Starting March 31, 2017, New York State must pay each qualified small business within 15 days after receiving: (1) the good or service; and (2) a proper electronic invoice against a purchase order. If payment is made after 15 days, the qualified small business may be entitled to interest.
To be eligible, you must complete a few simple steps in our Vendor Self Service Portal:
- Sign up to receive payments electronically – Once you sign up, you’ll begin to receive payments via electronic deposit into the account that you specify.
- Sign up to send invoices electronically. While electronic invoices won’t be eligible for expedited payments until March 31, you can start to create and submit electronic invoices the business day after you sign up.
- Certify that you’re a qualified small business. To be considered a qualified small business under this legislation you must: (1) have a primary place of business in New York State; (2) have a significant business presence in New York State; (3) be independently owned and operated; (4) not be dominant in your field; and (5) employ 200 employees or fewer at the time of the payment. To certify:
- Log in to the Vendor Self-Service Portal
- Select the “Self-certify as a NYS Prompt Pay Small Business” link
- Follow the prompts to complete your certification
Please note that only certain State agencies will be able to receive electronic invoices starting March 31 according to the policies and procedures of the accounting and financial management system of New York State.
If you’d like to read the section of law that requires New York State to make expedited payments to qualified small businesses, please refer to the amended sections of State Finance Law, Section 179-f.