By David Wright

SBA completed another public-testimony session on September 21 for its proposed overhaul of federal small-business size standards. The proposal would consolidate classifications and could expand eligibility, but businesses should keep using current rules until a final rule actually takes effect.

The comment period is over. The rulemaking is not.

On September 21, 2026, the U.S. Small Business Administration held an in-person public-testimony session on proposed changes to its size-standard methodology and size standards. SBA has said the testimony and written comments will become part of the administrative record considered in developing a final rule.

That makes September 22 a useful moment for small-business owners to shift from “Should I comment?” to “What should I monitor and model?”

What SBA has proposed

SBA announced the proposal on August 20. According to the agency, the overhaul would move many classifications from separate six-digit NAICS standards toward broader four-digit groupings where appropriate, reducing the total list from nearly 1,000 categories to 338.

SBA estimates the proposed thresholds would expand the pool of employer firms classified as small by more than 110,000. That could affect access to federal contracting opportunities, SBA-backed capital, counseling, and other programs that depend on small-business status.

Proposed does not mean effective

The most important compliance point is simple: a proposed rule is not a final rule. The September 21 testimony session was part of the rulemaking process, not an announcement that the new standards had taken effect.

Businesses should continue to use the currently applicable size standards for eligibility decisions unless and until SBA issues a final rule with an effective date. Do not self-certify under a proposed threshold.

Key takeaway: The proposal is not final: current standards still govern until a final rule takes effect.

What to do now

1. Verify your primary NAICS code. Make sure the code actually reflects the company’s principal business activity.
2. Know your current size standard. Document the employee-count or receipts calculation that applies today.
3. Model the proposal. Ask whether the proposed approach would change eligibility, contracting strategy, or growth planning for your industry.
4. Watch for the final rule. Track SBA and Federal Register updates rather than relying on older third-party summaries.
5. Revisit your opportunity map. If eligibility changes later, reassess set-aside opportunities, SBA programs, teaming strategies, and growth plans.

Why this matters beyond compliance

Size standards shape who competes in certain federal markets and who qualifies for specific SBA programs. A change in the threshold can alter the competitive field even when nothing inside your company changes.

For a growing business, that makes regulatory monitoring part of strategy. The goal is not merely to avoid a mistake; it is to recognize when a rule changes the set of opportunities available to the company.

The practical takeaway

Treat the proposal as a scenario to model, not a rule to follow today. Maintain current compliance, document the assumptions behind your eligibility decisions, and be ready to update quickly when a final rule is published.

Atlanta Small Business Incubator can help entrepreneurs strengthen business planning, administrative systems, and opportunity-readiness. Legal, tax, and formal federal-contracting determinations should be confirmed with the responsible agency or an appropriately qualified professional.

Questions Readers Often Ask

Are the new size standards in effect now?
No. The September 2026 changes discussed here are proposed. Current rules remain in force until a final rule becomes effective.

Why should a company model a proposal that is not final?
Scenario planning can reveal potential contracting, capital, and growth implications without treating the proposal as settled law.

Where should a business verify size status?
Use current SBA size-standard resources and the applicable NAICS classification. For consequential eligibility or certification questions, confirm with SBA or qualified counsel.

Sources & Further Reading

• U.S. Small Business Administration. SBA Proposes Overhaul to Simplify Small Business Classification and Expand Access to Federal Programs. August 20, 2026.
• U.S. Small Business Administration. SBA to Consider In-Person Public Testimony on Proposed Size Standards Rules. September 16, 2026.

Related Practice Resources

• Atlanta Small Business Incubator
• Related: Supplier Matchmaking Readiness
• Related: 2026 1099-NEC Threshold
• Related: BOI Rule Update

Next step: Explore ASBI resources for business planning, administrative systems, and opportunity-readiness.

General business information only; not legal, tax, accounting, certification, or federal-contracting advice.