- April 12, 2021
- Posted by: JSA
1. The presentation of the AIC and the SBA guidelines are a useful starting point for the negotiation and preparation of a JVA; However, these provisions should not be followed in a servile manner and should not, at least for the time being, provide a “free ticket” or a secure “exit ticket” and the parties should carefully review the existing rules and provide the details required in the regulations and mentioned in the footnotes and comments of SBA referrals; With little fanfare, the SBA updated the agreement model under the All Small Mentor Protected Program (ASMPP). The new model adds a number of questions in the check-box style, mainly about a possible membership between the mentor and the protégé. A final guide for the AIC to be followed – former joint ventures should adhere accurately to the SBA guide`s exhortation to take into account not only compliance with SBA requirements, but also the requirements of the SBA when structuring, negotiating and concluding joint ventures. They should also carefully consider the usual business practices and guarantees, as well as the practical and effects of the various EC provisions. A JVA regulates the parties` business relationships for years and the stakes are far more important than simply complying with the rules and regulations of the SBA. But, as has been demonstrated here, if the parties do not cross the threshold of the SBA compliance regulatory barrier, then everything else is moot and lost. Be sure to carefully consider these new issues in the ASMPP model before submitting your application. These questions suggest that the ASMPP will conduct a little more investigations into the relationship between the proposed mentor and the protégé prior to the authorization of a match. Be sure to check the new model when working on a protected mentor contract. The questions essentially reflect the assumptions of membership in 13 C.F.R.
121.103, although some are specific to a mentor-protected relationship. For example, the question of whether a protégé has “mentor assets, including, but not limited to facilities or equipment” does not have an analogy in the sBa affiliation rules – which you appear to be specific to asMPP.