Story excerpt provided by hklaw.com
The U.S. Small Business Administration (SBA) just issued its long-anticipated Proposed Rule implementing the Small Business Runway Extension Act (the Act). In our previous blog, we discussed the SBA’s position that the Act would not be effective until the rulemaking process was completed. If implemented, the Proposed Rule will modify the SBA’s method for calculating annual average receipts used to prescribe size standards for small businesses. Specifically, the SBA proposes to change its regulations so that a five-year averaging period (instead of three years) is used when calculating the annual average receipts for all SBA receipts-based size standards and other agencies’ proposed size standards for service-industry firms.
Originally published June 25, 2019.