Federal Register - November 2, 2021
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Source: Federal Register
Federal Register / Vol. 86, No. 209 / Tuesday, November 2, 2021 / Proposed Rules to 3040 percent among impacted firms.
It is also notable that, among the industries with employee-based size standard, NAICS Sectors 3133 and 42
together accounted for about 90 percent of impacted firms in terms of both contractive and expansive impacts, with Sector 3133 Manufacturing
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accounting for about 65 percent and Sector 42 Wholesale Trade about 25
percent.
TABLE 5PERCENTAGE DISTRIBUTION OF IMPACTED FIRMS WITH EMPLOYEE BASED SIZE STANDARDS BY THE NUMBER OF
NAICS CODES
% Distribution of impacted firms by number of NAICS codes
Number of impacted firms
Impact
1 NAICS code
25 NAICS
codes
610 NAICS
codes
>10 NAICS
codes
Total
Currently small in all NAICS codes Impact ii
Impact iii
Impact iv
195
178
66
33.3
33.1
19.7
47.2
44.4
47.0
10.3
15.7
13.6
9.2
6.7
19.7
100
100
100
11.2
4.8
100
34.1
36.2
40.5
50
31.9
32.3
40.5
15
34.1
31.5
19.0
35
100
100
100
100
39.2
42.8
29.5
47.7
21.4
19.1
13.8
14.0
19.2
18.2
6.2
23.3
100
100
100
100
Currently large business in all NAICS codes Impact i
188
39.9
44.1
Currently small in some NAICS and not small in others Impact Impact Impact Impact
i
ii
iii
iv
182
130
42
20
0
0
0
0
Total impact by impact type Impact Impact Impact Impact
i
ii
iii
iv
370
325
220
86
20.3
20.0
18.2
15.1
Overall impact
Expansive
Contractive
689
306
20.3
23.5
40.8
44.8
20.2
18.6
18.7
13.1
100
100
Total
995
21.3
42.0
19.7
17.0
100
Impact i = Current large businesses gaining small status; Impact ii = Current small businesses extending small status; Impact iii = Current small businesses losing small status; Impact iv = Current small businesses shortening small status.
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Each of these impacts was then multiplied by an applicable factor or ratio, as shown in the last column of Table 1, to obtain the respective impacts corresponding to all firms in 2019 SAM
subject to at least one employee-based size standard. These results are presented below in Table 6, Impacts from Changing the Averaging Period for Employees from 12 Months to 24
Months. The last column of the table shows the percent of firms impacted relative to all business concerns in 2019
SAM. Because the SAM data only captures businesses that are primarily interested in Federal procurement opportunities, the SAM-based results do
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not fully capture the impacts the proposed change may have on businesses participating in various nonprocurement programs that apply to SBAs employee-based size standards, such as SBA loan programs and exemptions from compliance with paperwork and other regulatory requirements.
The Economic Census, combined with the Census of Agriculture and County Business Patterns Reports, provides for each NAICS code information on the number of total small and large businesses subjected to an employeebased size standard. Based on the matched SAM data, SBA computed
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percentages of businesses impacted under each impact category for each NAICS industry subject to an employeebased size standard. By applying such percentages to the 2012 Economic Census tabulation the latest available, SBA estimated the number of all businesses impacted under each impact type for each NAICS code subject to an employee-based size standard. These results are presented in Table 7, Impacts from Changing the Averaging Period for Employees from 12 Months to 24 Months 2012 Economic Census, below.
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