7 Takeaways from the SBA's Mentor Protege Program Conference

We had a great time last week at the SBA's Mentor Protege conference. As we've shared in previous notes, we've been long-time advocates of the mentor protege program and we have helped a few dozen companies enter and succeed in the program. 

Here are a few takeaways from the conference: 

• There are 1,735 active mentor proteges relationships. FY2022 was the biggest application year since inception. Roughly 43% are 8(a), 26% are WOSB, 19% are EDWOSB, 15% are HUBZone and 14% are other small business.

• The average application processing time continues to shrink. While they only have two processors fielding applications and they ask for 105 days for an application to review, there have been many instances in which an application has been approved in 60-90 days.

• The SBA wants you to consider the program a six-year program versus three years plus a three-year extension.

• 40% workshare as a protege in a joint venture can not be subcontracted to another company despite it being similarly situated.

• If you’re a protege, you can now do your second MPA with the same mentor. However, your second MPP should look different from your first MPA and show growth.

• Your MPA can be amended throughout the life of the MPA and it probably should be amended from time to time to reflect changing needs and priorities.

• Acquisition of companies does happen and your agreement should probably have a clause that covers what would happen if either the mentor or the protege should be acquired.