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Rep. Slotkin Urges Trump Administration to Issue Immediate Payments to Small Businesses in Bipartisan Letter

March 20, 2020

Slotkin sent letter pushing for Michigan’s eligibility for emergency SBA loans, which became available to Michigan small businesses yesterday

HOLLY, Mich. — U.S. Rep. Elissa Slotkin (MI-08) sent a bipartisan letter today to President Trump, calling on him to issue guidance to the entire federal government to expedite payment to contractors and subcontractors, particularly small businesses, with the goal of making payments within 15 days of receiving all relevant documents.

This guidance mirrors a policy authorized and expanded by the Office of Management and Budget (OMB) in September 2011 and July 2012, which was then enacted into law in the most recent National Defense Authorization Act (NDAA). However, the lengthy rule-making process is projected to delay implementation of the policy to require accelerated payment to small businesses for another 18 months. Issuing this presidential guidance would accelerate the timeline to close this loophole, and improve cash-flow to small businesses during this national crisis, including many in Michigan who contract and subcontract for government work, without any extra cost to the taxpayer.

"Given the strain on small businesses due to COVID-19, we urge you to issue immediate guidance reinstating the 15-day payment requirement for the duration of this national emergency," Slotkin wrote to the President. "Prompt and in-full payment from federal agencies will help alleviate some of the challenges small business contractors and subcontractors are experiencing."

Supporting small businesses during the COVID-19 crisis has been a top priority for Slotkin. Yesterday, Michigan became eligible for Economic Injury Disaster Loans (EIDL) through the Small Business Administration, a designation that Slotkin pushed in a letter this week to Small Business Administrator Jovita Carranza. Today, she held a virtual small business summit with other 200 small business owners, to answer questions and provide information and resources to support local businesses.

Reps. Chrissy Houlahan (PA-06) and Troy Balderson (OH-12) co-led the bipartisan letter with Slotkin. Signers included Jason Crow, Michael R. Turner, Ruben Gallego, Lucy McBath, Adam Smith, Anthony G. Brown, John B. Larson, Paul Mitchell, Vicenty Gonzalez, Chellie Pingree, Jan Schakowsky, Haley M. Stevens, Andy Levin, Abigail D. Spanberger, Vicky Hartzler, Joe Cunningham, Gilbert R. Cisneros, Jr., Seth Moulton, Derek Kilmer, Conor Lamb, Mikie Sherrill, Donald S. Beyer, Elaine G. Luria, Susan Wild, Michael Waltz, Cindy Axne, Sean Casten, and Terri Sewell.


Full text of the letter is below:


Dear Mr. President:

We are writing today to request you issue guidance to the entire federal government to expedite outstanding payment to contractors and subcontractors, particularly small businesses, with the goal of making payments within 15 days. Prompt and in-full payment from federal agencies will help alleviate some of the challenges small business contractors and subcontractors are experiencing.

Such guidance is not new, and was actually on track to be implemented in the next 18 months. The guidance we are requesting would mirror the "accelerated payments'' policy authorized less than a decade ago by the Office of Management and Budget (OMB). More importantly, you signed the same program into law on December 20, 2019, via the FY2020 National Defense Authorization Act. However, the rule-making process for the implementation of these laws often takes time -- sometimes as long as 18 months. Given the strain on small businesses due to COVID-19, we urge you to issue immediate guidance reinstating the 15-day payment requirement for the duration of this national emergency.

Businesses that supply the federal government, including the U.S. military, front-load many of their costs as they wait for invoices to be approved and payments to be made. Such a declaration would have a positive impact on small businesses, improving cash flow to primes and suppliers, across the country. Moreover, the requested action would come at no additional cost to taxpayers, but instead simply accelerate payments to those who have effectively provided products and services and are in real need of cash-on-hand.

We respectfully urge you to take action and provide guidance on the matter through OMB as soon as possible.


Sincerely,

Elissa Slotkin
Member of Congress