at 6.)īe aware that under 13 CFR 125.8(c), the joint venture agreement “should at least show a division of labor or a division of responsibilities that would reasonablyĪllow the small business partner to perform 40% of the work done by the partners in the aggregate.” SIZ-5822 (2017) specifying responsibilities of negotiation, labor, and contract performance ensuring performance designating where records are kept requiring that the managing joint venturer retain records submitting quarterly financial statements for the JV and submitting a project-end profit and loss statement. The JV must set forth a purpose designating a managing venturer providing for 51% ownership by the small business stating that profits are commensurate to work performed establishing a special bank account itemizing resources for a service contract in accordance with Size Appeal of Alpine/First Preston JV II, LLC, SBA No. You want to make sure that your joint venture agreement satisfies each of the 12 requirements in CFR 125.8(b)(2). The SBA will look at the Area Office reviewed the terms of the The SBA suggests that participants in the All Small Mentor Protege Program may joint venture as a small business, if the protégé qualifies as small for the procurement and the joint venture meets the requirements of 13 CFR 125.8(b)(2) and (c). What are the Basics of Meeting the ASMPP Qualification Rules? You should also be aware that an SBA mentor can only have one protege at a time unless approved by the SBA.The mentor must also be willing to help its protege small business for at least one year. Under the SBA All Small Mentor Protege Program, mentors must also show a sound commitment to help members in the 8a Program, show good character, strong financials cannot be suspended or debarred from government contracting. See more about the SBA mentor definition. To qualify as an SBA mentor under, companies can be (a) graduates from the 8a Program (b) current 8a companies in the transitional stage (3) another small business that can demonstrate success (d) a large business or (e) a non-profit business. Understanding under the SBA ASMPP rules what is a mentor under 13 CFR 124.520 also means knowing the requirements for becoming a mentor. Requirements to Become an SBA Mentor Under the All Small Mentor Protégé Program 13 CFR 124.520 Mentors can own up to forty percent of the protégé small business to help raise capital. Without this level of protection, small businesses run the risk of losing government contracts through small business size protests due to affiliation.Īnother benefit of having an SBA mentor is that it can legally provide financial assistance to the protege. Having a mentor under SBA regulations allow the two companies to enter into a joint venture agreement while still avoiding tradition SBA affiliation rules. By having an approved mentor, it can now show increased technical capability from the mentor’s technical and management assistance. Small businesses are generally at a disadvantage when competing for federal government contracts. What are Some Benefits of Having a Mentor? Looking at the definition of what is a mentor under SBA regulations, the relationship between the mentor and the small business show the mentor’s ability to help its small business protégé to compete for government contracts.
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