SBA Proposes Overhaul to Simplify Small Business Classification and Expand Access to Federal Programs
Size standard proposal would increase small business count by over 110,000
The SBA is seeking comments on the proposed rule. Small businesses can check their current industry classification and size eligibility by visiting
www.sba.gov/size-standards. Key highlights of the proposed size standard overhaul include:
-Streamlines the existing NAICS structure to a 4-digit classification system that reduces total size standard categories from nearly 1,000 down to 338 broad industry groupings, simplifying how firms determine their small business status.
-Introduces regional market considerations to ensure size thresholds accurately reflect the realities of local economic competition.
-Expands the pool of employer small businesses (firms with 1 or more employees) by 1.8%, growing the nation’s 6.3 million employer firms by over 110,000 and adding to the 36 million small businesses that exist today.
