HEADLINES

Knight Introduces Small Business Runway Extension Act to Create more Certainty for Small Business

Posted on: 07/12/2018 00:00

(Washington, DC) - On Wednesday, July 11, 2018, Representative Steve Knight (R-CA) introduced H.R. 6330, The Small Business Runway Extension Act.

Under existing law, the Small Business Administration (SBA) requires that businesses report their average gross receipts over the previous three years in order to be categorized as a "small" business to receive certain SBA resources and assistance. This three year requirement has caused some fledgling "mid-tier" companies to be ejected from the small business category prematurely due to an uncharacteristically successful year or scaled success that has not yet prepared them to compete with larger companies outside the small business category. This leads to some companies intentionally throttling back their own success or being forced into an overly competitive environment they are not ready for.

The Small Business Runway Extension Act would modify the SBA reporting requirements to have businesses report their average earnings over the last five years, rather than three. This will provide more certainty to small businesses as they ramp up their operations and grow over time. It will also help ensure that businesses are more prepared for the stronger competition should they choose to expand past the small business category.

"It takes a tremendous amount of hard work and dedication to run a successful small business," said Rep. Knight "In our district, and around the country, these entrepreneurs are the backbone of our economy and communities. The Small Business Runway Extension Act create greater consistency and allow for more forward-thinking planning as these businesses thrive and grow."

Representative Knight is a member of the House Small Business Committee and serves as Chairman of the Contracting & Workforce Subcommittee. The Small Business Runway Extension Act is endorsed by the Professional Services Council. During the 115th Congress, Rep. Knight has introduced several other pieces of legislation to support small businesses, including the Small Business Investment Opportunity Act which was signed into law, the Women's Business Centers Improvements Act which passed the House, the Small Business Innovation Research and Small Business Technology Transfer Improvements Act which passed the House, and the Accelerated Payments for Small Businesses Act which passed the House as a provision within the National Defense Authorization Act.


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