DBE, 8(a), HUBZone and SDVOBs are all eligible to participate in the USDOT’s Short-Term Lending Program, designed to help with cash flow on federal-aid projects.

To help DBEs get the financing they need in order to participate in transportation-related projects, the US Department of transportation (USDOT) offers the Short-Term Lending Program (STLP).

The STLP provides short-term working capital financing for DBEs working on USDOT-funded contracts and subcontracts for any mode of transportation (highway, transit and aviation).

This is done through revolving lines of credit, with the contracts’ accounts receivable acting as collateral. These lines of credit can be extended to both primes and subcontractors with the maximum line of credit up to $750,000.

STLP funds are to be used only to meet the short-term costs of performing the contract being financed. They’re not available for contract mobilization, equipment purchases or other long-term uses;or paying/refinancing existing debt.

Businesses that are eligible to receive a loan through STLP are DBE-certified firms, or businesses that have been certified by the Small Business Administration as a HUBZone, 8(a), or Service Disabled Veteran Owned Small Business.

Start-up businesses are not eligible to apply for the STLP — it is recommended that a business have at least a three year past performance history before applying to the program.

Lines of credit are managed by the Office of Small and Disadvantaged Business Utilization (OSDBU) through cooperative agreements with banks who have agreed to be Participating Lenders (PLs) in the STLP. The final loan approval is made by both the PL and the USDOT.

Loan documentation and financing transactions are performed directly by the PL. DBEs borrow funds against each invoice of the contract being financed. Each invoice is paid directly to the PL by the Project Owner or Prime Contractor via a two-party check addressed to the Lender and the DBE Borrower.

The PL then deducts the payment amount, including interest payments, and remits the remaining balance to the DBE Borrower through their checking and/or savings account.

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

Normally, the line of credit covers a one year period. The applicant has the option of requesting renewals; however, the line
of credit cannot exceed five years.

The line of credit can be increased during the term if the applicant obtains additional transportation contracts.

Loan applications may be downloaded at: www.dot.gov/osdbu/financialassistance/short-term-lending-program
Like any loan application, it is documentationintensive, and requires financials, accounts payable and receivables, cash
flow projects, resumes and other information.
Applicants are strongly encouraged to work with OSDBU’s Small Business Transportation Resource Centers
(SBTRCs). Idaho’s SBTRC is the Economic Alliance of Snohomish County;Lily Keeffe, SBTRC Project Director, at
(425) 248-4222 or Lilyk@economicalliancesc.org.
Completed applications may be forwarded to OSDBU or directly to the PL. The turnaround time is 30 to 60 days.

Participating STLP Lenders for Idaho

Zion’s Bank, Salt Lake City, UT Cece Mitchell, SBA Manager (801) 844-7909 / cecilia.mitchell@zionsbank.com

Seaway Bank and Trust Company, Chicago, IL Dan Davis, Commercial Loan Officer (773) 624-1352 / ddavis@seawaybank.us

Rural Community Assistance Corporation (RCAC)*, Denver, CO Chuck Miller, Loan Officer (360) 253-7683 / cmiller@rcac.org *Lending is limited to USDA Urban Areas only