[Code of Federal Regulations] [Title 13, Volume 1] [Revised as of January 1, 2004] From the U.S. Government Printing Office via GPO Access [CITE: 13CFR121.106] [Page 286-287] TITLE 13--BUSINESS CREDIT AND ASSISTANCE CHAPTER I--SMALL BUSINESS ADMINISTRATION PART 121_SMALL BUSINESS SIZE REGULATIONS--Table of Contents Subpart A_Size Eligibility Provisions and Standards Sec. 121.106 How does SBA calculate number of employees? (a) Employees counted in determining size include all individuals employed on a full-time, part-time, temporary, or other basis. SBA will consider the totality of the circumstances, including factors relevant for tax purposes, in determining whether individuals are employees of the concern in question. (b) Where the size standard is number of employees, the method for determining a concern's size includes the following principles: (1) The average number of employees of the concern is used (including the employees of its domestic and foreign affiliates) based upon numbers of employees for each of the pay periods for the preceding completed 12 calendar months. [[Page 287]] (2) Part-time and temporary employees are counted the same as full- time employees. (3) If a concern has not been in business for 12 months, the average number of employees is used for each of the pay periods during which it has been in business. (4) The treatment of employees of former affiliates or recently acquired affiliates is the same as for size determinations using annual receipts in Sec. 121.104(d).