What does Preamble of Small Business Payment for Performance Act of 2025 do?

This bill proposes to amend the Small Business Act. The amendment aims to provide interim partial payment to small business contractors. These contractors would be eligible if they request an equitable adjustment due to changes in construction contract terms.

What does SHORT TITLE. of Small Business Payment for Performance Act of 2025 do?

This bill is formally titled the Small Business Payment for Performance Act of 2025.

What does EQUITABLE ADJUSTMENTS TO CONSTRUCTION CONTRACTS. of Small Business Payment for Performance Act of 2025 do?

This section amends Section 15 of the Small Business Act to establish a process for interim partial payments related to equitable adjustments in construction contracts. A small business concern with a construction contract may request an equitable adjustment if the contracting officer directs a change in contract performance without agreement. The request must be timely and specify the estimated additional costs. Upon receiving a request, the agency must provide an interim partial payment of at least 50% of the estimated amount. These interim payments are not considered a final determination on the equitable adjustment. Small business concerns receiving interim payments must pass portions of those payments to first-tier subcontractors and further down the subcontracting tiers based on increased costs incurred due to the contract change. The Administrator of the Small Business Administration must implement these requirements by the earlier of the first full fiscal year after enactment or October 1, 2027.

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Small Business Payment for Performance Act of 2025

Last updated: 7/22/2025 · Introduced: 7/22/2025

Author: Pete Stauber (R-MN)

TL;DR (AI)

This bill amends the Small Business Act to allow small business contractors to request interim partial payments of at least 50% when facing increased costs due to changes in construction contract terms.
Upon receiving a request, government agencies must provide these interim payments to small business concerns, who are then required to pass portions of those payments to subcontractors.
The Small Business Administration must implement these requirements within one year of enactment or by October 1, 2027.

119th Congressin committeeOfficial page

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Includes provisions on preamble, short title., and 1 more.

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