This bill, which applies only to the Department of Defense, will amend section 3903 of title 31, United States Code, to establish accelerated payments applicable to contracts with certain small business concerns. This bill would require the government to establish a goal of paying all small business contractors within 15 days of receiving a proper invoice. The bill also establishes a similar goal for government contractors that have small business sub-contractors.
This bill is a win-win-win for small businesses, taxpayers, and the community.
For small businesses: “Small business contractors rely on a consistent and reliable flow of income in order to keep their operations running smoothly. The Accelerated Payments for Small Businesses Act will help ensure these businesses receive their payments in a timely and accountable manner. This consistency will enable businesses to focus on improving their services and expanding production.” – Representative Steve Knight (R-CA)
“The Accelerated Payments for Small Businesses Act [will] ensure that all transactions among small business contractors are treated with the respect and equity they deserve. Making this commitment will yield a tremendous return further incorporating small businesses including those that are women-owned, minority-owned, veteran-owned, and HUBZone contractors.” – Representative Adriano Espaillat (D-NY)
For the taxpayers: “[This bill means that] small business prime contractors and prime contractors that subcontract with small businesses can continue to do business and not pass on any unnecessary costs to the taxpayer” – House Small Business Committee Chairman Steve Chabot (R-OH)
For the community: “For small companies, payment delays can mean cash flow problems, constraining their expansion and slowing job growth. By accelerating payments to small companies, this legislation will help small contractors meet payroll, reinvest in their operations and create good paying jobs along the way.” – House Small Business Committee Ranking Member Nydia Velázquez (D-NY)
It also affects a company having the resources in time to pay subcontractors and even our 1099 consultants and SMEs, increasingly used in this rapidly innovating economy. We’ve talked in other venues about financing options, but anything which reduces the cost of credit and makes payments better, also saves money for the contractor.
You quoted someone who lost election and is out of office unfortunately.
“Small business contractors rely on a consistent and reliable flow of income in order to keep their operations running smoothly. The Accelerated Payments for Small Businesses Act will help ensure these businesses receive their payments in a timely and accountable manner. This consistency will enable businesses to focus on improving their services and expanding production.” – Representative Steve Knight (R-CA)
True, but he was on the committee and the bill has passed into law.
Too bad he lost, but that doesn’t make his comment any less valid.