SBA Proposes Rule To Change Small Business Designation

Landscape architecture firms included in intended changes
by Keziah Olsen Morris, LASN

Landscape architecture firms making up to $59 million a year could now be considered a small business, according to the SBA. The majority of the industry is against this designation change, and it remains to be seen if the change goes into effect after the close of the public comment period. Photo Credit: Paul Hanaoka, Unsplash

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Landscape architecture firms making up to $59 million a year could now be considered a small business, according to the SBA. The majority of the industry is against this designation change, and it remains to be seen if the change goes into effect after the close of the public comment period. Photo Credit: Paul Hanaoka, Unsplash

In late August, the Small Business Administration (SBA) announced a proposed change that would affect 338 industry groups, including landscape architecture. Specifically, the administration seeks to increase the small-business size for landscape architectural services from $9 million to $59 million - a roughly 556% increase. In a statement on the proposal, the American Society of Landscape Architects (ASLA) shared statistics from the ASLA Landscape Architecture Industry Report 2024 showing that "the median annual gross revenue for landscape architecture firms was $570,000 [...] about sixty-five percent of all landscape architecture firms reported annual gross revenue of less than $1 million." Given these numbers, the current $9 million cap seems a reach for the majority of landscape architecture practitioners. The ASLA goes on to say that raising the threshold to $59 million would dramatically increase competition for certain programs, contracts, benefits, and loans only available to small businesses. The public comment period closed on September 21, but mere days before closing, over 66,700 comments had been submitted from various industries. LASN was only able to find two comments from the landscape architecture community in favor of this change, with one Landscape Architect stating that their 33-person firm is a small, independently owned practice that is currently prevented from potential growth opportunities because they are not considered a small business. The majority, however, were aligned with the ASLA's statement. One Landscape Architect commented: "Even $9 million is very high for a small business. Why even have the status if it is going to be so high? I own a small business and would see even more competition from larger, more financially stable companies with more resources." Another said: "I suggest, IF a change is made in size, it is a decrease in revenue." LASN will continue to follow the story.

As seen in LASN magazine, October 2026.