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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, SBA Administrator

  • Created: September 14, 2011, 3:03 pm
  • Updated: September 14, 2011, 3:37 pm
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16 comments

The thousands of small businesses that provide great products and services to the federal government have a big reason to cheer the President’s “QuickPay” 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.  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. Recently, I talked to Rachel Carson, the President of a Philadelphia business called Helicopter Tech. 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.When businesses like hers consistently get paid faster, their financial footing gets stronger – permanently. 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.Overall,“QuickPay” 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 – create jobs.Read more here.

About the Author

Karen Mills's Profile Picture
Karen Gordon Mills is the 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.
Tags: Official SBA News and Views, Open For Business

Comments

PatricPro | Window Shopper | 4/21/2012 - 2:06 pm

It's been 6 months already, but I see no results actually
Professional Web Site: vacuum cleaners

jocurigratis | Window Shopper | 1/7/2012 - 3:45 pm

     Sound's like great news. But, from my experience, and just as the gentlemen stated above, small businesses have been able to request Net 15 payments for a long time. So, the "quick-pay" policy is not really a "new" policy. Maybe the President is trying to bring attention to the opportunities available to small businesses through government contracts?     If you are a small business, and you don't know about these opportunities, you are missing out. Every small business should be pursing some sort of Government Contract. Too many contracts are awarded to large businesses because small businesses don't know how to do business with the Government.
Professional Web Site: http://www.jocuri-gratis.ro

gianez | Window Shopper | 12/6/2011 - 11:53 am

This post has been removed from public view (Spam). Please review the Community Rules of Conduct for more information.

ABAC | Window Shopper | 10/6/2011 - 11:18 am

It's a good news.It will be so helpful for the small contractors and also for the government Thanks                                                                                                                                                                                                                Shajid                                                                                                                                                                                                                   Takeshi Yashima: Investment and Financial Education Blog

Jeska Strolham | Performer | 9/28/2011 - 3:19 am

The sounds pretty promising. And I do agree with lucky7, but what is a world without oddballs and haters, right?
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Lucky7 | Window Shopper | 9/15/2011 - 8:26 am

For a certain type of person, policy just doesn’t matter. They hate the black/ professor/ intelligent and/ or democrat man and that is that. I feel so sorry for these hateful people. They had to defend the worst president maybe ever for 8 years and now they have to watch one of the beset ones ever show em how it’s done with grace and dignity. Lucky @ jocuri
Professional Web Site: Jocuri

Joculete | Window Shopper | 4/30/2012 - 4:18 pm

Show Replied Text…
For a certain type of person, policy just doesn’t matter. They hate the black/ professor/ intelligent and/ or democrat man and that is that. I feel so sorry for these hateful people. They had to defend the worst president maybe ever for 8 years and now they have to watch one of the beset ones ever show em how it’s done with grace and dignity. Lucky @ jocuri
I totally agree with you !
Professional Web Site: Jocuri