Every few years, SBA updates its size standards for small businesses. In most years, these updates, while notable, are not groundshaking, and usually just account for inflation. That cannot be said of the most recent proposed changes. We do not use hyperbole here, but, sometimes, emphatic language must be used. SBA is proposing what can only be described as absolutely massive changes to its size standards for small business contracting. On August 19, 2026, SBA released its proposal for what can only be described as a new size standard paradigm. We explore these in greater detail here, and plan on one or more follow-up posts as there are multiple aspects of the system that would be changed if the proposal is finalized.
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Setting the Standard: How the SBA Determines Size Standards for Small Businesses
In a recent post, we examined some proposed new size standards for manufacturing and other industries that utilize employee-based size standards. This probably got many of you wondering: How does the SBA determine what the size standards should be? It’s a good question, and today, we’re going to look at just that. Hopefully, this will provide some insight as to the SBA’s approach to setting size standards.
Continue readingIndustrial Expansion: Proposed New Size Standards for Manufacturing and Other Industries with Employee-Based Size Standards
The SBA’s regulations state it will examine monetary-based size standards (e.g., receipts, net income, assets) at least once every five years and determine if adjustments are needed to those standards at such time. 13 C.F.R. § 121.102. But what about employee-based size standards? In fact, the same rule applies for reviewing and adjusting those standards as a result of the Small Business Jobs Act of 2010. On April 26, 2022, the SBA published its proposed rule to change the size standards for a number of employee-based size standards for manufacturing and other industries. Let’s look at these changes.
Continue readingWhat’s on SBA’s Regulatory Plate for 2022? A Hint: Increased Size Standards
SBA publishes its semiannual Regulatory Agenda to provide an update on the various rules it has in the pipeline and an estimate for when they will be published or become final. While SBA doesn’t have to meet these timeframes, it’s always good to check in on what SBA has been working on when the final rules will come out. This agenda includes an update on increased size standards, along with some other important rules. Read on for the highlights and be sure to comment on any rules that you have an opinion on.
Continue readingCOFC Confirms SBA Interpretation of Runway Extension Act
The Court of Federal Claims recently reviewed the Small Business Runway Extension Act, particularly SBA’s contention that it was not bound by the 5-year lookback period that Congress enacted for size receipt calculations. Now, SBA has issued its own rule that it will use the 5-year lookback period, at least after a two-year transition period, as discussed in our earlier posts. But there were still some cases working their way through the courts that examined how Congress implemented the Runway Extension Act and whether it applied to SBA or not. To make a long story short, the court agreed with SBA.
Continue readingSBA Proposes Increasing Size Standards in Professional, Management, and Administrative Industries
SBA’s recent proposed rule will increase size standards for a number of industries. The rule also said that SBA was thinking about lowering size standards. While most often, size standards increase over time, SBA can also lower them. However, SBA decided against lowering them. Read on for what standards will change.
Continue readingWhose Jurisdiction is it Anyways? GAO Dismisses Size Challenge
GAO recently dismissed a protest to an awardee’s eligibility under the applicable size standard. The protester argued that the agency should have known that the awardee exceeded the nonmanufacturer rule’s 500-employee maximum. After extensive briefing from both parties and from the SBA itself, GAO found that the awardee’s proposal didn’t raise any issues and that it was really up to the SBA to decide the size issues anyway.
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