Small Business Runway Extension Act of 2018

Bill 115 hr 6330, also known as the Small Business Runway Extension Act of 2018, is a piece of legislation that aims to change the way the average annual receipts of small businesses are calculated for the purpose of determining their eligibility for certain government programs.

Currently, the Small Business Administration (SBA) uses a three-year average of a company's annual receipts to determine if it qualifies as a small business. This bill proposes to extend that average to five years, which would allow businesses to stay classified as small businesses for a longer period of time.

The rationale behind this change is that many small businesses experience fluctuations in their annual receipts from year to year, and using a longer average would provide a more accurate representation of their size and eligibility for government programs. Supporters of the bill argue that this change would help small businesses compete more effectively for government contracts and other opportunities, as they would have a longer period of time to benefit from their small business status. Opponents, however, are concerned that extending the average annual receipts calculation could potentially allow larger businesses to qualify as small businesses, thereby taking away opportunities from truly small businesses. Overall, the Small Business Runway Extension Act of 2018 is a proposed change to the way small businesses are classified and could have significant implications for the small business community if it is passed into law.