Non-profits not allowed to be mentors
Non-profit organizations are not allowed to participate as mentors in the Small Business Administration’s new mentor-protege program, according to John Klein, SBA’s associate general counsel for procurement law.
In the past, non-profit groups were mentors to 8(a) firms in the SBA’s mentor-protege program for 8(a)s.
However, when Congress directed the SBA to expand the mentor-protege program to small businesses governmentwide, it specified that mentors must be for-profit firms. “For-profit is in the statute,” Klein said in a seminar and webinar hosted by Piliero Mazza PLLC.
Several people were surprised and dismayed by the change. “Could we get a waiver?” one asked.
Because non-profits are excluded in the law, the SBA cannot grant waivers, said Pamela Mazza, managing partner of Piliero Mazza.
She advised that non-profits could write a letter to congressional leaders seeking to change the law, or, alternatively, non-profits that have for-profit units can mentor from those units.