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Federal Register / Vol. 86, No. 209 / Tuesday, November 2, 2021 / Proposed Rules Federal procurement programs provide targeted, set-aside opportunities for small businesses under SBAs various business development and contracting programs, including 8a/Business Development BD, HUBZone, WomenOwned Small Business WOSB, Economically Disadvantaged WomenOwned Small Business EDWOSB, and Service-Disabled Veteran-Owned Small Business SDVOSB programs.
Expansive effects accruing to businesses gaining and extending small status are presented below in Table 13, Expansive Impacts of Changing the Averaging Period for Employees from 12
Months to 24 Months. The results in Table 13 pertain to businesses and industries subject to employee-based size standards only.

As shown in Table 13, of 21,155 firms not currently considered small in any employee-based size standards, 390 or 1.8 percent would benefit from the proposed change by gaining or regaining small status under the 24-month employee average in at least one NAICS
industry that is subject to an employeebased size standard. Additionally, 373
or 0.3 percent of small businesses within 10 percent below size standards would see their average number of employees decrease under the 24-month averaging period, consequently enabling them to keep their size status for a longer period.
Using the 2012 Economic Census, SBA estimated that about 280 or 1.3
percent of currently large businesses would gain or regain small status and
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about 1,200 or 0.2 percent of total small businesses would see their small business status extended for a longer period as the result of the change in the calculation of employees. These results are shown in Table 13, below.
With more businesses qualifying as small under the proposed change in the calculation of employees, Federal agencies will have a larger pool of small businesses from which to draw for their small business procurement programs.
Growing small businesses that are close to exceeding the current employeebased size standards will be able to retain their small business status for a longer period under the 24-month employee average, thereby enabling them to continue to benefit from the small business programs.

TABLE 13EXPANSIVE IMPACTS OF CHANGING AVERAGING PERIOD FOR EMPLOYEES FROM 12 MONTHS TO 24 MONTHS
Large firms gaining small status
Impact of proposed change Number of impacted industries
Number of large firms becoming small or/and small firms extending small status SAM as of Sept 1, 2019
Large firms becoming small or/and small firms with extended small status as % of total large or/and small firms in the baselineSAM as of Sept 1, 2019
Number of large firms becoming small or/and small firms extending small status 2012 Economic Census
Large firms becoming small or/and small firms extending small status as % of total large or/and small firms in the baseline2012 Economic Census
Number of large firms becoming small or/and small firms extending small status for small business contractsFPDSNG 2019
Additional small business dollars available to newly qualified firms or/and current small firms with extended small status $ millionFPDSNG 2019
Additional small business dollars as % total small business contract dollars in the baseline
Number of additional 7a and 504 loans to newly qualified firms or/and current small firms extending small status
Additional 7a and 504 loan amount to newly qualified firms or/and current small firms extending small status $ million
Additional 7a and 504 loan amount as % of total 7a and 504 loan amount in the baseline
Number of additional disaster loans to newly qualified firms or/and small firms extending small status
Additional disaster loan amount to newly qualified firms or/and small firms with extended small status $ million
Additional disaster loan amount as % of total loan amount in the baseline

Small firms extending small status
Total expansive impact
196

184

1 260

390

373

2 757

1.8

0.3

0.5

281

1,203

1,484

1.3

0.2

0.2

139

83

219

$332.7

$90.5

$423.2

0.7

0.2

0.9

1

1

2

$0.01

$0.02

$0.03

0.0

0.0

0.001

0

0

0

$0
0

$0
0

$0
0

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1 Total impact represents total unique industries impacted to avoid double counting as some industries have large firms gaining small status and small firms extending small status.
2 Total impact represents total unique firms impacted to avoid double counting as some firms may gain small business status in at least one NAICS code, while extending small business status in at least one other NAICS code.

Based on the FPDSNG data for fiscal year 2019, as shown in Table 13, SBA
estimates that those newly qualified small businesses i.e., large businesses gaining small status under the proposed rule, if adopted, could receive about $333 million in small business contract dollars annually under SBAs small business, 8a/BD, HUBZone, WOSB, EDWOSB, and SDVOSB
programs. That represents a 0.7 percent increase to total small business contract dollars from the baseline in Table 11,
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above. Additionally, small businesses could receive approximately $90
million in additional small business contract dollars because of extension of their small business status, which is about a 0.2 percent increase from the total small business contract dollars in the baseline. That is, businesses gaining or extending small business status could receive about $423 million in additional small business contract dollars, which is a 0.9 percent increase to the total small business dollars in the baseline.

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Under SBAs 7a and 504 loan programs, based on the data for fiscal years 20182020, SBA estimates up to about 1 SBA 7a and 504 loans totaling nearly $0.01 million could be made to these newly qualified small businesses under the proposed change.
Additionally, small businesses could receive about 1 SBA 7a and 504 loans totaling nearly $.02 million due to the extension of their size status. These amounts represent a .001 percent
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