On September 14th – the Administration announced that the President is ordering all federal agencies to pay small businesses faster to spur hiring and job growth. The memorandum was issued to all executive branch departments and agencies. The Federal Government pays small businesses nearly $100 billion each year for goods and services. By taking actions that will enable these payments to be made as promptly as possible, it will improve cash flow for small businesses and provide them with a more predictable stream of resources, thereby preserving and increasing small business participation in Federal contracting.
To the extent practicable, Federal agencies shall establish a goal of paying small business
contractors within 15 days of receiving proper documentation, including an invoice for the amount due and confirmation that the goods or services have been received and accepted by the Federal Government OMB recognizes that agencies, in their implementation of this accelerated-payment policy, will not be able to guarantee that they will make payments to small business contractors within the accelerated (15 day) period.
Moreover, the establishment of this accelerated-payment policy, and its implementation by Federal agencies, does not change the application of the PPA’s late-payment interest penalty provisions.
In order to take advantage of this make sure that your business is fully prepared to receive electronic payments and invoice using systems such as WAWF. Also, if you are not registered in the CCR you will not get paid at all, much less faster.