![]() While the new regulations limit the number of proposals a company can submit for a particular opportunity, they broaden the mentor-protégé rules to allow corporate family members of a mentor to provide assistance to the protégé. The SBA stated that the rule was created to address concerns that allowing a company that is a member of multiple joint ventures to submit competing proposals via its multiple joint ventures would give such a company an unfair advantage against less sophisticated small businesses, and concerns that a company having access to pricing information from several proposals could affect the pricing the Government is offered. The revised regulations for the 8(a), Service-Disabled Veteran-Owned Small Business (“SDVOSB”), Woman-Owned Small Business (“WOSB”) and Historically Underutilized Business Zone (“HUBZone”) programs state that a company that participates in those programs cannot be a joint venture partner on more than one joint venture that submits a proposal for a specific set-aside contract or for a set-aside order under an unrestricted multiple award contract. In other words, could a small business that was a member of multiple joint ventures hedge its bets by submitting offers as part of multiple different joint ventures? The new regulations make clear the answer is no. However, it was not clear if those joint ventures could compete for the same procurements. ![]() As a result, a small business can enter into multiple joint ventures with different companies. Under SBA joint venture regulations, two or more small businesses that are small for the applicable size standard can create a joint venture that qualifies as small, and a large business mentor and small business protégé in an SBA-approved mentor-protégé relationship can create a joint venture that qualifies as a small business. The revised rules include changes and clarifications to joint venture and limitation on subcontracting regulations, among others pertaining to SBA programs. Small Business Administration (“SBA”) recently revised several regulations affecting small businesses participating in SBA programs.
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