Great article shared via OrangeSlices at the link below about how a new SBA regulation effective in 2026 may impact small business M&A activity. It is a great summary of the complex situation that will emerge – in a nutshell, if your business has a high number of set aside contracts and an acquiring company does not itself quality as small under the NAICS code for each contract then they will not be eligible to exercise option years of backlog. There is more to consider, but this sure sounds like a situation that could really work against companies looking to sell as the impact of this would mean the value of a company would be materially reduced.

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