SBA Proposes Major Size Changes for Small Businesses

On August 20, the Small Business Administration (SBA) published a proposed rule to increase size standards for 338 industry groups and industries, including landscape architecture firms. SBA seeks comments on its proposed changes to size standards through September 21, 2026.

SBA is proposing a major increase to the small-business size standard for NAICS 541320, Landscape Architectural Services, from $9 million to $59 million in average annual receipts. The proposed $59 million threshold represents a $50 million, or roughly 556%, increase over the current standard. 

According to the most recent ASLA Landscape Architecture Industry Report 2024, the median annual gross revenue for landscape architecture firms was $570,000, with the mean or average annual gross revenue reported at $2.2 million. Further, about sixty-five percent of all landscape architecture firms reported annual gross revenue of less than $1million. Additionally, the U.S. Census Bureau’s Statistics of U.S. Businesses (using 2022 data, published 2025) shows the average annual revenue per landscape architecture firm was about $1.15 million. Together, this information clearly demonstrates that increasing the size standard for landscape architecture firms to $59 million in annual receipts does not reflect the economic realities of the profession or the small businesses that comprise it.

If this change is approved, landscape architecture firms currently at or below the current $9 million threshold would face significantly increased competition for federal small-business contracts and set-asides, certain sole-source opportunities, SBA programs, loans, and other small-business benefits.

If you are a small landscape architecture firm, it is critical that you inform SBA about your concerns about this proposed rule and its potential impact on your business. Landscape architects can review the proposed rule HERE and submit your comments HERE. The deadline to submit comments is September 21st.

Photo credit: CLINTON+RIES Landscape Architects | Donna Weaver Photography