SBA size standards are industry-specific limits, usually based on average annual receipts or employees, and the Size Standards Tool shows the current threshold by code.
Summary
What Are SBA Small Business Size Standards for Revenue and Employees? SBA size standards are industry-specific limits, usually based on average annual receipts or employees, and the Size Standards Tool shows the current threshold by code.
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.
Use the business’s NAICS-based industry classification before checking any threshold.
Confirm whether the standard is based on average annual receipts or number of employees.
Verify the current standard in SBA’s Size Standards Tool or table of size standards.
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.