Small Business Standards

The U.S. Small Business Administration (SBA) has proposed new small business size standards for 338 industry groups and industries. According to the proposed rule published in the Federal Register on August 20, 2026, SBA seeks to simplify size standards and better reflect competitive conditions across industry sectors. The agency estimates the proposal would result in a net increase of approximately 114,541 businesses qualifying as small businesses. The rule would also consolidate the number of size standards used across industry group subsectors.

The Greg and Camille Baroni Center for Government Contracting at George Mason University's Costello College of Business has developed a question guide to help industry stakeholders respond to SBA's request for public comments before the September 21, 2026 deadline. Because size standards directly affect small business eligibility and competition, the proposed changes could have significant implications for the federal marketplace.

Why it matters: The practical effects of SBA expanding the definition of small business could be significant for companies of all sizes, influencing eligibility, competition, teaming strategies, subcontracting opportunities, and overall participation in the federal government market.

The question guide highlights five areas organizations should consider when preparing comments:

• Assess how the proposal could change the competitive landscape for federal contracting opportunities;
• Facilitate discussions among acquisition, business development, capture, legal, small business, and policy teams;
• Identify affected NAICS codes and industry groupings;
• Gather procurement-specific data and evidence to support comments; and
• Help SBA understand potential unintended consequences and how the proposed standards may affect federal markets.

Joining Mike Derrios, Executive Director of the Baroni Center, are two speakers with extensive SBA experience:

• Sam Le, former Director of Policy Planning and Liaison at SBA; and
• George Price, retired Senior Executive Service (SES) member in the Office of Small and Disadvantaged Business Utilization at the U.S. Department of State, who began his more than 30-year federal career at SBA.

The Baroni Center takes no position on whether SBA should adopt, modify, or withdraw the proposed rule. The purpose of the question guide is purely informational and educational: to help stakeholders understand the potential implications for competition and market composition within government contracting and to encourage evidence-based participation during the public comment period.