![]() It should not be a crutch that prevents small businesses from seeking and performing those larger and more complex contracts on their own. The mentor-protege program should be a boost to a small business’s development that enables the small business to independently perform larger and more complex contracts in the future. Once the MPA is approved, the two companies may create a joint venture. A protégé firm is limited to two mentors over the course of its lifetime. A protégé may have only one mentor at a time, though the SBA may approve a second mentor in some cases. Just like the longstanding and popular 8(a) mentor-protege program, the new small business mentor-protege program creates a framework under which mentor firms will provide a wide variety of potential benefits to their proteges. Mentors are limited to no more than three protégés at a time. If approved, one Mentor (which can be any size by government standards), and one Protg (which must be small as determined by SBA standards ), will enter a formalized agreement for a three-year term. This could be a major benefit for a mentor and the rules always. But, if the mentor acquired 40 of the protégé, the mentor could also get a 40 profit share from operating of the protégé. ![]() Mentors are encouraged to provide assistance relating to the performance of contracts set aside or reserved for small business so that protege firms may more fully develop their capabilities. SBA’s Mentor Protg Program SBA’s MPP allows two companies to apply for a legal relationship with one another. For all of these contracts, the mentor could receive compensation from the joint venture for performing up to 60 of the work done by the joint venture. This assistance may include technical and/or management assistance financial assistance in the form of equity investments and/or loans subcontracts (either from the mentor to the protege or from the protege to the mentor) trade education and/or assistance in performing prime contracts with the Government through joint venture arrangements. The small business mentor-protege program is designed to enhance the capabilities of protege firms by requiring approved mentors to provide business development assistance to protege firms and to improve the protege firms’ ability to successfully compete for federal contracts. ![]() If you’re not familiar with the program, here’s a brief description from the Small Business Adminstration:
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |