The U.S. Small Business Administration (SBA) offers a unique opportunity for growth and development through its Mentor-Protégé Program. This initiative is designed to help small businesses (protégés) gain the necessary skills and experiences from more established businesses (mentors). If you’re considering applying to this program, understanding the qualifications and agreement criteria is crucial. Here’s a detailed look at what it takes to qualify as either a protégé or a mentor, as well as what is required for the Mentor-Protégé Agreement to be approved.

Qualifying as a Protégé

To be eligible for the Mentor-Protégé Program as a protégé, your business must meet several specific criteria:

• Size and Industry Experience: Your business must be classified as a small business based on the SBA’s size standards. You can determine your business’s size using the SBA’s Size Standards Tool or by consulting the SBA’s table of small business size standards, which classify businesses according to individual NAICS codes.
• Business Structure: Your business must be organized for profit or as an agricultural cooperative.
• Pre-existing Mentor Relationship: You should have a proposed mentor in place before applying for the program. This preparation ensures that you have a potential partnership likely to enhance your business’s development.

Qualifying as a Mentor

For established businesses looking to give back and foster the growth of smaller enterprises, the following qualifications must be met:

• Business Structure: Like protégés, mentors must be organized for profit or as an agricultural cooperative.
• Capability: It’s essential that mentors are fully capable of carrying out their responsibilities to assist their protégés.
• Reputation: Mentors must possess good character and not be on the federal list of debarred or suspended contractors.
• Value Addition: Mentors must demonstrate that they can impart valuable business lessons and practical experiences to the protégé, specifically relating to general business operations and government contracting.

Approval of the Mentor-Protégé Agreement

The SBA plays a crucial role in approving the Mentor-Protégé Agreement. Key considerations include:

• Developmental Gains: The SBA must determine that the mentor-provided assistance will promote substantial developmental gains for the protégé, beyond merely facilitating access to federal small business set-asides.
• Non-affiliation: At the time of application, there should be no affiliation between the protégé and the mentor. Businesses are considered affiliates if one controls or has the power to control the other, directly or indirectly. The SBA will examine factors like ownership, management, previous relationships, and contractual ties to assess affiliation.

Understanding Affiliation

The concept of affiliation is critical in determining eligibility. The SBA considers a variety of factors under the totality of circumstances, recognizing that no single factor may be sufficient on its own. Further details on affiliation rules are outlined in Title 13 Part 121.103 of the Code of Federal Regulations (CFR).

Contact SDB Growth at https://sdbgrowth.com/ for more information.