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SBA's Size Standards Overhaul Gets a Longer Runway Amidst Skepticism and Disagreement Over Its Scope

September 24, 2026

By: Henri Nilsen

Two weeks ago, we flagged SBA's proposal to collapse nearly 1,000 size standards into 338 and raise thresholds across the board as it relates to what defines a “small business” in the eyes of the federal agency. Since then, the picture has become both more urgent and more contested. Fort Worth businesses now have more time to weigh in than when we first wrote about it.

The Deadline Moved

SBA has extended the comment period on both the proposed rule and its revised methodology from September 21 to November 20, 2026—a 60-day extension granted after stakeholders asked for more time to work through the numbers. Current size standards remain in effect until a final rule is issued, so nothing changes for your NAICS classification today. But the extra runway means there's still time for Fort Worth's business community to weigh in before the rule locks into place.

SBA and its Independent Watchdog Don't Agree on the Scale

SBA's original estimate—roughly 114,000 newly qualifying small businesses, including 37,000 current federal contractors holding more than $71 billion in FY2025 awards—is the number that's circulated widely. But the SBA's independent Office of Advocacy released its own analysis on September 17 and landed somewhere very different: it estimates only 4,000 to 6,000 current contractors would gain small-business status, against roughly 56,000 firms already active in the federal small-business marketplace.

The Early Feedback is Running Skeptical

By the original September 21 deadline, the docket had drawn more than 65,000 comments, and an analysis cited by Federal News Network found opposition outnumbering support roughly eight to one—concentrated less on the goal of updating the standards than on the size and speed of the proposed increases. NFIB sent a formal letter raising a related concern: that folding standards together could crowd out the smallest of small businesses in competition with much larger new entrants. The U.S. Chamber of Commerce took a more favorable view, generally supporting expanded eligibility but recommending SBA split its standards into separate tracks for contracting versus lending and technical assistance.

Where This Leaves You

With the deadline now in November, there's real time to get this right instead of reacting under pressure. We're continuing to collect member input through our short survey—it takes about five minutes. If you haven't weighed in yet, or if the extended deadline alters how your business thinks about these proposed changes, we'd like to hear from you.


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