Senators Propose Transition Period for 8(a)s Two senators are proposing higher net-worth limits for 8(a) business owners and a transition period for companies after they graduate from the program. The bill, S. 3458, is sponsored by Senate Small Business Committee chair Mary Landrieu, D-LA, and Sen. Ben Cardin, D-MD. Landrieu said it is designed to improve access to federal contracts. “By increasing contracts to small businesses by just 1 percent, we can create more than 100,000 new jobs,” she said in a statement. “Today, we need those jobs more than ever.” The legislation calls for an immediate inflation adjustment to net-worth limits. Those limits are now $250,000 for 8(a) business owners when they enter the program and $750,000 for as long as an owner remains in the program. In addition, the bill would require SBA to set separate net-worth limits for owners of businesses involved in manufacturing, construction, professional services and general services, based on the different capital requirements in each industry group. The bill calls for a three-year transition period for 8(a) companies after they have completed their nine years in the program. Companies could still receive 8(a) contracts during the transition years. SBA would also be authorized to establish a pilot program to provide government-guaranteed surety bonds. The bill’s chances for enactment are uncertain with Congress closing in on its August recess and hoping to adjourn early for the fall election campaign. Changes in the 8(a) program may come sooner, as SBA completes work on an overhaul of 8(a) rules. The proposed rule, issued in October, would allow 8(a) firms to pay higher salaries and tighten requirements for joint ventures between 8(a) businesses and other companies. It would not increase net-worth limits. SBA has said it expects to issue a final rule this summer.