Source & Authority Information
- •Table of size standards | U.S. Small Business Administration(accessed August 26, 2026)
- •Small Business Size Standards | SBA open data(accessed August 26, 2026)
- •Size Standards Tool | U.S. Small Business Administration(accessed August 26, 2026)
AI-assisted and automatically checked against the linked primary sources.
How does SBA decide whether a business is small?
SBA does not use one governmentwide threshold for every business. Its table of size standards says a size standard is usually stated as either average annual receipts or number of employees, and it is the largest size a business, including its subsidiaries and affiliates, may be to remain classified as small for SBA and federal contracting programs. SBA also says the definition of “small” varies by industry, so the correct standard depends on the business’s industry classification rather than a single universal cutoff. The agency’s open data page says current and historical standards are available, the current standards are effective March 17, 2023, and the size-standards data powers SBA’s Size Standards Tool, which can help determine whether a business qualifies as small for federal government contracting. SBA also notes that businesses registered in SAM.gov must update their registration for small-business status to reflect the new size standards.
Process
- 1Identify the business’s industry code
Use the business’s NAICS-based industry classification before checking any threshold.
- 2Check the applicable measurement
Confirm whether the standard is based on average annual receipts or number of employees.
- 3Use SBA’s current table or tool
Verify the current standard in SBA’s Size Standards Tool or table of size standards.
- 4Update registrations if needed
If the business is registered in SAM.gov, update the registration so small-business status reflects the current standard.
SBA says historical size standards differ by reference period, and for periods after August 2019, the open data uses the actual effective dates of the standards. Check the correct period before relying on an old threshold.