What is an 8(a) Mentor-Protégé agreement?

What used to be the 8(a) Mentor-Protege Program is now part of one SBA Mentor-Protege Program. SBA merged the 8(a) and All Small mentor-protege programs effective November 16, 2020, and the rules are in 13 CFR 125.9. An 8(a) participant uses the same program as any other small business.

The core benefit. Once SBA approves the agreement, the mentor and protege can form a joint venture that counts as small for any government prime contract or subcontract for which the protege alone is small. The joint venture can pursue any type of small business contract the protege is eligible for, including 8(a), HUBZone, SDVOSB and WOSB set-asides. Without SBA approval the two firms would normally be treated as affiliated and their size combined. SBA must approve the agreement before the joint venture submits an offer, and the joint venture must meet the requirements of 13 CFR 125.8 to get the exclusion from affiliation. If the protege outgrows the size standard for the NAICS code under which SBA approved the relationship, the joint venture can no longer seek new small business awards in that code.

What the protege receives. The agreement spells out help such as internal management systems, accounting, marketing, manufacturing and strategic planning; financial help through equity investments, loans and bonding; procurement assistance; and joint performance of prime contracts.

Who can be a protege. A small business with industry experience in the NAICS code of the agreement, organized for profit or as an agricultural cooperative, that already has a proposed mentor when it applies. SBA will not approve a relationship in a secondary NAICS code where the protege has no prior experience.

Who can be a mentor. Any for-profit business, including a large one, that shows a commitment and ability to help, has good character, is not on the list of suspended or debarred contractors and is not otherwise affiliated with the protege. A mentor generally may have no more than three proteges at a time.

Term and limits. An agreement may last up to six years from SBA approval. A protege may generally have two mentors over its life, for no more than 12 years in total; a relationship that ends within 18 months generally does not count toward the two. SBA reviews each relationship every year and asks the protege whether the mentor delivered the promised assistance.

How to apply. Mentor-Protege applications still go through certify.sba.gov. Both firms must be registered in SAM.gov, complete SBA's online training and sign the agreement. SBA states its processing time as 15 days of screening plus 90 days of processing.

Finding a mentor is your job. SBA reviews the pair you propose. Look for mentors among primes already performing in your NAICS codes, and use agency small business events and certifier matchmaking to meet them.