Posted by By Affluent Blacks of Dallas
If your small business already had challenges competing with other similar businesses in your area and industry, new rules being proposed could compound that problem.
A company can be too large to qualify as a “small business” under federal rules while still being much smaller than the corporations it competes against. The U.S. Small Business Administration is considering a major change to where that line falls, and North Texas business owners have until November 20, 2026, to comment. (www.federalregister.gov)
The SBA proposal would replace nearly 1,000 distinct industry size standards with 338 broader standards. Depending on the industry, a standard is based on average annual receipts or employee count. SBA estimates the changes would result in a net increase of 114,541 firms classified as small nationwide. That is a projection, not a count of Dallas–Fort Worth businesses or Black-owned firms that would qualify. The proposal has not become a final rule. (www.federalregister.gov)
The size of the proposed changes varies considerably:
| Industry | Current standard | Proposed standard |
| Engineering services | $25.5 million in annual receipts | $252 million in annual receipts |
| Skilled nursing facilities | $34 million in annual receipts | $60 million in annual receipts |
| Child care services | $9.5 million in annual receipts | $31 million in annual receipts |
| Commercial and institutional building construction | $45 million in annual receipts | 600 employees |
The construction proposal would change how size is measured, so its current and proposed limits cannot be compared as though both were revenue figures. Businesses also need to use the standard for their applicable industry, and SBA size calculations can include affiliated companies. (www.govinfo.gov)
For a growing Black American-owned engineering, technology, health care or construction firm in North Texas, a higher limit could mean remaining eligible for small-business opportunities longer or regaining eligibility after outgrowing the current standard. But firms that already qualify may see larger competitors enter the same pool. SBA itself says increased competition could put pressure on profits for businesses pursuing the same federal contracts. (www.federalregister.gov)
Eligibility also does not guarantee a contract or an SBA loan. Certain contracting programs, including 8(a), HUBZone and those for women-owned or service-disabled veteran-owned businesses, have requirements beyond the general small-business size test. The effect on any particular company depends on its industry classification, size calculation and the program or opportunity it wants to pursue. (www.federalregister.gov)
Business owners who want to review their position can start with the SBA Size Standards Tool and then compare their current industry standard with the proposed rule. Comments on the proposal are due November 20 through Regulations.gov, under Docket SBA-2026-0199. (U.S. Small Business Administration)
Are you a North Texas business owner affected by the current size limits or the proposed changes?
Affluent Blacks of Dallas would like to hear how the rules affect your plans to grow or compete for contracts. Share your industry, whether you currently pursue government work, and what questions the proposal raises for your business through our website’s Contact Us form. If you’re on Instagram, DM us at @AffluentBlacks. We may use those responses to guide a follow-up story and will contact you before attributing your experience by name.
