PARTNERING A mutually beneficial business-to-business relationship based on trust and commitment and that enhances the capabilities of both parties.

PARTNERSHIP A legal relationship existing between two or more persons contractually associated as joint principals in a business.

PATENT A patent secures to an inventor the exclusive right to make, use and sell an invention for 17 years. Inventors should contact the U.S. Department of Commerce Patent Office.

PAYMENT BOND A type of surety bond wherein the surety company guarantees payment from the contractor to parties who furnish labor, materials, equipment and supplies for a contract.

PERFORMANCE BOND A type of surety bond where the surety company guarantees the contractor will fulfill the contract in accordance with its terms.

PETTY CASH A small fund maintained for incidental expenses.

POLLUTION CONTROL LOAN PROGRAM Pollution Control Loans are intended to provide loan guarantees to eligible small businesses for the financing of the planning, design, or installation of a pollution control facility. This facility must prevent, reduce, abate, or control any form of pollution, including recycling.

PRECAUTIONARY BALANCES Cash held for emergencies or unexpected outflows of funds. Also known as “contingency fund.”

PREFERRED LENDER PROGRAM (PLP) The most active and expert lenders qualify for the U.S. Small Business Administration’s (SBA) streamlined lending programs. Under these programs, lenders are delegated partial or full authority to approve loans, which results in faster service from SBA. Preferred lenders are chosen from among the SBA’s best lenders and enjoy full delegation of lending authority in exchange for a lower rate of guaranty. This lending authority must be renewed at least every two years, and the lender’s portfolio is examined by the SBA periodically. Preferred loans account for more than 10 percent of SBA loans.

PREQUAL The Prequalification Pilot Loan Program uses intermediaries to assist prospective borrowers in developing viable loan application packages and securing loans. Once the loan package is assembled, it is submitted to the U.S. Small Business Administration (SBA) for expedited consideration; a decision usually is made within three days. If the application is approved, the SBA issues a letter of prequalification stating the SBA’s intent to guarantee the loan.

PRIME Program for Investment in Microentrepreneurs Act: The U.S. Small Business Administration plans to issue Federal grants awards to qualified organizations under PRIME to provide training and technical assistance to disadvantaged microentrepreneurs. These organizations include: non-profit microenterprise development organizations or programs; intermediaries; other microenterprise development organizations or programs that are accountable to a local community, working in conjuction with a State or local government or Indian tribe; or Indian tribes acting on their own, with proper certification that no other qualified organization exists within their jurisdiction.

PRIME CONTRACT A contract awarded directly by the Federal government.

PRIME RATE Interest rate which is charged business borrowers having the highest credit ratings, for short term borrowing. As published daily in the Wall Street Journal, it is the basis for rates to other lenders.

PROCUREMENT FORECASTS – Annual The Small Business Act requires that agencies annually publish a list of their requirements for upcoming fiscal year. These listings may be accessed through individual agency websites or the SBA website.

PRODUCT LIABILITY Type of tort or civil liability that applies to product manufacturers and sellers.

PROFESSIONAL AND TRADE ASSOCIATIONS Non-profit, cooperative and voluntary organizations that are designed to help their members in dealing with problems of mutual interest.

PRO-Net The U.S. Small Business Administration’s (SBA) Procurement Marketing Access Network, or PRO-Net, is a “virtual” one-stop procurement shop. The database offers an electronic search engine for contracting officers and serves as a marketing tool for small businesses that register with the system. It contains the profiles of thousands of small firms.

PROPRIETORSHIP The most common legal form of business ownership; about 85 percent of all small businesses are proprietorships. The liability of the owner is unlimited in this form of ownership.

PROTEGE – 8(a) The U.S. Small Business Administration’s (SBA) Mentor-Prot?©g?© program enhances the capability of 8(a) participants to compete more successfully for federal government contracts. The program encourages private-sector relationships and expands SBA’s efforts to identify and respond to the developmental needs of 8(a) clients.

PROTEST A statement in writing by any bidder or offeror on a particular procurement alleging that another bidder or offeror on such procurement is not a small business concern.

PTACs – Procurement Technical Assistance Centers The Defense Logistics Agency, on behalf of the Secretary of Defense, administers the DoD Procurement Technical Assistance (PTA) Cooperative Agreement Program. PTA Centers are a local resource available to provide assistance to business firms in marketing products and services to the Federal, state and local governments.