SBA modifies method for calculating annual revenues for small businesses

WASHINGTON – The U.S. Small Business Administration today published in the Federal Register recently a final rule to modify its method for calculating annual revenues used to prescribe size standards for small businesses. The final rule is effective Jan. 6, 2020.

The SBA changed its regulations on the calculation of annual revenues from a three-year averaging period to a five-year averaging period, outside of the SBA Business Loan and Disaster Loan Programs. The change in the averaging period for calculating annual average revenues from three years to five years may result in firms regaining o...