(Washington, DC) – On Tuesday, Rep. Steve Knight (R-CA) and Rep. Adriano Espaillat (D-NY) introduced H.R. 5337, the Accelerated Payments for Small Businesses Act of 2018. This bill would require the government 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. H.R. 5337 is cosponsored by House Small Business Committee Chairman Steve Chabot (R-OH) and Ranking Member Nydia Velázquez (D-NY).
“Small business contractors rely on a consistent and reliable flow of income in order to keep their operations running smoothly,” said Rep. Knight “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. I want to thank Representative Espaillat, Chairman Chabot, and Ranking Member Velásquez for their help in introducing this bipartisan legislation.”
“Delays in payments to federal contracts are often untenable for small business contractors and their employees,” said Rep. Espaillat. “I am proud to co-sponsor the Accelerated Payments for Small Businesses Act to 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.”
“While the Office of Management and Budget’s (OMB) accelerated policy of making sure small businesses get paid by the federal government within 15 days was a critical decision, we now need to ensure it stays in place. That way, 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,” said Chairman Chabot “I’d like to thank Subcommittee Chairman Knight and my colleagues for their work on this vital piece of legislation.”
“Time and again, we’ve heard from entrepreneurs that needlessly suffer delays when trying to receive payment for federal contracts,” said Ranking Member Velázquez “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.”
Representative Knight is a member of the House Small Business Committee and serves as Chairman of the Subcommittee on Contracting & the Workforce. The Accelerated Payments for Small Businesses Act is endorsed by the National Defense Industrial Association and the Professional Services Council.