Extends Lookback Time from Three to Five years
On Dec. 17, President Trump signed into law the Small Business Runway Extension Act (H.R. 6330), which modifies the method for assigning size standards for small businesses. Under the existing law, the Small Business Administration (SBA) requires that businesses report their average gross receipts over the previous three years to be categorized as a "small business,” including for federal contractors. The law modifies the SBA reporting requirements to allow businesses to report average earnings over the last five years, rather than three. The law will need to go through the usual SBA and FAR Council rulemaking process before small businesses receive the full benefits of the expanded lookback period.
For more information, contact Jordan Howard at [email protected] or (703) 837-5368.