SBA Adopts the 5-Year Receipts Calculation

The SBA will be adopting the period of measurement for receipts-based size calculations from three (3) years to five (5) years, effective January 6, 2020.

This long-awaited change is the result from the Small Business Runway Extension Act from 2018. The SBA made the final rulemaking today, December 5, 2019.

SBA is allowing a two year transition period until January 6, 2022, during this time firms may choose to use the current three (3) year calculation or the new five (5) year calculation. After January 6, 2022, all companies must adopt the new five (5) year period of measurement in determining size under the receipts based calculation.

View the final Rulemaking via the Federal Register HERE

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