Legis Daily

Small Business Payment for Performance Act of 2025

USA119th CongressHR-4615| House 
| Updated: 7/22/2025
Pete Stauber

Pete Stauber

Republican Representative

Minnesota

Cosponsors (8)
Donald Norcross (Democratic)Marc A. Veasey (Democratic)Ed Case (Democratic)Eugene Simon Vindman (Democratic)André Carson (Democratic)Sharice Davids (Democratic)Eric Sorensen (Democratic)Brian K. Fitzpatrick (Republican)

Small Business Committee

  • Introduced
  • In Committee
  • On Floor
  • Passed Chamber
  • Enacted
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.
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Timeline

Bill from Previous Congress

HR 116-2344
Small Business Payment for Performance Act of 2019

Bill from Previous Congress

HR 118-2726
Small Business Payment for Performance Act of 2023

Bill from Previous Congress

HR 117-8273
Small Business Payment for Performance Act of 2022
Jul 22, 2025
Introduced in House
Jul 22, 2025
Referred to the House Committee on Small Business.
  • Bill from Previous Congress

    HR 116-2344
    Small Business Payment for Performance Act of 2019


  • Bill from Previous Congress

    HR 118-2726
    Small Business Payment for Performance Act of 2023


  • Bill from Previous Congress

    HR 117-8273
    Small Business Payment for Performance Act of 2022


  • July 22, 2025
    Introduced in House


  • July 22, 2025
    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.
View Full Text

Suggested Questions

Get AI-generated questions to help you understand this bill better

Timeline

Bill from Previous Congress

HR 116-2344
Small Business Payment for Performance Act of 2019

Bill from Previous Congress

HR 118-2726
Small Business Payment for Performance Act of 2023

Bill from Previous Congress

HR 117-8273
Small Business Payment for Performance Act of 2022
Jul 22, 2025
Introduced in House
Jul 22, 2025
Referred to the House Committee on Small Business.
  • Bill from Previous Congress

    HR 116-2344
    Small Business Payment for Performance Act of 2019


  • Bill from Previous Congress

    HR 118-2726
    Small Business Payment for Performance Act of 2023


  • Bill from Previous Congress

    HR 117-8273
    Small Business Payment for Performance Act of 2022


  • July 22, 2025
    Introduced in House


  • July 22, 2025
    Referred to the House Committee on Small Business.
Pete Stauber

Pete Stauber

Republican Representative

Minnesota

Cosponsors (8)
Donald Norcross (Democratic)Marc A. Veasey (Democratic)Ed Case (Democratic)Eugene Simon Vindman (Democratic)André Carson (Democratic)Sharice Davids (Democratic)Eric Sorensen (Democratic)Brian K. Fitzpatrick (Republican)

Small Business Committee

Commerce

  • Introduced
  • In Committee
  • On Floor
  • Passed Chamber
  • Enacted