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SBA Changes Small Business Size Standards for 16 NAICS

SBA Changes Small Business Size Standards for 16 NAICS Small Business Administration SBA 8a Program

5-4-22

If your firm was not considered a small business by the government previously, it may be now. Taking effect this week (May 2nd), The Small Business Association (SBA) issued four rules that changes the size standards on 16 industry sectors based on revenue. This is expanding access to the SBAs programs by nearly 60K federal contractors.

Why is this happening? A function of the Small Business Jobs Act of 2010, the SBA is now required to evaluate size-standards every five years. After its revision in March 2022, the SBA released 4 final rules that will increase 229 size standards across the 16 different NAICS/sectors.

This is great for businesses that previously didn’t quality as a small business as they can now take advantage of small business-related set-aside opportunities and qualify for small business loans. The SBA believes that these changes will create approximately $1 billion in contract opportunities for 844 newly qualified small businesses and extend 96 7(a) and 504 loans to newly qualified small businesses in the amount of $45 million.

So most importantly, the NAICS that will be affected are listed below:

NAICS Sector 11 Agriculture, Forestry, Fishing, and Hunting
NAICS Sector 21 Mining, Quarrying, and Oil and Gas Extraction
NAICS Sector 22 Utilities
NAICS Sector 23 Construction
NAICS Sector 48-49 Transportation and Warehousing
NAICS Sector 51 Information
NAICS Sector 52 Finance and Insurance
NAICS Sector 53 Real Estate and Rental and Leasing
NAICS Sector 54 Professional, Scientific and Technical Services
NAICS Sector 55 Management of Companies and Enterprises
NAICS Sector 56 Administrative and Support and Waste Management and Remediation Services
NAICS Sector 61 Education Services
NAICS Sector 62 Health Care and Social Assistance
NAICS Sector 71 Arts, Entertainment and Recreation
NAICS Sector 71 Accommodation and Food Services
NAICS Sector 81 Other Services

If your business’ primary NAICS is one of the above, the size-standards change may affect you.

As part of SBA’s ongoing assessment of size standards, the agency intends to publish further rulemakings on size standards in Sector 42 (Wholesale Trade), Sector 44-45 (Retail Trade), and Sector 31-33 (Manufacturing) in the months ahead.

If your company is a small business and you’d like to find contract opportunities that have been set-aside for your socio-economic status, start a 5-day trial of EZGovOpps and get instant access.

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