SBA Extended Deadline for New Small Business Size Rules
Construction firms now have until November to provide feedback on a proposal to shift size standards to an employee-count metric.
Updated on Sept. 23, 2026 in Construction
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The U.S. Small Business Administration has extended the comment period for proposed revisions to size standards to November 20, 2026. The move grants industry members additional time to evaluate a potential shift from receipts-based to employee-based metrics for construction sector classification.
Why it matters
The change directly impacts which firms qualify for federal small business programs, with the proposed rule potentially reclassifying 14,000 additional companies as small businesses. Industry groups sought more time to assess how the new 550 to 2,000 employee thresholds compare to current $19 million to $45 million revenue limits.
The proposal could designate 14,000 additional construction firms as small businesses based on new thresholds ranging from 550 to 2,000 employees. This shift marks a departure from the current receipts-based standards of $19 million to $45 million.
The players
U.S. Small Business Administration
The federal agency tasked with providing support and capital to small businesses and defining size standards for government contracting.
Associated Builders and Contractors
A national trade association representing construction and industry-related firms that advocates for policies impacting the non-union construction workforce.
The details
The proposed rule intends to overhaul how the federal government defines a small business within the construction sector by pivoting from annual revenue to personnel counts. Current standards use receipts-based metrics, but the SBA proposal introduces a scale of 550 to 2,000 employees depending on sub-industry. Interested firms must determine if their current employee headcount meets these new criteria to qualify for set-aside contracts and other federal assistance programs.
Timeline
September 14, 2026: The Associated Builders and Contractors requested a 30-day extension.
September 21, 2026: The original comment deadline and date of initial coalition submissions.
September 22, 2026: Total public comment submissions reached 68,201.
November 20, 2026: The new deadline to submit feedback on the proposed size standards.
Market Landscape
This proposal reflects a broader regulatory trend toward simplifying size eligibility under the Small Business Act. It marks a significant shift from long-standing revenue-based criteria used to benchmark market participation.
Operators should review their current employee count against the proposed 550 to 2,000 employee ranges to see if their small business status changes. Firms planning to provide feedback should use the extended window to analyze how these specific metrics impact their competitive bidding.
The takeaway
The move to employee-based metrics represents a major change in how your firm may be classified for government contracts. Operators should monitor the progress of these standards and consult with counsel if a change in business size classification would impact existing contract obligations.
Further reading
For more on shifts in industry oversight, see the Construction section.
Source note: This article includes information reported by Tedmag.
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