The definition of “small business” is crucial for purposes of SBA loan programs and federal contracting set-asides. It pays to be a small business! The SBA proposed a change that would expand the definition by raising the applicable size thresholds. The proposal would also streamline the existing NAICS structure to a 4-digit classification system that reduces total size standard categories from nearly 1,000 down to 338 broad industry groupings, simplifying how firms determine their small business status. Comments to the proposed changes are due by September 21, 2026. My opinion: the expansion of the definition wouldn’t be a good thing because it would crowd out small businesses from government contract opportunities. #IdeaoftheDay | 
