SBA Proposed Rule Change – Here’s What You Need to Know
On August 20, 2026, the U.S. Small Business Administration published a proposed rule that would substantially rewrite the standards used to determine which companies qualify as "small businesses" for federal contracts, SBA-backed loans, and other federal programs. For our members, Greater Rochester Chamber has prepared the below brief on this policy to help you learn more – and is collecting feedback on how it might impact your business by Thursday, September 18th so we can advocate on your behalf.
What is the rule change?
Issued as part of the agency's third statutorily required five-year review under the Small Business Jobs Act of 2010, the rule (Docket SBA-2026-0199; RIN 3245-AI67) departs from the incremental updates of the first two reviews (2016 and 2023) by restructuring the underlying methodology itself — consolidating nearly 1,000 industry-specific size standards (based on 6-digit NAICS codes) into 338 broader standards, shifting the default measure from annual receipts to employee counts in most industries, and adding a new productivity-growth adjustment on top of the standard inflation adjustment.
Notably, while the new formula highlighted 45 industries for a possible reduction, SBA has proposed to hold every one of them at their current level, meaning the rule is expected to expand — not shrink — the pool of qualifying businesses by roughly 114,500 firms nationally, with almost no businesses (fewer than 200 estimated) losing small-business status.
Who would this impact?
For our members, particularly those in professional and technical services, manufacturing, and government contracting, the changes could open new access to federal set-aside contracts, SBA loan programs, and regulatory relief, though they may also increase competition for set-asides as more firms qualify as small.
What does it mean for you?
Greater Rochester Chamber is seeking input from our members on how this might impact your business and opportunities you would pursue. Public comments are due September 21, 2026, and current size standards remain in effect until a final rule is issued. Please contact Sr. Director of Advocacy Kate Beale at Kate.Beale@GreaterRochesterChamber.com to share any implications that we should be aware of, or for more information or any questions we can assist you with.