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