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How do you qualify as a federal small business?

The Small Business Administration (SBA) applies specific size standards to each industry, known as NAICS codes. Generally, manufacturing companies with up to 500 employees and non-manufacturing businesses with average annual receipts under $7.5 million are considered small businesses. However, it’s important to note that there are industry-specific exceptions to these standards.

In certain sectors, such as professional services or construction, the size threshold for qualifying as a small business may vary. These exceptions take into account the unique characteristics and economic dynamics of specific industries. It’s crucial for businesses to consult the SBA’s size standards table or seek guidance to determine the specific size standard applicable to their industry.

Understanding the size standards is essential for businesses seeking government contracts, as they influence eligibility for various programs and preferences. The SBA’s comprehensive guidelines help ensure fair competition and provide opportunities for small businesses across a wide range of industries.

Check your businesses eligibility using our Small Business Calculator!


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