Congress Changes Small Business Size Status Calculation from Three to Five Years, Allowing More Runway for Growth

The House of Representatives and the Senate have passed the Small Business Runway Extension Act of 2018, which will amend the Small Business Act to require the Small Business Administration (SBA) to calculate a concern’s average annual receipts for the past five years to determine its size status, instead of three years. The Senate passed the bill on December 6, 2018, which had already been passed by the House earlier this year.