Federal Agencies to Pay Small Businesses Faster

In an effort to crate economic growth and boost cash-flow for small businesses, the Office of Management and Budget (OMB) released a memorandum on September 14, directing federal agencies to accelerate payments made to small businesses.  The new guidelines cut the payment time from 30 days down to 15 days, or as soon as practicable.  However, the late payment interest penalty will remain unchanged, with the penalty triggering when an agency does not pay within a 30-day mark. This memorandum is positive for small business, which need the cash-flow during the economic recession to keep their businesses afloat. Agencies must notify OMB by Nov. 1 when they can begin making the accelerated payments. For more information, please contact Marco Giamberardino at (703) 837-5325 orgiamberm@agc.org.