At a time when small businesses have been suffering because of the impact of COVID-19, VTA has adopted a new policy we hope will make things a little bit easier on them.
The policy, which takes effect October 1, 2020, provides for payments to Certified Small Business Enterprises (SBEs) within 15 days after an invoice is fully approved by VTA. Known as “Net 15” because of the of 15-day timeline, this practice will accelerate payments to Certified SBEs twice as fast as the standard practice of 30 days. In addition, no discounts will be taken from the payments unless negotiated into the contracts in advance.
VTA is one of the first major transit agencies in the nation to enact such a policy. VTA’s major prime contractors are also being encouraged to follow our lead by expediting payments to Certified SBEs.
At a time when cash flow is critical to the very survival of small businesses, we hope that this new policy to expedite payments will help support our economy through these difficult times and beyond.