Short Takes: Treasury Lowers the Prompt Payment Act Interest Rate
July 8, 2014
By: Eric Whytsell
On Tuesday July 1, 2014, the Treasury Department announced that the Prompt Payment Act interest rate has been reduced to 2.0% per annum for the period of July 1, 2014, and ending on December 31, 2014. 79 Fed. Reg. 37391. This interest rate is used to calculate the penalty paid by the government when it fails to timely pay contractors for goods and services. With this announcement, the rate continues to hover around approximately 2%. The prior interest rate was set at 2.125%.
Eric Whytsell is the attorney responsible for the content of this article.
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