ALERT: SBA Issues Final Rule on Small Business Runway Extension ActThe U.S. Small Business Administration (SBA), in accordance with the Small Business Runway Extension Act of 2018, recently issued its much-anticipated final rule to modify its method for calculating average annual receipts used to prescribe size standards for small businesses.

Here are the key takeaways from SBA’s final rule:

  • SBA is changing its regulations on the calculation of average annual receipts for all of SBA’s receipts-based size standards, and for other agencies’ proposed receipts-based size standards, from a 3-year averaging period to a 5-year averaging period, outside of the SBA Business Loan and Disaster Loan Programs.
  • Importantly, for all programs other than the SBA Business Loan and Disaster Loan Programs, SBA is adopting a transition period through January 6, 2022, during which firms may choose between using a 3-year averaging period and a 5-year averaging period.
  • SBA’s final rule in this regard is effective January 6, 2020.

If you have any questions about how this final rule may impact your business, please do not hesitate to contact Aron Beezley.