All Small Business Mentor Protégé Program. SBA New Jersey District Office Presented on August 18, 2016

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1 All Small Business Mentor Protégé Program SBA New Jersey District Office Presented on August 18, 2016

2 Agenda Background & Value Qualifications for the Protégé Qualifications for Mentor What is in the Agreement? How to Apply?

3 Background & Value

4 Background Small Business Jobs Act of 2010 (Jobs Act) Recognized that mentor-protégé programs serve an important business development function for small business National Defense Authorization Act for Fiscal Year 2013 (NDAA 2013) Authorized creation of mentor-protégé program for all small businesses SBA Proposed Rule: February 5, day comment period & 113 comments Final Rule: July 27, 2016 Effective: August 24, 2016

5 Value Specifically identified & defined business development assistance No ruling of affiliation due to mentor-protégé agreement Mentor may own up to 40% of protégé firm Procuring activities may provide incentives in evaluation process to a firm that will provide significant subcontracting work to protégé Protégé may joint venture with its SBA-approved mentor and qualify as a small business

6 Working on Contracts Not a contract vehicle Limitations to sub-contracting still applies Services/Supplies: 51% self-performance General Construction: 15% self-performance Specialty Trades: 25% self-performance Past performance & expertise separate

7 Joint Ventures Is a contract vehicle Limitations to sub-contracting still applies Past performance & expertise combined Considered small Protégé must be in control & perform at least 40% of work

8 Qualifications for the Protégé

9 What is Small? NAICS (North American Industry Classification System) Code Primary: Industry of majority of your sales Secondary: Areas of expertise Manufacturing/Supplies - # of employees Services Average last 3 years gross revenues

10 Qualifications for Protégés Small for primary NAICS code Seeking specific business development or technical assistance Ineligible: Secondary NAICS codes with no past performance Situations where the protégé would bring nothing to a potential joint venture other than its status as a small business

11 Qualifications for Protégés Generally no more than one mentor at a time Exception: Where the two relationships would not compete or conflict Unrelated, secondary NAICS code First mentor does not possess specific expertise that is the subject of 2 nd MPA May be both a protégé and a mentor where second relationship will not compete or conflict with first mentor-protégé relationship SBA s approval of a mentor-protégé relationship not formal determination of size eligibility

12 Qualifications for the Mentor

13 Qualifications for Mentors For-profit organization Able to fulfill its obligations under the MPA Generally no more than one protégé at a time Exception: Where additional MPA would not adversely affect development of either protégé No more than three protégés in the aggregate at one time May be both a protégé and a mentor where second relationship will not compete or conflict with first mentor-protégé relationship

14 What s in the Agreement?

15 Agreement The key are the benefits received by the protégé from the mentor It is essential that such benefits be identified as clearly and specifically as possible Identify Needs & deficiencies of the protégé Specific deliverables of value that mentor will provide Specific individuals responsible for development Specific timeframe in which development will be completed

16 Assistance Management and Technical Assistance Internal business management systems; accounting processes; marketing and business/strategic planning assistance; technology transfers; and manufacturing assistance. Financial Assistance In the form of equity investments and/or loans; and bonding. Contracting Assistance Contracting processes; capabilities; acquisitions; and performance.

17 Assistance Trade Education International Trade business and strategic planning; finding markets; and learning how to export. Business Development Assistance Strategy; and identifying contracting and partnership opportunities. General and/or Administrative Assistance Business processes and support; human resource sharing; security clearance support; and capacity building.

18 Agreement Lasts for three years Two three-year MPAs with different mentors each may be extended for second three years provided: protégé has received agreed-upon business development assistance will continue to receive additional assistance Limit to having two mentors Recertification required when affiliate of an entity acquires another concern

19 Applying

20 Applying Rule goes into effect August 24, 2016 SBA Office of Government Contracting & Business Development Applications accepted October 1,

21 Contact Us General Inquiries Dominick M. Belfiore Lead Business Opportunity Specialist Jennifer Krottinger Business Opportunity Specialist Peter A. Susberich Business Opportunity Specialist Janett Peralta-Torres Business Opportunity Specialist