“A long-awaited moment for small-business service contractors across the U.S. has finally arrived. After nearly a year of uncertainty, the Small Business Administration (SBA) has finalized a rule to implement the Small Business Runway Extension Act, which was originally passed in 2018. Effective January 6th, receipts-based size calculations will change from a 3-year to 5-year measurement period. To ease implementation, SBA has also decided to adopt an interim 2-year transition period to allow companies to select using either the current 3-year calculation or the new 5-year calculation. However, after 2022, all companies will be required to use the 5-year measurement period for receipts-based size calculations.”
“This ruling is already rippling around the beltway and across the government services market. Red Team believes it will have wide-reaching tactical and strategic impacts starting in 2020. We have assembled a brief summary of considerations and key takeaways for our industry community…” Read the full article here.
Source: Here’s What You Should Know About the SBA’s New Ruling – December 10, 2019. Red Team Consulting.