Vendor Support Initiative
The Vendor Support Initiative is administered in accordance with the terms of the Vendor Payment Program except where they expressly conflict with the forgoing.
In the absence of full fiscal year State budgets for Fiscal Years 2016 and 2017, CMS has established the Vendor Support Initiative (VSI) as an alternative to the Vendor Payment Program. VSI allows vendors to receive the base invoice amount (less applicable offsets) of any agency-approved State invoice for essential goods or services that would be eligible for assignment through the Vendor Payment Program, but where no appropriation or other legal authority currently exists to pay the invoice. Where vendor payments are being made under appropriations (including those limited FY16 and FY17 appropriations enacted effective June 30, 2016), vendors wishing to assign eligible State receivables should use the Vendor Payment Program.
Vendors with VSI-eligible invoices (those not being paid under appropriation) may assign those invoices to a Qualified Purchaser through VSI in much the same manner as receivables are assigned through the Vendor Payment Program. Pursuant to an assignment agreement between the vendor and the Qualified Purchaser, the vendor will receive payment of 90% of the base invoice amount at the time of assignment, with the balance to be paid (less any offsets) after the State has paid the invoice. In return, the Qualified Purchaser will collect any interest on the underlying invoice that is owed by the State pursuant to the Prompt Payment Act (30 ILCS 540).
Eligible vendors can assign to Qualified Purchasers any outstanding invoice that has been identified as eligible for VSI. As with the Vendor Payment Program, the State is not a party to any agreement between a vendor and a Qualified Purchaser.
Please note that not all Qualified Purchasers are participating in VSI. At this time, vendors may assign eligible invoices through VSI to the following Qualified Purchasers: Vendor Assistance Program, Vendor Capital Finance, Illinois Financing Partners, LLC, and PayPlant.
For more information regarding VSI, please contact Marelda Baidy by clicking here or by calling (217) 782-2141.