SBA Proposes Expanding Small Business Size Standards

The Small Business Administration is proposing a sweeping overhaul of the size standards used to determine which companies qualify as small businesses for federal contracts, loans, and assistance. The proposal would substantially increase revenue and employee limits across various sectors. For example, engineering services limits would rise from $25.5 million to $252 million, while some financial investment services could qualify with up to $1 billion in revenue or 3,000 employees.

The agency argues these changes will reward growth, strengthen domestic production, and rebuild supply chains to restore American industrial dominance. However, the proposal has faced criticism from small business owners and Democratic lawmakers. They warn that the expansion will force the smallest companies to compete directly with much larger rivals, which could eliminate opportunities for genuine small businesses.

The agency is currently soliciting public comments on the proposal through September 21 before it issues a final rule.