SBA's Increases to Size Standards: Why, When, and How...

In a livestream, I answered the two questions I get most about SBA’s proposal on size standards: Why is SBA doing this? And when might it happen? I also broke down how SBA could leave just 360 small businesses left in Federal contracting.

Links

Proposed Rule: Small Business Size Standards https://www.federalregister.gov/documents/2026/08/20/2026-17042/small-business-size-standards

Regulations.gov docket https://www.regulations.gov/document/SBA-2026-0199-0001/comment

Google Sheet of Size Standard Proposals https://docs.google.com/spreadsheets/d/1lY83yT6T-THskHao-Vf28JrryhKay-XP

Text of all 2,723 comments as of 9/21 https://drive.google.com/file/d/1mhbiHWMVFWqfbUhYwd1H4LTNoBtG1oAN

Courtney Modecki’s post on LinkedIn https://www.linkedin.com/posts/courtneymodecki_govcon-smallbusiness-sba-share-7506740781034930176-vVAs

Wolverine Group Size Standard Impact Tool https://wolverine-group.com/tooling-size-standard.html

Project 2025 Presidential Transition Project (Heritage Foundation) https://static.heritage.org/project2025/2025_MandateForLeadership_FULL.pdf

Statement of FCC Chairman Brendan Carr Re: Amendment of Section 73.3555(e) of the Commission’s Rules, National Television Multiple Ownership Rule, MB Docket No. 17-318, Report and Order (August 6, 2026) https://docs.fcc.gov/public/attachments/DOC-424076A2.pdf

FY26 SBA Scorecard Methodology Update https://legacy.sba.gov/sites/default/files/2026-09/FY26%20SBA%20Scorecard%20Methodology%20Update-1.pdf

Press Release: Advocacy Supports SBA Size Standards Update https://advocacy.sba.gov/2026/09/17/advocacy-supports-sba-size-standards-update/

Small Business Innovation Measure by Patenting Activity https://advocacy.sba.gov/wp-content/uploads/2022/09/Fact-Sheet_Small-Business-Innovation-Measured-by-Patenting-Activity-1.pdf

Department of Defense Small Business Strategy https://media.defense.gov/2023/Jan/26/2003150429/-1/-1/0/SMALL-BUSINESS-STRATEGY.PDF

Bending the Rules by Rachel Augustine Potter https://www.augustinepotter.com/books.html

Denes et al., How Big is Small? The Economic Effects of Access to Small Business Government Support https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3451424

Feinstein, Small Business Favoritism https://faculty.wharton.upenn.edu/wp-content/uploads/2026/06/Small-Business-Favoritism.pdf

Size Appeal of Brice Solutions, LLC https://govt.westlaw.com/sbaoha/Document/I36932e89aba311f195c6ba05d03f86cf

HUBZone Appeal of DT Professional Services LLC https://govt.westlaw.com/sbaoha/Document/I1e9a0d5ab5d111f19a6dae822e4bdc94

Chapters

* 0:00 Introduction

* 1:25 The 60-Day Comment Extension

* 2:24 Two Dockets and 2,723 Comments

* 3:28 Why the 60,000 Comment Figure Is Wrong

* 4:46 87 Percent Against

* 8:35 Comments by NAICS Code

* 10:29 Why Is SBA Doing This? Project 2025

* 14:14 The FCC Ownership Cap Parallel

* 18:37 Why SBA Uses Four-Digit NAICS Codes

* 19:57 The Mid-Size Business Problem Since the 1980s

* 20:48 37,000 or 4,200 Mid-Size Firms?

* 23:20 Companies Grow Up to the Cap

* 24:18 The Math: 60,000 Small Businesses or 360?

* 29:23 The Short Answer on Why

* 30:02 When Will SBA Finalize? Rachel Potter’s Three Tools

* 33:46 Timing as a Tool and the Midterm Elections

* 36:31 Roadblocks: Opposition and Organization

* 37:49 Legal Challenges

* 39:19 The Scorecard and New Entrants

* 40:17 What the Research Says About Raising Size Standards

* 42:45 Small Businesses and Innovation

* 45:29 Audience Questions

* 52:40 HUBZone Appeal: DT Professional Services

* 53:54 Size Appeal: Brice Solutions

* 55:34 Closing

With over 20 years of Federal legal experience, Sam Le counsels small businesses through government contracting matters, including bid protests, contract compliance, small business certifications, and procurement disputes. Sam received his law degree from the University of Virginia and formerly served as SBA’s director of procurement policy. His website is www.samlelaw.com.

This video is for informational purposes only and does not constitute legal advice.