Recent changes to the U.S. Small Business Administration (SBA) regulations affect how large businesses can take small business credit for subcontracting to their own mentor-protégé joint ventures (MPJVs). SBA’s final rule directs that, when a large federal prime contractor issues subcontracts to its own MPJV, it may only count the protégé’s work (under the JV) towards its small business subcontracting goals. This will have a notable effect on how large businesses calculate and meet their subcontracting plan goals when their MPJVs are in the subcontracting pool.
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