| SBA PROPOSAL TO REDEFINE “Small Business”: Why Women and Small Businesses’ Voices Must Be Heard America’s small businesses are the backbone of our economy and communities. They account for 99.9% of all U.S. businesses, employ more than 62 million Americans and generate 43.5% of the nation’s economic activity.¹ They create jobs, support local nonprofits, sponsor youth sports teams and invest in communities and neighborhoods large and small. That is why a little-known proposal now under consideration by the U.S. Small Business Administration (SBA) deserves the attention of every small and women-owned entrepreneur in the USA. The SBA is proposing the most significant overhaul of federal small business size standards in decades. According to SBA estimates, approximately 37,000 firms currently performing more than $71 billion in federal contract work would become newly eligible as small businesses under the proposal. That equates to nearly $1.9 million in federal contract dollars per newly eligible firm, on average. This raises important questions about whether currently defined small businesses will have the same opportunity to secure their first contract, establish a track record and gain a foothold in the federal marketplace.² If adopted, the changes would allow more than 114,000 additional businesses to qualify as “small,” including approximately 37,000 firms that already hold more than $71 billion in federal contracts.² The question is not whether SBA should periodically review its size standards. It should. Markets evolve, industries change and regulations must keep pace with economic realities. The real question is whether this proposal preserves opportunities for the next generation of entrepreneurs. For small and women-owned businesses, that question is especially important. The proposed rule would significantly increase many size standards and, in many industries, make it easier for larger companies to qualify as small businesses. The SBA’s position is that these changes will reduce the so-called “growth cliff” that occurs when successful firms outgrow small business status before they are ready to compete against large corporations. That is a legitimate concern and one deserving thoughtful consideration.² However, there is another concern that deserves equal attention. What happens when companies with hundreds of millions of dollars in annual revenue are allowed to compete for opportunities intended to help small businesses grow? Programs such as the Women-Owned Small Business (WOSB) Program were established to expand opportunity and address longstanding barriers to participation in federal contracting. If the pool of eligible businesses expands dramatically, emerging firms may find themselves competing against companies with larger staffs, greater resources, extensive past performance and significantly more market experience.² Will more firms benefit from expanded eligibility? Almost certainly. But will startups and newer businesses have the same opportunity to gain a foothold in the federal marketplace? That question remains unanswered. Public policy should encourage growth. Every successful entrepreneur hopes to build a larger and stronger business. But small business policy should also ensure that tomorrow’s entrepreneurs have a fair opportunity to become tomorrow’s success stories. A definition of “small” that becomes too broad risks creating unintended consequences. It could make it harder for startups to win their first contract, harder for women-owned businesses to scale and harder for emerging firms to compete against companies operating at a very different level of maturity. These are exactly the types of questions that the public comment process is designed to address. The SBA is actively seeking feedback before finalizing these rules.¹ Business owners have an opportunity and, I would argue, a responsibility to share how these changes could affect competition, entrepreneurship, supplier inclusion, job creation, and economic growth in their industries. Too often, small business owners assume someone else will represent their interests. Meanwhile, larger organizations are already preparing comments that could influence the final outcome. A Call to Action – Women entrepreneurs and small businesses cannot afford to sit on the sidelines. Women entrepreneurs have never been passive participants in the economy. You build businesses, create jobs, strengthen communities and drive innovation. Today, you are being asked to help shape the future definition of what it means to be a small business in America. The SBA’s proposal may create opportunities for some firms and challenges for others. But before these rules are finalized, policymakers need to hear directly from the businesses that will live with the consequences. Contact your representative and share your opinion. Do not assume someone else will speak for your industry, your company or your community. Review the proposal. Share your perspective. Submit your comments. Whether you support the proposal, oppose it, or believe it should be modified, your voice matters. The most effective comments are practical, data-driven and grounded in real business experience. SBA needs to hear from the companies that will live with the consequences of these decisions every day. The public comment period closes on October 20, 2026. Please submit your comments before the deadline. CRITICAL LINKS: Click here to learn about the two proposals – the SBA’s revised methodologies and revised size standards for small businesses. IMPORTANT: Please submit comments for both proposals Click here to submit your comments on size reclassification standards.Need assistance in crafting your comment letter? Click here for information and a downloadable PDF to help. The future of small business is being debated right now. The decisions made in the coming weeks will help determine who qualifies for opportunity, who competes for federal contracts, and whether the next generation of small and women entrepreneurs has the same chance to succeed as those who came before them. When the SBA redefines “small business,” the small businesses of America deserve a voice in that decision. Will one of them be yours? Sincerely, Roz Lewis President & CEO, GWBC References: ¹advocacy.sba.gov ² hklaw |
