Eligibility for Small Business Set Asides Increases

More companies will be eligible to compete for federal contracts reserved for small businesses, due to the implementation of a 2018 law, now in effect. 
 
Recently, the Small Businesses Administration's final rule to implement the 2018 Small Business Runway Extension Act took effect, increasing the period of measuring small businesses' annual revenue from three to five years in the contract evaluation process. Effectively, the rule will increase the size of the pool of eligible participants competing for small business set asides.
 
The act was signed into law on Dec. 17, 2018. However, there was a delay in implementation because some companies were put at a disadvantage by the change, so the agency wanted to figure out how to best mitigate any negative impact. The compromise was to give small businesses would be given the option to choose either three or five years. Effectively, companies will be given an opportunity to chose which option puts them at a greater advantage. The rule changes include a phase-in period which ends on Jan. 6, 2022.
 
In fiscal 2018, the federal government met its small business spending goals for the sixth year in a row and awarded a record-breaking $120 billion to small companies.  
 
This past week, the Senate confirmed Jovita Carranza as the head of the Small Business Administration. Carranza most recently was the U.S. Treasurer. She was also Trump campaign adviser and deputy SBA administrator during the George W. Bush administration.
 
Carranza said during her confirmation hearing on Dec. 11 that her goal "will be to expand access to SBA resources among entrepreneurs in disadvantaged communities, including African-American and Latino businesses, as well as businesses started by veterans. By better connecting these small businesses with SBA support services, we can help even more underrepresented entrepreneurs overcome barriers to financial capital and gain access to lucrative government contracts."
 



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