small business size standards 2020
This repetition of headings to form internal navigation links That percentage varies from 65.3 percent% in Sector 55 to 98.4 percent% in Sector 54. documents in the last year, 38 The E.O. From the total small business contract dollars awarded during the period considered, 71.2% were awarded through various small business set-aside programs and 28.8% were awarded through non-set set-aside contracts. The Coronavirus Aid, Relief, and Economic Security Act (the CARES Act or the Act) (Pub. The size standard supported by average firm size is obtained by averaging size standards supported by simple average firm size and weighted average firm size. By comparing the small business Federal contracting share with the industry-wide small business share, SBA includes in its size standards analysis the latest Federal market conditions. documents in the last year, 67 are not part of the published document itself. The primary factors that SBA evaluates to examine industry structure include average firm size, startup costs and entry barriers, industry competition, and distribution of firms by size. Effective October 1, 2017, SBA adopted the OMB's 2017 NAICS revisions to its size standards (82 FR 44886, September 27, 2017). However, for purposes of contracts and subcontracts, the National Energy Policy Act of 1992 requires that the applicable size standard must be established for Military and Aerospace Equipment and Military Weapons (106 Stat. As a policy decision, SBA continues to maintain the minimum and maximum levels for both receipts and employee-based size standards. The documents posted on this site are XML renditions of published Federal Other than varying the levels of size standards by industry and changing the measures of size standards (e.g., using annual receipts vs. the number of employees), no practical alternatives exist to the systems of numerical size standards. For each size standard type, if the industry's Start Printed Page 72589characteristics are similar to the average characteristics of industries in the 80th percentile, SBA will assign a size standard that corresponds to the 80th percentile in the size standard rankings of industries. These tools are designed to help you understand the official document SBA has determined that for the industries it has evaluated in this proposed rule, no individual firm at or below the proposed size standard would be large enough to dominate its field of operation. Retrouvez Small Business Size Standards - Finance and Insurance and Management of Companies and Enterprises (US Small Business Administration Regulation) (SBA) (2018 Edition) et des millions de livres en stock sur Amazon.fr. provide legal notice to the public or judicial notice to the courts. These consequences could be mitigated. SBA seeks public comment on the impact of adopting the size standard as suggested by the analytical results. If comments relate to the application of size standards for Federal procurement programs, SBA suggests that commenters provide information on the size of contracts in their industries, the size of businesses that can undertake the contracts, start-up costs, equipment and other asset requirements, the amount of subcontracting, other direct and indirect costs associated with the contracts, the use of mandatory sources of supply for products and services, and the degree to which contractors can mark up those costs. However, based on the historical trends of the EIDL data, SBA estimates that, on an annual basis, the newly-defined small businesses under the proposed increases to size standards, if adopted, could receive three (3) EIDL loans, totaling about $0.15 million. SBA considers that the option of retaining all size standards at this moment provides the opportunity to reassess the economic situation once the economic recovery starts. and services, go to Additionally, the newly-defined small businesses would also benefit through reduced fees, less paperwork, and fewer compliance requirements that are available to small businesses through the Federal Government, but SBA has no data to quantify this impact. CLICK TO DOWNLOAD Aug 2019 Version After Jan. 6, 2022, the five-year average is mandatory. Federal Register. An interim final rule on SBA's latest inflation adjustment to size standards, effective August 19, 2019, was published in the Federal Register on July 18, 2019 (84 FR 34261). The goal of SBA's size standards review is to determine whether its existing small business size standards reflect the current industry structure and Federal market conditions and revise them when the latest available data suggest that revisions are warranted. The Bureau of Economic Analysis (BEA) third estimate for the second quarter of 2020 shows that the GDP decreased 31.4%, and the personal consumption in goods and services decreased 33.2%; In August 2020, personal income decreased 2.7%, after having decreased by a lower percentage in June (1.2%) and slightly increased in July 2020 (0.5%). According to the adjustment above, the new size standard for the Federal contracting factor for that industry would be set by multiplying the current $8.0 million standard by 1.3 (i.e., 30% increase) and then by rounding the result to the nearest $500,000, yielding a size standard of $10.5 million. documents in the last year, 29 For the industries reviewed in this proposed rule, the data shows that it is mostly businesses much smaller than the current or proposed size standards that receive SBA's 7(a) and 504 loans. Details on the estimated costs of this proposed rule can be found in the Regulatory Impact Analysis above. The special tabulation provides industry data on the number of firms, number of establishments, number of employees, annual payroll, and annual receipts of companies by Industry (6-digit level), Industry Group (4-digit level), Subsector (3-digit level), and Sector (2-digit level). SBA agreed with commenters that the size standard for the two engineering “exceptions” (Military and Aerospace Equipment and Military Weapons, and Marine Engineering and Naval Architecture) should be increased, and as such, SBA adopted a size standard of $35.5 million for all three of the exceptions. For the month of September 2020, non-farm payroll increased 661,000 from August 2020, but the decrease in employment since February 2020 is about 10.5 million. According to the E.O. Follow the instructions for submitting comments; or (2) Mail/Hand Delivery/Courier: Khem R. Sharma, Ph.D., Chief, Office of Size Standards, 409 Third Street SW, Mail Code 6530, Washington, DC 20416. Besides industry structure, SBA also evaluates Federal contracting data to assess the success of small businesses in getting Federal contracts under the existing size standards. Achetez neuf ou d'occasion A description of the need for this regulatory action and benefits and costs associated with this action, including possible distributional impacts that relate to Executive Order 13563, is included above in the Regulatory Impact Analysis under Executive Order 12866. For some portion of impact analysis, SBA also evaluated the data from the System of Award Management (SAM) (www.sam.gov). If an industry's total receipts are attributable to a single firm, the Gini coefficient will equal one. SBA does not apply all aspects of its Methodology to all proposed rules because not all features are relevant for every industry covered by each proposed rule. Table 10—Impacts of Decreases to Size Standards Under Alternative Option One. ; (4) What are the relevant Federal rules that may duplicate, overlap, or conflict with the rule? Below are brief descriptions of each of the five primary factors that SBA has evaluated for each industry being reviewed in this proposed rule. exceptions) reviewed in this proposed rule, the results from analyses of the latest available data on the five primary factors from Table 4, Size Standards Supported by Each Factor for Each Industry (millions of dollars), above, would support increasing size standards for 46 industries, decreasing size standards for 43 industries and 3 subindustries, and maintaining size standards for 6 industries. The review of size standards in the industries covered by this proposed rule is consistent with section 6 of Executive Order 13563 and the 2010 Jobs Act, which requires SBA to review all size standards and make necessary adjustments to reflect market conditions. On July 18, the SBA announced it will increase monetary-based industry size standards (meaning receipts-based and assets-based size standards). However, SBA cannot quantify these impacts. Under section 3(a)(2)(C) of the Small Business Act, 15 U.S.C. regulatory information on FederalRegister.gov with the objective of 13771 Guidance”), “transfers” are not covered by E.O. If adopted, proposed size standards would result in an increase to the small business share of total receipts in those industries from 34.7% to 37.0%. Similarly, to evaluate certain financial industries that have asset-based size standards, SBA examines the data from the Statistics on Depository Institutions (SDI) database (www5.fdic.gov/sdi/main.asp) of the Federal Depository Insurance Corporation (FDIC) data.  For FCC purposes, the following are the nine primary telecommunications small business size standards. of 7(a) and 504 loans to small businesses in industries for which SBA considered decreasing size standards (FY 2016-2018), Total amount of 7(a) and 504 loans to small businesses in industries for which SBA considered decreasing size standards ($ million) (FY 2016-2018), Estimated no. The proposed increases to size standards, if adopted, may result in some redistribution of Federal contracts between the newly-qualified small businesses and large businesses and between the newly-qualified small businesses and small businesses under the current standards. Section 1106 of the Act provides for forgiveness of up to the full principal amount of qualifying loans guaranteed under the PPP. We have discussed already the benefits and costs of increasing 46 size standards. For each size standard type (i.e., receipts-based or employee-based), SBA ranks industries both in terms of each of the four industry factors and in terms of the existing size standard and computes the 20th percentile and 80th percentile values for both. The movement of contracts from unrestricted competition to small business set-aside contracts might result in competition among fewer total bidders, although there will be more small businesses eligible to submit offers under the proposed size standards. Weâve made big changes to make the eCFR easier to use. These results, presented in Table 4 of this proposed rule, support a size standard of $39.0 million for the Military and Aerospace Equipment and Military Weapons Exception and $41.5 million for the Marine Engineering and Naval Architecture. The final rule will become effective on January 6, 2020, ending the uncertainty that has surrounded receipts-based small business size standards since the passage of the Small Business Runway Extension Act nearly one year ago. Thus, SBA has determined that this rulemaking is exempt from the requirements of E.O. In other words, the size standards of 46 industries for which the analytical results suggest raising size standards would be raised. However, in the present situation with the global COVID-19 pandemic resulting in high levels of risk and dramatic reductions in economic activity of unprecedented nature, SBA presents the impacts of adopting the analytical results without Start Printed Page 72597adjustment in Alternative Option One and proposes to retain all size standards for which the evaluation of principal factors suggested reductions, and to adopt only the increases suggested by the evaluation. Accordingly, SBA examined its internal 7(a) and 504 loan data for fiscal years 2016-2018 to assess whether the calculated size standards in Table 4 (above) need further adjustments to ensure credit opportunities for small businesses through those programs. In general, if the share of Federal contract dollars awarded to small businesses in an industry is significantly smaller than the small business share of total industry receipts, all else remaining the same, a justification would exist for considering a size standard higher than the current size standard. on NARA's archives.gov. Section 3021(b)(1) of Public Law 102-486, the National Energy Policy Act of 1992 (106 Stat. Specifically, for the Federal contracting factor, SBA examines the small business share of Federal contract dollars relative to small business share of total receipts within an industry. Based on data from the 2012 Economic Census, SBA estimates that there are about 1.05 million small firms covered by this rulemaking under industries with proposed changes to size standards. However, the additional costs associated with fewer bidders are expected to be minor since, by law, procurements may be set-aside for small businesses under the 8(a)/BD, SDB, HUBZone, WOSB, EDWOSB, or SDVOSB programs only if awards are expected to be made at fair and reasonable prices. However, if necessary, SBA's Methodology would allow assigning different weights to some of these factors in response to its policy decisions and other considerations. These exceptions apply only to Federal contracts for those services. Immediately below, SBA sets forth an initial regulatory flexibility analysis (IRFA) of this proposed rule addressing the following questions: (1) What is the need for and objective of the rule? For purposes of Executive Order 13132, SBA has determined that this proposed rule will not have substantial, direct effects on the States, on the relationship between the National Government and the States, or on the distribution of power and responsibilities among the various levels of government. 11/12/2020 at 8:45 am. However, under Alternative Option One, SBA used the calculated size standards instead of the proposed ones to determine the impacts of changes to current thresholds. SBA gave appropriate consideration to all input, suggestions, recommendations, and relevant information obtained from industry groups, individual businesses, and Federal agencies in developing size standards for those industries covered by this proposed rule. publication in the future. If the preponderance of an industry's economic activity is attributable to smaller firms, this generally indicates that small businesses are competitive in that industry, which would support adopting a smaller size standard. 632(a)(2)(C)(ii)(II), to modify the requirements for proposed small business size standards prescribed by an agency without separate statutory authority to issue size standards. While SBA cannot estimate with certainty the actual outcome of the gains and losses among different groups of businesses from contract redistribution resulting from decreases to size standards, it can identify several probable impacts. Additionally, as the fifth factor, SBA evaluates the difference between the small business share of Federal contract dollars and the small business share of total industry receipts to compute the size standard for the Federal contracting factor. SBA believes that proposed size standards revisions for industries being reviewed in this proposed rule will make size standards more reflective of the current economic characteristics of businesses in those industries and the latest trends in Federal marketplace. These market shares effectively preclude a firm at or below the proposed size standards from exerting control on any of the industries. Noté /5. Retrouvez Small Business Size Standards - Construction (US Small Business Administration Regulation) (SBA) (2018 Edition) et des millions de livres en â¦ This information is not part of the official Federal Register document. L. 116-136, Section 1114. b. Revising entries “541110,” “541191,” “541199,” “541211,” “541214,” “541310,” “541330,” “541350,” “541360,” “541420,” “541490,” “541513,” “541611,” “541612,” “541614,” “541720,” “541810,” “541830,” “541840,” “541850,” “541860,” “541870,” “541910,” “541921,” “541930,” “541940,” “541990,” “551111,” “551112,” “561110,” “561330,” “561422,” “561439,” “561440,” “561450,” “561499,” “561599,” “561612,” “561613,” “561710,” “561730,” “561740,” “561910,” “561920,” “561990,” and “562998” to read as follows: Small Business Size Standards by NAICS Industry, 1. The President of the United States communicates information on holidays, commemorations, special observances, trade, and policy through Proclamations. Conversely, if the market share of the four largest firms in an industry is appreciably lower than the similar share for most other industries, the industry will be assigned a size standard that is lower than for most other industries. The law changed the time-period for calculating annual revenues for purposes of the Small Business Administration (SBA)âs receipts-based size standards from a three-year lookback to a five-year lookback. Achetez neuf ou d'occasion However, it would have no impact on the overall economic activity since total Federal contract dollars available for businesses to compete for will not change with changes to size standards. During the previous 5-year comprehensive review, SBA reviewed the receipts-based size standards for 45 industries and 3 exceptions within NAICS Sector 54 (Professional, Scientific and Technical Services), 2 industries within Sector 55 (Management of Companies and Enterprises), and 44 industries in Sector 56 (Administrative and Support and Waste Management and Remediation Services). However, as under the proposed increases to size standards, it would have no impact on the overall economic activity since the total Federal contract dollars available for businesses to compete for will stay the same. Based on the FPDS-NG data for fiscal years 2016-2018, SBA estimates that about 464 firms that are active in Federal contracting in those industries would gain small business status under the proposed size standards. the current document as it appeared on Public Inspection on For this, SBA generally examines the industry's market share of firms at the proposed or revised size standard as well as the distribution of firms by size. (1) SBA establishes small business size standards on an industry-by-industry basis. These include the 8(a)/BD (Business Development) Program, the Small Disadvantaged Businesses (SDB) Program, the Historically Underutilized Business Zones (HUBZone) Program, the Women-Owned Small Businesses (WOSB) Program, the Economically Disadvantaged Women-Owned Small Businesses (EDWOSB) Program, and the Service-Disabled Veteran-Owned Small Businesses (SDVOSB) Program. 15 U.S.C. Table 4, Size Standards Supported by Each Factor for Each Industry (Receipts), shows the results of analyses of industry and Federal contracting factors for each industry and subindustry (exception) covered by this proposed rule. The most significant benefit to businesses from decreases to size standards when SBA's analysis suggests such decreases is to ensure that size standards are more reflective of latest industry structure and Federal market trends and that Federal small business assistance is more effectively targeted to its intended beneficiaries. Based on the FPDS-NG data for fiscal years 2016-2018, SBA estimates that about 67 active firms in Federal contracting in those industries would lose small business status under Alternative Option One, most of them from Sector 56. of current unique small firms getting small business contracts in industries with proposed increases to size standards (FPDS-NG FY2016-2018), Additional small business firms getting small business status (FPDS-NG FY2016-2018), % increase to small businesses relative to current unique small firms getting small business contracts in industries with proposed increases to size standards (FPDS-NG FY2016-2018), Total small business contract dollars under current standards in industries with proposed increases to size standards ($ million) (FPDS-NG FY2016-2018), Estimated small business dollars available to newly-qualified small firms (Using avg dollars obligated to SBs) ($ million) FPDS-NG FY 2016-2018), % increase to small business dollars relative to total small business contract dollars under current standards in industries with proposed increases to size standards, Total no. 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