![]() To avoid getting stuck in a monotonous circle, stay prepared at all times, explore things, prepare a list of topics you’d like to discuss, and most of all, take your meetings very seriously. You need to do your part as well, there’s much you can do to make your talks fruitful and to get informed and inspired in every session. However, getting the best out of your interactions with your mentor is another topic. If you admire your mentor at the law firm then you’re already halfway through getting the best out of your relationship with them – a mentor-mentee association is more like a family bond and it benefits you in that you get to see how the pinnacle of your professional journey as an experienced lawyer will be for you and it helps your mentor inspire a young professional to accomplish great things. Looking for the latest government contracting legal news? Sign up here for our free monthly newsletter, and follow us on LinkedIn, Twitter and Facebook.Conversations with your mentor can get monotonous over time, however, you can do a lot to get the best out of each session. Questions about this post? Or need help with a government contracting legal issue? Email us or give us a call at 78. Of course, the protégé should also be a getting substantial benefit from any such relationship, or else the the SBA may question whether the mentor-protégé relationship is a good deal. There you have it, SBA has confirmed that a mentor can get quite a benefit from the mentor-protégé program if it takes advantage of both the 40% equity ownership and the 60% workshare in a joint venture. As such, this rule does not increase the number of protégé firms that one mentor can have.” Above that number, “SBA believes that it would appear that the large business mentor is unduly benefitting from contracting programs intended to be reserved for small businesses. SBA is keeping the limit on the number of simultaneous protégés at three (aside from an exception for Puerto Rican small businesses). SBA made this comment in the context of the limitation on how many protégés each mentor can have. It also could (though unlikely) have a 40 percent equity interest in each of those small protégé firms.” Moreover, a mentor can also own an equity interest of up to 40 percent in the protégé firm.” So, a mentor can have multiple protégés at one time and the mentor “could have a joint venture with each of those protégés and perform 60 percent of every small business contract awarded to the joint venture. to perform 60 percent of whatever work the joint venture performs. Now, SBA has confirmed this is the correct reading of the regulations. This could be a major benefit for a mentor and the rules always seemed to allow it, although not explicitly. But, if the mentor acquired 40% of the protégé, the mentor could also get a 40% profit share from operating of the protégé. For all of these contracts, the mentor could receive compensation from the joint venture for performing up to 60% of the work done by the joint venture. Seeing as how a mentor and protégé can set up multiple joint ventures, the duo could theoretically be performing multiple contracts under each joint venture. That rule requires “the small business partner to the joint venture must perform at least 40% of the work performed by the joint venture.” In addition, the mentor-protégé joint venture rule allows the mentor in a joint venture to perform up to 60% of the work that the joint venture performs. That rule states that “n order to raise capital, the protégé firm may agree to sell or otherwise convey to the mentor an equity interest of up to 40% in the protégé firm.” ![]() The mentor-protégé rule has allowed for a mentor to take up to a 40% equity stake in the protégé. It’s something I’ve always wanted SBA to confirm, so I’m glad they did. Among these was an explanation of the rules involving a mentor owning part of a protégé while also being part of a joint venture with the same protégé. The SBA’s recent final rule on Mentor-Protégé Program consolidation included a number of important updates and clarifications.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |