Verify Your Joint Venture Agreements Because a Problematic Under-the-Radar SBA Change
A little-noticed change to the SBA's joint venture standards may require joint ventures operating under the SBA's All Small Mentor-Protege Program to modify their joint venture agreements. Two of the prerequisites for mentor-protege joint ventures attempting to get small company set-aside contracts were modified by the SBA in its most recent final rule, which became effective on November 16. A WOSB joint venture agreement that complies with the small business set-aside requirements may not be legal if the joint venture seeks 8(a), SDVOSB/VOSB, HUBZone, or WOSB/EDWOSB contracts since SBA did not make appropriate revisions to the joint venture standards for SBA's four key socioeconomic programs (and vice versa). A mentor and protege can create joint ventures under the All Small Mentor-Protege Program to seek any opportunity for which the protege is eligible based on size and socioeconomic status. The mentor and protege must sign a WOSB joint venture agreement that includes s