SBA wants to redraw the line on “small.” Here’s what to check.

What happened. On August 20, 2026, SBA published a proposed rule to overhaul its small business size standards — the revenue and employee ceilings that determine whether a firm counts as “small.” The proposal would set new standards for 338 industry groups, collapsing the current list of nearly 1,000 separate standards into 338 broader categories (built mostly at the 4-digit NAICS level), shift some industries from a revenue test to an employee-count test, and generally raise the thresholds so more firms stay — or newly count — as small. SBA estimates the change would add over 110,000 firms to the small business pool.

Who this affects. Any NYC firm that competes for federal work, or wants to — especially companies sitting just above their industry’s current size ceiling, which lose access to set-asides once they “graduate.” The examples SBA gives are large-industry (semiconductor manufacturing would rise from 1,250 to 2,800 employees; shipbuilding from 1,300 to 2,300; oil drilling from 1,000 to 2,650; support activities for animal production from $11M to $71M in receipts), but the rule touches standards across the board, so the practical question for every owner is the same: is my industry’s ceiling changing?

What to do. This is a proposal, not final — but the comment period is your window to weigh in. Read the rule, check whether your primary industry’s standard is moving, and submit comments by September 21, 2026 at regulations.gov (RIN 3245-AI67, Docket No. SBA-2026-0199). A companion proposal releasing SBA’s revised size-standards methodology is open on the same deadline.

Why it matters. Size standards are the gatekeeper for nearly every federal small business benefit — set-asides, the 8(a)/WOSB/SDVOSB/HUBZone programs, and SBA loans. Where the line sits decides who can compete as small, so a rewrite this broad is worth five minutes with your NAICS code.

Primary source: Federal Register — Small Business Size Standards, proposed rule (published August 20, 2026) →

Start with your NAICS code. Every size standard is tied to a NAICS code, and it is measured one of two ways: average annual receipts (usually over five years) for most service and construction industries, or number of employees for most manufacturing and a few others. Find the primary code that describes what you actually sell — that is the one that governs your small business status for a given contract.

Compare current vs. proposed. Look up your code’s current standard on SBA’s size-standards page, then check whether the proposed rule moves it. Three cases matter: (1) you’re comfortably under the ceiling today — likely no change to worry about; (2) you recently outgrew “small” — a higher ceiling could put you back in; (3) your industry is being switched from a receipts test to an employee test — that can change your status even if your revenue didn’t move.

Then decide whether to comment. If the proposed number would help or hurt you, say so — agencies weigh specific, business-level input during the comment period. SBA’s Office of Advocacy publishes a plain guide to writing a comment letter, and comments are due September 21. Not sure which code is really yours? WedgeBid’s guide on how to choose your NAICS codes walks through it, and the eligibility checker maps which programs your size and ownership open up.

A note. This is a plain-English summary of a proposed federal rule, not legal advice. The thresholds described here can change before the rule is finalized — check the rule itself for your specific industry.

Primary source: U.S. Small Business Administration — Size standards →