Now, agencies should make payments within 15 days, or as soon as practicable.
With the government spending nearly $100 billion a year in small business contracts, OMB predicts this will boost cash-flow for small businesses and help create economic growth. “This will benefit tens of thousands of small businesses by getting money into their hands faster. The late payment interest penalty will not change, however. A provision in the Prompt Payment Act, the penalty is triggered when an agency does not pay within the 30-day mark.
Initial reaction from the National Small Business Association is positive.
Agencies are expected to notify OMB by Nov. 1 when they can begin making accelerated payments.
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