10/08/2026
Big changes could come to what counts as a “small business.” The clock is ticking. The Small Business Administration proposed the largest overhaul of size standards in decades. If finalized, this will reshape who qualifies for federal contracts, set-asides, loans, and other SBA programs. Here's whats on the table (proposed August 20, 2026):
Fewer, broader categories: Nearly 1,000 industry-specific standards (mostly 6-digit NAICS codes) would shrink to just 338 standards, mostly at the 4- and 5-digit level. All special exceptions (including the IT Value-Added Reseller carve-out) would disappear.
Higher thresholds almost across the board: SBA is raising limits significantly in many industries and is proposing not to lower any existing standard, even where data supported a decrease.
Examples:
Engineering services: from $25.5M → $252M
Custom computer programming / IT services: from ~$34M → $531M
Management consulting: from ~$24.5M → $295M
Architecture: from $12.5M → $135M
Shift toward employee-based standards: Many industries currently measured by receipts would switch to headcount. Construction would move entirely to employee counts. Maximums could go as high as 3,600 employees or over $1 billion in receipts in some cases.
Impact estimate: Roughly 114,500 additional firms could newly qualify as small business. About 37K of those already hold federal contracts worth more than $71 billion.
Why this matters - This isn’t just paperwork. Size standards determine eligibility for:
Small business set-asides and sole-source awards
8(a), HUBZone, WOSB, SDVOSB preferences
SBA loans and other assistance programs
Bigger companies entering the “small” pool could increase competition for existing small firms — or open new opportunities for mid-sized companies that have been locked out.
Important timing note
Nothing has changed yet. Current size standards remain in effect until a final rule is issued. The public comment period has been extended to November 20, 2026.
If your business competes for federal work (or hopes to), now is the time to:
NAICS codes
Submit comments if the changes help or hurt your situation
Plan ahead for potential shifts in the competitive landscape
Primary place to submit comments:
Main size standards proposed rule
Docket: SBA-2026-0199
Direct link: https://www.regulations.gov/document/SBA-2026-0199-0001
(This is the one that sets the actual new thresholds for the 338 industry groups.)
Revised Size Standards Methodology
Docket: SBA-2026-0265
Direct link: https://www.regulations.gov/document/SBA-2026-0265-0001
This explains how SBA calculated the new standards.
Deadline: November 20, 2026, at 11:59 PM EST.
How to comment online
Open the link above.
Click the blue “Comment” button.
Fill in the form (you can comment as an individual or on behalf of a company/organization).
Attach supporting documents if you want (Excel tables, impact analysis, etc. are helpful).
Alternative submission methods - USPS mail, hand-deliver, or courier comments to:
Ryan Lambert
Associate Administrator, Office of Industrial Base Resilience & Contracting
Small Business Administration
409 Third Street SW, Mail Code 6530
Washington, DC 20416
USPS envelope should clearly reference the docket number SBA-2026-0199 or SBA-2026-0265.
Tip: The most effective comments are specific — mention your NAICS code(s), how the proposed change would affect your firm (or your competitors), and any data or real-world examples that support a business position.