In case you missed it, on January 7, Pillsbury attorneys David Dixon, Dick Oliver, and Toghrul Shukurlu published their Client Alert titled Small Business Holiday Gift: Change to Small Business Act May Affect Size Status for Many Service Providers. Takeaways from their Client Alert include:
- The Small Business Runway Extension Act of 2018 will allow some service contractors who would have otherwise outgrown their applicable size standard to remain eligible for small business set-aside contracts.
- This Act may also negatively affect certain large businesses with declining revenues by extending the period before they can become eligible for small business set-aside contracts.
- Small and large business concerns that have recently outgrown their size standards should be aware of this change in the method of calculating their average annual revenues when conducting business planning.
The Small Business Administration (SBA) has stated that the increased time period for calculating average annual revenues will not take effect until the SBA issues a final regulation implementing this change.