Disadvantaged Business Enterprises Short Term Lending Program

Advance the opportunities for small, minority-owned disadvantaged business, including women and service-disabled veteran owned businesses and Disadvantaged Business Enterprises (DBEs) to obtain accounts receivable financing for the performance of eligible transportation-related contracts originating from the Department of Transportation (DOT), its grantees, recipients, their contractors and subcontractors.

The recipient of a line of credit must be a certified DBE, or certified small business, including; 8(a); Small Disadvantaged Business (SDB): HUBZONE; Women-Owned Small Business (WOSB); and Service-Disabled Veteran-Owned Business (SDVOB). For DBE's, this certification must be performed under DOT guidelines, 49 CFR Part 26. The applicant must be in business for 2-3 years. This program is not for start-up businesses There must be an existing transportation- related contract(s). Transportation-related contract is a contract for the maintenance, rehabilitation, restructuring, improvement, or revitalization of any of the Nation's modes of transportation with any public or commercial provider of transportation or any Federal, State or local transportation agency.

Small Business/Small Business Person.

STLP application dated and signed; 3 years of business financial statements and taxes; 3 years of personal income taxes and current personal financial statement; current work-in-progress; cash flow projection to cover the length of the term of the loan (one year); current DBE or SBA certification; business formation information; company history; resume of key management; business and trade reference letters; and a copy of the signed transportation related contract(s).

The line of credit is for account receivable financing to support work being performed on transportation related contracts.

Approved lines of credit are for one year terms with the possibility of renewal for four additional years.

Application and checklist can be found at www.osdbu.dot.gov/financiallassistance/shorttermlendingprogram.cfm Information, consultation is available at http://osdbu.dot.gov or by calling the DOT Office of Small and Disadvantaged Business Utilization (OSDBU) at 1-800-532-1169. Potential applicants may also contact OSDBU or their local U.S. DOT Small Business Transportation Resource Center (SBTRC) for assistance in the preparation of the application package. SBTRC locations may be found at http://www.osdbu.dot.gov/regional/index.cfm .

Applicants are presented to Participating Lenders by OSDBU's Small Business Transportation Resource Centers (SBTRCs) and are either approved/disapproved for Guaranteed STLP Loan (Based on PL's requirements) If approved by the PL, the loan application is then presented to the OSDBU Loan Board. Decisions are made within 30 to 60 days from the time the complete application is submitted to the PL.

Decisions are made within 30 to 60 days from the time the complete application is submitted to the PL.

Applicant may apply for renewal of line of credits as long as they remain eligible (certification is current and they have a current transportation related contract). Renewals and increases in the line of credit are possible. The maximum period of eligibility is 5 years.