Small Business Size Standards Summary
A small business is one that:
- is organized for profit,
- has a place of business in the United States,
- makes a significant contribution to the US economy by paying taxes or using American products, materials or labor, and
- does not exceed the numerical size standard for its industry.
The business may be a sole proprietorship, partnership, corporation, or any other legal form. There is an SBA small business size standard for every private sector industry in the US Economy. SBA uses the North American Industry Classification System (NAICS) to identify the industries.
Size Standards (usually stated in number of employees or average annual receipts) represent the largest size that a business (including its subsidiaries and affiliates) may be to remain classified as a small business for SBA's programs and for Federal contracting programs.
SBA has several general Size Standards. A business in one of the following industry groups is small if it is not greater than the size standard indicated.
Industry Group
|
Size Standard
|
Manufacturing
|
500 employees
|
Wholesale Trade
|
100 employees
|
Agriculture
|
$750,000
|
Retail Trade
|
$6.5 million
|
General & Heavy Construction (except Dredging)
|
$31 million
|
Dredging
|
$18.5 million
|
Special Trade Contractors
|
$13 million
|
Travel Agencies
|
$3.5 million (commissions & other income)
|
Business and Personal Services
Except:
|
$6.5 million
|
Architectural, Engineering, Surveying, and Mapping Services
|
$4.5 million
|
Dry Cleaning and Carpet Cleaning Services
|
$4.5 million
|
If the size of a business exceeds the size standard for its overall industry group, it may still be a small business for the specific NAICS industry in that group. Some industries have higher size standards than the general one for the industry group. Check out your exact size standard on our website.
Don't know the NAICS code? Search for NAICS industries on the U.S. Bureau of the Census website.
For Federal contracting, a small business must not exceed the size standard stated in the solicitation. The contracting officer designates the size standard of the procurement by selecting the size standards established for the NAICS industry that best describes the principle purpose of the procurement.
References:
• Small Business Administration
Related Articles
| Using Small Business Size Standards Follow Zana Network’s guide to size standards to learn how to use the NAICS Industry Size Standards to qualify and register for government contracts. Qualifying for HUBZone or SDB programs requires registering with the Online Registration and Certification Application (ORCA) and being certified as a small business. We answer questions regarding government small business set aside as well as specific provisions for the construction, manufacturing and service industries |
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| NAICS Codes The federal government awards contracts to small businesses which meet the size standards of the North American Industry Classification System (NAICS) Codes. Determine the size of your business and whether it qualifies as a ‘small business’ by consulting the NAICS codes and finding the number which best corresponds to your business |
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| Small Business Size Standards Table Use the list of NAIC codes and SBA small business size standards to determine if your business qualifies as a small business with the federal government. The SBA size standards table helps small business owners identify what types of government contracts they are eligible to bid on. Government contracting requires consulting the NAIC codes and table of size standards. |
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| Small Business Size Standards FAQ Small Businesses who wish to contract work from the federal government must qualify as small business under the size standards presented by the National American Industry Classification System (NAICS). Learn what NAICS size standards for small businesses are, advice on how to be eligible and have the most common size standards answered |
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