How Could Federal Size Standard Changes Affect Small Business Eligibility?

According to SBA’s size standards table, a size standard is the largest size a business, including its subsidiaries and affiliates, may be and still be classified as small, and the definition varies by industry. SBA’s Part 121 regulations cover affiliation, annual receipts, number of employees, primary industry, self-certification, and procurement-size procedures, so a change in the applicable standard can change whether a firm still fits the small-business definition. In its 2026 proposed rule, SBA says it is proposing new size standards for 338 industry groups and industries, and it states that it uses the latest NAICS revision to group similar firms into markets. SBA also says it reviews size standards every five years to reflect current industry and market conditions. On the contracting side, SBA says agencies use Small Business Search as part of market research, and that set-aside or sole-source decisions depend largely on how many and what type of small businesses can do the work and on contract value. SBA’s size standards table also notes that SAM registrations must be updated for small-business status to reflect the new size standards effective March 17, 2023.