On December 6, 2018, Senator Ben Cardin, the ranking member on the Senate Committee on Small Business & Entrepreneurship, announced that the Senate passed legislation amending the Small Business Act. The amending ensures small business size standards are calculated using average annual receipts from the previous five years. Currently, small business size standards are calculated using average annual receipts from the previous three years. This classification is used to determine eligibility for SBA resources and federal contract set-aside programs.
The Small Business Runway Extension Act of 2018 (HR6330) will go to President Trump for signature. The Small Business Runaway Extension Act modification is designed to reduce the impact of rapid-growing years, which may prematurely size a business out of the small business standard.
More information on Small Business Runway Extension Act of 2018 (HR6330) can be found here – LINK
