Glossary term
Joint Venture (JV)
A separate legal entity formed by two or more firms to pursue and perform contracts together.
Unlike a teaming agreement, a JV is an entity that itself holds the contract. SBA rules permit a small business JV to bid set-asides, and under an approved Mentor-Protégé Agreement a small business may joint venture with a large mentor without affiliation disqualifying it. JV structure, work share, and management control are all regulated — get them wrong and the JV loses its small-business status.
Categories
- business
- set-asides
Related terms
- SBA Mentor-Protégé ProgramAn SBA program allowing a large mentor to assist a small protégé, including through a joint venture that retains small-business status.
- Teaming AgreementAn agreement between firms to pursue an opportunity together, typically as prime and subcontractor.
- AffiliationAn SBA concept where the size of related businesses is combined, potentially disqualifying a firm from small-business status.