Interest to be paid on late contract payments to non-profit contractors.

A Local Law to amend the administrative code of the city of New York, in relation to interest to be paid on late contract payments to non-profit contractors

Due to a slow procurement process, many entities that enter into contracts with city agencies begin to provide services before the agency can pay them. This can make it difficult for contractors, particularly non-profit contractors, to cover their expenses. This bill would require interest to be paid on late payments under city contracts with non-profit organizations. The non-profit contractor would not be eligible to receive the interest if the non-profit contractor has received a no-interest and no-service-fee loan issued or authorized by a city agency to cover its expenses in relation to the subject contract.