United States HR 4615: Small Business Payment for Performance Act of 2025

Bill Text

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119TH CONGRESS
1ST SESSION H. R. 4615
To amend the Small Business Act to provide interim partial payment to
small business contractors that request an equitable adjustment due
to a change in the terms of a construction contract, and for other
purposes.
IN THE HOUSE OF REPRESENTATIVES
JULY 22, 2025
Mr. STAUBER (for himself, Mr. VEASEY, Mr. FITZPATRICK, and Mr. NOR-
CROSS) introduced the following bill; which was referred to the Committee
on Small Business
A BILL
To amend the Small Business Act to provide interim partial
payment to small business contractors that request an
equitable adjustment due to a change in the terms of
a construction contract, and for other purposes.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Small Business Pay-4
ment for Performance Act of 2025’’. 5
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SEC. 2. EQUITABLE ADJUSTMENTS TO CONSTRUCTION 1
CONTRACTS. 2
(a) IN GENERAL.—Section 15 of the Small Business 3
Act (15 U.S.C. 644) is amended— 4
(1) by redesignating subsections (x) and (y) as 5
subsections (y) and (z), respectively; and 6
(2) by inserting after subsection (w) the fol-7
lowing new subsection: 8
‘‘(x) INTERIM PARTIAL PAYMENTS FOR EQUITABLE 9
ADJUSTMENTS TO CONSTRUCTION CONTRACTS.— 10
‘‘(1) REQUEST FOR AN EQUITABLE ADJUST-11
MENT.—A small business concern that was awarded 12
a construction contract by an agency may submit a 13
request for an equitable adjustment to the con-14
tracting officer of such agency if the contracting of-15
ficer directs a change in the terms of the contract 16
performance without the agreement of the small 17
business concern. Such request shall— 18
‘‘(A) be timely made pursuant to the terms 19
of the contract; and 20
‘‘(B) specify the estimated amount re-21
quired to cover additional costs resulting from 22
such change in the terms. 23
‘‘(2) AMOUNT.—Upon receipt of a request for 24
equitable adjustment from a small business concern 25
under paragraph (1), the agency shall provide to 26
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such concern an interim partial payment in an 1
amount equal to not less than 50 percent of the esti-2
mated amount under paragraph (1)(B). 3
‘‘(3) LIMITATION.—Any interim partial pay-4
ment made under this section may not be deemed to 5
be an action to definitize the request for an equi-6
table adjustment. 7
‘‘(4) FLOW-DOWN OF INTERIM PARTIAL PAY-8
MENT AMOUNTS.—A small business concern that re-9
ceives an equitable adjustment under this subsection 10
shall pay to a first tier subcontractor of such con-11
cern the portion of each interim partial payment re-12
ceived that is attributable to the increased costs of 13
performance incurred by such subcontractor due to 14
the change in the terms of the contract performance 15
described in paragraph (1). A first tier subcon-16
tractor that receives a portion of an interim partial 17
payment under this section shall pay to a subcon-18
tractor (at any tier) the appropriate portion of such 19
payment.’’. 20
(b) IMPLEMENTATION.—The Administrator of the 21
Small Business Administration shall implement the re-22
quirements of this section not later than the earlier of the 23
following dates: 24
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(1) The first day of the first full fiscal year be-1
ginning after the date of the enactment of this Act. 2
(2) October 1, 2027. 3
Æ
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