SBA Small Business Size Standards
Complete reference guide
The U.S. Small Business Administration (SBA) defines size standards for every industry to determine which businesses qualify as “small.” These thresholds are critical for government contracting because roughly 23% of federal contract dollars are reserved for small businesses through set-aside programs. Your eligibility depends on the specific NAICS code assigned to each solicitation.
How Size Standards Work
Average Annual Receipts
Most service industries use a revenue threshold. Calculated as the average of your total gross receipts over the most recent 5 completed fiscal years. Ranges from $9M to $47M depending on the industry.
Average Employee Count
Most manufacturing and some other industries use an employee count. Calculated as the average number of employees (including part-time) over the past 12 pay periods. Ranges from 100 to 1,500.
NAICS-Specific
Size standards are set per NAICS code, not universally. A company with $30M revenue could be “small” under one code and “large” under another. The solicitation’s assigned NAICS code determines which threshold applies.
Common Industry Size Standards
Below are size standards for 15 industries commonly seen in federal contracting. For the full list of 1,000+ NAICS codes and their standards, visit sba.gov/size-standards.
| NAICS | Industry | Metric | Threshold |
|---|---|---|---|
| 236220 | Commercial and Institutional Building Construction | Revenue | $45.0 million |
| 237310 | Highway, Street, and Bridge Construction | Revenue | $45.0 million |
| 238220 | Plumbing, Heating, and Air-Conditioning Contractors | Revenue | $19.0 million |
| 334111 | Electronic Computer Manufacturing | Employees | 1,250 employees |
| 334511 | Search, Detection, and Navigation Instruments | Employees | 1,250 employees |
| 336411 | Aircraft Manufacturing | Employees | 1,500 employees |
| 423430 | Computer Equipment Merchant Wholesalers | Employees | 250 employees |
| 511210 | Software Publishers | Employees | 250 employees |
| 517111 | Wired Telecommunications Carriers | Employees | 1,500 employees |
| 518210 | Data Processing and Hosting Services | Revenue | $40.0 million |
| 541330 | Engineering Services | Revenue | $25.5 million |
| 541511 | Custom Computer Programming Services | Revenue | $34.0 million |
| 541512 | Computer Systems Design Services | Revenue | $34.0 million |
| 541611 | Administrative Management Consulting | Revenue | $24.5 million |
| 561210 | Facilities Support Services | Revenue | $47.0 million |
Key Considerations
Affiliation Rules
The SBA counts the revenue and employees of all affiliated companies when determining size. If your business is owned by or controls other entities, their numbers may be combined with yours. This is the most common reason businesses fail size determinations.
Recertification
For multi-year contracts (like IDIQs and GWACs), you must recertify your size status when exercising options. If you have grown past the size standard, you may need to recertify as “other than small,” though existing task orders are generally not affected.
Size Protests
Competitors can file a size protest with the SBA’s Office of Hearings and Appeals (OHA) if they believe a winning bidder does not meet the size standard. Protests must be filed within 5 business days of learning the apparent awardee, and the SBA investigates and rules on the matter.
Frequently Asked Questions
What is an SBA size standard?
An SBA size standard is the threshold set by the U.S. Small Business Administration that defines the maximum size a business can be and still qualify as "small" for a particular industry. Size standards are measured either by average annual receipts (revenue) over the past 5 years or by average number of employees over the past 12 months, depending on the industry.
How do size standards affect government contracting?
Size standards determine eligibility for small business set-aside contracts, which represent roughly 23% of all federal contract dollars. If your business exceeds the size standard for the NAICS code on a solicitation, you cannot bid on contracts set aside for small businesses under that code. The government is legally required to award a certain percentage of contracts to small businesses.
Which size standard applies — revenue or employees?
It depends on the NAICS code. Most service industries use average annual receipts (revenue), while most manufacturing industries use employee count. The SBA assigns one metric per NAICS code. Revenue-based standards typically range from $9 million to $47 million, while employee-based standards range from 100 to 1,500 employees.
How is average annual revenue calculated for size standards?
Average annual receipts are calculated using your most recent 5 completed fiscal years. Total all gross revenue for those 5 years and divide by 5. This includes all revenue from all sources, not just government contracts. If your business has been operating for fewer than 5 years, divide total revenue by the actual number of completed fiscal years.
What happens if I grow past the size standard?
If your business exceeds the size standard, you generally cannot compete for new small business set-aside contracts under that NAICS code. However, existing contracts with options are not affected — you can continue performing. The SBA also provides a "recertification" process and exceptions for mergers, acquisitions, and specific procurement programs.
Can my business qualify as small under one NAICS code but not another?
Yes, absolutely. Size standards vary significantly by NAICS code. A company with $30 million in revenue would qualify as small under NAICS 541511 (Custom Computer Programming, $34.0M threshold) but not under NAICS 541330 (Engineering Services, $25.5M threshold). This is why the NAICS code assigned to each solicitation matters.
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