Federal Register - November 2, 2021
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Source: Federal Register
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Federal Register / Vol. 86, No. 209 / Tuesday, November 2, 2021 / Proposed Rules average of number of employees for each pay period during preceding completed 12 calendar months i.e., January 2019 to December 2019.
Similarly, the 24-month average
employee value for January 2020 is an average of number of employees for each pay period during preceding completed 24 calendar months i.e., January 2018 to December 2019.
Given the lack of employment data for each pay period or each month, SBA
approximates a firms 24-month average number of employees for January 2020
as follows:
To estimate the 24-month employee average using the above formula, SBA
analyzed the 2019 SAM extracts as of September 1, 2019 and 2018 SAM
extracts as of September 1, 2018. The 24-month average employee formula would only work for businesses that were present in both 2018 and 2019
SAM extracts. One challenge was that some businesses found in 2019 SAM
could not be found in 2018 SAM and vice versa. Excluding entities registered in SAM for purposes other than government contracting and entities ineligible for small business consideration such as foreign governments and state-controlled institutions of higher learning, there were a total of 152,450 unique business
concerns in 2019 SAM subject to at least one employee-based size standard. Of these concerns, 131,295 or about 86.1
percent were small in all North American Industry Classification System NAICS industries, 2,663 or 1.7
percent were small in some industries and not small in other industries, and 18,492 or 12.1 percent were not small in any industry subject to an employee-based size standard.
Excluding entities with null or zero employee values, 128,599 firms or about 84.4 percent appeared both in 2019 SAM and in 2018 SAM and were included in the 24-month average employee approximation and calculation of number of businesses
impacted. Of those 128,599 matched firms subject to an employee-based size standard, 108,541 or about 84.4
percent were small in all NAICS
industries, 2,526 or 2.0 percent were small in some industries and other than small not small in other industries, and 17,532 or about 13.6
percent were not small in any industry. In other words, 133,958 or 87.9 percent of 152,450 total concerns in SAM 2019 and 111,067 or 86.4
percent of 128,599 total matched firms were small in at least one NAICS
industry with an employee-based size standard. These results are summarized in Table 1, Size Status of Businesses in Industries Subject to Employee-Based Size Standards, below.
TABLE 1SIZE STATUS OF BUSINESSES IN INDUSTRIES SUBJECT TO EMPLOYEE-BASED SIZE STANDARDS
Size status
jspears on DSK121TN23PROD with PROPOSALS1
Number of firms
Firms in both 2018 SAM and 2019 SAM matched % matched Number of firms
%
Total to matched ratio
%
Small in at least one industry
Small in all industries
Small in some and not small in others
Large in all industries
133,958
131,295
2,663
18,492
87.9
86.1
1.7
12.1
111,067
108,541
2,526
17,532
86.4
84.4
2.0
13.6
82.9
82.7
94.9
94.8
1.206
1.210
1.054
1.055
Total
152,450
100.0
128,599
100.0
84.4
1.185
According to Table 2, Distribution of Business Concerns Subject to EmployeeBased Size Standards by Number of NAICS Codes, below, the distribution of firms by the number of NAICS codes in the matched data is very similar to that for the overall 2019 SAM data.
About 45 percent of firms were in only one NAICS code that has an employee-
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based size standard, about 40 percent in 25 NAICS codes, about 9 percent in 6
10 NAICS codes, and about 5 percent in more than 10 NAICS codes. In other words, 55 percent of firms were in multiple NAICS codes with employeebased size standards. Thus, it is quite possible that the proposed change may impact a firms small business status in
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multiple industries. For purposes of this analysis, an impacted firm is defined as one that would be impacted by the change in terms of gaining, regaining, extending, or losing small business status in at least one industry with an employee-based size standard.
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Total firms in 2019 SAM subject to least one employee-based size standard
