SBA Corrects Discrepancy in Small Business Joint Venture Rules

By Megan Connor and Julia Di Vito On December 23, 2016, the U.S. Small Business Administration (“SBA”) issued a technical correction to its July 25, 2016 final rule regarding the new mentor-protégé program for all small business concerns to address an inconsistency among the joint venture rules applicable to the SBA’s various small business programs. The SBA’s July 25, 2016 rule provided that when a joint venture is a separate legal entity, the profits of the joint venture must be . . . Read More

Investing in Small Businesses Through SBA’s SBIC Program

We work with many firms that have or would like to invest in small businesses. One of the biggest issues for an investor in a small business is the potential that the investment will create an affiliation between the investor and the small business. An “affiliation” under SBA’s rules can cause the small business to lose its small business status. For example, to protect its investment, the investor may require certain protections or veto rights over the day-to-day operations of . . . Read More

How to Succeed Under SBA’s New Mentor-Protege Program

By Katie Flood and Megan Connor As of November 1st, SBA’s  certify.sba.gov portal is operational and accepting applications for the new Small Business Mentor-Protégé program. By now, you’ve heard of the program and are considering its potential value for your business. However, there are a few key things you should consider before submitting your application, in order to best situate you and your potential partner for SBA approval and to maximize your success under the program. First, it is critical that . . . Read More

SBA Will Begin Accepting Applications for the New Small Business Mentor-Protégé Program on October 1, 2016

Late last month, SBA published its final rule establishing a government-wide mentor-protégé program for all small business concerns called the All Small Mentor-Protégé Program. The rule is set to become effective on August 24, 2016.  Click here  to read our analysis of the final rule and the new program. SBA recently announced that it will begin accepting applications for the All Small Mentor-Protégé Program on October 1, 2016. The application, approval, and monitoring process will be centralized in SBA’s headquarters in Washington, . . . Read More

The SBA’s Two New Recertification Rules

The Small Business Administration (“SBA”) has issued two more regulations that will require that small businesses recertify their size when they engage in a merger and/or acquisition (“M&A”). The regulations, published in conjunction with the final limitation on subcontracting regulation and the new mentor-protégé program, further limit the ability of small businesses to engage in acquisitions that could impact their continued performance of small business set-aside contracts. Both are certain to make it more difficult for small businesses to engage . . . Read More