How is Small Business Defined | Contracts | CDC

To qualify for a small business award for a contract, a business must qualify as “small” according to the SBA’s industry size standards. SBA defines industry specific size standards based on the average number of employees over the past 12 months or average annual receipts over the past three years categorized using the North American Industry Classification System (NAICS) codes. Please visit the SBA website to determine if your business qualifies as a small business concern and to learn more about NAICS codes and to look up your industry’s code(s).

While size standards vary from industry to industry, SBA uses the following general criteria to define a small business concern. A small business…

• Is organized for profit
• Has a place of business in the United States (U.S.)
• Operates primarily within the U.S. or makes a significant contribution to the U.S. economy through payment
  of taxes or use of American products, materials or labor
• Is independently owned and operated
• Is not dominant in its field on a national basis
• May be a sole proprietorship, partnership, corporation, or any other legal form