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.