Click here for the official update. Small schools are not mentioned,
but it seems logical that their existing teams would also be grandfathered in. Maybe? and according to Mathmom’s comment below, small schools are left out in the cold.
… After taking all concerns into account, a compromise was crafted that would grandfather in homeschools and virtual schools that participated in the 2009-2010 program year to allow them to participate on teams in this year’s Competition Program. All new homeschool and virtual school participants must abide by the new eligibility rules that require those participants to register only as individuals. This compromise was brought to the MATHCOUNTS Board of Directors and approved unanimously.
Therefore, for the 2010-2011 school year, all homeschool and virtual school groups that registered for the MATHCOUNTS Competition Program either as teams OR individuals during the 2009-2010 program year will be allowed to register teams or as individuals for the upcoming 2010-2011 program year, following all of the 2009-2010 requirements for participation.