SBA Final Rule Creates New "Small Business Mentor-Protégé Program"

The future is now for government contractors. A new Small Business Administration (SBA) regulation finalizes the long-anticipated expansion of the small business mentor-protégé program. This major policy shift vastly expands access to set-aside contracts previously reserved for performance only by small businesses. Government contractors – both small and large – need to create a game plan for how to take advantage of this shifting landscape.

At the heart of the new program is the SBA's decision to allow small business protégés to joint venture with large business mentors to compete for federal work — all without worrying about affiliation. These new mentor-protégé joint ventures can compete for any federal work — including small business set-aside contracts — provided only that the protégé qualifies as small for the procurement. In the rule, the SBA specifically provides that no determination of affiliation or control can be based solely on the mentor-protégé