Program Description

US DOT Loan Guaranty for Small & Disadvantaged Businesses

• The loan guaranty provides a revolving line of credit for work on transportation related contracts.
• DOT guarantees up to $750,000 in loans with participating lenders for small & disadvantaged businesses.

Who Can Apply: Businesses that meet the 4 qualifications below:

• The business has a three (3) year track record –i.e., you are not a start-up business.
• The business is current on all federal and state taxes.
• The business is certified as a DBE by your State or by the Small Business Administration (Section 8(a): Hub zone; Service Disabled Veteran Owned Businesses, Women Owned Businesses).
• The business has a DOT federally funded transportation related contract –i.e., maintenance, rehabilitation, restructuring, improvement, or revitalization of any local, state or federal transportation system. Your source of contract dollars defines whether it is considered transportation related.

How It Works: Your contract is your primary collateral.

• Loans can be renewed for up to five (5) years.
• The line of credit is for accounts receivable arising from transportation related contracts.
• Loan application and fee is submitted by US DOT to a participating lender.

General Program Requirements

All applicants must meet the STLP eligibility requirements to be considered for a line of credit guaranteed by USDOT. The eligibility requirements are designed to ensure that all recipients of DOT financial assistance are currently performing on a USDOT federally-assisted transportation-related contract. All businesses that are considered for financing under the DOT/OSDBU loan program must be:

• For-profit, with three (3) years in business
• Certified as a Disadvantaged Business Enterprise (DBE) by an agency applying DOT certification guidelines (49 CFR, Part 23 & 26) or by the Small Business Administration in one of the following categories:
• 8(a) Business Development Program
• Small Disadvantaged Business (SDB)
• Service Disabled Veteran-Owned Business (SDVOB)
• HUBZone
• Woman-Owned Business (WOB)

Loan Terms

The loan is a line of credit used for short-term working capital needs, specifically the carrying of accounts receivables generated by transportation-related contracts and subcontracts. The maximum loan amount is $750,000.00. Borrowers pay a loan processing fee of $150.00.

Application Process

Select above the Type of Loan that you want.

Program Description
The SBA (Small Business Administration) has launched The MicroLoan Program which provides small loans to start-up, newly established, or growing small business concerns. Under this program, SBA makes funds available to nonprofit community based lenders (Microlender Intermediaries) which, in turn, make loans to eligible borrowers in amounts up to a maximum of $35,000. The average loan size is about $10,500. Applications are submitted to the local intermediary and all credit decisions are made on the local level.

General Program Requirements
Each intermediary lender has its own lending and credit requirements. However, business owners contemplating application for a microloan should be aware that intermediaries will generally require some type of collateral, and the personal guarantee of the business owner.

Loan Terms
The maximum term allowed for a microloan is 6 years. However, loan terms vary according to the size of the loan, the planned use of funds, the requirements of the intermediary lender, and the needs of the small business borrower. Interest rates vary, depending upon the intermediary lender and costs to the intermediary from the U.S. Treasury.

Select above the Type of Loan that you want.