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NECA Contractor Involved in Implementing the Small Business Extension Act

Dec 12, 2019

An electrical contractor and member of the National Electrical Contractors Association (NECA) testified before Congress in support of legislation that extended the calculation time period for determining a company’s small business size status from three to five years. Today, the U.S. Small Business Administration (SBA) published a final rule that implements this legislation, the Small Business Runway Extension Act of 2018, Public Law No. 115-324.

Brian Morales, the president and CEO of Pro-Cal Lighting, appeared on behalf of NECA, to the Small Business Committee’s Subcommittee on Contracting and Infrastructure to testify in support of this legislation.

Morales said being classified as a small business continues to allow Pro-Cal Lighting and other NECA contractors the opportunity to understand the risk, learn from it and be better suited to grow. In addition, Morales notes that approximately 80 percent of NECA contractors are small businesses.

“Legislation like this, allowing our contractors to use the small business classification for any additional length of time, is of the utmost importance,” he said.

The SBA released a statement this week explaining the intent of the law. Small contractors will now calculate the size of the business on an average of gross receipts over five years rather than three. This will allow businesses greater continuity and eliminates the effects of a fluctuating market. The final rule is effective Jan. 6, 2020. 

NECA represents the industry in its quest to solidify its businesses for the long-term. Morales played a big part in getting this legislation passed and illustrated the importance of a true partnership with NECA.


NECA is the voice of the $171 billion electrical construction industry that brings power, light, and communication technology to buildings and communities across the United States. NECA's national office in Bethesda, Md., and 118 local chapters advance the industry through advocacy, education, research, and standards development. Go to for more information.

Media Contact:

Elise Baker
Director, Communications
National Electrical Contractors Association
(240) 800-5010
[email protected]