Trump Signs Law that Allows Companies to Remain Small for a Longer Period
On December 18, 2018, President Trump signed the Small Business Runway Extension Act that changes the time period in which a small businesses is determined to be small. Specifically, the look-back period for determining small businesses' size status has been changed from three years to five years. This means that a company's small business status will be based on its last 5-year average of revenue or employee count. This will, in many cases, permit companies to remain small for a longer period of time.
This new law will not go into effect until the SBA revises their regulation on the look back period from 3 years to 5 years. We will keep you posted.
