SHORT TERM LENDING PROGRAM

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What is the U.S. Department of Transportation Short Term Lending Program?

• Guarantees up to $750,000 in loans with participating lenders for eligible small
  and disadvantaged businesses.
• The loan guarantee provides a revolving line of credit for work on transportation-
  related contracts.
• The interest rate of the loan is calculated by using the current prime interest rate
  and adding 2 percentage points.
• The line of credit covers a one-year period, but is renewable for up to five years.
• Funds are to be used only to meet the short-term costs of performing the
  contract(s) being financed.

Who Can Apply?

Three types of businesses are eligible for an STLP loan if:
The firms have received DOT DBE certification from a state or local transportation
agency;

• The firms have been certified by the SBA either as an 8(a), Small Disadvtanged
  Business or HUB Zone;
• The firms have received DOT DBE certification from a state or local
  transportation agency; and
• Firms that have received a disability rating by the Veteran’s Administration and
  certify themselves as a Service Disabled Veteran Owned Small Business
  (SDVOSB)

In addition, the business must have:

• DOT federally funded, in whole or in part, transportation-related contract, i.e.
  maintenance, rehabilitation, restructuring, improvement, or revitalization of any
  local, state or federal mode of transportation.
• The business must have a three year track record.
• The business must be current on all federal and state taxes.

For more details and a list of lenders: Visit www.osdbu.dot.gov or contact: Nancy Strine,
Manager, Financial Assistance Division at telephone: 1-800-532-1169 or 1-202-366-1930
or email: nancy.strine@dot.gov.