SBA Extends Comment Period on Small Business Size Standards to Nov. 20

Good news if you haven’t weighed in yet: the U.S. Small Business Administration (SBA) has extended the public comment period on its proposed small business size standards overhaul to November 20, 2026. The original deadline was September 21, 2026.

The SBA announced the 60-day extension on September 24, 2026, “in response to requests for additional time to comment and following the SBA’s clarification of the impacts” of the proposed changes, according to the Federal Register extension notice. The extension covers both the proposed size standards rule and the revised size standards methodology.

What is the SBA proposing?

Size standards are the rules that decide whether your business counts as “small” in the eyes of the federal government. They’re usually based on either your number of employees or your average annual receipts, and they vary by industry.

Published August 20, 2026, the proposed rule would overhaul how these standards are set. Here are the highlights:

• Fewer, broader categories. Nearly 1,000 individual size standards based on 6-digit NAICS codes would be consolidated into 338 industry groups using 4- and 5-digit NAICS codes. All size standard exceptions would be eliminated.
• More employee-based standards. Many industries would switch from revenue-based to employee-based standards, which the SBA says reduces how often a firm’s status flips because of business ups and downs or inflation.
• A simpler formula. The SBA would use three factors to set standards (national industry size, number of geographic markets and an adjustment for net imports) instead of the previous seven.
• Higher thresholds in many industries. The proposal would generally increase size standards. For example, the SBA’s announcement notes animal production support would rise from $11 million to $71 million in receipts, and semiconductor manufacturing from 1,250 to 2,800 employees.

A companion methodology white paper explains how the SBA establishes, reviews and modifies size standards. It’s open for comment on the same timeline.

Why this change matters to your business

Your size classification affects whether you qualify for SBA loan programs, federal contracting preferences and other federal support. If the definition of “small” changes for your industry, your eligibility could change too.

According to the proposed rule:

• The number of businesses that qualify as small would grow from 6,344,967 to 6,459,508, about 114,541 additional firms.
• An estimated 37,002 firms with fiscal year 2025 federal contracts would become newly eligible small businesses, accounting for roughly $71 billion in contracts.

That’s why this is one to watch. Whether your business gains eligibility, keeps it or sees your category redrawn, the final rule could shape which SBA loans and federal contracts you can pursue. The best way to know where you stand is to look up your own industry.

How to make your voice heard by November 20

Public comments are your chance to tell the SBA how these changes would affect your business before the rule is finalized. Here’s how to do it:

1. Check your current size standard. Use the SBA’s size standards tool to see how your business is classified today.
2. Review the proposal for your industry. Find your industry group in the proposed rule to see what would change.
3. Write your comment. Explain how the change would affect your business, in your own words. The SBA Office of Advocacy’s Small Business Guide to Comment Letter Writing walks you through it.
4. Submit it by November 20, 2026. Comment online through gov using docket number SBA-2026-0199 for the size standards rule or SBA-2026-0265 for the methodology. You can also send comments by mail, hand delivery or courier to Ryan Lambert, Associate Administrator, Office of Industrial Base Resilience & Contracting, U.S. Small Business Administration, 409 Third Street SW, Mail Code 6530, Washington, DC 20416.

Planning to share confidential business information? The extension notice says to send it to GCBDregs@sba.gov.

Have questions? The Office of Advocacy lists Timothy Zak (timothy.zak@sba.gov) and John Vatian (john.vatian@sba.gov) as contacts.

SBA size standards FAQ

When is the new deadline to comment on the SBA size standards proposal? November 20, 2026. The SBA extended the original September 21, 2026 deadline by 60 days.

Why did the SBA extend the comment period? The SBA said it extended the deadline in response to requests for more time and after clarifying the impacts of its proposed changes.

What is an SBA size standard? It’s the maximum number of employees or average annual receipts a business can have and still qualify as “small” for SBA loans, federal contracts and other federal programs. Standards vary by industry.

How many businesses would the new size standards affect? The SBA estimates about 114,541 more firms would qualify as small businesses, raising the total from 6,344,967 to 6,459,508.

How do I find my business’s size standard? Use the SBA’s size standards tool at sba.gov.

How do I submit a comment? Submit online at Regulations.gov under docket SBA-2026-0199 (size standards) or SBA-2026-0265 (methodology), or by mail to the address above.

The bottom line

The SBA is rethinking what it means to be a small business, and you have until November 20, 2026 to tell them how that affects you. Take a few minutes to check your size standard, review the proposal and submit a comment. Your input helps shape the rules that decide who can access SBA loans and federal contracts.

While the SBA works through these changes, your business still needs to keep moving. ARF Financial provides working capital for small businesses, including bridge loans to help cover the gap while you wait on SBA financing.