At the recent Small Business Conference, John Klein, the SBA’s Associate General Counsel for Procurement Law, confirmed the Small Business Administration is processing the typical “All Small” Mentor-Protege Program application in as little as eight days. Here are other interesting comments made during the conference in regards to the All Small Mentor-Protege Program:
Specify agreements. The SBA is looking for specific terms of the assistance the mentor or protege will provide. They want to see details that can be tracked and evaluated to see the success rate.
Protege focus. Provided to the protege, the mentor-protege agreement should focus on benefits. However, the SBA recognizes that joint venturing is an important reason why mentors and proteges pursue mentor-protege arrangements, but don’t let joint venturing be the primary focus of a successful mentor-protege agreement.
Equity regulations. With up to 40% interest in the protege, be cautious and think carefully before giving up large equity stakes in the company. When parties agree to allow the mentor to take an equity interest, the mentor-protege agreement will demonstrate the benefits to the protege. The mentor is not required to divest equity interest at expiration of the agreement.
NAICS Codes. If a company is looking to mentor in a second NAICS code, it must first demonstrate previous work in that NAICS code. Allowing a company to receive mentoring in a secondary code, The All Small Mentor Protege program is not intended for a company that has outgrown its primary
As it continues to draw attention and interest, the All Small Mentor Protege Program is attracting large and small contractors. The application process is quick and improving.
KDuncan & Company is dedicated to providing knowledge and support for small government contractors about concerns regarding government contracting. For questions on areas such as as cost proposals, accounting systems, DCAA compliance, and incurred cost audits, reach out to KDuncan & Company.