Question 1

What is an approved mentor-protégé joint venture?

Accepted Answer

An approved mentor-protégé joint venture (MP JV) is a formally structured JV between an SBA-approved mentor (usually a large business) and its protégé (an SDVOSB). MP JVs receive special regulatory benefits: the JV is not subject to size affiliation with the mentor, and the JV's past performance counts for the protégé. The JV must be approved by SBA before submitting offers on set-aside contracts.

Question 2

Can an SDVOSB participate in SBA's Mentor-Protégé Program?

Accepted Answer

Yes. Under SBA's All Small Mentor-Protégé Program, any SBA-certified small business — including SDVOSBs — can participate as a protégé. The SDVOSB protégé can form an approved joint venture with its mentor and compete for any federal small business set-aside, including SDVOSB set-asides, without being considered affiliated with the mentor for size purposes. This is one of the most powerful tools for growing SDVOSB firms.

Question 3

Does a mentor-protégé relationship trigger affiliation?

Accepted Answer

No. Under SBA regulations, a mentor-protégé relationship does not create affiliation between the mentor and protégé for size determination purposes, provided the relationship is approved under SBA's Mentor-Protégé Program and an approved joint venture agreement exists. This exemption is one of the key benefits of the program — the protégé can team with a large business mentor without being affiliated for size purposes.

Question 4

Can an SDVOSB form a joint venture to pursue set-aside contracts?

Accepted Answer

Yes. SDVOSBs can form joint ventures (JVs) to pursue set-aside contracts. The JV must be controlled by the SDVOSB member — meaning the SDVOSB must be the managing venturer and must perform at least 40% of the work. The SDVOSB must also be responsible for managing the JV on a day-to-day basis. The JV agreement must be in writing and meet SBA regulatory requirements.

What is an approved mentor-protégé joint venture?

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