Representatives Crow and Balderson Introduce Bipartisan Bill to Add Reporting Requirement on Accelerated Payments to Small Businesses
This week, Representatives Jason Crow (D-CO-06) and Troy Balderson (R-OH-12) introduced the Federal Small Business Contractor Prompt Payment Reporting Act (H.R. 7342). This bipartisan bill is a follow up to the Accelerating Payments to Small Businesses Act (H.R. 2332) that was included in last year’s National Defense Authorization Act. This 2019 bill set a goal for federal government agencies that contract with small businesses to pay those businesses within 15 days, in place of the previous 30 day standard. This new bipartisan bill is a reporting requirement for the Accelerating Payments to Small Businesses Act to ensure small businesses get paid as quickly as possible, especially in these difficult times.
“Small businesses are the backbone of America's economy and help build strong and vibrant communities,” said Congressman Crow. “Many small businesses and their workers rely on a regular bi-weekly paycheck to pay the bills. This commonsense bill will better provide the predictability and cash flow that these businesses need to grow and succeed.”
“Small businesses are a driving force of the American economy, employing more than 2.2 million workers in Ohio alone,” said Balderson. “Building on our widely popular Accelerated Payments for Small Businesses Act, this bipartisan legislation will continue to ensure that job creators have timely access to essential capital, helping these businesses pay their employees and foster growth.”
The Federal Small Businesses Contractor Prompt Payment Reporting Act will:
- Require the head of each Federal Agency to submit to Congress a report on the timeliness of payments made to a covered prime contractor.
- Prompt agencies to act, if they haven’t already, by asking them to state the date when they started implementing accelerated payments in accordance with the statutes.
- Give Congress and the public a sense as to how much progress federal agencies have made in adhering to this goal, by asking them how many contracts they have with accelerated payment terms.
Copy of the bill text can be found here.