Title: Clarifying the Small Business Runway Extension Act
Policy area: Commerce

Summary:
Clarifying the Small Business Runway Extension Act
This bill addresses the statutory authority of the Small Business Runway Extension Act of 2018.
The Small Business Administration (SBA) is subject to the Act's requirements for prescribing size standards for small businesses.
The SBA must (1) issue a final rule implementing such Act by December 17, 2019, and (2) implement a transition plan to assist businesses and federal agencies in complying with the Act's requirements.
The bill calculates (1) size standards for small businesses providing services on the basis of the annual average gross receipts of the business over a five-year period (currently, at least a five-year period); and (2) the size of other businesses on the basis of data over a five-year period (currently, at least a three-year period).
The System for Award Management must be updated to comply with the requirements of this bill.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2345 Introduced in House (IH)]

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116th CONGRESS
  1st Session
                                H. R. 2345

 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.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 18, 2019

Mr. Stauber (for himself and Mr. Golden) introduced the following bill; 
         which was referred to the Committee on Small Business

_______________________________________________________________________

                                 A BILL


 
 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 Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Clarifying the Small Business Runway 
Extension Act''.

SEC. 2. 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. 3. FINALIZATION OF SMALL BUSINESS RUNWAY EXTENSION ACT OF 2018 
              RULES.

    The Administrator of the Small Business Administration shall issue 
a final rule implementing the Small Business Runway Extension Act of 
2018 (Public Law 115-324) not later than December 17, 2019.

SEC. 4. AMENDMENT TO SIZE STANDARDS FOR CERTAIN SMALL BUSINESS 
              CONCERNS.

    (a) Size Standards for Small Business Concerns 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 Concerns.--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 striking ``not less than 3 years'' 
and inserting ``5 years''.

SEC. 5. TRANSITION PLAN FOR THE SMALL BUSINESS RUNWAY 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 described under 
        subsection (a) shall include a requirement that, during the 
        period beginning on December 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), allows the use of a 
        3-year calculation for a size standard 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 providing 
                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 described 
                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. 6. REQUIREMENT TO UPDATE SAM.

    Not later than 90 days after the date of the enactment of this Act, 
the System for Award Management (or any successor system) shall be 
updated to comply with the requirements of this Act.
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