NAICS Codes Overview
NAICS Codes are a standard used to classify business establishments for data analysis. Contractors can select the code representing their industry in the System for Award Management (SAM) to determine small business status. The SBA’s Size Standards Tool helps understand size standards.
Small Business Eligibility Criteria
Size standards in NAICS match industries to determine small business eligibility for Federal programs based on sales or employee count. The SBA uses NAICS codes to set size standards for program qualifications.
NAICS Codes and Business Classification
NAICS codes categorize firms and industries. Agencies and organizations use them for various business purposes. Businesses can have multiple NAICS codes in SAM. Plumbing contractors, crafts retailers, and other businesses use specific NAICS codes for industry categorization.
Evolution from SIC to NAICS
NAICS replaced the Standard Industrial Classification (SIC) system developed in 1937. The shift addressed new industries and supported broader statistical analysis after the North American Free Trade Agreement (NAFTA).
Determining Small Business Status with NAICS
NAICS codes play a crucial role in determining if a business is small for federal programs. Firms can leverage their NAICS codes to qualify for certification and contracting opportunities, as well as for loan applications. The SBA regularly updates and maintains NAICS codes for program eligibility.