The Small Business Administration (SBA) published an updated size standards table effective August 2019.
This change impacts ALL INDUSTRIES and the small business classification of thousands and thousands of companies. Some companies will LOSE their small business classification others could GAIN.
I personally like the excel version at the bottom of the SBA site, available for immediate download here.
The Federal Register provides an excellent background to the basis for changes. For those of you interested in a learning opportunity on this topic, I highly recommend the read. The link for this topic is available, here.
Q1: What changed?
An Inflation Adjustment increased the monetary standards to the small business classification table to 523 different industries and 9 sub-industries.
Note: A common misconception when people here the word “small business”, is the vision of a mom and pop corner store. Granted the mom and pop store is more than likely a “small business” but the true classification of “small” is based on the SBA Size Standards Table for the North American Industry Classification System (NAICS) code related to your business industry.
If you do not know your NAICS code(s) or want more data around your NAICS code? Consider looking into our GovSuccess Program and more specifically the GovAssessment Stage where we show you “how to” complete a full assessment of your business and industry. We can identify where you stand in the industry, state/region, top competitors, ideal strategic partners, and so much more.
Q2: What is the lowest and highest threshold for the size standards?
There are two (2) type of threshold categories for the SBA size standards.
- Monetary (the average annual receipts)
- Number of employees (The average employment)
The table below summarizes the highest and lowest thresholds
Keep in mind each industry is different and there are some industries to where one of the categories may not apply.
Temporary Employment Agency [NAICS Code: 561320]
- $30M dollar threshold for average annual receipts
- no limit to # of employees
Shipbuilding and Repairing [NAICS Code: 336611]
- no monetary threshold
- limit of 1250 employees
Q3: How do I change or update my status?
There are two systems where your status is maintained or where you can update this kind of business information.
If you are already registered in the System of Award Management (SAM) to conduct business with the U.S. Federal Government, you can simply update your business information [sales of goods and number of employees] and the system will automatically identify your NAICS codes as small business or not. Small business registrations in SAM automatically update the Dynamic Small Business Search (DSBS) with the SBA.
If you are not registered in the System of Award Management (SAM) and you business is considered a “small business” you can create or update a SBA Dynamic Small Business Search (DSBS) profile directly.
Registration and Search capabilities in the above systems are FREE. If you are not registered, and would prefer outside assistance, checkout GovRegister for available assistance options.