Weighing in on mentor-proteges

The Small Business Administration’s recent draft plan for a comprehensive mentor-protege program governmentwide is generating substantial interest.

It could bring many benefits to small business contractors, but also would usher in a few challenging new rules that ought to be eliminated or tweaked, according to industry specialists commenting on the proposals.

The SBA recently extended the comment period to May 6 so that more vendors can submit their opinions.

In a comment to the SBA, the National Defense Industrial Association asserted that the rule, as written, would “create onerous reporting and registration requirements” for firms in mentor-protege relationships ( http://goo.gl/zW9SXC).

In addition, while the SBA’s plan is a boon for small businesses overall, there are concerns about limiting times when vendors may apply for participation, about forcing mentors to sell ownership in a protege by a certain date, about the prohibition on non-profit entities acting as mentors, and about limiting mentors to no more than three proteges, among other concerns, Pam Mazza, principal of the Piliero Mazza PLLC law firm, wrote in a 14-page commentary ( http://goo.gl/CKea9z).

More information: Federal Register notice: http://goo.gl/V3Nqd5
Extension notice: http://goo.gl/uUi6AW

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