🕒 Created · Updated

The Small Business Administration proposes expanding small business definitions to include 110,000 additional companies.

The Small Business Administration announced a proposal to widen the definitions of "small business" across various industries, potentially adding an estimated 110,000 companies to the current ranks. This move aims to simplify industry classifications by reducing the number of North American Industry Classification System codes from over 1,000 to 338 broader categories. Under the new standards, several sectors will see significant threshold increases. For example, the animal production industry's revenue cap will jump from $11 million to $71 million. In the IT and consulting markets, the administration announced that businesses currently exceeding thresholds could qualify as small businesses again, providing more room for growth before graduating from the status. SBA Administrator Kelly Loeffler stated that streamlining these definitions will expand access to capital, counseling, and contracting opportunities. While the changes are proposed and subject to public comment until September 21, 2026, the agency expects the rule change to go into effect by the end of the year.

Sources