![]() Additionally, a protégé may qualify for other assistance as a small business, including SBA financial assistance. ![]() In order to raise capital, the protégé firm may agree to sell or otherwise convey to the mentor an equity interest of up to 40% in the protégé.In certain instances in the contract evaluation process, procuring activities may provide incentives to a firm that makes available significant subcontracting work to its SBA-approved protégé firm and.No determination of affiliation or control may be found between a protégé firm and its mentor based solely on the mentor-protégé agreement or any assistance provided pursuant to the contract.A protégé and mentor may enter into a joint venture for small business set-aside contracts.The program provides many benefits for both mentors and protégés, including the following: The DoD is exempt from this requirement.īenefits of the Small Business Mentor-Protégé Program The rule allows a department or agency that is currently operating an independent mentor-protégé program to continue to do so for only one year, unless an exception is granted by SBA. Because the 2013 NDAA prohibited federal agencies from maintaining their own programs absent explicit SBA approval, the rule renders such individual programs unnecessary in light of the proposed government-wide program. The new program will also effectively bring an end to individual mentor-protégé programs operated by individual federal agencies (except for the Department of Defense). The only exception is the 8(a) program, which remains separate. SBA believes that having one program is easier to understand and more efficient for the small business and acquisition communities. ![]() The new program spans all small business programs, rather than creating individual SDVOSB, HUBZone, and WOSB mentor-protégé programs. The new small business mentor-protégé program reflects key elements of the 8(a) BD mentor-protégé program it will require approved mentors to provide assistance to protégé firms in order to enhance the protégés' capabilities, to assist protégés with meeting their business goals, and to enhance the protégés' ability to compete for government and commercial contracts. The mentor-protégé program was created as a business development tool in which mentors provide protégés with various types of business assistance, including "technical and/or management assistance financial assistance in the form of equity investments and/or loans subcontracts and/or assistance performing Federal prime contracts through joint venture arrangements." To achieve this objective for more small businesses, this new rule establishes a government-wide mentor-protégé program that mirrors the SBA's mentor-protégé program for companies in the 8(a) BD program and expands those benefits to other qualified small businesses. The rule implements the Jobs Act of 2010 and the 2013 National Defense Authorization Act (NDAA).Įstablishment of a Government-Wide Mentor-Protégé Program Small Business Administration (SBA) final rule will go into effect, significantly expanding opportunities for small businesses to win government contracts by creating a government-wide small business mentor-protégé program, and clarifying the related rules on joint ventures.
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