119-hr4615

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4615 Introduced in House

    (IH) ]

<DOC>

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. 
 Norcross) 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 Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Small Business Payment for 
Performance Act of 2025''.

SEC. 2. EQUITABLE ADJUSTMENTS TO CONSTRUCTION CONTRACTS.

    (a) In General.--

Section 15 of the Small Business Act (15 U.S.C. 
644) is amended--

    (1) by redesignating subsections
            (x) and

    (y) as subsections

    (y) and

    (z) , respectively; and

    (2) by inserting after subsection

    (w) the following new 
 subsection:
 ``
            (x) Interim Partial Payments for Equitable Adjustments to 
Construction Contracts.--
 ``

    (1) Request for an equitable adjustment.--A small 
 business concern that was awarded a construction contract by an 
 agency may submit a request for an equitable adjustment to the 
 contracting officer of such agency if the contracting officer 
 directs a change in the terms of the contract performance 
 without the agreement of the small business concern. Such 
 request shall--
 ``
        (A) be timely made pursuant to the terms of the 
 contract; and
 ``
        (B) specify the estimated amount required to 
 cover additional costs resulting from such change in 
 the terms.
 ``

    (2) Amount.--Upon receipt of a request for equitable 
 adjustment from a small business concern under paragraph

    (1) , 
 the agency shall provide to such concern an interim partial 
 payment in an amount equal to not less than 50 percent of the 
 estimated amount under paragraph

    (1)
        (B) .
 ``

    (3) Limitation.--Any interim partial payment made under 
 this section may not be deemed to be an action to definitize 
 the request for an equitable adjustment.
 ``

    (4) Flow-down of interim partial payment amounts.--A 
 small business concern that receives an equitable adjustment 
 under this subsection shall pay to a first tier subcontractor 
 of such concern the portion of each interim partial payment 
 received that is attributable to the increased costs of 
 performance incurred by such subcontractor due to the change in 
 the terms of the contract performance described in paragraph

    (1) . A first tier subcontractor that receives a portion of an 
 interim partial payment under this section shall pay to a 
 subcontractor (at any tier) the appropriate portion of such 
 payment.''.

    (b) Implementation.--The Administrator of the Small Business 
Administration shall implement the requirements of this section not 
later than the earlier of the following dates:

    (1) The first day of the first full fiscal year beginning 
 after the date of the enactment of this Act.

    (2) October 1, 2027.
 <all>