# Am I a small business? SBA size standards in plain words

> Whether you count as small depends on your NAICS code and your average yearly receipts or employees. How to check it, and what changes it.

Last verified October 2026. Page: https://victavio.com/learn/am-i-a-small-business

You are a small business for a federal contract when your business, counted together with its affiliates, is at or under the SBA size standard for the NAICS code on that contract. The standard is either an average of yearly receipts or an average number of employees, and it changes from code to code.

## Size depends on the code, not on you alone

There is no single cutoff. The SBA sets a size standard for each six-digit NAICS code. The same company can be small for one code and not small for another. Each solicitation names one NAICS code, and that code's standard decides whether you can bid as small on that contract.

## The two kinds of standards

| Kind | What is measured | Typical industries |
|---|---|---|
| Receipts | Your average annual receipts, generally over the last five completed fiscal years | Most services, construction, retail |
| Employees | Your average number of employees, generally over the last 24 months | Manufacturing, some wholesale and mining |

Receipts generally means total income plus cost of goods sold, as reported on your federal tax return, not only profit.

## How to check yours

1. List the NAICS codes for the work you do. See [NAICS codes and size standards](https://victavio.com/learn/naics-codes-and-size-standards).
2. Look up each code in SBA's table of size standards, or use SBA's size standards tool on sba.gov.
3. Work out your number the way the standard says: average receipts or average employees for the right period.
4. Add your affiliates. Businesses that control you, that you control, or that share common control generally count together.
5. Compare. At or under the standard means small for that code.

## Where you claim it

You represent your size in SAM.gov for each NAICS code you list, and again when you submit an offer. Each one is a formal statement to the government. If your size changes, update your SAM.gov record. Claim only what is true. SAM.gov registration is free.

## When someone questions your size

Another offeror or the buyer can protest your size after an award. SBA then decides based on your records. Keep your tax returns, payroll records and ownership documents in order, so you can show your numbers.

## Common mistakes

- Using one size for every NAICS code.
- Forgetting affiliates, such as a sister company with the same owner.
- Counting only profit when the standard counts receipts.
- Not updating SAM.gov after a big growth year.

### What if I am small for one code but not another?

That is normal. You can bid as small only on notices whose NAICS code standard you meet. You can still bid on unrestricted notices for the others.

### Does being small make me eligible for every set-aside?

No. Small business set-asides need small size for the notice's code. Programs such as 8(a), HUBZone, WOSB and SDVOSB add their own tests. See [8(a), HUBZone, WOSB and SDVOSB programs compared](https://victavio.com/learn/8a-hubzone-wosb-sdvosb-compared).

### Who can confirm my size for sure?

SBA decides size questions. An APEX Accelerator can help you work out your numbers for free.

## Official sources
- [SBA: Size standards](https://www.sba.gov/federal-contracting/contracting-guide/size-standards)
- [13 CFR Part 121: Small business size regulations](https://www.ecfr.gov/current/title-13/chapter-I/part-121)
- [13 CFR 121.1004: Size protests](https://www.ecfr.gov/current/title-13/section-121.1004)
- [Census Bureau: NAICS](https://www.census.gov/naics/)

This lesson is general information, not legal advice. Rules change. Check the official source before you act.
Victavio is a Kilobytez LLC product.
Not a government agency. SAM.gov registration is free.