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SBA Size determination game changer

Updated: Jan 2, 2019

Congress just changed the number of years you average your annual revenue over from 3 years to 5 years. The intent is to create a more gradual rise allowing companies to not get pushed out of the program with a sudden extra revenue winfall in one year. Averaging over a longer period should make the impact of this less. In some cases however it could have the opposite effect. For example if your company was initially running high on a contract and you brought the cost down in the last few years of the contract the additional years of averaging will keep you higher and could push you out of eligibility.

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