The Santa Clara Valley Transportation Authority (VTA) has adopted a prompt-payment policy from small business enterprises (SBEs) acting as primes on VTA contracts. The policy specificies that such SBEs shall be paid within 15 days after an invoice has been fully approved by VTA.
Previously, the standard practice was for the period to be 30 days.
The new 15-day policy took effect on October 1, 2020 and applies to current and new VTA contracts. Additionally, the policy provides that no discounts will be taken from the payments unless negotiated into the contracts in advance.
"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 this difficult period and beyond," said VTA General Manager/CEO Nuria I. Fernandez in a letter announcing the policy.
Read the letter from Fernandez at https://mailchi.mp/vta.org/vta-introduces-net-15-for-prime-sbes?e=6400479491.
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