Mentor-Protégé Changes Coming with the SBA Final Rule

June 9, 2016

U.S. SBASBA Mentor-Protégé Changes: A Boost for Small Businesses

Source: Business.com, Business.com Editorial Staff, June 7, 2016

Recent rule changes issued by the Small Business Administration (SBA) provide significant improvements for government contractors in 2016.

In particular, a broader range of small businesses stands to gain new opportunities to bid on federal government contracts by participating in a program previously restricted only to those entities whose majority ownership qualified as disadvantaged.

The SBA’s 8(a) Business Development Program was designed to help small businesses that are at least 51 percent owned and controlled by socially and economically disadvantaged individuals improve their ability to win federal government contracts. To that end, a certain portion of government contracts is set aside for 8(a) Business Development companies only.

This limits the number of competitors in what otherwise would be an open bidding process, thus increasing the chances for those eligible for winning a federal contract. Additionally, it levels the playing field to only 8a-designated companies with similar capabilities, keeping out larger and more established firms with more resources and bidding experienceREAD MORE….

Contact your nearest PTAC for detailed information about this Final Rule.

 

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