Sba Joint Venture Operating Agreement

During the implementation of the new ASMPP, SBA updated the JVA model and published a Mentor-Protected Program Joint Venture Guide. This guide and the AIC example model, by name of the guide and in the text, are expressly provided only in the form of a “Guide to support the development of a joint global enterprise agreement in accordance with [SBa`s 8 (a) Business Development Program and Service-Disabled Veteran-Owned Small Business (SDVOSB), HUBZone and Women-Owned Small Business (WOSB) Programs.” (Added highlight.) Indeed, the guide expressly cautions that “any agreement, amendment or addition of the [JVA] must be consistent with the Small Business Act, SBA regulations, thought-provoking communications or other guidelines for the Mentor-Schotzling program,” and notes that “the development of an AIC is the responsibility of the parties to the joint venture to fully understand the agreement,… compliance with applicable rules and rules.” At the same time, however, the guide explicitly states that, while the provisions of the proposal are “not mandatory,” they contain “examples of provisions that SBA could bring into compliance with the rules and regulations in force in the SBA.” In the end, the guide is not clear, despite the various reservations, whether compliance with the AIC presentation provides a safe port or a guarantee of compliance and authorization for the AIJ, which creates a risk of confusion and possible excessive dependence on former joint ventures. In the language that foreshadows the situation in STAcqMe, the guide expressly states that sBA does not authorize public-private partnership AGREEMENTs established on the basis of an approved M/P agreement, whether they have been approved by the ASMPP program or 8 (a), unless the joint venture pursues a contract 8 (a). The guide cautions, however, that “the SBA all JVAs … to ensure that they comply with the rules of the SBA and for the tutoring-protected program, and that compliant agreements could lead to an audit of membership between the parties.” (Added highlight.) The SBA estimates that the savings from removing this requirement will be approximately $59,500. There are currently approximately 4,500 8 (a) participants. About 10% of them are owned in a joint venture that was set up to charge a price of 8 a. The process of auditing joint venture agreements is very factual, and it has continued. However, the SBA estimates that an 8-year participant currently spends approximately three hours presenting a joint venture agreement to the SBA and answering questions from the SBA regarding the agreement (note that this is not the time to prepare the joint venture agreement only to submit to the SBA and answer SBA questions). If you apply this estimate to each joint venture of 8 (a), the result is a working hour of 1,350 hours.

Multiplying this by the median salary plus benefits for accountants and accountants results in a savings of $59,500 for 8 (a) participants. However, the decision contains a number of useful lessons for former joint ventures that must be taken into account when entering an AIC, either under the ASMPP programme or 8 (a) or one of the SBA`s other specific joint venture opportunities. The proposed rule establishes that Program 8 (a) is the only program in which the SBA must approve a joint enterprise agreement that represents a gap between program 8,a) and all other programs. B dismantling, for example for small businesses, SDVOSB, HUBZone or WOSB. Removing this requirement should bring Program 8 (a) in line with other SBA programs and “significantly reduce the burden on 8 a) small businesses.” This contribution is Part 4 of our report on the proposed changes to the SBA and will cover potential changes to the joint venture agreement approval process for contracts 8 (a) (here is Part 1, Part 2 and Part 3 of our coverage).

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