Jan 13 2020
When the Small Business Runway Extension Act became law in December 2018, the SBA declared that the Act would not be effective until the SBA issued implementing regulations through the formal rule-making process. On June 24, 2019, the SBA finally issued a Proposed Rule to implement the Act, and on December 5, 2019, SBA issued a Final Rule announcing that the Act’s new formula for determining the size status of some companies would become effective as of January 6, 2020. Therefore, as of the date of this alert, the measurement period for determining whether a contractor qualifies as a small business concern under revenue-based size standards has been extended to an average of the most recently completed five fiscal years, replacing the most recent three fiscal-year period that the SBA previously considered for this purpose.