Current through November 30, 2024
Section 126.618 - How does a certified HUBZone small business concern's participation in a Mentor-Protege relationship affect its participation in the HUBZone Program?(a) A certified HUBZone small business concern may enter into a mentor-protege relationship under § 125.9 of this chapter or in connection with a mentor-protege program of another agency, provided that such relationships do not conflict with the HUBZone requirements described in § 126.200 .(b) For purposes of determining whether an applicant to the HUBZone Program or a certified HUBZone small business concern qualifies as small under part 121 of this chapter, SBA will not find affiliation between the applicant or certified HUBZone small business concern and the firm that is its mentor in an SBA-approved mentor-protege relationship (including a mentor that is other than small) on the basis of the mentor-protege agreement or the assistance provided to the protege firm under the agreement. SBA will not consider the employees of the mentor in determining whether the applicant or certified HUBZone small business concern meets (or continues to meet) the 35% HUBZone residency requirement or the principal office requirement, or in determining the size of the applicant or certified HUBZone small business concern for any employee-based size standard.(c) A certified HUBZone small business concern that is a prime contractor on a HUBZone contract may subcontract work to its mentor. (1) The certified HUBZone small business concern must meet the applicable limitations on subcontracting requirements set forth in § 125.6(c) of this chapter.(2) SBA may find affiliation between a prime HUBZone contractor and its mentor subcontractor where the mentor will perform primary and vital requirements of the contract. See§ 121.103(h)(3) of this chapter. 81 FR 48593 , July 25, 2016, as amended at 84 FR 65249 , Nov. 26, 2019; 85 FR 66197 , Oct. 16, 2020; 88 FR 26213 , Apr. 27, 2023 81 FR 48593 , 8/24/2016; 84 FR 65249 , 12/26/2019; 85 FR 66197 11/16/2020; 88 FR 26213 , 5/30/2023