I'm looking at a federal sources sought notice for training services, NAICS code 611430, and I need to figure out if my company qualifies as a small business. I know the SBA size standards often use annual receipts, but I'm confused about the calculation method. I've been in business for four years, and some people told me it's a three-year average, while others said five years. I also heard something about affiliates counting. How exactly does the SBA calculate 'annual receipts' for its size standards, and what period do they use for the average? Does it include all revenue, or just federal contract revenue?
How is a business's 'annual receipts' calculated for SBA size standards in 2026?
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The SBA calculates annual receipts for small business size standards by averaging a business's latest five complete fiscal years, and this calculation includes all revenue, not just federal contract revenue. Your firm has been in business for four years, so the SBA will average your annual receipts over those four complete fiscal years. The SBA also includes the receipts of any affiliates when determining a business's size. For federal contracting, the SBA sets size standards based on the applicable NAICS code. You can find the specific size standard for NAICS code 611430 on the SBA's website. State and local procurements follow their own rules and may have different methods for calculating receipts or different size standards, so always check the specific state procurement portal or local agency guidelines.