12/10/2007

US DOT Loan Guaranty for Small & Disadvantaged Businesses

U.S. Department of Transportation
Office of the Secretary
Office of Small and Disadvantaged Business Utilization

WHAT: US DOT Loan Guaranty for Small & Disadvantaged Businesses

• DOT guarantees up to $750,000 in loans with participating lenders for small & disadvantaged businesses.
• The loan guaranty provides a revolving line of credit for work on transportation related contracts.

WHO CAN APPLY: Businesses that meet the 4 qualifications below.

• 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.
• 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.

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.

PROHIBITED USE OF FUNDS:
The loan guaranty 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

Need More Information?
Call US DOT’s Office of Small and Disadvantaged Business Utilization at 1.800.532.1169 or visit Office of Small and Disadvantaged Business Utilization (OSDBU) website.

US DOT OSDBU ◊ 1200 New Jersey Avenue, S.E., Rm W56-497 Washington, D.C. 20590

• US DOT Loan Guaranty for Small & Disadvantaged Businesses (.pdf 68K)