Small Business Finance News
Obama Cuts Wait Time In Half For SMBs
Written by Jenna Weiner
President Barack Obama has proposed plans to aid struggling small businesses while encouraging job creation. In addition, he recently promised that SMBs will receive their checks from agencies in half the time as previously stated.
President Barack Obama recently announced a new proposal to boost job creation that would require the government to pay small businesses in half the time originally planned.
The new QuickPay plan calls for agencies to send out checks in 15 days, rather than 30, after receiving a valid invoice, Washington Technology reported.
As part of the Prompt Payments Act, the plan will give small businesses a stronger footing financially and create a permanent infusion of cash flow into the companies, according to Karen Mills, Administrator of the Small Business Administration. In response to the President's plan, Representative Sam Graves, Republican from Missouri, told the news source the plan acknowledges the importance of supporting SMBs.
"Small businesses bring more competition and reduced prices to federal contracting, so we should make sure the federal government pays them in a timely manner, especially considering most of them are operating on tight profit margins and trying to do more with less," Graves said.
The Associated Press reported that after touring a machine company in North Carolina, Obama explained how his proposed $447 billion Jobs Act would provide small businesses with much needed tax breaks, enabling them to hire more workers. Specifically, the president told the crowd that North Carolina would see an increase of 19,000 construction jobs created under the bill.
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