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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 STLP’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 your transportation industry small business, we will assist your small business to find financing with other funding opportunities. Our Small Business Transportation Resource Centers (SBTRC) will assist your small business with packaging the financing application(s) and connecting you with a lender who can assist with your financial needs.

Eligible Businesses 

Your business must be:

  • Disadvantage Business Enterprise (DBE) Certified
  • SBA 8(a) Certified
  • Small Disadvantaged Business (SDB) Certified
  • HUBzone Empowerment Contracting Program Certified
  • Service-Disabled Veterans Owned Business Certified 

Startup businesses are not eligible to apply for the STLP. It is recommended that a business have an established track record.

Loan Details

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.

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 Participating Lender (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 applications should be sent to the PLs utilizing the SBTRCs. 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 OSDBU's SBTRCs. Decisions on STLP applications are made by both the PL and the USDOT.

OSDBU Contacts

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


Next Steps

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

Credit Decision: PL/USDOT

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 PL. 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, June 28, 2017
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