SBA Extends Comment Period for Proposed Size-Standards Overhaul
Authors
Bret S. Wacker , Ronald D. Sullivan , J. Chris White , Colleen Jarrott , Gabrielle Long
Additional contributor: Law Clerk, Max Sarkissian
Summary
The U.S. Small Business Administration (“SBA”) has extended the public comment period for two related proposals that would substantially revise the standards used to determine whether a company qualifies as a small business. Comments on both proposals are now due November 20, 2026.
The extension gives federal contractors, trade associations, and other affected stakeholders additional time to evaluate proposed changes affecting 338 industry groups and industries. It also provides an opportunity to comment separately on the methodology SBA used to develop the proposed standards.
Companies should use the additional time to determine how the proposed standards would affect their eligibility, competitive position, contracting pipeline, and teaming relationships.
The Two SBA Proposals
The extension applies to two coordinated rulemaking proceedings:
- Proposed Small Business Size Standards
RIN 3245-AI67; Docket No. SBA-2026-0199. This proposal would establish revised size standards for 338 industry groups and industries. - Revised Size Standards Methodology
Docket No. SBA-2026-0265. This proceeding addresses the economic and analytical methodology SBA proposes to use when establishing, reviewing, and revising size standards.
The proposals were originally published on August 20, 2026. The initial comment period was scheduled to close on September 21, 2026. SBA subsequently granted a 60-day extension, moving the deadline to November 20, 2026.
Why the Extension Matters
The proposed changes could determine whether thousands of companies qualify for federal small-business programs. Size status can affect eligibility for:
- Small-business set-aside contracts
- 8(a) Business Development Program opportunities
- Women-Owned Small Business procurements
- Service-Disabled Veteran-Owned Small Business procurements
- HUBZone contracting opportunities
- Small-business subcontracting credit
- Certain joint ventures and mentor-protégé arrangements
The extension is particularly important because the proposal involves more than routine inflationary adjustments. SBA is considering substantially higher standards in several heavily used federal contracting classifications, broader NAICS industry groupings, and changes from receipts-based to employee-based standards in certain industries.
What Contractors Should Do Now
Affected contractors should consider the following steps before November 20:
- Identify relevant NAICS codes. Review the codes assigned to current contracts, contract vehicles, pending bids, material subcontracts, and pipeline opportunities.
- Compare current and proposed thresholds. Determine whether the company would retain or regain small-business status.
- Identify newly eligible competitors. Evaluate whether substantially larger companies could qualify as small under the proposed standards.
- Review the methodology. Consider whether SBA’s analysis accurately reflects competition, market concentration, operating models, and contract sizes within the relevant industry.
- Prepare data-supported comments. Comments should include concrete procurement or industry evidence and, where appropriate, propose an alternative standard.
- Protect confidential information. Contractors should review applicable submission procedures before including proprietary revenue, employee, pricing, or competitive information.
Bottom Line
The November 20, 2026 deadline gives contractors more time to analyze a proposal that could materially alter federal small-business competition. Companies should not assume that aggregate impact estimates accurately reflect the consequences for their particular NAICS codes or markets.
Existing size standards remain in effect unless and until SBA issues a final rule. Companies should not change current size representations or certifications based solely on the proposed standards.
Clark Hill’s Government Contracting team can help companies evaluate the relevant NAICS codes, model eligibility and competitive effects, and prepare comments addressing the proposed thresholds and underlying methodology.
Contact Clark Hill
If you have questions about how the final rule may affect your business, contact one of these Clark Hill Government Contracts and Regulations Team attorneys:
- Bret S. Wacker (bwacker@clarkhill.com 202.772.0906)
- Chris White (jcwhite@clarkhill.com 517.318.3011)
- Ronald D. Sullivan (rsullivan@clarkhill.com 202.809.2235)
- Colleen C. Jarrott (cjarrott@clarkhill.com 202.640.6668)
- Gabrielle Long (glong@clarkhill.com 312.701.6852)
- Contributors: Max Sarkissian, Law Clerk
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