Disadvantaged Business Enterprises-Short Term Lending Program (20.905)
Program
20.905 Disadvantaged Business Enterprises-Short Term Lending Program
Federal Agency
Agency: Department of Transportation
Office: Office of the Secretary (OST) Administration Secretariate
Authorization
American Recovery and Reinvestment Act , Public Law 97-449, 49 U.S.C 332.
Program Number
20.905
Last Known Status
Active
Objectives
To advance the opportunities for small, minority-owned disadvantaged businesses, including women and service-disabled veteran owned businesses and Disadvantaged Business Enterprises (DBE) (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.
Types of Assistance
Guaranteed/Insured Loans
Uses and Use Restrictions
The line of credit is for account receivable financing to support the work being performed on eligible transportation related contracts. The line of credit cannot be used for equipment purchase or other long term uses; contract mobilization; refinancing of existing debt; payment of taxes; or distribution to stock holders. A transportation-related contract is one 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.
Eligibility Requirements
Applicant Eligibility
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.
Beneficiary Eligibility
Small Business/Small Business Person.
Credentials/Documentation
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). OMB Circular No. A-87 applies to this program.
Application and Award Process
Preapplication Coordination
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 . This program is excluded from coverage under E.O. 12372. Environmental impact information is not required for this program. This program is excluded from coverage under E.O. 12372.
Application Procedure
OMB Circular No. A-102 applies to this program. This program is excluded from coverage under OMB Circular No. A-110. Applications are submitted directly to one several Participating Leaders (PLs). Applicant may obtain a copy of the application and identify the bank servicing their region from the OSDBU internet site at http://osdbuweb.dot.gov.
Award Procedure
All lines of credit are approved through separate decisions by the Participating Lender (PL) and by DOT. Lines of credit are serviced by approving PL.
Deadlines
Not Applicable.
Range of Approval/Disapproval Time
OSDBU staff will reveiw the application for completeness. This review can be within 5 business days. Once it has been determined that the application is ready ti be submitted to the PL, the applicant will submit to the PL a $150.00 application fee along with the complete application. Decisions are made within 30 to 60 days from the time the complete application is submitted to the PL.
Appeals
Not Applicable.
Renewals
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 from the 1st participation in the program.
Assistance Considerations
Formula and Matching Requirements
Statutory formulas are not applicable to this program.
Matching requirements are not applicable to this program.
MOE requirements are not applicable to this program.
Length and Time Phasing of Assistance
Approved lines of credit are for one year terms with the possibility of renewal for four additional years. Method of awarding/releasing assistance: lump sum.
Post Assistance Requirements
Reports
Audits
In accordance with the provisions of OMB Circular No. A-133 (Revised, June 27, 2003), "Audits of States, Local Governments, and Non-Profit Organizations," nonfederal entities that expend financial assistance of $500,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133. DOT has the right to audit its accounts with the banks.
Records
OSDBU maintains records of all applicant files, such as approvals, pending review, loan readiness, denials, etc. All line of credit approvals will be maintained for 7 years and non-approvals will be maintained for 3 years.
Program Accomplishments
Not Applicable.
Financial Information
Account Identification
69-0155-0-1-407.
Obligations
(Salaries) FY 08 $2,600,000; FY 09 est $5,200,000; FY 10 est $10,400,000
Range and Average of Financial Assistance
The maximum line of credit is $750,000. There is no minimum line of credit amount.
Regulations, Guidelines and Literature
Public Law 97-449, 49 U.S.C. 332.
Related Programs
59.006 8(a) Business Development Program; 59.043 Women's Business Ownership Assistance
Information Contacts
Regional or Local Office
None.
Headquarters Office
Manager Financial Assistance Division 1200 New Jersey Ave., S.E., Washington, District of Columbia 20590 Phone: 800-532-1169
Web Site Address
Examples of Funded Projects
Not Applicable.
Criteria for Selecting Proposals
Not Applicable.
