Pay Small Firms in 15 Days? Maybe Paying small contractors in 15 days is a goal, not a rule. President Obama first announced the “Quick Pay” plan in his Sept. 8 address to Congress. In a Sept. 14 memo to agencies, Jacob Lew, director of the Office of Management and budget, said payment within 15 days after an invoice is received and accepted is “a goal.” “OMB recognizes that agencies, in their implementation of this accelerated-payment policy, will not be able to guarantee that they will make payments to small business contractors within the accelerated (15 day) period,” he wrote. The government will not owe interest on a payment until it is more than 30 days overdue, as has always been the case under the Prompt Payment Act. Speeding up payments “improves cash flow for small businesses and provides them with a more predictable stream of resources,” Lew wrote. In a Sept. 14 speech in Raleigh, NC, President Obama called the directive a job-creation tool, because faster payment to small contractors “means they can hire folks quicker.” Lew told agencies to begin making accelerated payments “as soon as practicable.” By Nov. 1, agencies must notify OMB when they will begin speeding up payments and explain why they can’t do it sooner. A senior agency official must be assigned to oversee the policy.