Question 1

What is an SBA size standard?

Accepted Answer

An SBA size standard defines the maximum size a business can be and still qualify as 'small' for federal contracting purposes under a specific NAICS code. Size standards are set by SBA and vary by industry — expressed either as average annual receipts (in millions) or number of employees. Qualifying as small is required to participate in set-aside programs including SDVOSB, 8(a), HUBZone, and WOSB.

Question 2

What is the difference between revenue-based and employee-based size standards?

Accepted Answer

Revenue-based size standards (expressed in millions of dollars) apply to most service and retail industries. The firm's average annual receipts over the past three fiscal years must not exceed the threshold. Employee-based size standards apply to manufacturing, mining, and some other industries — the average number of employees over the past 12 months must not exceed the threshold. Some NAICS codes use a different measure entirely.

Question 3

How do I find the size standard for my NAICS code?

Accepted Answer

SBA publishes the Small Business Size Standards table (13 CFR Part 121) listing size standards for every NAICS code. You can find it on SBA's website at sba.gov/size-standards or use SBA's Size Standards Tool. Each NAICS code has one size standard — either a revenue threshold or employee count. If you work under multiple NAICS codes, you must qualify as small under each code you certify to for a specific contract.

Question 4

What happens if a contractor exceeds the size standard after award?

Accepted Answer

If a contractor grows beyond the size standard after contract award, it does not automatically lose the contract. The firm is considered small for the duration of the awarded contract. However, it cannot certify as small for new contracts or options beyond those requiring recertification. For IDIQ vehicles, task orders issued after the firm exceeds the size standard may require recertification, potentially affecting eligibility for future orders.

What is an SBA size standard?

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