Higher Net Worth Limit Sought A leading trade group is urging Congress to double the $750,000 net-worth limit for owners of 8(a) and other small disadvantaged businesses. The Aerospace Industries Association’s Supplier Management Council called for the change in a white paper on the issue. The $750,000 limit “is inadequate to provide collateral for necessary capital investment in modern equipment and new technology necessary to remain competitive in the global economy,” the paper said. “Moreover, the current limitation does not reflect the impact of inflation over the past almost twenty years. If there were a full adjustment for inflation, the net worth limitation would approximate $1.5 million.” When an SDB owner exceeds the limit, his business loses SDB eligibility. Last year the House voted to abolish the $750,000 limit, while raising the net worth limit for new 8(a) business owners to $550,000, from the current $250,000. The Senate Small Business Committee approved legislation that would index the $750,000 figure for inflation. Neither bill came up for a vote in the Senate. AIA also urged Congress to exclude a business owner’s personal retirement savings from the net worth calculation. “In general, these funds are not readily accessible to the owners until retirement and cannot be used in operating their businesses,” the group said. Aerospace suppliers held their annual “March to the Hill” June 4 to lobby Congress on this and other issues.