# Connecticut Expands SMBE Payment Protections

Connecticut’s HB 7287, effective in 2025, expands prompt-payment requirements and revises spending goals, reporting, and enforcement for state-funded construction projects involving small and minority-owned business enterprises (SMBEs). The changes build on a state law dating to 1982 that sets aside 25% of state funding for SMBEs on state-financed construction projects. Reports of general contractors delaying or withholding payments underscore cash-flow and compliance risks for subcontractors and prime contractors; the signal identifies no specific solicitation or award.

- Contractors working on covered projects should review payment terms and document change orders and retainers to support timely-payment compliance and manage subcontractor cash flow.
- Procurement teams and SMBEs should account for the revised spending goals, reporting, and enforcement provisions when planning and administering state-funded construction work.
- The law was already effective as of 2025; contractors can use its prompt-payment and reporting provisions to assess current project practices and exposure.

**Jurisdictions:** sled
**Industries:** Construction & Infrastructure
**Topics:** Regulatory Compliance, Policy
**Published:** November 13, 2026

### Government Entities
- Connecticut state government

### Sources
- [Since 1982, Connecticut state law has mandated that for every state-financed construction project, 25% of state funding be “set-aside” for small and minority-owned businesses, known as SMBEs (small and minority-owned business enterprises). https://t.co/oUdNr1IwYQ](https://x.com/ct_investigator/status/2121317909427585312) - twitter-small-business