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 Each of these impacts was then multiplied by an applicable factor or ratio, as shown in the last column of Table 3, to obtain the respective impacts corresponding to all firms in 2019 SAM
subject to at least one receipts-based size standard. These results are presented below in Table 9, Impacts from Changing the Averaging Period for Receipts from 3 Years to 5 Years. The last column of the table shows the percent of firms impacted relative to all business concerns in 2019 SAM.
50 percent among impacted firms. It is also notable that, among the industries with receipts based size standards, NAICS Sectors 54, 56, and 23 together accounted for more than 70 percent of impacted firms, with Sector 54
Professional, Scientific and Technical Services accounting for about 3035
percent, followed by Sector 23
Construction about 2530 percent, and Sector 56 Administrative and Support, Waste Management and Remediation Services about 1013 percent.
Because the SAM data only captures businesses that are primarily interested in Federal procurement opportunities, the SAM-based results do not fully capture the impacts the proposed change may have on businesses participating in various nonprocurement programs that apply SBAs receipts-based size standards, such as exemptions from compliance with paperwork and other regulatory requirements.
TABLE 9IMPACTS FROM CHANGING THE AVERAGING PERIOD FOR RECEIPTS FROM 3 YEARS TO 5 YEARS
Firms impacted in matched dataset
Impact 1
Total to matched ratio Table 1
Total firms impacted in 2019 SAM
Total firms in 2019 SAM
% Impacted
Entities other than small under all NAICS codes Impact i
899
1.32
1,189
42,536
2.8
2,281
282,671
0.8
2,132
1,298
9,783
9,783
21.8
13.3
Entities small under all NAICS codes Impact ii
1,227
1.859
Entities small in some NAICS codes and other than small in others Impact i
Impact ii
1,761
1,072
1.211
1.211
Total expansive impact by impact type Impact i
Impact ii
2,660
2,299
3,320
3,579
52,319
292,454
6.3
1.2
Overall total expansive impact 2
4,702
1.391
6,542
334,990
2.0
1 Impact
i = Current large businesses gaining small business status; and Impact ii = Current small businesses extending small business sta-
tus.
2 Number of firms under total positive impacts refer to the number of unique firms. Some firms could appear in both impact types and hence individual impacts may not add up to overall impact.
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 a receipts-based size standard. Based on the matched
SAM data, SBA computed percentages of businesses impacted under each impact category for each NAICS
industry subject to a receipts-based size standard. By applying such percentages to the 2012 Economic Census tabulation, SBA estimated the number
of all businesses impacted under each impact type for each NAICS code subject to a receipts-based size standard.
These results are presented in Table 10, Impacts from Changing the Averaging Period for Receipts from 3 Years to 5
Years 2012 Economic Census, below.
TABLE 10IMPACTS FROM CHANGING THE AVERAGING PERIOD FOR RECEIPTS FROM 3 YEARS TO 5 YEARS
2012 Economic census
jspears on DSK121TN23PROD with PROPOSALS1
Impact 1
Total firms
Estimate of impacted firms
% Impacted
Impact i
Impact ii
271,505
6,896,633
8,565
60,176
3.2
0.9
Overall expansive impact
7,168,138
68,742
1.0
1 Impact
i = Current large businesses gaining small business status; and Impact ii = Current small businesses extending small business
status.
Currently large or mid-size businesses regaining small business status would get various benefits as small business concerns, including access to SBA loan programs, and exemptions from various
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compliance and paperwork requirements. With their small business status extended, advanced small businesses would continue to receive such benefits for a longer period.
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However, the change from 3-year average receipts to 5-year average may also harm some small businesses by causing them to lose or shorten their small business status in at least one
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