4 Pa. Code § 2.35 - Policy governing payments of interest penalties

(a) Each Commonwealth agency which acquires property or services from a qualified small business concern but which does not make payment for each such complete delivered item of property or service by the required payment date will pay an interest penalty to the qualified small business concern as prescribed in this subchapter.

(b) An interest penalty will be paid for the period beginning on the day after the required payment date and ending on the payment date, except that no interest penalty will be paid if the payment date is on or before the 15th day after the required payment date.

(c) Interest will be computed at the rate determined by the Secretary of Revenue as provided in sections 806 and 806.1 of The Fiscal Code (72 P. S. § § 806 and 806.1).

(d) Interest will be paid by a separate payment within 30 days of the payment date. The amount of an interest penalty that remains unpaid at the end of each successive 30-day period will become the principal amount upon which subsequent interest penalties shall accrue.

For example:

Day 1-receipt of a proper invoice

Day 30-required payment date

Day 45-end of grace period, no interest due

Day 50-payment date; interest due from Day 31 through Day 50

Day 80-final due date for payment of interest penalty

Day 81-additional interest begins on interest payment due.

Notes

4 Pa. Code § 2.35

This section cited in 4 Pa. Code § 2.37 (relating to responsibilities of Commonwealth agencies); and 4 Pa. Code § 2.38 (relating to exclusions).