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What Is SBA Industry Size Standard and Where Do You Fit?

Sign with lemons in the background that says 'We can’t thank you enough for supporting our small business.'According to the U.S. Small Business Administration (SBA) size standards, you may still qualify for small business set-asides and certifications even if you have a thriving business. Now, what is SBA industry size standard, and what does it have to do with your business-to-government (B2G) contracting firm?

Discover how size standards are defined, calculated, and appealed to leverage your specific federal contracting situation. Then, let Rafael Marrero & Company guide you through the small business qualifications as determined by the U.S. government.

Size Standard Definitions

The SBA size standards depend on the type of business, number of employees, number of affiliates, and amount of your annual receipts. Before you consider any of these calculations, it’s important to understand the terms and how they apply to your business:

  • Employees: Take the average number of people employed by your business per pay period over the past 12 calendar months. This includes anyone on the payroll, even if they haven’t worked in the past 12 months.
  • Annual receipts: Take the gross income, or total income, plus the cost of goods sold. The SBA typically averages these receipts over your last three to five complete fiscal years.
  • Affiliates: You must also include any receipts or employees of affiliated businesses. Any external party with at least 50% ownership, a considerably larger share than other parties, or a contractual arrangement may be considered an affiliate.

Your business must also have a for-profit legal structure, not be dominant in its field across the nation, have a physical location and operation in the United States, and be independently owned and operated. You can review the table of small business size standards or connect with Rafael Marrero & Company to see how your business stacks up against others in the same North American Industry Classification System (NAICS) code.

Benefits of Meeting Small Business Size Standards

What is SBA industry size standard, and how does it benefit your company? There are many small business certificationsyou may qualify for as long as you fit the SBA size standards. If eligible, you may be able to apply for one or more of the following certifications to compete for set-asides:

  • Service-disabled veteran-owned small business (SDVOSB)
  • Economically disadvantaged women-owned small business (EDWOSB)
  • SBA 8(a) small business
  • SBA historically underutilized business zone (HUBZone)

Leverage Your Business Size With Rafael Marrero

Still wondering, “What is SBA industry size standard?” Connect with Dr. Rafael Marrero to learn more about this standard and how you can use it to compete for federal contracts. Contact us today to schedule a consultation with a leader in federal contracting.

Dr. Rafael Marrero

A nationally recognized expert in federal contracting, small business entrepreneurship, vendor, and project/program management. A graduate of the prestigious Stanford and Cornell Universities, Dr. Rafael Marrero is a former Fortune 500 procurement executive, two-time Inc. 500 honoree, network news commentator, and Amazon best-selling author.

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