1. What is NAICS?

NAICS is the North American Industry Classification System. It replaced the Standard Industrial Classification (SIC) system. Federal Government agencies that collect establishment based statistics are now required to use NAICS instead of SIC.

2. Why did SBA issue a new table of size standards?

NAICS describes how industries do business in today’s economy better than SIC does. SBA has always established size standards for industries as they are described in SIC. Size standards based on NAICS industries will provide more opportunities for small businesses to participate in Federal programs that give preference to small businesses.

3. Why does SBA think that NAICS is better than SIC?

NAICS describes how industries do business in today’s economy better than SIC does. SBA has always established size standards for industries as they are described in SIC. Size standards based on NAICS industries will provide more opportunities for small businesses to participate in Federal programs that give preference to small businesses.

4. Why does SBA think that NAICS is better than SIC?

NAICS, first of all, classifies over 350 more industries than SIC does – that’s 15% more. Most of these new industries are in the Services Sectors.

NAICS identifies industries that SIC does not, industries that are more relevant to today’s economy. For example, NAICS includes industries that manufacture semiconductor machinery and fiber optic cable, reproduce software, provide satellite telecommunications, paging, cellular and other wireless telecommunications. Warehouse clubs and superstores, telemarketing bureaus, hazardous waste collection and casinos are also new in NAICS.

NAICS is more consistent than SIC. Businesses that use similar production processes are grouped together.

NAICS gives special attention to new and emerging industries, service industries in general, and industries that produce advanced technology. The SIC system, which was last revised in 1987, does not include many of these industries, or at least does not describe them well, and it will never be updated or changed.

5. Since this is a new table, do any size standards change? What about my size standard?

Some size standards that are assigned to SIC codes do change. However, their number is small. Most likely you will continue as a small business eligible for federal small business programs under NAICS size standards. You need to identify the NAICS code for your business and check its size standard.

6. How do I find out what my NAICS code is?

Go to SBA’s NAICS Lookup at https://eweb1.sba.gov/naics/dsp_naicssearch2.cfm.

Simply enter your product or service in the description area and then locate your business area.

7. How do I find the size standard for my NAICS code?

Use SBA’s NAICS Lookup at

Type in your NAICS code or business description and then locate your business area on the resulting table.

8. How will the change from SIC to NAICS affect federal contracting opportunities for small businesses?

Federal procuring agencies, starting October 1, 2000, must use the proper NAICS codes and size standards in their procurement solicitations. They will use the NAICS code, instead of the SIC code, that best describes the principal purpose of the product or service they intend to acquire.

9. What about outstanding procurements on which agencies have solicited bids or offers, but which they have not yet awarded – will the SIC code they used be changed to the NAICS code?

The contracting officer has some discretion here, if the agency has not yet awarded the contract. SBA suggests you ask the contracting officer what he intends to do.

10. Where can I find more information about size standards?

Go to SBA’s Website about Size Standards. You can also email SBA’s Office of Size standards at sizestandards@sba.gov, or call us at (202) 205-6618.

11. Where can I find more information about NAICS?

Go to the Bureau of Census Website.

12. Where can I find more information about small business size standards and NAICS together?

Go to Small Business Size Standards and the North American Industry Classification System (NAICS) on SBA’s Website.

13. When did NAICS replace SIC?

NAICS replaced SIC on January 1, 1997.