How do I determine my small business size standard under 13 CFR 121 and the NAICS tables?

Details / How it works

Steps to Determine Your Size Standard

1. Identify your NAICS code(s) – Classify your business under the North American Industry Classification System based on your products or services. Your primary NAICS code is typically the one generating the most revenue, though you may have multiple codes.
2. Look up the size standard – Use the SBA’s interactive Size Standards Tool (sba.gov/size-standards) or download the Table of Small Business Size Standards. The standards are codified in 13 CFR Part 121.
3. Understand the two metrics – Size standards are either a maximum number of employees (average per pay period over the latest 24 calendar months) or a maximum average annual receipts (total income plus cost of goods sold, averaged over the most recent 5 complete fiscal years).
4. Include affiliates – When calculating size, you must aggregate the employees and receipts of all affiliates. Affiliation exists when you control or have substantial influence over another entity (e.g., 50%+ ownership).
5. Self-certify – Register in SAM.gov and self-certify your size status. Size is determined as of the date you submit that self-certification for a contract or program application.

Important: The controlling number is always the specific size standard assigned to your NAICS code, not general guidelines.

Numbers & thresholds

Exceptions & edge cases

• Multiple NAICS codes: If your business sells multiple types of offerings, you may have more than one NAICS code. For certification programs, you must be small under the size standard of the NAICS code listed in your SAM profile (for most programs) or your primary industry classification (for 8(a)).
• Short years and new businesses: If you have been in business less than 5 years, receipts are annualized (total receipts ÷ weeks in business × 52). For the Business Loan and Disaster Loan Programs, a 3‑year average may be used.
• Affiliate aggregation: If you acquire an affiliate during the measurement period, that affiliate’s receipts and employees are included for the entire period, not just after acquisition. Former affiliates are excluded if affiliation ceased before the determination date.
• Contracts and recertification: Size is generally determined at the time of initial offer for a contract and remains throughout the contract life, but recertification may be required for certain events (e.g., novation, option exercise).
• COTS and micro‑purchase exemptions: CMMC and some other requirements may not apply to COTS items or contracts below the micro‑purchase threshold.