David S Black is a Partner in our
Tysons office.
Mitchell A Bashur is an Associate in our
Tysons office.
To ring in the new year, we have an important update on the
Small Business Runway Extension Act. Effective Dec. 21, 2018, Small
Business Administration (SBA) issued an internal notice that the
Small Business Runway Extension Act is not effective until its
rulemaking is completed. Instead, it is SBA's view that the
three-year trailing average for size eligibility based on revenue
remains in place for now.
As we previously
covered, on Dec. 17, 2018, the President signed the Small
Business Runway Extension Act, which amended the Small Business Act
to change the size lookback for small business size standards from
three to five years. This will reduce the impact of years wherein
businesses experience unexpectedly rapid growth, often causing them
to prematurely lose their small business status.
