In a major coup for both small and large business contractors, the SBA has proposed to extend that incentive to mentor-protégé joint ventures involving all types of small businesses, including Service-Disabled Veteran-Owned Small Business Concerns (SDVO SBC), HUBZones, Women-Owned Small Businesses (WOSB), and "regular" small businesses not in a designated SBA program. Whereas a large business subcontractor would be limited to performing 49% of the contract or less, under the rubric of a mentor-protégé joint venture the large business mentor can perform up to 60% of the work. A joint venture comprised of a mentor and its 8(a) protégé can chase small business set-aside contracts as long as the 8(a) protégé qualifies as small for the procurement. That final form of assistance-participation in joint ventures-is the prime incentive for large business mentors to participate in the program. The program is used as a business development tool in which mentors provide diverse types of assistance to their 8(a) protégés, including technical and management assistance, financial assistance in the form of equity investments or loans, subcontracts, and assistance in performing Federal prime contracts through joint venture arrangements. Once finalized, the rule would represent a "sea change" that will significantly alter the competitive landscape for all small business set-aside contracts.Ĭurrently, the SBA's mentor-protégé program is available only to participants in the 8(a) Business Development program. Small Business Administration (SBA) recently released a proposed rule that would establish a Government-wide mentor-protégé program for all small businesses. In a long-anticipated rulemaking, the U.S.
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