110th CONGRESS
1st Session

H. R. 1611

To amend the Small Business Act to improve the 8(a) program.

IN THE HOUSE OF REPRESENTATIVES

March 20, 2007

Mr. REYES introduced the following bill; which was referred to the Committee on Small Business

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A BILL

To amend the Small Business Act to improve the 8(a) program.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `8(a) Modernization Act'.

SEC. 2. FINDINGS.

Congress finds that--

(1) when the 8(a) program was implemented in 1968, the thresholds for noncompetitive contracts were $3,000,000 and $5,000,000 (for manufacturing), and today those thresholds have risen to only $3,500,000 and $5,500,000, respectively, a rate of growth far overtaken by inflation; and

(2) when the 8(a) program was implemented in 1968, the net worth limit was $250,000, and today that limit is exactly the same.

SEC. 3. IMPROVEMENTS TO 8(a) PROGRAM.

Section 8(a) of the Small Business Act (15 U.S.C. 637(a)) is amended--

(1) in paragraph (1)(D)(i)(II)--

(A) by striking `$5,000,000' and inserting `$12,000,000'; and

(B) by striking `$3,000,000' and inserting `$10,000,000'; and

(2) in paragraph (6) by adding at the end the following:

`(F) the Administrator shall establish, for each industry classification, a maximum level of net worth for an economically disadvantaged individual. In establishing such maximum levels, the Administrator shall take into consideration the capital needs of each industry. The Administrator shall not establish a maximum net worth that prohibits program entry of less than $750,000.'.

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