Loan Details

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Short Term Lending Program

Program Description

The Office of Small and Disadvantaged Businesses Utilization (OSDBU) Financial Assistance Division has the Short-Term Lending Program (STLP) to help small businesses gain access to the capital they need to participate in transportation-related contracts. STLP provides certified Disadvantaged Business Enterprises (DBE) and other certified small businesses short term working capital financing at competitive interest rates for Department of Transportation (DOT) or DOT funded contracts and subcontracts.

How It Works: The line of credit is for account receivable financing to support the work being performed on eligible transportation related contracts.

Lines of credit are managed by OSDBU through cooperative agreements between DOT and Participating Lenders (PLs).

The interest rate of the loan is a variable rate tied to the Wall Street Journal Prime Interest Rate.

The applicant submits an application fee of $150 to the Participating Lender along with a complete application.

Technical Assistance in filling out the application is provided by the Small Business Transportation Resource Centers. The centers can be found on

The funds are borrowed and advanced to the borrower against each invoice of the contract(s) being financed - up to 85 percent of the invoice total. Each invoice is paid directly to the Participating Lenders (otherwise referred to as "assignment of funds") by the Project Owner or Prime Contractor with a two-party check addressed to the Lender and the Borrower. The borrower re-pays the principal and interest, and the bank releases the balance to the borrower.

Prohibited Use of Funds: The loan guarantee may not be used for:

  • Contract mobilization
  • Equipment purchases or other long term uses
  • Refinancing of existing debt
  • Payment of taxes
  • Distribution to investors or stock holders

General Program Requirements

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

All businesses that are considered under the DOT/OSDBU STLP must fit all the requirements:

  1. 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
  2. The business must have a 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).
  3. The business must have an established track record - this is not for start-up companies.
  4. The business is current on all Federal and state taxes.

Loan Terms

The term is a line of credit used for short-term accounts receivables generated by transportation-related contracts and subcontracts. The term is one year with an option to renew for up to five years as long as the applicant remains eligible. The maximum loan amount is $750,000.
Your Next Steps
The following information will lead you to the next steps to apply for this benefit.

Application Process

To apply for this program, please contact your Small Business Transportation Resource Center to assist with the application process:

Program Contact Information

For more information about this program, please call 1-800-532-1169 or visit:

Managing Agency

U.S. Department of Transportation