What Is a NAICS Code?
A NAICS code (North American Industry Classification System) is a six-digit number the federal government assigns to classify what kind of business you run. Every industry, from construction to consulting, has its own code, and every business is expected to identify the code that best describes its primary activity.
NAICS codes weren’t built for SBA lending specifically — they’re used across the federal government for economic statistics, tax filings, and industry reporting. But for SBA purposes, they do one very specific and very important job: they’re the mechanism that determines which size standard applies to your business.
Why This Matters Right Now
SBA doesn’t set one universal definition of “small business.” It sets a different threshold for nearly every NAICS code — sometimes based on your average annual revenue, sometimes based on your employee count, depending on the industry. Your NAICS code is what determines which of those thresholds you’re measured against.
That’s exactly why SBA’s proposed size standards overhaul is tied so closely to NAICS codes. The proposal consolidates roughly 1,000 existing size standards down to 338 broader industry groupings — meaning the specific threshold attached to your NAICS code could shift significantly, in some cases by a wide margin.
Want to understand how those thresholds actually work? Read What Are SBA Size Standards? — or see what this shift means in practice in The $500K Business Is About to Compete With the $50 Million One.
Know Your Code, Know Your Position
Whether you’re bidding on a set-aside, applying for SBA financing, or just trying to understand where you stand in a shifting regulatory landscape, your NAICS code is the starting point. SBA Mastery teaches you to read that landscape the way a lender or a contracting officer does.
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