Small Business and Disabled Veteran Business Enterprise Information

Disabled Veteran Certification / Business Enterprise and Small Business Certification — California Prompt Payment Act, Bill 2275

California Assembly Bill 2275 (AB 2275) put into law the California Prompt Payment Act. Prior to the act, prompt payment had been the number one concern and barrier for small business participation in state contracting. AB 2275 minimizes this concern by clearly and directly stating state agencies shall pay properly submitted, undisputed invoices within 45 days of receipt date.

The prompt payment provisions apply to all businesses; however, Office of Small Business and DVBE Certification (OSDC) certified small businesses and recognized nonprofit organizations receive higher interest payments than other businesses. The Prompt Payment Act applies to goods and services contracts while construction payments are addressed under progress payment provision, Public Contract Code 10261.5.

Additionally, the State of California encourages statewide participation goals of 3 percent for Disabled Veteran Business Enterprises for state contracts. Agencies are required to provide a 5 percent preference when awarding contracts to small businesses.

Certification & Eligibility

SDSU encourages all contractors and suppliers to consider applying for Small Business and / or DVBE Certification. General information regarding Small Business and DVBE services, as well as eligibility, can be found below:

Small and DVBE Business Directory - Cal eProcure