This legislation amends the Small Business Act to provide crucial financial support to small business construction contractors by establishing a new process for interim partial payments . It applies when a small business concern requests an equitable adjustment due to an agency-directed change in the terms of a construction contract, provided the change was made without the contractor's agreement. Under the new provisions, a small business can submit a timely request specifying the estimated additional costs resulting from the change. Upon receiving such a request, the agency is required to provide an interim partial payment equal to not less than 50 percent of the estimated amount. These interim payments are explicitly stated not to be considered a final definitization of the equitable adjustment request. The bill also includes a flow-down requirement, ensuring that the small business concern receiving the interim payment passes on the portion attributable to increased costs to its first-tier subcontractors, who must then pay their own subcontractors. The Administrator of the Small Business Administration is tasked with implementing these requirements by the earlier of the first full fiscal year after enactment or October 1, 2027.
Small Business Payment for Performance Act of 2022
Introduced in House
Referred to the House Committee on Small Business.
Commerce
Small Business Payment for Performance Act of 2025
USA119th CongressHR-4615| House
| Updated: 7/22/2025
This legislation amends the Small Business Act to provide crucial financial support to small business construction contractors by establishing a new process for interim partial payments . It applies when a small business concern requests an equitable adjustment due to an agency-directed change in the terms of a construction contract, provided the change was made without the contractor's agreement. Under the new provisions, a small business can submit a timely request specifying the estimated additional costs resulting from the change. Upon receiving such a request, the agency is required to provide an interim partial payment equal to not less than 50 percent of the estimated amount. These interim payments are explicitly stated not to be considered a final definitization of the equitable adjustment request. The bill also includes a flow-down requirement, ensuring that the small business concern receiving the interim payment passes on the portion attributable to increased costs to its first-tier subcontractors, who must then pay their own subcontractors. The Administrator of the Small Business Administration is tasked with implementing these requirements by the earlier of the first full fiscal year after enactment or October 1, 2027.