Small Business Administration proposes new size standards in the US

The U.S. Small Business Administration (SBA) has proposed significant changes to the size-standard system used to define small businesses. The proposal aims to simplify the current system by applying standards at broader 4- and 5-digit NAICS levels rather than the 6-digit level, which would reduce the number of separate standards from 978 to 338.

Additionally, the SBA intends to raise thresholds for what qualifies as a small business. This adjustment is intended to allow more than 110,000 additional businesses to access billions of dollars in SBA-backed lending and set-aside government contracts, accounting for shifts in economic conditions and inflation.

The Brewers Association has reviewed the proposals and stated it does not expect the changes to “materially change” the competitive landscape for small and independent breweries. Marc Sorini, vice president of government affairs at the Brewers Association, noted that applying the same SBA size standards to breweries and other beverage manufacturers does not present immediate dangers to their membership.