Balderson, Chabot, Houlahan, Crow, and Espaillat Introduce Bill for Accelerated Payments to Small Business Contractors
WASHINGTON – Representatives Troy Balderson (R-OH), Steve Chabot (R-OH), Chrissy Houlahan (D-PA), Jason Crow (D-CO), and Adriano Espaillat (D-NY) introduced the Accelerated Payments for Small Businesses Act (H.R. 2322), which would direct federal government agencies that contract with small businesses to pay those small businesses within 15 days, rather than the current 30-day standard.
“Comprising 99.9% of firms, small businesses are a driving force of the American economy, yet regularly struggle to make ends meet,” said Congressman Balderson. “This legislation will ensure small businesses have timely access to essential capital, helping these businesses pay their employees and foster growth.”
“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,” said Congressman Chabot, Ranking Member of the Small Business Committee.
“Small businesses in PA and across the country represent a critical component to our national economic well-being,” said Congresswoman Houlahan. “In our community, the Pennsylvania Sixth, over 99% of the firms are considered small businesses. I am introducing this bill because I understand that success of small businesses translates into success for our country. Accelerated payments from the federal government is an important first step in addressing the needs of the many Americans who run, or are employed by, these small businesses.”
“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 provide the predictability and cash flow that these businesses need to grow and succeed.”
“Small businesses work hard and are actively sought out by the Federal government to meet supply and demand,” said Congressman Espaillat. “Because of their dedication, it remains critical that we provide access to vital capital to help the small business community, a continuum of supply and procurement, and standards put forth by the federal market that will help small businesses grow and thrive.”
“Accelerated payments can be a critical lifeline for small businesses who work in the federal marketplace—helping to provide access to capital and enhancing growth opportunities,” said Alan Chvotkin, Executive Vice President and Counsel for the Professional Services Council. “PSC strongly supports the Accelerated Payments for Small Businesses Act to provide the entire federal contractor community with this payment predictability. We thank Rep. Balderson, Houlahan, Crow and Espaillat, as well as Ranking Member Chabot, for their leadership on this bill and their commitment to our nation’s small business contractors.”
Unlike large corporations, small businesses often rely on faster payments in order to engage in new projects, pay their employees, and stay afloat.
In 2018, small businesses represented 99.9% of American firms, with 30.2 million small businesses in the United States, including 944,797 in Ohio. Small businesses employ 2.2 million Ohioans.