The small protégé of a small mentor in a mentor-protégé joint venture would be required to have a certain amount of past performance of its own and not just rely on the past performance of its mentor under a proposed rule released in late August.  This provision is just one of several proposals issued by the Small Business Administration that would tighten some small business rules while relaxing others.  Contractors of all sizes may want to review the changes contained in SBA Docket Number SBA-2024-0007.  Other modifications to the “all small” mentor-protégé rules include a proposal designed to prevent a small mentor from serving as a subcontractor to its small protege outside the mentor-protégé joint venture context, avoiding the application of the ostensible subcontractor rule.  If the terms of the mentor-protégé agreement are not met, the mentor could be determined to be an ostensible subcontractor.  Many of the proposed SBA revisions would impact the HUBZone program.  These include a new provision that would require HUBZone entities to be eligible to receive HUBZone contracts at the time an offer is made, instead of having to comply only at the time of the annual recertification of their HUBZone status.  The proposed change is designed to ensure that companies receiving HUBZone contracts are eligible to do so.  At the same time, however, the SBA is also proposing to eliminate annual HUBZone recertification requirements and instead require such actions on only a three-year basis.  Additional proposed changes would codify SBA case precedent allowing certain exceptions to “negative control” standards for 8(a) companies and relaxing the regulations that govern minority ownership of 8(a) entities to increase the allowable ownership percentages for non-disadvantaged individuals under specific circumstances.  The latest SBA initiative is just one of several proposed changes the SBA has issued this year that would impact government contractors.  Small businesses and larger companies that do business with them should ensure that they are up to date on how these changes could impact their business.