NSBA prioritizes policies that encourage robust small-business contract participation in the federal marketplace, a priority that is well-served by SBA's proposed rule.
On Feb. 17, NSBA submitted comments expressing support for a Small Business Administration (SBA) proposed rule “to encourage faster payments to small business subcontractors and streamline the reporting process for prime contracts.”
NSBA prioritizes policies that encourage robust small-business participation in the federal marketplace, a priority that is well-served by SBA's proposed rule. Robust small-business participation necessarily includes timely payments to small-business subcontractors from prime contractors and holding prime contractors accountable when they fail to make timely payments.
For most small businesses, which inherently possess less operating capital to function, timely payments are essential to continuous operation and contractual fulfillment. By requiring prime contractors to notify a contracting officer in writing when they fail to make full or timely payments to a subcontractor within 30 days past the payment due date, the proposed rule takes a critical step in the right direction, in turn creating an environment of accountability that benefits small business subcontractors.
