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Most contractors are aware that President Trump signed into law the Small Business Runway Extension Act of 2018 on December 17, 2018. The Act modified how the Small Business Administration (SBA) calculates a business’ size for revenue-based size standards. Size has been calculated based on a three fiscal year average of annual receipts. The Act increased the period of time in the calculation from three years to five.
The Act, however, contained no effective date. On December 21, 2018, SBA issued an information notice announcing the new statute would not take effect until the SBA revised its regulations. It is settled law, however, that absent an express effective date, enactments of Congress are effective when executed by the President. Johnson v. United States, 529 U.S. 694 (2000).
On May 1, 2019, The House Committee on Small Business passed a bill titled “Clarifying the Small Business Runway Extension Act.” The bill requires SBA to finalize implementing regulations no later than December 17, 2019, one year from the original enactment. In a jab to SBA, the Committee also passed an amendment stating the Act was intended to be effective when enacted.
This bill must still pass the full House and Senate and be signed by the President to become law.
More to follow…
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AttorneysBrad is a trial lawyer in our Government Solutions Group specializing in Government Contracts & Bid Protests. His national government contract litigation practice takes him to state and federal courts across the county. Brad has ...
AttorneysRobert is a seasoned litigator with over 20 years of high-level experience representing individuals and businesses in a broad variety of civil litigation matters in state and federal courts and arbitrations. In addition to his ...
AttorneysMatt’s national practice and unique talent stack encompass a broad skill set in the laws affecting the workplace, including labor and union relations, employment litigation, employee benefits, trade secrets and restrictive ...
AttorneysAndy leads Maynard Nexsen's Government Solutions Group. His experiences in transactional, financial, and regulatory matters include:
- General Counsel Services – Legal and strategic business advice including Strategic ...
AttorneysEmily represents government contractors and other businesses in litigation against the United States and other contractors. She also defends contractors against claims and suits by former employees, teaming partners, and ...