The House Small Business Committee approved five bills to amend the Small Business Act and the Small Business Investment Act, including legislation that will allow federal contractors to get paid sooner for change orders.
The Small Business Payment for Performance Act of 2017 (H.R. 2594), introduced by Rep. Brian Fitzpatrick (R-PA), allows contractors to submit a request for equitable adjustment (REA) – or an increase in fee – to the agency. The contractor may then bill the agency for any actual change order work completed while the REA is pending. Once the agency receives the REA, it must pay 50 percent of the billed change order work amount in a timely manner to offset extra costs.
“Some federal agencies routinely delay the approval process until the end of the project,” Fitzpatrick said. “That isn’t fair. The Small Business Payment for Performance Act stands up for small businesses by requiring federal agencies to make interim partial payments to contractors, allowing them to pay their own bills without being delayed until the end of the project.”
There were several other bills approved by the committee, including the Small Business Innovation Research and Small Business Technology Transfer Improvements Act of 2017 (H.R. 2763), sponsored by Rep. Steve Knight (R-CA).
The bill would update the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs to require that the SBA give a comprehensive annual report of the SBIR and STTR programs to Congress as well as hold the Department of Defense (DOD) accountable to stimulate technological innovation.
Another bill introduced by Knight, the Small Business Investment Opportunity Act of 2017 (H.R. 2333), was also approved by the committee. The legislation would increase the amount of leverage made available to small business investment companies (SBICs).
“Access to capital can be a serious barrier to growth for small businesses, and the SBIC program is an excellent way of making those funds available,” Knight said. “This bill would expand the amount of capital available to the entrepreneurs in our community to help them grow their operations and hire more of our neighbors.”
The Investing in Main Street Act of 2017 (H.R. 2364), introduced by Rep. Judy Chu (D-CA), would also raise the amount that financial institutions may invest in small business investment companies (SBICs).
“Small businesses are the backbone of our economy, but I know, from talking to entrepreneurs in my district and around the country, that one of the greatest challenges to success is access to capital,” Chu said. “That is what this bill will address, by letting banks or federal savings associations invest up to 15 percent of their holdings into SBICs.”
Finally, the, Microloan Modernization Act of 2017 (H.R. 2056), sponsored by Rep. Stephanie Murphy (D-FL), would raise the microloan lending limit from $5 million to $6 million and provide flexibility to the 25/75 rule, which restricts the amount of pre-loan technical assistance a microloan intermediary can offer to their small business.
“My microloans bill will help more entrepreneurs and small businesses get the capital they need to start and grow, especially women and minorities,” Murphy said.