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July 30.2025
2 Minutes Read

The Small Business Payment for Performance Act Supports Construction Contractors

Small Business Payment for Performance Act discussion in rotunda.

Empowering Small Businesses: A New Legislative Initiative

In a significant move to bolster the small construction industry, Congressman Pete Stauber of Minnesota has reintroduced the Small Business Payment for Performance Act. This legislative measure is designed to ensure that small construction contractors are fairly supported in their dealings with federal procurement processes.

Addressing Financial Challenges for Contractors

The act aims to alleviate the financial strain on small businesses by mandating timely payments from federal agencies for changes made in contracts. As explained by Stauber, "Small businesses on Main Street America are the economic engine of our economy." By addressing obstacles that contractors face when government contracts change, Stauber's legislation underscores the importance of small businesses in our economic landscape.

How the Act Works

One of the key provisions of the Small Business Payment for Performance Act is its requirement for federal entities to pay at least 50% of the costs related to unilateral change orders upon request from small businesses. This step could significantly reduce the burden placed on contractors who often struggle with cash flow due to delays in payments.

Broad Support from the Construction Community

The act has garnered support from various construction organizations, signaling a wider acknowledgment of its potential positive impact. Supporters assert that this legislation would help level the playing field for small contractors, reinforcing their crucial role in the construction landscape. The move is seen as a vital step toward fostering a robust environment for small construction businesses.

A Hopeful Future for Small Contractors

As federal support continues to evolve, measures like the Small Business Payment for Performance Act could pave the way for a more prosperous future for small contractors. By ensuring more equitable treatment and financial security, the legislation embodies a commitment to the growth and sustainability of small businesses in America.

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