SBA recently provided testimony before the U.S. Senate Committee on Small Business & Entrepreneurship. Senator Marco Rubio called the hearing to address, among other things, why the “SBA has refused to follow the Runway Extension Act.” (We have wondered the same thing.)
If you are unfamiliar with the Runway Extension Act, check out the links at the bottom of the page for our take on several aspects of the Act and its journey thus far.
As is common with Congressional testimonies, SBA prepared a statement which the Senate Committee has released. Within it, SBA briefly discusses the Runway Extension Act. Of particular note, “SBA has just completed and will be publishing a proposed rule, making necessary revisions to its regulations to implement the Runway Extension Act.” The proposed rule will “apply the same 5-year averaging period for all” small businesses subject to revenue-based size standards “for consistency,” and not just those in services industries.
While we have questioned the SBA’s decision to delay implementation of the Runway Extension Act, SBA has now indicated it will start the rulemaking process to implement the Act. Up until now SBA has been slow to act on Congress’s clear instruction that the Act is effective immediately. Following Mr. Wong’s oral testimony it appears that SBA has been working behind the scenes on drafting the proposed rule. For that, we give credit to the SBA.
Keep an eye on smallgovcon.com for updates on the continuing saga that is the Runway Extension Act.