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Short Term Lending Program


The Short Term Lending Program (STLP) enables small businesses to gain access to the financing they need to participate in transportation-related contracts.

Mission Statement

The Short Term Lending Program’s mission is to increase small businesses’ economic competitiveness by providing access to capital for companies working on transportation related opportunities through strategic partnerships, education and financial services.

If the STLP is not the best fit for the small business, we will assist the eligible small business working in the transportation industry to find financing with other funding opportunities. Our SBTRCs will assist the small business with packaging the financing application and connecting them with a lender who can assist with their financial need.


DBE Certified or SBA Certified under Section 8(a); Small Disadvantaged Business; HUBZONE Empowerment Contracting Program; and Service-Disabled Veterans
Startup businesses are not eligible to apply for the STLP. It is recommended that a business have an established track record.

Funds are not available for equipment purchases; long-term debt; refinance of existing debt; payment of non-current taxes; distributions or other payments to stockholders; or 100% contract mobilization.

Loan Details

Maximum Loan Amount: $750,000

Interest Rate: It is a variable rate tied to the Prime Rate published in the Wall Street Journal.

Loan Term: Normally, the line of credit covers a one-year period.  The applicant has the option of requesting one or more renewals; however, the line of credit cannot exceed five years.  The PL has the option of providing the line of credit for less than one year.  The line of credit amount can be increased during the term if the applicant obtains additional transportation contracts.

Normally covers one-year period and one or more renewals may be requested.

Turnaround Time: 30 to 60 days

Ready to Apply?

Completed loan application should be sent to the Participating Lender (PLs) utilizing the Small Business Transportation Resource Centers (SBTRC) with technical assistance. To find the SBTRC nearest you go to the SBTRC Directory.

Forms and Resources

Information to be included with application

  1. Business and personal financial statements (3 years).
  2. Business and personal income tax returns (3 years).
  3. Cash flow projections (one year).
  4. Current Accounts receivable and accounts payable.
  5. Company profile.
  6. Current Personal Financial Statement (signed & dated).
  7. Certification that all taxes are current.
  8. A minimum of 3 business references.

Participating Lenders

Completed applications may be forwarded to DOT OSDBU or to the PLs. Decisions on STLPs are made by both the Participating Lender (PLs) and by the DOT.

OSDBU Contacts

Financial Assistance Division
Phone: 1-800-532-1169 or 202-366-4102

Frequently Asked Questions

Next Steps

Collateral: Accounts Receivable arising from contracts or subcontracts being financed; also additional personal guarantees or insurance may be requested.

Credit Decision: Lender/DOT

Purchase and Repayment: Funds may be borrowed against each invoice of the contract(s) being financed. Repayment occurs as the project owner or prime contractor pays the invoice. The payment is made jointly to the borrower and to the Participating Lender.  The payment is sent to the bank, which repays the amount borrowed against the invoice and transmits the balance to the borrower.

Fees: Our Participating Lenders are allowed to charge STLP applicants reasonable closing/loan fees that are reasonable in the industry. Please inquire with your lender as to these additional fees you may incur because they cannot be added to the loan amount.

Updated: Wednesday, April 19, 2017
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