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President Obama Announces Faster Payments to Small Federal Contractors: Agencies Work to Reduce Payments from 30 Days to 15 Days

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President Obama Announces Faster Payments to Small Federal Contractors: Agencies Work to Reduce Payments from 30 Days to 15 Days

By Karen Mills, Former SBA Administrator
Published: September 14, 2011 Updated: September 14, 2011

<p>The thousands of small businesses that provide great products and services to the federal government have a big reason to cheer the President&rsquo;s &ldquo;QuickPay&rdquo; announcement today, which will cut in half the amount of time it takes to put money in their hands to 15 days instead of 30 days.&nbsp; This results in a permanent infusion of cash flow into their business, which they can put towards working capital, expanding their businesses, marketing their products, and creating jobs.&nbsp;</p><p>Recently, I talked to Rachel Carson, the President of a Philadelphia business called Helicopter Tech.&nbsp;She was very excited when I asked her how this might help her business, saying that it would help with cash flow, payroll, and much more.</p><p>When businesses like hers consistently get paid faster, their financial footing gets stronger &ndash; <em>permanently</em>.&nbsp;And with nearly $100 billion each year in federal contracts going to small businesses, cutting in half the time they get paid is a powerful way to help businesses make the decision to go ahead and buy that next piece of equipment or hire that next worker.</p><p>Overall,&ldquo;QuickPay&rdquo; is a smart and powerful boost that effectively delivers billions more dollars into the hands of small contractors so that they can do what they do best &ndash; create jobs.</p><p><a href="http://www.whitehouse.gov/omb/memoranda_default">Read more here.</a></p>

About the Author:

Karen Mills

Former SBA Administrator

Karen Gordon Mills is the Former Administrator of the U.S. Small Business Administration. The SBA helps both Main Street and high-growth small businesses get access to capital, counseling, federal contracts, disaster assistance and more.

Comments:

I genuinely enjoyed reading it, you're a great author.I will ensure that I bookmark your blog and definitely will come back later on. I want to encourage yourself to continue your great job, have a nice morning.
It is your colourful blog that brings me a lot of knowledge about living.
It's been 6 months already, but I see no results actually
They SHOULD be paid within 15 days because capital is very important to small businesses. A lot of them face cash flow problems if they arent paid quickly.
You are right @sharri! I love President Obama
15 days is a very good target to aim to achieve, I would like to see this practice rolled out to the private sector.
It is nice and i think it's very good
it's cool hopefully is gonna work good, capital it is very important
All payments to small business suppliers should be made within 15 days. Working capital is so important to small businesses and can the difference between success and failure.
I will get back to you and share my experience.

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