Blog, Operations

SBA Proposal Could Reshape Small Business Contracting Eligibility

3 min read

By Gina Lentine, CSDS; i-SIGMA Vice President of Marketing & Events

The Americas Advocacy group is actively monitoring upcoming changes at the SBA and wants to keep you informed. Learn more below:

A proposed rule from the U.S. Small Business Administration (SBA) could significantly change how companies qualify as “small businesses” for federal contracting purposes. The proposal would revise size standards across hundreds of industries and could make more than 114,000 additional firms eligible for small business programs and set-aside opportunities.

For i-SIGMA members that participate in federal contracting, subcontracting, or government-related projects, the proposal is worth a closer look. While the rule has generated both support and criticism within the contracting community, one thing is clear: organizations should understand how the changes could affect their NAICS classifications and competitive position before the public comment period closes on September 21, 2026.

Start with Your NAICS Codes

If your company is registered as a small business with the SBA, your first step should be reviewing the NAICS codes associated with your business. The SBA’s proposal would change how size standards are applied across many industries and would move toward broader industry classifications in numerous cases. Depending on your primary NAICS codes, the proposal could change whether your organization qualifies as a small business under SBA rules.

For companies pursuing federal opportunities, size status affects much more than a registration record. It can influence contract eligibility, teaming arrangements, subcontracting opportunities, and participation in federal small business programs.

Potential Impact Will Vary

The proposal has sparked considerable discussion throughout the federal contracting community.

Supporters argue that existing size standards do not always reflect current market realities and can make it difficult for growing businesses to remain eligible for small business programs. Critics contend that expanding size standards could increase competition within set-aside programs by allowing larger firms to compete alongside smaller businesses.

Whether you view the proposal as an opportunity or a concern, the most practical step is to determine how the changes would affect your specific industry classifications and business operations.

The Comment Deadline Is Approaching

The proposed rule is currently open for public comment through September 21, 2026. The SBA is seeking input from businesses, industry organizations, and other stakeholders regarding both the proposed size standards and the methodology used to develop them.

If your organization could be affected by these changes, now is the time to review the proposal and consider sharing feedback. Comments from businesses operating in the affected industries help provide the SBA with real-world perspectives on how the proposed standards may impact competition, growth, and access to federal opportunities.

Learn More

Bottom line: If your organization participates in federal contracting or intends to pursue government opportunities in the future, take a few minutes to review your NAICS codes, understand whether the proposed revisions affect your business, and consider submitting comments before the September 21 deadline.

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