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Public Statements

At Sen. Franken's Urging, White House Issues Rules to Help Minnesota Small Businesses Get Paid Quickly by Federal Contractors

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Today, U.S. Sen. Al Franken (D-Minn.) announced that, at his urging, President Barack Obama has issued rules that will help Minnesota small businesses get the money they are owed by large government contractors in a timely and reliable manner, allowing them to pay their bills, create jobs, and plan for the future. In November, Sen. Franken also introduced legislation that would require the administration to implement similar rules.

"Small businesses create nearly two thirds of the jobs in this country, and they drive our economic growth, so it's important that they get paid quickly for their work," said Sen. Franken. "I've heard from small businesses in Minnesota that have had to wait months to be paid by large federal contractors, and that makes it hard for them to meet payroll and keep their doors open. I introduced legislation to make sure these companies get paid, and I've been pressing the White House to issue these rules so Minnesota's small businesses can grow, create jobs, and plan for the future."

In November, Sen. Franken introduced an amendment to the National Defense Authorization Act that would require the federal government to issue regulations that would ensure that large corporations with primary contracts with the government pay their small business subcontractors - which are often small, family-owned businesses - in a timely manner. Today, the White House issued an executive order directing federal agencies to make contract payments along an accelerated timeline to all prime contractors, with the understanding that those prime contractors will similarly accelerate payments to their small business subcontractors.


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