As we discussed last week, on August 19, 2026, SBA proposed what can only be described as a complete shift in the paradigm of the small business size standards. In the first part of our review of these changes, we looked at the actual planned size standards themselves and how massive of a jump they represent from the norm. In that post, we also mentioned that SBA is proposing to simplify and combine several NAICS codes, as well as move several NAICS codes from receipts-based to employee-based size standards. Today, we’re going to explore this latter observation.
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SBA Proposes Monumental Changes to Small Business Size Standards (Part 1)
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.
Continue readingSBA Proposes Increases to Receipts-Based Size Standards
Every five years the SBA is supposed to review some of its size standards. In August 2025, the SBA issued a proposed rule which would increase the size standard for over two hundred and sixty industries. As the proposed rule explains in great detail, SBA increased size standards for some NAICS codes and retained others. Let’s take a closer look.
Continue readingBack to Basics: Calculating Small Business Size
Most contractors, when starting their journey into the world of federal contracting eventually run into the same question: What size is my business? In the world of federal contracting, the size of your business can determine whether you can bid on certain procurements, participate in certain programs, and more. Miscalculating or misrepresenting your business size could open you up to size protests, and other severe repercussions. So, knowing the accurate size of your business could be critical to the success or failure of your federal contacting business. But don’t fear, in this edition of our Back to Basics series, we will discuss some of the basics around calculating the size of your business and why it all matters.
Continue readingSize Standards Applicable to SBA’s Socioeconomic Programs
If you are an avid SmallGovCon reader and a small business government contractor, you are probably no stranger to at least the basics of SBA’s size standards and its size and affiliation regulations (if not, check out some of our other blogs on the subject and keep an eye out for our upcoming new, second edition of the “SBA Small Business Size and Affiliation Rules” handbook). Additionally, most of our readers and most small business government contractors seem to understand at least the basics of SBA’s contract-based size requirements (i.e. that a small business–regardless of socioeconomic designation(s)–must be small under the size standard assigned to any set-aside contract it wants to bid). But did you know, if you are pursuing or participating in one of SBA’s other small business socioeconomic programs (8(a) Program, HUBZone, WOSB, SDVOSB, etc.), there may actually be some additional size requirements you must meet in order to be generally eligible for such small business socioeconomic statuses?
Continue readingSBA Final Rule Updates Employee-Based Size Standards, but not for Nonmanufacturer Rule
This month, SBA issued a final rule updating its size standards for multiple NAICS codes in the manufacturing industries and industries with employee-based size standards in other sectors (except wholesale trade and retail trade). As the final rule explains in great detail, SBA increased some of the NAICS code’s size standards and retained others. Additionally, SBA decided to retain an employee based size standard for the nonmanufacturer rule. Let’s take a closer look.
Continue readingFriendly Inflation: SBA Adjusts Size Standards, Economic Disadvantage Limits, and 8(a) Sole Source Dollar Limits for Inflation
It probably doesn’t need to be said that all of us have been chafing under inflation lately, and federal contractors are certainly no exception. Rises in costs for goods and labor have exerted serious pressure on businesses and households worldwide. However, not all inflation is bad. SBA recently released a final rule taking into account the inflation of the past few years when it comes to the various receipts-based size-standards and economic disadvantage limits, as well as finally adjusting the 8(a) Business Development Program sole source limits. These changes are crucially important for those businesses that have just barely exceeded the applicable size standards, or that were getting close to the maximum. In this post, we’re going to explore this rule.
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