Contractor Compliance Update: Mentor-Protégé Agreement Must Be Approved To Avoid Affiliation

For small business government contractors, the question of affiliation should always be at the top of the list of priorities. A finding of affiliation between your business and another business (and, in particular, a large business) could be enough to lose your small business size status – and the ability to compete for those coveted set-aside contracts.

One of the few recognized exceptions to affiliation is an approved mentor-protégé relationship under the Small Business Administration's (SBA) 8(a) business development program. In short, an 8(a) protégé can joint venture with its SBA-approved large business mentor and still qualify as a small business for any federal government contract or subcontract – without the fear of affiliation.