Federal agencies will aim to cut in half the window in which small business contractors get paid, the White House announced Thursday.
Current policy states that contractors must be paid within 30 days from when the government receives an invoice.
Jeff Zients, federal chief performance officer, said the government will aim to pay small business contractors within 15 days.
“By taking actions that will enable these payments to be made as promptly as possible, we will improve cash flow for small businesses and provide them with a more predictable stream of resources,” Zients said on the White House blog.
The federal government awards nearly $100 million in contracts per year to small businesses.
Jack Lew, director of the Office of Management and Budget, said in a memo agencies must report by Nov. 1 the date at which they can begin making accelerated payments.
