing Machinery and Equipment Manufacturing
500

333294
Food Product Machinery Manufacturing
500

333295
Semiconductor Machinery Manufacturing
500

333298
All Other Industrial Machinery Manufacturing
500

333311
Automatic Vending Machine Manufacturing
500

333312
Commercial Laundry, Drycleaning and Pressing Machine Manufacturing
500

333313
Office Machinery Manufacturing
1,000

333314
Optical Instrument and Lens Manufacturing
500

333315
Photographic and Photocopying Equipment Manufacturing
500

333319
Other Commercial and Service Industry Machinery Manufacturing
500

333411
Air Purification Equipment Manufacturing
500

333412
Industrial and Commercial Fan and Blower Manufacturing
500

333414
Heating Equipment (except Warm Air Furnaces) Manufacturing
500

333415
Air-Conditioning and Warm Air Heating Equipment and Commercial and Industrial Refrigeration Equipment Manufacturing
750

333511
Industrial Mold Manufacturing
500

333512
Machine Tool (Metal Cutting Types) Manufacturing
500

333513
Machine Tool (Metal Forming Types) Manufacturing
500

333514
Special Die and Tool, Die Set, Jig and Fixture Manufacturing
500

333515
Cutting Tool and Machine Tool Accessory Manufacturing
500

333516
Rolling Mill Machinery and Equipment Manufacturing
500

333518
Other Metalworking Machinery Manufacturing
500

333611
Turbine and Turbine Generator Set Unit Manufacturing
1,000

333612
Speed Changer, Industrial High-Speed Drive and Gear Manufacturing
500

333613
Mechanical Power Transmission Equipment Manufacturing
500

333618
Other Engine Equipment Manufacturing
1,000

333911
Pump and Pumping Equipment Manufacturing
500

333912
Air and Gas Compressor Manufacturing
500

333913
Measuring and Dispensing Pump Manufacturing
500

333921
Elevator and Moving Stairway Manufacturing
500

333922
Conveyor and Conveying Equipment Manufacturing
500

333923
Overhead Traveling Crane, Hoist and Monorail System Manufacturing
500

333924
Industrial Truck, Tractor, Trailer and Stacker Machinery Manufacturing
750

333991
Power-Driven Hand Tool Manufacturing
500

333992
Welding and Soldering Equipment Manufacturing
500

333993
Packaging Machinery Manufacturing
500

333994
Industrial Process Furnace and Oven Manufacturing
500

333995
Fluid Power Cylinder and Actuator Manufacturing
500

333996
Fluid Power Pump and Motor Manufacturing
500

333997
Scale and Balance (except Laboratory) Manufacturing
500

333999
All Other Miscellaneous General Purpose Machinery Manufacturing
500

Subsector 334—Computer and Electronic Product Manufacturing
6

334111
Electronic Computer Manufacturing
1,000

334112
Computer Storage Device Manufacturing
1,000

334113
Computer Terminal Manufacturing
1,000

334119
Other Computer Peripheral Equipment Manufacturing
1,000

334210
Telephone Apparatus Manufacturing
1,000

334220
Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
750

334290
Other Communications Equipment Manufacturing
750

334310
Audio and Video Equipment Manufacturing
750

334411
Electron Tube Manufacturing
750

334412
Bare Printed Circuit Board Manufacturing
500

334413
Semiconductor and Related Device Manufacturing
500

334414
Electronic Capacitor Manufacturing
500

334415
Electronic Resistor Manufacturing
500

334416
Electronic Coil, Transformer, and Other Inductor Manufacturing
500

334417
Electronic Connector Manufacturing
500

334418
Printed Circuit Assembly (Electronic Assembly) Manufacturing
500

334419
Other Electronic Component Manufacturing
500

334510
Electromedical and Electrotherapeutic Apparatus Manufacturing
500

334511
Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
750

334512
Automatic Environmental Control Manufacturing for Residential, Commercial and Appliance Use
500

334513
Instruments and Related Products Manufacturing for Measuring, Displaying, and Controlling Industrial Process Variables
500

334514
Totalizing Fluid Meter and Counting Device Manufacturing
500

334515
Instrument Manufacturing for Measuring and Testing Electricity and Electrical Signals
500

334516
Analytical Laboratory Instrument Manufacturing
500

334517
Irradiation Apparatus Manufacturing
500

334518
Watch, Clock, and Part Manufacturing
500

334519
Other Measuring and Controlling Device Manufacturing
500

334611
Software Reproducing
500

334612
Prerecorded Compact Disc (except Software), Tape, and Record Reproducing
750

334613
Magnetic and Optical Recording Media Manufacturing
1,000

Subsector 335—Electrical Equipment, Appliance and Component Manufacturing
6

335110
Electric Lamp Bulb and Part Manufacturing
1,000

335121
Residential Electric Lighting Fixture Manufacturing
500

335122
Commercial, Industrial and Institutional Electric Lighting Fixture Manufacturing
500

335129
Other Lighting Equipment Manufacturing
500

335211
Electric Housewares and Household Fan Manufacturing
750

335212
Household Vacuum Cleaner Manufacturing
750

335221
Household Cooking Appliance Manufacturing
750

335222
Household Refrigerator and Home Freezer Manufacturing
1,000

335224
Household Laundry Equipment Manufacturing
1,000

335228
Other Major Household Appliance Manufacturing
500

335311
Power, Distribution and Specialty Transformer Manufacturing
750

335312
Motor and Generator Manufacturing
1,000

335313
Switchgear and Switchboard Apparatus Manufacturing
750

335314
Relay and Industrial Control Manufacturing
750

335911
Storage Battery Manufacturing
500

335912
Primary Battery Manufacturing
1,000

335921
Fiber Optic Cable Manufacturing
1,000

335929
Other Communication and Energy Wire Manufacturing
1,000

335931
Current-Carrying Wiring Device Manufacturing
500

335932
Noncurrent-Carrying Wiring Device Manufacturing
500

335991
Carbon and Graphite Product Manufacturing
750

335999
All Other Miscellaneous Electrical Equipment and Component Manufacturing
500

Subsector 336—Transportation Equipment Manufacturing
7

336111
Automobile Manufacturing
1,000

336112
Light Truck and Utility Vehicle Manufacturing
1,000

336120
Heavy Duty Truck Manufacturing
1,000

336211
Motor Vehicle Body Manufacturing
1,000

336212
Truck Trailer Manufacturing
500

336213
Motor Home Manufacturing
1,000

336214
Travel Trailer and Camper Manufacturing
500

336311
Carburetor, Piston, Piston Ring and Valve Manufacturing
500

336312
Gasoline Engine and Engine Parts Manufacturing
750

336321
Vehicular Lighting Equipment Manufacturing
500

336322
Other Motor Vehicle Electrical and Electronic Equipment Manufacturing
750

336330
Motor Vehicle Steering and Suspension Components (except Spring) Manufacturing
750

336340
Motor Vehicle Brake System Manufacturing
750

336350
Motor Vehicle Transmission and Power Train Parts Manufacturing
750

336360
Motor Vehicle Seating and Interior Trim Manufacturing
500

336370
Motor Vehicle Metal Stamping
500

336391
Motor Vehicle Air-Conditioning Manufacturing
750

336399
All Other Motor Vehicle Parts Manufacturing
750

336411
Aircraft Manufacturing
1,500

336412
Aircraft Engine and Engine Parts Manufacturing
1,000

336413

Other Aircraft Part and Auxiliary Equipment Manufacturing
7

7
1,000

336414
Guided Missile and Space Vehicle Manufacturing
1,000

336415
Guided Missile and Space Vehicle Propulsion Unit and Propulsion Unit Parts Manufacturing
1,000

336419
Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing
1,000

336510
Railroad Rolling Stock Manufacturing
1,000

336611
Ship Building and Repairing
1,000

336612
Boat Building
500

336991
Motorcycle, Bicycle and Parts Manufacturing
500

336992
Military Armored Vehicle, Tank and Tank Component Manufacturing
1,000

336999
All Other Transportation Equipment Manufacturing
500

Subsector 337—Furniture and Related Product Manufacturing

337110
Wood Kitchen Cabinet and Counter Top Manufacturing
500

337121
Upholstered Household Furniture Manufacturing
500

337122
Nonupholstered Wood Household Furniture Manufacturing
500

337124
Metal Household Furniture Manufacturing
500

337125
Household Furniture (except Wood and Metal) Manufacturing
500

337127
Institutional Furniture Manufacturing
500

337129
Wood Television, Radio, and Sewing Machine Cabinet Manufacturing
500

337211
Wood Office Furniture Manufacturing
500

337212
Custom Architectural Woodwork and Millwork Manufacturing
500

337214
Office Furniture (except Wood) Manufacturing
500

337215
Showcase, Partition, Shelving, and Locker Manufacturing
500

337910
Mattress Manufacturing
500

337920
Blind and Shade Manufacturing
500

Subsector 339—Miscellaneous Manufacturing

339111
Laboratory Apparatus and Furniture Manufacturing
500

339112
Surgical and Medical Instrument Manufacturing
500

339113
Surgical Appliance and Supplies Manufacturing
500

339114
Dental Equipment and Supplies Manufacturing
500

339115
Ophthalmic Goods Manufacturing
500

339116
Dental Laboratories
500

339911
Jewelry (except Costume) Manufacturing
500

339912
Silverware and Hollowware Manufacturing
500

339913
Jewelers' Material and Lapidary Work Manufacturing
500

339914
Costume Jewelry and Novelty Manufacturing
500

339920
Sporting and Athletic Goods Manufacturing
500

339931
Doll and Stuffed Toy Manufacturing
500

339932
Game, Toy, and Children's Vehicle Manufacturing
500

339941
Pen and Mechanical Pencil Manufacturing
500

339942
Lead Pencil and Art Good Manufacturing
500

339943
Marking Device Manufacturing
500

339944
Carbon Paper and Inked Ribbon Manufacturing
500

339950
Sign Manufacturing
500

339991
Gasket, Packing, and Sealing Device Manufacturing
500

339992
Musical Instrument Manufacturing
500

339993
Fastener, Button, Needle and Pin Manufacturing
500

339994
Broom, Brush and Mop Manufacturing
500

339995
Burial Casket Manufacturing
500

339999
All Other Miscellaneous Manufacturing
500

Sector 42—Wholesale Trade

Subsector 423—Merchant Wholesalers, Durable Goods

423110
Automobile and Other Motor Vehicle Merchant Wholesalers
100

423120
Motor Vehicle Supplies and New Parts Merchant Wholesalers
100

423130
Tire and Tube Merchant Wholesalers
100

423140
Motor Vehicle Parts (Used) Merchant Wholesalers
100

423210
Furniture Merchant Wholesalers
100

423220
Home Furnishing Merchant Wholesalers
100

423310
Lumber, Plywood, Millwork, and Wood Panel Merchant Wholesalers
100

423320
Brick, Stone, and Related Construction Material Merchant Wholesalers
100

423330
Roofing, Siding, and Insulation Material Merchant Wholesalers
100

423390
Other Construction Material Merchant Wholesalers
100

423410
Photographic Equipment and Supplies Merchant Wholesalers
100

423420
Office Equipment Merchant Wholesalers
100

423430
Computer and Computer Peripheral Equipment and Software Merchant Wholesalers
100

423440
Other Commercial Equipment Merchant Wholesalers
100

423450
Medical, Dental, and Hospital Equipment and Supplies Merchant Wholesalers
100

423460
Ophthalmic Goods Merchant Wholesalers
100

423490
Other Professional Equipment and Supplies Merchant Wholesalers
100

423510
Metal Service Centers and Other Metal Merchant Wholesalers
100

423520
Coal and Other Mineral and Ore Merchant Wholesalers
100

423610
Electrical Apparatus and Equipment, Wiring Supplies, and Related Equipment Merchant Wholesalers
100

423620
Electrical and Electronic Appliance, Television, and Radio Set Merchant Wholesalers
100

423690
Other Electronic Parts and Equipment Merchant Wholesalers
100

423710
Hardware Merchant Wholesalers
100

423720
Plumbing and Heating Equipment and Supplies (Hydronics) Merchant Wholesalers
100

423730
Warm Air Heating and Air-Conditioning Equipment and Supplies Merchant Wholesalers
100

423740
Refrigeration Equipment and Supplies Merchant Wholesalers
100

423810
Construction and Mining (except Oil Well) Machinery and Equipment Merchant Wholesalers
100

423820
Farm and Garden Machinery and Equipment Merchant Wholesalers
100

423830
Industrial Machinery and Equipment Merchant Wholesalers
100

423840
Industrial Supplies Merchant Wholesalers
100

423850
Service Establishment Equipment and Supplies Merchant Wholesalers
100

423860
Transportation Equipment and Supplies (except Motor Vehicle) Merchant Wholesalers
100

423910
Sporting and Recreational Goods and Supplies Merchant Wholesalers
100

423920
Toy and Hobby Goods and Supplies Merchant Wholesalers
100

423930
Recyclable Material Merchant Wholesalers
100

423940
Jewelry, Watch, Precious Stone, and Precious Metal Merchant Wholesalers
100

423990
Other Miscellaneous Durable Goods Merchant Wholesalers
100

Subsector 424—Merchant Wholesalers, Nondurable Goods

424110
Printing and Writing Paper Merchant Wholesalers
100

424120
Stationary and Office Supplies Merchant Wholesalers
100

424130
Industrial and Personal Service Paper Merchant Wholesalers
100

424210
Drugs and Druggists' Sundries Merchant Wholesalers
100

424310
Piece Goods, Notions, and Other Dry Goods Merchant Wholesalers
100

424320
Men's and Boys' Clothing and Furnishings Merchant Wholesalers
100

424330
Women's, Children's, and Infants' Clothing and Accessories Merchant Wholesalers
100

424340
Footwear Merchant Wholesalers
100

424410
General Line Grocery Merchant Wholesalers
100

424420
Packaged Frozen Food Merchant Wholesalers
100

424430
Dairy Product (except Dried or Canned) Merchant Wholesalers
100

424440
Poultry and Poultry Product Merchant Wholesalers
100

424450
Confectionery Merchant Wholesalers
100

424460
Fish and Seafood Merchant Wholesalers
100

424470
Meat and Meat Product Merchant Wholesalers
100

424480
Fresh Fruit and Vegetable Merchant Wholesalers
100

424490
Other Grocery and Related Products Merchant Wholesalers
100

424510
Grain and Field Bean Merchant Wholesalers
100

424520
Livestock Merchant Wholesalers
100

424590
Other Farm Product Raw Material Merchant Wholesalers
100

424610
Plastics Materials and Basic Forms and Shapes Merchant Wholesalers
100

424690
Other Chemical and Allied Products Merchant Wholesalers
100

424710
Petroleum Bulk Stations and Terminals
100

424720
Petroleum and Petroleum Products Merchant Wholesalers (except Bulk Stations and Terminals)
100

424810
Beer and Ale Merchant Wholesalers
100

424820
Wine and Distilled Alcoholic Beverage Merchant Wholesalers
100

424910
Farm Supplies Merchant Wholesalers
100

424920
Book, Periodical, and Newspaper Merchant Wholesalers
100

424930
Flower, Nursery Stock, and Florists' Supplies Merchant Wholesalers
100

424940
Tobacco and Tobacco Product Merchant Wholesalers
100

424950
Paint, Varnish, and Supplies Merchant Wholesalers
100

424990
Other Miscellaneous Nondurable Goods Merchant Wholesalers
100

Subsector 425—Wholesale Electronic Markets and Agents and Brokers

425110
Business to Business Electronic Markets
100

425120
Wholesale Trade Agents and Brokers
100

Sectors 44-45—Retail Trade

Subsector 441—Motor Vehicle and Parts Dealers

441110
New Car Dealers
50

441120
Used Car Dealers
50

441210
Recreational Vehicle Dealers
50

441221
Motorcycle Dealers
50

441222
Boat Dealers
50

441229
All Other Motor Vehicle Dealers
50

441310
Automotive Parts and Accessories Stores
50

441320
Tire Dealers
50

Subsector 442—Furniture and Home Furnishings Stores

442110
Furniture Stores
50

442210
Floor Covering Stores
50

442291
Window Treatment Stores
50

442299
All Other Home Furnishings Stores
50

Subsector 443—Electronics and Appliance Stores

443111
Household Appliance Stores
50

443112
Radio, Television and Other Electronics Stores
50

443120
Computer and Software Stores
50

443130
Camera and Photographic Supplies Stores
50

Subsector 444—Building Material and Garden Equipment and Supplies Dealers

444110
Home Centers
50

444120
Paint and Wallpaper Stores
50

444130
Hardware Stores
50

444190
Other Building Material Dealers
50

444210
Outdoor Power Equipment Stores
50

444220
Nursery and Garden Centers
50

Subsector 445—Food and Beverage Stores

445110
Supermarkets and Other Grocery (except Convenience) Stores
150

445120
Convenience Stores
150

445210
Meat Markets
50

445220
Fish and Seafood Markets
50

445230
Fruit and Vegetable Markets
50

445291
Baked Goods Stores
50

445292
Confectionery and Nut Stores
50

445299
All Other Specialty Food Stores
50

445310
Beer, Wine and Liquor Stores
50

Subsector 446—Health and Personal Care Stores

446110
Pharmacies and Drug Stores
50

446120
Cosmetics, Beauty Supplies and Perfume Stores
50

446130
Optical Goods Stores
50

446191
Food (Health) Supplement Stores
50

446199
All Other Health and Personal Care Stores
50

Subsector 447—Gasoline Stations

447110
Gasoline Stations with Convenience Stores
100

447190
Other Gasoline Stations
50

Subsector 448—Clothing and Clothing Accessories Stores

448110
Men's Clothing Stores
50

448120
Women's Clothing Stores
50

448130
Children's and Infants' Clothing Stores
50

448140
Family Clothing Stores
50

448150
Clothing Accessories Stores
50

448190
Other Clothing Stores
50

448210
Shoe Stores
50

448310
Jewelry Stores
50

448320
Luggage and Leather Goods Stores
50

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

451110
Sporting Goods Stores
50

451120
Hobby, Toy and Game Stores
50

451130
Sewing, Needlework and Piece Goods Stores
50

451140
Musical Instrument and Supplies Stores
50

451211
Book Stores
50

451212
News Dealers and Newsstands
50

451220
Prerecorded Tape, Compact Disc and Record Stores
50

Subsector 452—General Merchandise Stores

452111
Department Stores (except Discount Department Stores)
150

452112
Discount Department Stores
150

452910
Warehouse Clubs and Superstores
150

452990
All Other General Merchandise Stores
100

Subsector 453—Miscellaneous Store Retailers

453110
Florists
50

453210
Office Supplies and Stationery Stores
50

453220
Gift, Novelty and Souvenir Stores
50

453310
Used Merchandise Stores
50

453910
Pet and Pet Supplies Stores
50

453920
Art Dealers
50

453930
Manufactured (Mobile) Home Dealers
50

453991
Tobacco Stores
50

453998
All Other Miscellaneous Store Retailers (except Tobacco Stores)
50

Subsector 454—Nonstore Retailers

454111
Electronic Shopping
50

454112
Electronic Auctions
50

454113
Mail-Order Houses
50

454210
Vending Machine Operators
50

454311
Heating Oil Dealers
50

454312
Liquefied Petroleum Gas (Bottled Gas) Dealers
50

454319
Other Fuel Dealers
50

454390
Other Direct Selling Establishments
50

Sectors 48-49—Transportation

Subsector 481—Air Transportation

481111
Scheduled Passenger Air Transportation
1,500

481112
Scheduled Freight Air Transportation
1,500

481211
Nonscheduled Chartered Passenger Air Transportation
1,500

Except,
Offshore Marine Air Transportation Services
150

481212
Nonscheduled Chartered Freight Air Transportation
1,500

Except,
Offshore Marine Air Transportation Services
150

481219
Other Nonscheduled Air Transportation
50

Subsector 482—Rail Transportation

482111
Line-Haul Railroads
1,500

482112
Short Line Railroads
500

Subsector 483—Water Transportation

8

483111
Deep Sea Freight Transportation
500

483112
Deep Sea Passenger Transportation
500

483113
Coastal and Great Lakes Freig

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A04-5049. Public record. Not legal advice.