Changing Size Status Calculation: Impacts of SBAs Proposed Rule

July 15, 2019

The Proposed Rule, if enacted, will expand the look-back period to five years. Currently, the U.S. Small Business Administration averages a company’s annual receipts for the preceding three years to decide if a company qualifies as a small business or whether the company has grown out of the applicable size standard.

By altering the calculation period of average annual receipts from three years to five years, the SBA is looking to allow mid-sized businesses who have recently exceeded size standards to get back their small business status, and for advanced small businesses close to exceeding the size standard to maintain a small business status for a longer period of time.

You can read the Proposed Rule here >