An industry advisory panel is urging the Commerce Department to provide government-backed loans to small manufacturers who are unable to raise private financing.

“If something is not done immediately, many companies may not be in business tomorrow,” said Kellie Johnson, president of California-based Ace Clearwater Enterprises and the vice chairman of the panel, according to Bloomberg News.

The Manufacturing Council, which advises the Commerce Department, made its proposal in a letter to Commerce Secretary Gary Locke. The group urged that the government guarantee individual loans up to $10 million under the Term Asset-Backed Securities Loan Facility.

GSA has authorized mentor-protégé arrangements for all categories of small businesses, beginning Sept. 14.

A final rule implementing the mentor-protégé program was published in the Aug. 14 Federal Register. Mentors cannot receive cash incentives but will be eligible for reimbursement of indirect costs. In addition, contracting officers may give mentors evaluation credit when they use a protégé as a subcontractor.

Mentor-protégé arrangements will be permitted on all GSA contracts, including multiple award schedules.

The Federal Acquisition Regulation councils have proposed a new rule governing contract closeout. Among other things, it permits contracting officers to withhold 15% of a fixed fee or award fee, up to $100,000, until final indirect cost rates are settled.

The proposed rule is FAR case 2008-020 in the Aug. 20 Federal Register.