Successful SBA Mentor-Protégé Program applications require methodical preparation and documentation from both parties. Key prerequisites include SAM.gov registration, UEI verification, and completion of mandatory SBA tutorials. Applicants must craft a detailed business plan using Form 1010C, establish clear partnership agreements covering six assistance areas, and verify size standards compliance. The partnership agreement should outline measurable goals, responsibilities, and program duration terms. Further exploration reveals additional strategic considerations for program approval.
Essential Steps Before Submitting Your SBA Application
Preparing for the SBA Mentor-Protégé Programs application requires careful attention to several essential prerequisites and documentation requirements.
Both parties must establish an existing partnership and complete their SAM.gov registrations before proceeding with the application process.
The protégé organization needs to obtain a Unique Entity Identifier (UEI) and prepare a thorough business plan using SBA Form 1010C as guidance.
Both mentor and protégé must complete the required SBA online tutorials and retain their completion certificates for submission.
Size verification represents another vital step, with protégés utilizing the SBA’s Size Standards Tool to confirm their small business status.
Additionally, both parties must verify they maintain no affiliations with each other, as this would result in immediate application disqualification.
It is strongly recommended that potential partners engage in teaming arrangements as prime/sub or joint ventures before formalizing their mentor-protégé relationship.
The program allows proteges to have up to two mentors simultaneously to maximize development opportunities and business growth potential.
For additional support during the application process, applicants should utilize the search function to locate relevant program resources and documentation requirements.
Crafting a Strong Mentor-Protégé Agreement
The successful development of a Mentor-Protégé Agreement hinges on creating a thorough document that clearly outlines the responsibilities, expectations, and deliverables of both parties.
The agreement must incorporate four essential components to meet SBA requirements.
Meeting SBA compliance requires incorporating four vital elements into any Mentor-Protégé Agreement to ensure program validity and success.
First, the document needs to align mentor assistance with measurable business plan goals, as detailed in SBA Form 1010C.
Second, it must address all six mandatory assistance areas: management, technical, financial, contracting, international trade education, and administrative support.
Third, the agreement requires a clear non-affiliation clause to prevent disqualification due to overlapping ownership. It’s important to note that up to three Protégés can be mentored simultaneously by a qualified Mentor organization.
Fourth, the agreement should include provisions for a 30-day cold feet window that allows either party to terminate the agreement without penalty during the initial phase.
Finally, the document should specify the program duration, which can extend up to six years, along with any renewal conditions based on mutual agreement between parties. For additional certainty, parties should verify independently all terms and conditions before finalizing the agreement.
Frequently Asked Questions
Can a Mentor Support Multiple Protégés Simultaneously?
A mentor can support up to three protégés simultaneously under standard SBA guidelines.
However, certain exceptions exist. Puerto Rico-based small businesses can have two additional protégés beyond the three-protégé limit.
Mentors who acquire companies with existing mentor-protégé agreements may temporarily exceed this limit.
The SBA may approve additional protégés if mentors demonstrate the relationships won’t conflict with existing protégés through different NAICS codes or service areas.
What Happens if the Mentor Company Gets Acquired During the Agreement?
When a mentor company is acquired, several key actions may occur.
The protégé can request termination if the new entity cannot fulfill the agreement’s obligations.
The mentor must either maintain its commitments or exit the relationship.
SBA approval is required for any revisions to the agreement post-acquisition.
The protégé may seek a new mentor, with the remaining time limit adjusted based on the duration of the original agreement.
Are Virtual Mentor-Protégé Relationships Allowed Under SBA Guidelines?
Yes, virtual mentor-protégé relationships are permitted under SBA guidelines, provided they meet standard program requirements.
Both parties must maintain SAM.gov registration and complete required documentation, including the Mentor-Protégé Agreement.
Virtual collaboration can occur through digital platforms for training, business development assistance, and annual evaluations.
However, the relationship must avoid prohibited affiliations and control structures, regardless of the virtual format.
Can Non-Profit Organizations Participate as Mentors in the Program?
No, non-profit organizations cannot participate as mentors in the SBA Mentor-Protégé Program.
According to SBA regulations under 13 C.F.R. § 121.105(a)(1) and § 125.9(b), only for-profit businesses and small agricultural cooperatives qualify as mentors.
The program specifically requires mentors to demonstrate financial stability and engage in commercial joint ventures, criteria that non-profits cannot fulfill under SBA guidelines.
Additionally, the program’s structure focuses on reciprocal business benefits and federal contracting partnerships.
How Often Must Mentor-Protégé Pairs Report Their Progress to SBA?
Mentor-protégé pairs must submit regular progress reports to the SBA according to a defined schedule.
Mentors are required to file semiannual reports on March 31 and September 30, with a 30-day submission window after each period ends.
Additionally, annual evaluations are mandatory for both parties to maintain program compliance.
The September report must include extensive fiscal year performance data, while all reports must detail developmental assistance, subcontracting activities, and technology transfer efforts.
