SBA Announces New Size Standards for Small Businesses

Small businesses are an important part of the global economy. In the United States, small businesses make up 99.9% of all employers and employ nearly half of the private workforce. Knowing this, it is essential that business owners understand and abide by the most current size standards issued by the Small Business Administration (SBA). Let’s take a look at what these new size standards are and how they can affect your business. 

 

The SBA recently released new size standards for small businesses in December 2022. Most of this was due to inflation. These standards help define which companies will be classified as “small” based on their revenue and number of employees. 

 

Why Are Size Standards Important? 

Size standards help to ensure that small businesses receive preferential treatment in certain areas such as government contracts and access to capital. For example, many government contracts are set aside exclusively for small businesses while large firms may not be eligible to bid on them. 

 

With a business certification like a WOSB, DBE, MBE, or WBE, it is important to make sure your business is still considered to be small by the Small Business Administration (SBA) size standards. If you don’t have a business certification, BizCentral USA can help. Give us a call today at 833-217-9667 to find out more.

 

Additionally, banks often offer lower interest rates on loans or grants to small businesses because they are perceived as having higher risks than larger firms due to their limited resources. By understanding and abiding by the SBA’s size standards, small business owners can ensure that they remain eligible for these benefits and opportunities. 

 

Being aware of current size standards is an important part of being a successful business owner in today’s competitive marketplace. Knowing which companies qualify as “small” under the SBA’s guidelines helps entrepreneurs access government contracts and other benefits reserved for smaller firms that could give them a leg up over their larger competitors. Therefore, it is essential that all business owners keep up-to-date with the latest size standards issued by the SBA in order to maximize their potential success.

 

To figure out if your business qualifies as a small business, the first thing you would want to do is find your primary NAICS code for your business and then gather your five (5) year average gross receipts. Next you will want to go over the Small Business Administration Website to find out if you are a small business.

 

Small Business Size Determination Website

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