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.
General information about this opportunity
Last Known Status
Deleted 04/02/2020 (Archived.)
Agency: Department of Transportation
Office: Office of the Secretary (OST) Administration Secretariate
Type(s) of Assistance Offered
Fiscal Year 2014: In 2014 the Short Term Lending Program (STLP) approved 9 STLP loans for a total of $3,545,000.00. It sustained 153 jobs while creating additional 54 jobs. For the first time in program history we grew to cover 100 percent national coverage of the STLP of the United States and its territories. Fiscal Year 2015: Anticipating a 20% increase in loan volume. Fiscal Year 2016: No Current Data Available
MAP-21, Public Law 97-449, 49 U.S.C 332.
Who is eligible to apply/benefit from this assistance?
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). 2 CFR 200, Subpart E - Cost Principles applies to this program.
What is the process for applying and being award this assistance?
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 . An environmental impact assessment is required for this program. This program is excluded from coverage under E.O. 12372.
2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program.
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.
Approval/Disapproval Decision Time
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.
How are proposals selected?
How may assistance be used?
The line of credit is for account receivable financing to support work being performed on 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. The borrower must have a federally funded transportation contract. Discretionary funds are used to fund the STLP. The STLP is a guaranteed loan program. The loans assist small and disadvantaged businesses by providing accounts receivable financing of eligible transportation related contracts.
What are the requirements after being awarded this opportunity?
Monthly and quarterly reports are required by the Participating Lenders and Small Business Transportation Resource Centers. Cash reports are not applicable. Quarterly progress reports are made by the participating lenders and Small Business Transportation Resource Centers. Expenditure reports are not applicable. Participating Lenders are required to monitor and report on line of credit (loan) status on a monthly and quarterly basis.
In accordance with the provisions of 2 CFR 200, Subpart F - Audit Requirements, non-Federal entities that expend financial assistance of $750,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Non-Federal entities that expend less than $750,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in 2 CFR 200.503. DOT has the right to audit its accounts with the banks.
All line of credit approvals will be maintained for 7 years and non-approvals will be maintained for 3 years. Follow NARA standards.
Other 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. See the following for information on how assistance is awarded/released: Lines of credit disbursed by certified invoices presented to the Participating Lender.
Who do I contact about this opportunity?
Regional or Local Office
Clinton Dunn 1200 New Jersey Ave., S.E., Washington, District of Columbia 20590 Phone: (800) 532-1169.
(Salaries) FY 14 $925,000; FY 15 est $925,000; and FY 16 est $925,000 - Funds are used to for S&E as well as subsidies, and bank administrative fees.
2015 Estimate total loan portfolio value: 8,158,000
2014 Actual total loan portfolio value: 3,545,000.
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.
Examples of Funded Projects
Fiscal Year 2014: Some of the 2014 projects included:
Cape Royal Road Project, $2,635,170.67
Fort Larned National Historic Site Project, $2389,532.80
LBJ-635 Corridor Project ,$265,000.00
NC DOT ER 2973 Project $152,773.70
Palmetto Expressway Project, $2,343,447.89
Pea Island Long Term Improvement, $167,011.53
560-Stony Island Feeder Project, $500,207.68
Zoo Interchange Final Design Project, $794,415.27. Fiscal Year 2015: Projected to fund 31 loans. Fiscal Year 2016: No Current Data Available