Shortly before the Sept. 21 comment deadline was set to close, in response to requests from ABC, other industry groups, and small businesses, the U.S. Small Business Administration announced that it was extending the deadline to submit comments on its proposed rulemaking regarding small business size standards until Nov. 20, 2026.
On Sept. 14, ABC urged the SBA to extend the comment period by an additional 30 days, explaining that more time was necessary to adequately review the substantial proposed rule, solicit and receive feedback from ABC members, analyze member responses and data and develop comprehensive regulatory comments. With additional time now available, ABC will continue to solicit feedback from members and submit supplemental comments.
On Sept. 21, ABC led a coalition of construction industry trade associations in submitting comments on the proposed rule, which represents an extensive overhaul of its small-business size standards.
In its comments, the coalition reiterated ABC’s request that the SBA provide additional opportunities for testimony and written comments prior to issuing a final rule to allow for feedback from the many small businesses affected by this proposed rule.
The coalition also raised concerns about the SBA’s proposed approach regarding Sector 23 – Construction. The proposal to move all standards within this sector from receipts-based standards ranging from $19 million to $45 million to employee-based standards ranging from 550 to 2,000 employees represents a massive increase in the standard that would designate approximately 14,000 new construction firms as small businesses. The coalition expressed concern about the negative impact this could have on existing small businesses.
Contractor members of the coalition that provided feedback largely opposed the proposed standards as currently written. They were concerned that the proposal would increase the size standards for the construction industry beyond the ordinary understanding of a small business, eliminate small business contracting opportunities for smaller firms, undermine existing relationships between small firms and larger businesses and perhaps promote excessive consolidation within the industry.
The coalition further expressed concern that, by increasing the standard to include businesses with hundreds of millions of dollars in revenue, the congressional intent of the Small Business Act to provide opportunities for small firms may be undermined. These firms would face significant competitive pressure from larger contractors due to the intense disparity in revenue and resources within this new small business definition.
As of Sept. 22, 68,201 comments were submitted and 2,720 were posted publicly on regulations.gov. The Federal News Network reported that the comments received so far are overwhelmingly against the proposed rule.
If you would like to submit comments, you can also reach out directly to ABC. Please provide details on your company’s status as a qualified small business and share your perspectives on the SBA’s proposed rule with Karen Livingston at livingston@abc.org or Michael Altman at altman@abc.org.
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