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ARTICLE · 28 AUGUST 2026

SBA Proposes Major Changes To Small Business Methodology And Size Standards

Greenberg Traurig
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The U.S. Small Business Administration has proposed a sweeping overhaul of its size standards that would consolidate nearly 1,000 industry-specific classifications into 338 broader categories while significantly raising eligibility thresholds across multiple sectors. The proposed changes would expand small business eligibility for federal contracting programs, potentially affecting over 114,000 firms and more than $71 billion in contract awards, with some industries seeing threshold increases from $34 milli

United StatesGovernment, Public Sector
Timothy McLister
Timothy McLister
Shomari B. Wade
Shomari B. Wade
Shaun Kennedy
Shaun Kennedy
Jordan Malone
Jordan Malone
Olivia Bellini
Olivia Bellini
Valery K. Slosman
Valery K. Slosman
Go-To Guide:
  • The SBA has proposed an overhaul of its size standards that would reduce nearly 1,000 industry-specific standards to 338 broader classifications.
  • Notable proposed increases include NAICS 541512 and 541519, from $34 million to $531 million, and NAICS 541330, from $25.5 million to $252 million.
  • The revised methodology would replace the current approach with a market-based analysis focused on industry size, geographic markets, and net imports.
  • Comments are due by Sept. 21, 2026.

On Aug. 20, 2026, the U.S. Small Business Administration (SBA) issued two proposed rules that would change how the federal government defines “small” businesses. The first proposed rule (91 Fed. Reg. 54096) would revise the methodology the SBA uses to set size standards. The second proposed rule (91 Fed. Reg. 53741) would apply that methodology by consolidating nearly 1,000 industry-specific standards into 338 broad classifications and increasing a number of existing

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