Small Business Size Regulations

SBA establishes size standards that define the largest a business can be and still qualify as a small business for federal government programs. Size standards are generally based on the number of employees or average annual receipts, depending on the industry. Standards vary by NAICS industry code.

To qualify as small, a manufacturing firm typically must have fewer than 500 employees, while a service firm must have average annual receipts below $8 million to $41.5 million depending on the industry. Affiliation rules require that the size of affiliates be included in the size determination.