Consolidation of Mentor-Protege Programs by the SBA

November 2020Articles

SBA Consolidation of Mentor-Protégé Programs: Implications of Rule Changes on the Industry

In response to government-wide regulatory reform aimed at reducing costs, the Small Business Administration (SBA) published a final rule, Consolidation of Mentor-Protégé Programs and Other Government Contracting Amendments, on October 16, 2020 that takes effect on November 16, 2020.

This new rule merges the 8(a) Business Development (BD) Mentor-Protégé program and the All Small Mentor-Protégé program, which provides many benefits for small and large businesses. The new rule also aims to eliminate confusion surrounding the perceived differences in the Programs and streamline the mentor-protégé application process by removing duplicative functions within the SBA and establishing one staff system for optimized Program coordination.

This article covers the effects of the historical perspective of the different mentor-protégé programs, effects of the consolidation of the mentor-protégé programs, the new “Two Year Rule” for affiliation, the benefits and disadvantages, along with implications of the final rule on the industry.

Read the full article