Federal contractors must now report their own late payments to small businesses
What happened
The US Small Business Administration wants to make sure small businesses get paid on time by larger federal contractors. New rules would force big contractors to report their own late payments and cooperate to fix them.
Why it matters
Many small businesses struggle with cash flow when large contractors delay payments for federal work. This proposal means those large contractors can no longer hide payment delays. It gives small businesses a better chance to stay solvent and grow.
The signal
Watch for the final rule and then whether contracting officers actually use the new power to ding prime contractors' past performance records.