SBA reports that 8(a) mentor-protégé agreements took between 60 and 90 days for approval, whereas the average time for approval through the All Small Mentor-Protégé Program is about 20 working days.(SBA regularly updates the list of active-mentor protégé relationships here.) As of October 15, 2020, SBA reports that there are 385 8(a) participants with BD mentor-protégé agreements and approximately another 850 small businesses that have SBA-approved mentor-protégé agreements in the All-Small Program.SBA reports receipt of approximately 600 mentor-protégé applications each year – approximately 450 for the All Small Mentor-Protégé Program and about 150 for the 8(a) Mentor-Protégé.Throughout its rulemaking, SBA provided a few data points to give a sense of the scale of these programs, as well as the timing to obtain approval of a mentor-protégé relationship: The Mentor-Protégé Relationships by the Numbers How does the transfer of the mentor-protégé relationship from the 8(a) Program to the All-Small Mentor Protégé Program impact the limit on the number of mentor-protégé relationships an entity can have? SBA explicitly clarified that the limit of two mentor-protégé relationships is a lifetime limit and any existing 8(a) mentor-protégé agreement that transfers over to the All-Small Mentor-Protégé Program will count as one of those two relationships.Does this have any impact on entities that have an active mentor-protégé agreement under the All Small Program? No.How long will the 8(a) mentor-protégé relationship have under the All-Small Mentor-Protégé Program? The same time remaining under the All-Small Program as it would have had under the 8(a) Program.§ 124.520 – but these regulations were already largely conformed in 2016 when SBA established the All-Small Mentor-Protégé Program. The mentor-protégé relationship will now be governed by 13 C.F.R. Will there be any change to how a mentor-protégé relationship that was previously under the 8(a) Mentor-Protégé Program continues operating under the All-Small Mentor-Protégé Program? No.The changes impose no obligation on such entities to take any action. Do entities that have an active 8(a) mentor-protégé program need to take any steps? No.§ 125.9), and the joint venture provisions for 8(a) entities (13 C.F.R. § 125.8), the All Small Mentor-Protégé Program regulations (13 C.F.R. part 121), the joint venture provisions for small business (13 C.F.R. SBA also made numerous conforming amendments to SBA’s size regulations (13 C.F.R. § 124.520 was, in essence, deleted in full and replaced with a statement that an 8(a) BD Program Participant, as any other small business, may participate in SBA’s All Small Mentor-Protégé Program authorized under Section 125.9 of the SBA regulations. As recognized by SBA, the purpose of and benefits available under both programs are identical.Ĭonsolidation was achieved via the elimination of the 8(a) Mentor-Protégé Program. SBA highlighted that the driving force for this consolidation was to eliminate confusion regarding perceived differences between the two programs, remove unnecessary duplication of functions within SBA, and establish one, unified staff to better coordinate and process mentor-protégé applications. The headline change from this rule is the consolidation of SBA’s decades-old 8(a) Business Development (BD) Mentor-Protégé Program with the more-recently created All Small Mentor-Protégé Program, which had significantly expanded protégé eligibility in 2016. The Consolidation of the 8(a) Business Development and All Small Mentor-Protégé Programs
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