116TH CONGRESS 

1ST SESSION H. R. 2345 

AN ACT 

To amend the Small Business Act to clarify the intention 

of Congress that the Administrator of the Small Business 

Administration is subject to certain requirements with 

respect to establishing size standards for small business 

concerns, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 
2 

•HR 2345 EH

1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Clarifying the Small 

3 Business Runway Extension Act’’. 

4 SEC. 2. SENSE OF CONGRESS. 

5 It is the sense of Congress that— 

6 (1) the Small Business Runway Extension Act 

7 of 2018 (Public Law 115–324) applies to calcula8 tions of the size of a business concern made by the 

9 Administrator of the Small Business Administration; 

10 (2) Federal agencies rely upon such calculations 

11 to award contracts, including governmentwide acqui12 sition contracts, to small business concerns; and 

13 (3) the Small Business Runway Extension Act 

14 of 2018 has been effective since the date it was 

15 signed into law, on December 17, 2018. 

16 SEC. 3. CLARIFYING AMENDMENT TO THE SMALL BUSINESS 

17 RUNWAY EXTENSION ACT OF 2018. 

18 Section 3(a)(2)(C) of the Small Business Act (15 

19 U.S.C. 632(a)(2)(C)) is amended by inserting ‘‘(including 

20 the Administration when acting pursuant to subparagraph 

21 (A))’’ after ‘‘no Federal department or agency’’. 

22 SEC. 4. FINALIZATION OF SMALL BUSINESS RUNWAY EX23 TENSION ACT OF 2018 RULES. 

24 The Administrator of the Small Business Administra25 tion shall issue a final rule implementing the Small Busi-
3 

•HR 2345 EH

1 ness Runway Extension Act of 2018 (Public Law 115– 

2 324) not later than December 17, 2019. 

3 SEC. 5. AMENDMENT TO SIZE STANDARDS FOR CERTAIN 

4 SMALL BUSINESS CONCERNS. 

5 (a) SIZE STANDARDS FOR SMALL BUSINESS CON6 CERNS PROVIDING SERVICES.—Section 3(a)(2)(C)(ii)(II) 

7 of the Small Business Act (15 U.S.C. 632(a)(2)(C)(ii)(II)) 

8 is amended by striking ‘‘not less than’’. 

9 (b) SIZE STANDARDS FOR OTHER BUSINESS CON10 CERNS.—Section 3(a)(2)(C)(ii)(III) of the Small Business 

11 Act (15 U.S.C. 632(a)(2)(C)(ii)(III)) is amended by strik12 ing ‘‘not less than 3 years’’ and inserting ‘‘5 years’’. 

13 SEC. 6. TRANSITION PLAN FOR THE SMALL BUSINESS RUN14 WAY EXTENSION ACT OF 2018. 

15 (a) PLAN REQUIRED.—Not later than 90 days after 

16 the date of the enactment of this Act, the Administrator 

17 of the Small Business Administration shall implement a 

18 transition plan to assist business concerns and Federal 

19 agencies with compliance with the requirements of the 

20 Small Business Runway Extension Act of 2018 (Public 

21 Law 115–324). 

22 (b) 3-YEAR CALCULATION FOR SIZE STANDARDS.— 

23 (1) IN GENERAL.—The transition plan de24 scribed under subsection (a) shall include a require25 ment that, during the period beginning on December 
4 

•HR 2345 EH

1 17, 2018, and ending on the date that is 6 months 

2 after the date on which the Administrator issues 

3 final rules implementing the Small Business Runway 

4 Extension Act of 2018 (Public Law 115–324), al5 lows the use of a 3-year calculation for a size stand6 ard to be applied to a business concern if the use 

7 of such 3-year calculation allows such concern to be 

8 considered a small business concern under section 

9 3(a)(1) of the Small Business Act (15 U.S.C. 

10 632(a)(1)). 

11 (2) 3-YEAR CALCULATION DEFINED.—In this 

12 subsection, the term ‘‘3-year calculation’’ means— 

13 (A) with respect to a business concern pro14 viding services described under clause (ii)(II) of 

15 such section, a determination of the size of such 

16 concern on the basis of the annual average 

17 gross receipts of such concern over a period of 

18 3 years; and 

19 (B) with respect to a business concern de20 scribed under clause (ii)(III) of such section, a 

21 determination of the size of such concern on the 

22 basis of data over a period of 3 years. 

23 SEC. 7. REQUIREMENT TO UPDATE SAM. 

24 Not later than 90 days after the date of the enact25 ment of this Act, the System for Award Management (or 
5 

•HR 2345 EH

1 any successor system) shall be updated to comply with the 

2 requirements of this Act. 

Passed the House of Representatives July 15, 2019. 

Attest: 

Clerk. 
116TH CONGRESS 

1ST SESSION H. R. 2345 

AN ACT 

To amend the Small Business Act to clarify the infor other purposes. size standards for small business concerns, and tain requirements with respect to establishing Small Business Administration is subject to cer- tention of Congress that the Administrator of the