SBA will not approve a mentor-protégé relationship in a secondary NAICS code in which the small business concern has no prior experience. (ii) Where a small business concern seeks to qualify as a protégé in a secondary NAICS code, the concern must demonstrate how the mentor-protégé relationship will help it further develop or expand its current capabilities in that secondary NAICS code. (i) A firm may self-certify that it qualifies as small for its primary or identified secondary NAICS code. (1) In order to initially qualify as a protégé firm, a concern must qualify as small for the size standard corresponding to its primary NAICS code or identify that it is seeking business development assistance with respect to a secondary NAICS code and qualify as small for the size standard corresponding to that NAICS code. However, the first two mentor-protégé relationships approved by SBA between a specific mentor and a small business that has its principal office located in the Commonwealth of Puerto Rico do not count against the limit of three proteges that a mentor can have at one time. (ii) A mentor generally cannot have more than three protégés at one time. (i) A mentor that has more than one protégé cannot submit competing offers in response to a solicitation for a specific procurement through separate joint ventures with different protégés. (3) In order for SBA to agree to allow a mentor to have more than one protégé at time, the mentor and proposed additional protégé must demonstrate that the added mentor-protégé relationship will not adversely affect the development of either protégé firm ( e.g., the second firm may not be a competitor of the first firm). Once approved, SBA may terminate the mentor-protégé agreement if the mentor does not possess good character or a favorable financial position, was affiliated with the protégé at time of application, or is affiliated with the protégé for reasons other than the mentor-protégé agreement or assistance provided under the agreement. (2) SBA will decline an application if SBA determines that the mentor does not possess good character or a favorable financial position, employs or otherwise controls the managers of the protégé, or is otherwise affiliated with the protégé. (iii) Can impart value to a protégé firm due to lessons learned and practical experience gained or through its knowledge of general business operations and government contracting. (ii) Does not appear on the Federal list of debarred or suspended contractors and (i) Is capable of carrying out its responsibilities to assist the protégé firm under the proposed mentor-protégé agreement (1) In order to qualify as a mentor, a concern must demonstrate that it: This includes other than small businesses.
Any concern that demonstrates a commitment and the ability to assist small business concerns may act as a mentor and receive benefits as set forth in this section. Mentors are encouraged to provide assistance relating to the performance of contracts set aside or reserved for small business so that protégé firms may more fully develop their capabilities. This assistance may include technical and/or management assistance financial assistance in the form of equity investments and/or loans sub contracts (either from the mentor to the protégé or from the protégé to the mentor) trade education and/or assistance in performing prime contracts with the Government through joint venture arrangements. The small business mentor-protégé program is designed to enhance the capabilities of protégé firms by requiring approved mentors to provide business development assistance to protégé firms and to improve the protégé firms' ability to successfully compete for federal contracts.
Link to an amendment published at 87 FR 50927, Aug.
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