After a year of uncertainty, the U.S. Small Business
Administration (SBA) has issued its long-awaited final rule
implementing the Small Business Runway Extension Act of 2018. The
final rule, which becomes effective on January 6, 2020, amends
SBA's receipts-based size standard for its procurement programs
to adopt a five-year averaging period for calculating annual
revenues of firms and their affiliates in all industries that are
subject to SBA's receipts-based size standards. In addition, to
help firms with declining revenues who might be adversely impacted
by five-year period of measurement, SBA's final rule includes a
transition period until January 6, 2022, allowing firms to choose
either a three-year averaging period or a five-year averaging
period for calculating average annual receipts for size standards
purposes. For our discussion of the proposed rule issued in July
2019, please read our post here.
