SBA Proposes Raising the Small Business Cap for Consulting and IT More Than Tenfold
SBA's proposed size standards would lift the cap for management consulting to $295M and IT services to $531M. It's still a proposal, and comments are due November 20, 2026.
SBA wants to raise the "small business" cap for consulting and IT firms by more than ten times.
What SBA proposed
On August 20, 2026, SBA published a proposed rule with new size standards for 338 industries. Two of the biggest jumps hit common govcon codes:
- Management consulting (NAICS 541611): from $24.5M to $295M in average annual receipts
- IT services (NAICS 541511, 541512, 541519): from $34M to $531M
If you've outgrown "small," you could qualify again if this becomes final. It also means first-time bidders could face much larger competitors on set-asides.
This is still a proposal. Nothing has changed yet, and SBA extended the comment period to November 20, 2026.
What to do now
- Confirm the NAICS codes you bid under and your current size.
- Read the proposed table for your codes on the Federal Register.
- Submit a comment by November 20, whether you support the change or oppose it.
In my experience, the rules get shaped by the people who show up to comment.
Not sure where your firm lands under the proposed standards? Book a free fit conversation and we'll talk it through.
Hat tip to the LinkedIn post that flagged this.
Sources: Federal Register: SBA Proposed Rule, Small Business Size Standards (Aug 20, 2026) · Federal Register: Comment Period Extension (Sept 24, 2026)