![]() Rather than requiring the termination of one or more of the mentor-protégé relationships, and the potential negative impact on the protégés, the SBA revised 13 C.F.R. Second, the SBA addressed the situation where a business that already has three protégés (the maximum number of protégés permitted under the ASMPP) acquires another entity that also has one more protégés under the ASMPP. While the SBA did not make significant changes to the ASMPP, the SBA did provide mentors with some additional flexibility.įirst, the SBA revised 13 C.F.R § 124.105(h)(2)(ii) to clarify that a mentor of an 8(a) protégé pursuant to an SBA-approved mentor-protégé agreement can own up to 40% of the protégé even if the protégé is in the same line of business as the mentor. As such, a mentor may be able to participate in a procurement through their mentor-protégé agreement in small business set asides for which the mentor would not otherwise be eligible. The ASMPP also permits the protégé and mentor to form joint ventures eligible to receive small business set aside contracts (sole source or competitive) from any small business program in which the protégé is eligible to participate. The mentor provides training and assistance to the protégé in the form of helping the small business protégé improve their processes, business development, and the ability to obtain and perform federal contracts. The ASMPP is a program that permits a small business to be mentored by another business, often a business that does not qualify as “small” under the SBA’s size standards. In this update, we are addressing changes to the Small Business Administration’s All Small Mentor-Protégé Program (“ASMPP”). 8(a) Business Activity Targets (published June 2, 2023).Limitations on Subcontracting (published June 12, 2023).Ostensible Subcontractor Rule (published May 30, 2023).Size Determinations in Connection with Multiple Award Contracts.Joint Ventures (published June 27, 2023).Bona Fide Place of Business Requirements (published May 5, 2023).We anticipate addressing the following areas in this series: Accordingly, over the next several weeks, we will be going through various parts of the final rule and conducting an in-depth discussion and analysis of the changes. ![]() While many of the SBA’s regulatory changes are intended to document existing SBA policies and practices, the SBA did implement a number of substantive changes. This final rule is SBA’s implementation of the proposed rules issued by the SBA on Septemand we summarized the changes adopted by the final rule here. Small Business Administration (“SBA”) published a final rule making changes to the regulations governing the 8(a) program. ![]()
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