Proposed SBA Size Standard Changes: What Veteran-Owned Businesses Need to Know

The U.S. Small Business Administration (SBA) is considering changes to its small business size standards that could have significant implications for companies competing in the federal marketplace.

For Veteran’s Business Enterprises® (VBEs) that pursue government contracts, these proposed changes are worth paying attention to. Depending on the final rules, changes to size standards could affect small business eligibility, competition for set-aside contracts, teaming and subcontracting opportunities and participation in federal small business programs.

Most importantly, the SBA is currently accepting public comments, giving business owners an opportunity to share how the proposed changes could affect their companies and the broader small business contracting community.

Public comments are due September 21, 2026.

Why Size Standards Matter

SBA size standards determine whether a business qualifies as “small” for federal contracting and other SBA programs. Standards generally vary by industry and are commonly based on a company’s number of employees or annual receipts.

Changes to these standards can therefore influence which businesses qualify for small business contracting opportunities and which companies they compete against.

For Veteran-owned businesses operating in the federal marketplace, understanding the potential impact is important. Businesses should consider how the proposals could affect their eligibility, competitive position, teaming relationships and long-term government contracting strategy.

Your Voice Matters

The federal rulemaking process gives businesses and other stakeholders an opportunity to provide feedback before proposed regulations are finalized.

NaVOBA encourages VBEs to review the proposals and consider submitting comments based on their own experiences in the federal marketplace. Whether you support the proposed changes, oppose them or believe certain provisions should be modified, this is an opportunity to provide SBA with real-world perspectives from the businesses its policies affect.

Comments that include specific examples, data and evidence about potential impacts can be particularly useful in helping policymakers understand how proposed rules may work in practice.

Resources to Help You Understand the Proposed Changes

Several organizations in the government contracting community have developed resources to help small businesses better understand the proposals and public comment process.

Baroni Center: Small Business Standards

The Greg and Camille Baroni Center for Government Contracting at George Mason University’s Costello College of Business hosted a discussion on September 1 focused on the proposed changes and the public comment process.

The discussion featured Mike Derrios, Executive Director of the Baroni Center; Sharon Heaton, CEO and Founder of sbLiftOff; Sam Le, former Director of Policy Planning and Liaison at SBA; and George Price, a retired Senior Executive Service member in the U.S. Department of State’s Office of Small and Disadvantaged Business Utilization.

The Baroni Center has also developed a five-question guide designed to help organizations think through the proposed changes and prepare evidence-based comments.

Learn More About the Baroni Center’s “Small Business Standards” Discussion

PilieroMazza Town Hall: Breaking Down SBA’s Proposed Changes

PilieroMazza also hosted a town hall examining SBA’s proposed changes to small business size standards.

The session explored potential impacts on areas including small business set-asides, the Mentor-Protégé Program and the rulemaking and public comment process.

For VBEs trying to understand what the proposals could mean for their businesses, the recorded session provides additional context before deciding whether and how to comment.

Watch the Recorded PilieroMazza Session

How to Submit a Public Comment

Businesses have until September 21, 2026, to submit comments.

Before submitting, review the proposals carefully and consider how the changes could affect your business, your industry and your ability to compete for federal contracting opportunities.

Comments can address both positive and negative impacts. Business owners may also suggest alternatives or modifications that they believe would better support competition and the small business contracting community.

Comments may be submitted electronically for the following SBA dockets:

Docket SBA-2026-0199 — Proposed Rule

Review the Proposed Rule and Submit a Comment

Docket SBA-2026-0265 — Proposed Methodology

Review the Proposed Methodology and Submit a Comment

When submitting comments, be sure to follow the instructions associated with the appropriate docket.

Make Your Perspective Heard

Veteran-owned businesses bring an important perspective to the federal marketplace. Policies governing small business eligibility and contracting can have real consequences for a company’s ability to compete, grow and build relationships with federal agencies and prime contractors.

NaVOBA encourages VBEs that could be affected by these proposals to take the time to understand the potential changes and participate in the public comment process.

The deadline to submit comments is September 21, 2026.

By sharing your experience and perspective, you can help ensure that Veteran-owned businesses are represented as SBA considers the future of small business size standards.