Public-Private Partnerships

All Small Mentor-Protégé Program 2018 Year-End ReportThe Small Business Administration (SBA) started accepting applications for the All Small Mentor-Protégé Program (ASMPP) in 2016, but SBA has seen a surge in applications in 2017 and 2018.

Under the ASMPP, any small business—including 8(a) small businesses, Historically Underutilized Business Zone (or HUBZone) small businesses, veteran-owned and service-disabled veteran-owned small businesses (VOSBs/SDVOSBs), woman-owned and economically disadvantaged woman-owned small businesses (WOSBs/EDWOSBs)—may enter into an agreement with a large business under which the large business will provide mentorship and assistance. In return, the large and small businesses are permitted to joint venture to perform federal small business set-aside contracts.

As a 2018 year-end report, here are some fast figures about the ASMPP that both large and small businesses need to know:

629 SBA reports that it has approved at least 629 different ASMPP agreements.
132 SBA reports that at least 132 of the 629 SBA-approved ASMPP agreements were approved under the protégé’s secondary—rather than primary—North American Industry Classification System (or NAICS) code.
210 SBA reports that at least 210 of the ASMPP participants are 8(a) firms.
237 SBA reports that at least 237 of the ASMPP participants are SDVOSBs.
85 SBA reports that at least 85 of the ASMPP participants are HUBZone companies.
54 SBA reports that at least 54 of the ASMPP participants are EDWOSBs.
102 SBA reports that at least 102 of the ASMPP participants are small businesses without any other set-aside status.
46 SBA reports that ASMPP participants are based or incorporated in 46 different U.S. states.
1 SBA reports that at least one ASMPP participant has been “Suspended pending a Size Determination.”

If you have any questions about the ASMPP or any related issues, please feel free to contact Aron Beezley.

SBA “Contemplates” Consolidating 8(a) and All Small Mentor-Protégé ProgramsThe U.S. Small Business Administration (SBA) recently issued a notice in the Federal Register stating that it “is contemplating making substantive changes to the regulations” governing the 8(a) Business Development program, and that it “requests comments and input on how best to reduce unnecessary or excessive regulatory burdens” on the program.

Of particular importance, the SBA states that the “planned rulemaking contemplates consolidating the All Small Mentor Protégé Program and the 8(a) Mentor Protégé Program into one program and possibly eliminating SBA’s role in approving joint venture agreements for 8(a) competitive contracts.”

The SBA further states that it is contemplating an “amendment” to its regulations that “would allow mentors participating in SBA’s mentor protégé program to have more than three protégés at one time.” The SBA goes on to state, however, that it “is concerned that allowing a large business mentor to have additional protégé firms at one time could permit them to unduly benefit from small business contracts, through joint ventures with their protégé firms, which they would otherwise not be eligible for.” Nevertheless, the SBA “is seeking comments on whether lifting the current regulatory limit would benefit small businesses and further the programs’ purpose.”

If you have any questions about the proposed changes to the SBA’s regulations, or about any other related issues, please do not hesitate to contact Aron Beezley.

All Small Mentor-Protégé Program Year-End Report: Fast Figures Small and Large Businesses Need to KnowThe Small Business Administration (SBA) started accepting applications for the new All Small Mentor-Protégé Program (ASMPP) in October 2016, but SBA has seen a surge in applications in 2017.

Under the ASMPP, any small business—including Historically Underutilized Business Zone (or HUBZone) small businesses, 8(a) small businesses, veteran-owned and service-disabled veteran-owned small businesses (VOSBs/SDVOSBs), woman-owned and economically disadvantaged woman-owned small businesses (WOSBs/EDWOSBs)—may enter into an agreement with a large business under which the large business will provide mentorship and assistance. In return, the large and small businesses are permitted to joint venture to perform federal small business set-aside contracts.

Previously, we provided a mid-year report on fast figures about the ASMPP that both large and small businesses need to know. Here is our year-end update to those figures:

356  SBA reports that, as of Dec. 1, 2017, it has approved 356 different ASMPP agreements.
1,116 As of Dec. 1, 2017, there have been more than 1,116 views of the new SCORE-SBA ASMPP Webinar.
16 SBA reports that, as of Dec. 8, 2017, 16 8(a) Mentor-Protégé Program participants transferred to the new ASMPP.
64 SBA reports that at least 64 of the 356 SBA-approved ASMPP agreements were approved under the protégé’s secondary—rather than primary—North American Industry Classification System (or NAICS) code.
72 SBA reports that, as of Dec. 8, 2017, 72 ASMPP applications were declined by SBA.
112 SBA reports that at least 112 of the ASMPP participants are 8(a) firms.
110 SBA reports that at least 110 of the ASMPP participants are SDVOSBs.
47 SBA reports that at least 47 of the ASMPP participants are HUBZone companies.
54 SBA reports that at least 54 of the ASMPP participants are EDWOSBs.
65 SBA reports that 65 of the ASMPP participants are small businesses without any other set-aside status.
42 SBA reports that ASMPP participants are based or incorporated in 42 different U.S. states/territories/districts.

If you have any questions about the ASMPP or any related issues, please feel free to contact Aron Beezley or Frederic Smith.