This Business News Story Was Uncovered By Us From: https://www.under30ceo.com/sba-size-standards-overhaul-proposed-rule/
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The Small Business Administration proposed the broadest rewrite of its SBA size standards in years on August 20, issuing two concurrent notices of proposed rulemaking. One sets new thresholds across 338 industry groups and industries. The other releases the revised methodology the agency used to build them.
The stake for founders is eligibility. Size standards decide who can access SBA loan programs, federal contracting set-asides, and a long list of related preferences, which makes this one of the few regulatory items that changes a company’s options directly. It also lands in a year when the recession 2026 outlook has owners watching every available lever.
What the Proposed Rules Change
The first rule consolidates standards primarily at the four-digit and five-digit NAICS levels. That reduces the total count from nearly 1,000 individual standards to a smaller and more legible set.
Thresholds also move. The agency adjusted them using a revised methodology and generally raised them, which means more firms clear the bar rather than fewer.
Some industries shift from receipts-based measurement to employee-based measurement as well. For a services business with high revenue and a small team, that single change can flip its classification.
Who Newly Qualifies as Small
The SBA estimates the proposals would newly classify roughly 110,000 to 114,500 additional firms as small. Against a base the agency puts at about 36 million small businesses, that is an increase of roughly 1.8% to 2%.
Key figures in the SBA proposed rules, August 20, 2026
Item
Reported figure
Industry groups and industries covered
338
Individual standards before consolidation
Nearly 1,000
Firms newly classified as small
110,000 to 114,500
Estimated increase
Roughly 1.8% to 2%
Comment deadline
September 21, 2026
The affected companies are mostly firms that outgrew their old threshold while remaining far from dominant in their field. Those ar… Read More
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