SBA Small Business Size Standards

Frequently asked questions

• What is an SBA size standard?

  An SBA size standard is the threshold — either annual revenue or number of employees — that defines the maximum size a business can be and still qualify as a 'small business' for federal contracting purposes. Each NAICS industry code has its own standard set by the Small Business Administration.

• How do I know if my business qualifies as small?

  Find your primary NAICS code in the table above, then check the size standard. If your business uses a revenue-based standard, compare your average annual receipts over the past 5 fiscal years. If it uses an employee-based standard, compare your average employee count over the past 12 months. If you are below the threshold, you qualify as small.

• What is a NAICS code?

  NAICS (North American Industry Classification System) is a 6-digit code that classifies businesses by industry. Federal agencies use NAICS codes on every contract solicitation to identify the industry and determine which size standard applies.

• How are revenue-based size standards measured?

  Revenue-based standards use your average annual receipts over the most recent 5 completed fiscal years. Total receipts include all revenue from sales, services, interest, dividends, rents, royalties, and fees — before any deductions.

• How are employee-based size standards measured?

  Employee-based standards use the average number of employees over the 12 most recent calendar months (or 24 pay periods). This includes all full-time, part-time, and temporary workers, as well as employees of affiliates.

• Can my size standard change by contract?

  Yes. The size standard is determined by the NAICS code assigned to each specific solicitation. If you bid on contracts across multiple NAICS codes, different size thresholds may apply to each one. You could qualify as small for one contract but not another.