Mentor-Protégé Program

Mentor-Protégé Fact Sheet

 

The Mentor-Protégé Fact Sheet

The SBA Mentor-Protégé Program is designed to encourage approved Mentors to provide various forms of assistance to eligible 8(a) Participants as Protégés.

The purpose of the Mentor-Protégé relationship is to enhance the capabilities of the protégé and to improve its ability to successfully compete for Federal contracts.

The various assistance that a Mentor may provide to a Protégé include:

  • Technical and/or management assistance;
  • Financial assistance in the form of equity investment, and/or loans;
  • Offerings of subcontracts;
  • Assistance in the performance of prime contracts with the Federal government in the form of Joint Venture arrangements.

The Small Business Administration (SBA) will administer the Mentor-Protégé Program. The SBA will determine the eligibility of participants in the Program, whether it be as Mentor, or as Protégé; will approve the Mentor-Protégé Agreement; and will annually review existing Mentor-Protégé relationships: and, will serve as mediator of disputes between Mentor and Protégé.

 

Eligibility & Qualifications

Eligibility for participation in the Mentor-Protégé Program is subject to the approval of the SBA.

  • Mentors: To be eligible as a Mentor, a concern must demonstrate a commitment, and the ability to assist developing 8(a) Participants. The concern may have graduated from the 8(a) Program, or be in the Transitional Stage of the program. Other small businesses or large businesses with the same commitment and ability may also qualify to serve as Mentors.

 

To qualify as a Mentor, a concern must demonstrate that it:

  • Possesses a favorable financial health, including profitability for at least the last two years;
  • Possesses a good character;
  • Does not appear on the Federal list of Debarred or Suspended Contractors; and
  • Can impart value to a Protégé firm due to lessons learned, and practical experience gained through the 8(a) Program, or from its general knowledge of government contracting.

 

Proteges. To initially qualify as a Protégé participant, a firm must:

  • Be in the Developmental Stage of the 8(a) Program; or
  • Have NOT yet received an 8(a) contract; or
  • Have a size that is less than half the Size Standard corresponding to its primary SIC code.

 

The firm must also be in good standing in the 8(a) Program, i.e. the firm must not have termination or suspension proceedings against it, and is up-to-date with all reporting requirements.

 

The Benefits of Participating in the Mentor-Protégé Program

The Mentor and Protégé may joint venture as a small business for any government contract.

  • Expertise, resources and capabilities of the Mentor are made available to the 8(a) Participant Protégé.
  • To aid the Protégé to raise capital. {e.g., Mentors may own an equity interest up to 40% in the Protégé firm.)
  • No determination of affiliation or control may be found between a protégé firm and its mentor based on the mentor/protégé agreement or any assistance provided pursuant to the agreement.
  • The Protégé, due to the additional capabilities gained from the Mentor, -- may better qualify for other assistance as a small business, including SBA financial assistance.

 

Terms & Conditions for Program Participation 

  • The SBA must approve both Mentors and Protégés in order to participate in the Program.
  • The Mentor and Protégé firms must enter into a written Agreement setting forth the needs of the Protégé and the assistance to be provided by the Mentor. The Agreement must be approved by the SBA; and thereafter, will be reviewed annually for continuation. All changes to Mentor-Protégé Agreements must be approved in advance.
  • The Agreement must provide that either the Protégé or the Mentor may terminate the relationship with 30-days advance notice to the other party; and a copy to the SBA.
  • A Protégé firm may have only one Mentor at a time.
  • Generally, a Mentor will have no more than one Protégé at a time. The SBA must authorize any additional Protégé.

 

How and Where to Apply

Any qualified 8(a) Participant can apply to be considered as a Protégé or Mentor with the SBA District Office where it is registered.

 

Additional Information

The SBA has a number of other programs and services available. These include training and educational programs, advisory services, publications, financial programs, and contract assistance. The agency also offers specialized programs for women business owners, veterans, international trade, and historically underutilized business zone (HUBZone) for development.

The SBA has offices located around the country. For the one nearest you, consult the telephone directory under U.S. Government; or call the Small Business Answer Desk at 1-800-8-ASK-SBA, or (202) 205-7064 (FAX). For the hearing impaired, the TDD number is (202) 205-7333.

The U.S. Small Business Administration, established in 1953, provides financial, technical and management assistance to help Americans start, run, and grow their businesses. With a portfolio of business loans,loan guarantees and disaster loans worth more than $45 billion, the SBA is the nation’s largest single financial backer of small businesses. Last year, the SBA offered management and technical assistance to more than one million small business owners. The SBA also plays a major role in the government’s disaster relief efforts by making low-interest recovery loans to both homeowners and businesses.

America’s 23 million small businesses employ more than 50 percent of the private workforce, generate more than half of the nation’s gross domestic product, and are the principal source of new jobs in the U.S. economy.

All of SBA’s programs and services are extended to the public on a non-discriminatory basis.