On December 17, 2018, President Trump signed the Small Business Runway Extension Act (H.R. 6330) into law. As we discussed in our previous blog, the Small Business Act previously measured a company’s size under the prescribed size standards on a basis of the company’s average annual receipts from the previous three years; the new law extends this time to the previous five years. The change was designed to reduce the impact of rapid-growth years and resulting spikes in revenue that could prematurely eject a small business out of a size standard. It was also designed to allow small businesses to have more time to grow and develop their competitiveness and infrastructure. Because it was signed by the President, the law is now effective. However, it is unclear how the Small Business Administration and agencies will view this change absent regulations. If the change impacts your size status as of January 1, 2019, we would be happy to discuss this with you, as the change could impact small business size representations made in SAM or on proposals you are submitting.
About the Author: Emily Rouleau is an associate with PilieroMazza. She may be reached at email@example.com.