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| 20.905 DISADVANTAGED BUSINESS ENTERPRISES_SHORT TERM LENDING PROGRAM |
| (Short Term Lending Program) |
| FEDERAL AGENCY |
| OFFICE OF THE SECRETARY, DEPARTMENT OF TRANSPORTATION |
| AUTHORIZATION |
| Public Law 97-449, 49 U.S.C. 332. |
| 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 |
| Loan Guarantees/Grants. |
| 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. |
| 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). |
| Preapplication Coordination |
| Information and consultation is available at http://osdbuweb.dot.gov/financial/index.cfm or by calling DOT's Office of Small and Disadvantaged Business Utilization (OSDBU). Applicants may also request technicalassitance form the nearest Small Business Transportation Resource Center (SBTRC) http://osdbuweb.dot.gov/regional/all.cfm or the nearest SBA's Small Business Development Development Center (www.sba.gov). Telephone: (800) 532-1169. (202) 366-5577 or (202) 366-2852. This program is excluded form coverage under E.O. 12372. |
| Application Procedure |
| 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 maximun length in the program is 5 years. |
| Formula and Matching Requirements |
| Not applicable. |
| Length and Time Phasing of Assistance |
| Lines of credit is for one year term with the possibility of renewal for four additional years based upon continued eligiblity. |
| Reports |
| Not applicable. |
| Audits |
| 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. |
| Account Identification |
| 69-0102-0-1-407. |
| Obligations |
| (Loans) FY 07 est not available; FY 08 est not available; and FY 09 est not available. |
| Range and Average of Financial Assistance |
| The maximum line of credit is $750,000, and there is no minimum amount. |
| PROGRAM ACCOMPLISHMENTS |
| None. |
| REGULATIONS, GUIDELINES, AND LITERATURE |
| Public Law 97-449, 49 U.S.C. 332. |
| Regional or Local Office |
| Not applicable. |
| Headquarters Office |
| Office of Small and Disadvantaged Business Utilization, S-40, Office of the Secretary, Department of Transportation, 1200 New Jersey Avenue, S.E. Suite W56-497 Washington, DC 20590. Telephone: (202) 366-5577; toll free (800) 532-1169. |
| Web Site Address |
| http://www.osdbuweb.dot.gov |
| RELATED PROGRAMS |
| 59.006, 8(a) Business Development Program; 59.043, Women's Business Ownership Assistance. |
| EXAMPLES OF FUNDED PROJECTS |
| Not applicable. |
| CRITERIA FOR SELECTING PROPOSALS |
| Not applicable. |
|
General Services Administration Office of Chief Acquisition Officer Regulatory and Federal Assistance Division (VIR) |
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