President Obama announced today an initiative that cuts the time it takes for federal agencies to pay small businesses from 30 to 15 days.
QuickPay applies to the products and services businesses deliver to the federal government.
When small contractors get their money in 15 days instead of 30, it results in a permanent infusion of cash flow into their businesses, said Karen Mills, administrator of the U.S. Small Business Administration.
“They can put that money towards working capital, expanding their businesses, marketing their products, and creating jobs. Their financial footing gets stronger – permanently,” Mills said.
According to the SBA, nearly $100 billion in federal contracts go to small businesses each year.
Last week, Obama proposed the American Jobs Act, which contains several provisions to help create more jobs.