(Washington, DC) - On Thursday, May 24, 2018, the House of Representatives voted 351 - 66 to approve the National Defense Authorization Act (NDAA) for fiscal year 2019. This annual bill, which sets the defense and national security policies of the United States, included the provisions of H.R. 5337, the Accelerated Payments for Small Businesses Act of 2018, which was introduced in March by Representative Steve Knight (R-CA).

The Accelerated Payments of Small Businesses Act would require the Department of Defense to establish a goal of paying all small business contractors within 15 days of receiving a proper invoice. The bill also establishes a similar goal for government contractors that have small business sub-contractors.

"Small business operate on razor-thin margins and are dependent on a consistent cash flow in order to maintain their operations," said Rep. Knight "When the government is late in their payments, these businesses often are forced to furlough employees and scale down activity. This ultimately hurts their long-term viability and put them at risk of closure. With small businesses being the cornerstone of our economy, it's unacceptable for these entrepreneurs to continue to by hurt by inefficient government bureaucracy. With the passage of the Accelerated Payments for Small Businesses Act, we can help ensure that these businesses deservedly receive their payments in a timely and accountable manner."

Representative Knight is a member of the House Small Business Committee and serves as Chairman of the Subcommittee on Contracting & the Workforce. The Accelerated Payments for Small Businesses Act is endorsed by the National Defense Industrial Association and the Professional Services Council.