The SBA’s Proposed 2017 NAICS Changes, Simplified


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The SBA has proposed updated size standards for the new 2017 NAICS Codes. These changes, if approved as proposed, are set to go into effect on October 1, 2017.

How to Comment on the Proposed Rules:

“SBA welcomes public comment on this proposed rule. Specifically, SBA invites comments on whether its proposed size standards for new industries are appropriate and suggestions on alternative size standards, along with supporting data and analysis, if proposed size standards are not appropriate. SBA also seeks comments on its methodology for converting size standards from NAICS 2012 to NAICS 2017 and data sources and analyses it used in developing proposed size standards for certain new industries. SBA will thoroughly evaluate and address all comments in preparing the final rule the Agency will publish to adopt NAICS 2017 for its table of size standards.” -SBA.gov

SBA must receive comments to this proposed rule on or before June 19, 2017. Email the SBA here.

NOTE: SBA Changes its size standards to match the updated NAICS Codes every 5 years and has yet to face push-back on a proposed NAICS-update related rule change.

How Many Industries Will Be Directly Affected?

NAICS 2017 created 21 new industries by reclassifying, combining, or splitting 29 existing industries. The majority of the changes do not impact size standards, including the revision to codes and titles or the merging of two or more NAICS 2012 industries into new industries. Of the 29 NAICS 2012 industries affected by the revision, adopting NAICS 2017 would not affect the size standards for 20 of them. There would be an increase in size standards for six industries and part of one industry and a decrease for two industries. The size measure of one industry would be affected by changing from average annual receipts to number of employees.

Firms Affected by Size Standard Increases:

In industries whose size standards have increased due to the adoption of NAICS 2017, about 60 firms above the current size standards would qualify as small under the updated size standards, thereby making them eligible for Federal small business assistance programs.

Firms Affected by Size Standard Decreases:

In the two NAICS 2012 industries receiving a decrease in size standard, about 3-4 firms below the current size standards would lose their small business size status under the proposed size standards. However, the program data suggests that this would not cause much impact on them. Currently, they are not participating in any small business programs. Additionally, in both industries, Federal contracting and SBA’s loan activities are quite insignificant.

Ready for the NAICS 2017 Changes?
Check Out These Two Posts for Everything You Need to Know!

2017 NAICS Changes *Preview*

Changes from 2012 to 2017 NAICS Structures: The Highlights

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