# SBA Proposes Size Standards Overhaul

The U.S. Small Business Administration has proposed consolidating roughly 1,000 NAICS-linked size standards into about 338–340 categories and raising many eligibility thresholds, including a proposed increase for drycleaning and laundry services from $35 million to $47 million in average annual receipts. The proposals are not final, so contractors must continue using current standards and representations. The SBA extended the comment period to November 20, 2026, giving stakeholders 50 days from October 1 to submit feedback. Thirteen senators have urged the SBA to rescind the changes, underscoring the potential impact on small-business contracting and set-aside competition.

- Companies should map their NAICS classifications and model eligibility under the proposed thresholds using affiliate-inclusive data; changes could affect small-business and 8(a) program eligibility.
- Contractors should continue to use current size standards for representations and bidding unless and until a final rule changes them.
- Interested firms can submit comments to the SBA by **November 20, 2026**. Larger thresholds could allow more growing or middle-market firms to qualify as small, changing competition for set-aside work while giving some businesses more room to scale.

**Jurisdictions:** federal
**Industries:** Professional Services
**Topics:** Regulatory Compliance, Policy
**Published:** September 30, 2026

### Government Entities
- U.S. Small Business Administration (SBA)
- United States Senate
- U.S. House Small Business Committee

### Key Quotes
> Small businesses create the vast majority of new jobs. This proposal ensures that these job creators have the regulatory certainty to scale.
> — Kelly Loeffler, SBA Administrator

### Sources
- [
	What the SBA's Proposed Size Standards Overhaul Means for Your Business | Baker Donelson
](https://www.bakerdonelson.com/sba-proposes-major-overhaul-of-small-business-size-standards-what-businesses-government-contractors-and-investors-need-to-know) - Baker Donelson
- [SBA Extends Comment Deadline on Business Size Standard Proposal | American Drycleaner](https://americandrycleaner.com/articles/sba-extends-comment-deadline-business-size-standard-proposal) - American Drycleaner
- [SBA just gave itself more time to overhaul the small business rulebook](https://www.reddit.com/r/GovernmentContracting/comments/1wtgjnt/sba_just_gave_itself_more_time_to_overhaul_the) - reddit-governmentcontracting