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SBA proposes upping small-bank threshold to $5B


August 24, 2026 / By ICBA

The Small Business Administration proposed changing the asset threshold for small banks from $850 million to $5 billion.

Details: The effort to simplify small business classification and expand access to federal programs would mean 760 additional banks would receive the regulatory relief that is tied to the SBA definition of a small business. SBA said its proposal also:

  • Streamlines the existing North American Industry Classification System structure to a four-digit classification system that reduces total size standard categories from nearly 1,000 down to 338 broad industry groupings.

  • Introduces regional market considerations to ensure size thresholds accurately reflect the realities of local economic competition.

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