The SBA Table of Size Standards serves as the definitive framework for determining whether a business qualifies as “small” under federal government programs and contracting opportunities. This table establishes size thresholds based on specific NAICS industry codes, with standards typically defined by either average annual receipts or number of employees, representing the largest size a business can be while remaining classified as small for SBA and federal contracting programs. The purpose is to ensure that certain government programs, such as SBA loan programs and contracting opportunities reserved for small businesses, reach their intended beneficiaries by providing clear, industry-specific qualification criteria.
Size standards for small businesses are based on a five-year revenue average, following implementation of the Small Business Runway Extension Act of 2018. Companies that haven’t operated for five years simply multiply their average weekly revenue by 52 to determine annual receipts.
For government contractors, the SBA Table of Size Standards provides critical value in determining eligibility for set-aside contracts and small business programs that can impact revenue opportunities. Contracting officers must designate NAICS codes for every contract and procurement, and contractors must meet the corresponding size standard to qualify for small business set-asides, with standards varying significantly across industries. Understanding size standards helps contractors determine their classification status, impacts their ability to establish subcontracting plans, and affects access to specialized socio-economic programs such as Veteran and Service Disabled Veteran Owned Small Business (SDVOSB). The table enables strategic business planning by showing contractors when they might exceed thresholds and need to prepare for competition in the full and open market.
