Size standard (SBA size standard)
Size standard stands for SBA size standard. A size standard is the cutoff SBA sets for each NAICS code to decide whether a business is small. Most service and construction codes use average annual receipts, while most manufacturing and some wholesale codes use number of employees.
Receipts are generally averaged over your last five completed fiscal years, and employees over the last 24 months. Your affiliates count too, so if you share ownership or control with another company, its size may be added to yours.
Why it matters to a small contractor
Your size is measured per bid, against the NAICS code in that solicitation. You can be small for a janitorial bid and other than small for a different code with a lower limit, so check every time.
Example
A grounds company with a few million dollars in average yearly revenue looks up the size standard for landscaping services in SBA's table, sees it is under the limit, and represents itself as small on the bid.
Size standard: common questions
Where do I find size standards?
SBA publishes a Table of Size Standards on sba.gov, and SBA's Size Standards Tool lets you enter your NAICS code and numbers to get a quick answer.
What happens if I grow past the size standard?
You can finish contracts you already have, but you generally cannot claim small status on new bids under that code. Some long contracts also require you to recertify size at certain points.
Does a competitor have a way to challenge my size?
Yes. Other offerors or the contracting officer can file a size protest, and SBA decides it. Keep your financial records ready.
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