The Santa Clara Valley Transportation Authority (VTA) has adopted a new policy that aims to ease the burden small businesses are facing in the wake of COVID-19.
The policy, which took effect Oct. 1, 2020, provides for payments to Certified Small Business Enterprises (SBEs) within 15 days after an invoice is fully approved by Santa Clara 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.
Santa Clara VTA says it is one of the first major transit agencies in the nation to enact such a policy. The agency's major prime contractors are also being encouraged to follow the agency’s lead by expediting payments to Certified SBEs.
At a time when cash flow is critical to the very survival of small businesses, the agency says it hopes that this new policy to expedite payments will help support the economy through these difficult times and beyond.
