How Does the SBA Determine Whether Your Company Is a Small Business?

Size depends on the applicable standard

SBA does not use one headcount limit for every industry. Size standards are linked to NAICS and can be based on receipts or employees. The relevant procurement's assigned code determines the standard used for that procurement.

Build the analysis

1. 01Find the solicitation's NAICS code and current standard.
2. 02Review the official calculation period and measurement instructions.
3. 03Gather the business's supporting records.
4. 04Determine whether affiliates must be included.
5. 05Check the timing and representations required by the procurement.

Ownership and control matter

Separate incorporation does not automatically prevent affiliation. Ownership, control, business relationships, and exceptions require fact-specific review. Do not exclude a related company merely because it has another legal name.

Document before representing

Keep the basis for your determination and obtain qualified guidance where facts are complex. A supplier directory profile does not decide size for you. Revisit the analysis when the assigned industry, ownership, structure, or applicable rules change. An inaccurate representation can have consequences beyond losing a bid.