Government Contractors Should be Aware: SBA intends to increase and revise monetary-based size standards
On August 22, 2025, the Small Business Administration (SBA) issued a proposed rule to increase its monetary based small business size standards for 263 industries (259 receipts-based and four assets-based). The SBA also announced that another proposed rule for employee-based size standards will be issued in the near future. Small business government contractors that are close to their current size standards should closely review the proposed rule to determine its potential impacts. Background On SBA’s Size Standards Under SBA’s regulations , a business concern qualifies as small for a government procurement if the concern, including its affiliates, meets the size standard associated with the North American Industry Classification System (“NAICS”) code identified in the solicitation. As described in the NAICS Manual , the Office of Management and Budget (“OMB”) assigns NAICS codes to all domestic industries. SBA then correspondingly assigns a ...