SBA Consolidates 8(a) and All-Small Mentor/Protégé Programs

SBA’s mentor/protégé programs are an amazing tool for small businesses. When done properly, they allow a small business protégé to develop its capabilities and experiences, while providing the unique opportunity to joint venture with a large business protégé.

Today, the SBA announced that its two mentor/protégé programs will consolidate in late 2020.

Historically, SBA has had two mentor/protégé programs. Owing to the success of the 8(a) Mentor/Protégé Program, Congress directed SBA to consider additional programs for all socioeconomic categories. From this direction, the SBA’s All-Small Mentor/Protégé Program was borne in 2016.

The All-Small Mentor/Protégé Program is very similar to the 8(a) Mentor/Protégé Program. Both programs carry identical purposes and benefits, and the application process is pretty much the same for each. The only real difference between them is their eligibility requirements: the 8(a) Mentor/Protégé Program only allows for 8(a) Participants to qualify as protégés, while the All-Small Mentor/Protégé allows any small business (including 8(a) Participants) to qualify as a protégé.

Given this overlap, the 8(a) Mentor/Protégé Program became fairly redundant to its newer cousin. So earlier this year, SBA announced its intention to consolidate both programs under the All-Small Mentor/Protégé Program. Doing so, SBA stated that having to programs was “unnecessary and causes needless confusion in the small business community.” 

Effective November 16, therefore, any small business (including 8(a) Participants) that wish to enter an SBA-approved mentor/protégé agreement can only do so under the All-Small Mentor/Protégé Program.

Parties to an existing 8(a) Mentor/Protégé Agreement will, no doubt, wonder how this regulatory change will impact them. The new rule says that their existing mentor/protégé agreement “will continue to operate,” just under the All-Small Mentor/Protégé Program. The regulation isn’t clear, though, whether this operation will be automatic, or whether participants will have to ask that their agreement be rolled over. Keep watching GovConBrief, as we’ll try our best to answer this question.

In my experience, the All-Small Mentor/Protégé Program is a tremendous resource for small businesses. If you have any questions about the program or joint ventures, please give me a call at (913) 354-2630.