SBA Proposes New Rules on SBA Mentor Protege Program

Before we drift off into stuffing ourselves next week, you should be aware of a proposed rule that SBA recently put out for the Mentor Protege Program (MPP) that impacts 8a companies...in a positive way! 

Under the SBA MPP rules, the Mentor is allowed to acquire up to a 40% stake in the protege, even if they are in the same or similar line of business. However, the 8a rules for additional owners were different (10-20%, depending on which stage of the 8a program the Protege was in) and it wasn't clear which one won out against the other. 

The proposed rule clears that up and allows the Mentor to acquire up to a 40% equity stake in the Protege even if they are in the same or similar lines of business. 

This would be great for 8a companies because it allows an 8a company to bring on a Mentor and raise capital for rapid growth by selling a stake in the company to the Mentor. 

To learn more about how the SBA Mentor Protege Program can help your company grow quickly, check out this blog post here or email us to set up a time to chat.