IIB 
116TH CONGRESS 
1ST SESSION H. R. 2345 
IN THE SENATE OF THE UNITED STATES 
JULY 16, 2019 
Received; read twice and referred to the Committee on Small Business and 
Entrepreneurship 
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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Clarifying the Small 
Business Runway Extension Act’’. 
SEC. 2. SENSE OF CONGRESS. 
It is the sense of Congress that— 
(1) the Small Business Runway Extension Act 
of 2018 (Public Law 115–324) applies to calcula-
tions of the size of a business concern made by the 
Administrator of the Small Business Administration; 
(2) Federal agencies rely upon such calculations 
to award contracts, including governmentwide acqui-
sition contracts, to small business concerns; and 
(3) the Small Business Runway Extension Act 
of 2018 has been effective since the date it was 
signed into law, on December 17, 2018. 
SEC. 3. CLARIFYING AMENDMENT TO THE SMALL BUSINESS 
RUNWAY EXTENSION ACT OF 2018. 
Section 3(a)(2)(C) of the Small Business Act (15 
U.S.C. 632(a)(2)(C)) is amended by inserting ‘‘(including 
the Administration when acting pursuant to subparagraph 
(A))’’ after ‘‘no Federal department or agency’’. 
SEC. 4. FINALIZATION OF SMALL BUSINESS RUNWAY EX-
TENSION ACT OF 2018 RULES. 
The Administrator of the Small Business Administra-
tion shall issue a final rule implementing the Small Busi-
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ness Runway Extension Act of 2018 (Public Law 115– 
324) not later than December 17, 2019. 
SEC. 5. AMENDMENT TO SIZE STANDARDS FOR CERTAIN 
SMALL BUSINESS CONCERNS. 
(a) SIZE STANDARDS FOR SMALL BUSINESS CON-
CERNS PROVIDING SERVICES.—Section 3(a)(2)(C)(ii)(II) 
of the Small Business Act (15 U.S.C. 632(a)(2)(C)(ii)(II)) 
is amended by striking ‘‘not less than’’. 
(b) SIZE STANDARDS FOR OTHER BUSINESS CON-
CERNS.—Section 3(a)(2)(C)(ii)(III) of the Small Business 
Act (15 U.S.C. 632(a)(2)(C)(ii)(III)) is amended by strik-
ing ‘‘not less than 3 years’’ and inserting ‘‘5 years’’. 
SEC. 6. TRANSITION PLAN FOR THE SMALL BUSINESS RUN-
WAY EXTENSION ACT OF 2018. 
(a) PLAN REQUIRED.—Not later than 90 days after 
the date of the enactment of this Act, the Administrator 
of the Small Business Administration shall implement a 
transition plan to assist business concerns and Federal 
agencies with compliance with the requirements of the 
Small Business Runway Extension Act of 2018 (Public 
Law 115–324). 
(b) 3-YEAR CALCULATION FOR SIZE STANDARDS.— 
(1) IN
GENERAL.—The transition plan de-
scribed under subsection (a) shall include a require-
ment that, during the period beginning on December 
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17, 2018, and ending on the date that is 6 months 
after the date on which the Administrator issues 
final rules implementing the Small Business Runway 
Extension Act of 2018 (Public Law 115–324), al-
lows the use of a 3-year calculation for a size stand-
ard to be applied to a business concern if the use 
of such 3-year calculation allows such concern to be 
considered a small business concern under section 
3(a)(1) of the Small Business Act (15 U.S.C. 
632(a)(1)). 
(2) 3-YEAR
CALCULATION
DEFINED.—In this 
subsection, the term ‘‘3-year calculation’’ means— 
(A) with respect to a business concern pro-
viding services described under clause (ii)(II) of 
such section, a determination of the size of such 
concern on the basis of the annual average 
gross receipts of such concern over a period of 
3 years; and 
(B) with respect to a business concern de-
scribed under clause (ii)(III) of such section, a 
determination of the size of such concern on the 
basis of data over a period of 3 years. 
SEC. 7. REQUIREMENT TO UPDATE SAM. 
Not later than 90 days after the date of the enact-
ment of this Act, the System for Award Management (or 
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any successor system) shall be updated to comply with the 
requirements of this Act. 
Passed the House of Representatives July 15, 2019. 
Attest: 
CHERYL L. JOHNSON, 
Clerk. 
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