FEDERAL AGENCY:

OFFICE OF THE SECRETARY, DEPARTMENT OF TRANSPORTATION

AUTHORIZATION:

Public Law 97-449, 49 U.S.C. 332.

OBJECTIVES:

To enhance and further the opportunity of Disadvantaged Business Enterprises (DBEs) to obtain accounts receivable financing for the performance of transportation-related contracts emanating from the DOT, its grantees, recipients, their contractors and subcontractors.

TYPES OF ASSISTANCE:

Direct Loans. Place Cursor Here for Definition

USES AND USE RESTRICTIONS:

The lines of credit are issued in support of transportation related contracts. Transportation related means a contract for the maintenance, rehabilitation, restructuring, improvement, or revitalization of any of the Nation's modes of transportation with any public or commercial provider of transportation or any Federal, State or local transportation agency.

ELIGIBILITY REQUIREMENTS:

Applicant Eligibility:   The recipient of a line of credit must be a certified DBE, minority-owned business enterprise or women-owned business enterprise. These certifications must be performed under DOT guidelines, 49 CFR Part 26. All firms certified by the Small Business Administration as 8(a) firms are eligible to participate in the Lending program.

Beneficiary Eligibility:   Minority, women-owned and disadvantaged business enterprises.

Credentials/Documentation:   Certification letter from the recipient agencies.

Pre-application Coordination:   Information and consultation is available at the Office of Small and Disadvantaged Business Utilization (OSDBU); however applicants are encouraged to get the application information on the loan program from the OSDBU webpage. Also, applicants can request technical assistance from the nearest Small Business Development Center. Telephone: (800) 532-1169 or (202) 366-2852. This program is excluded from coverage under E.O. 12372.

Application Procedure:   Applications are submitted directly to one of the participating banks. Applicants may obtain a copy of the application and identify the bank servicing each region on the OSDBU internet site at: http://osdbuweb.dot.gov or by contacting the OSDBU.

Award Procedure:   All lines of credit are approved through separate decisions by the bank and by DOT and are administered by the bank.

Deadlines:   Not applicable.

Range of Approval/Disapproval Time:   Decisions are made within 30 to 60 days from the time the application is completed.

Appeals:   Not applicable.

Renewals:   DBEs can apply for renewal of existing lines of credit. Renewals and increases in in lines of credit are encouraged.

ASSISTANCE CONSIDERATIONS:

Formula and Matching Requirements:   Not applicable.

Length and Time Phasing of Assistance:   Lines of credit are generally approved for a one year period.

POST ASSISTANCE REQUIREMENTS:

Reports:   Monthly, internal OSDBU reports; reports to the Secretary of Transportation on all line of credit approvals and loan readiness approvals.

Audits:   DOT has the right to audit its accounts with the banks.

Records:   OSDBU maintains records of all applicant files, such as approvals, pending review, loan readiness, denials, etc. All line of credit approvals will be maintained for 7 years and non-approvals will be maintained for 3 years.

FINANCIAL INFORMATION:

Account Identification:   69-0102-0-1-407.

Obligations:   (Loans) FY 01 $6,000,000; FY 02 est $12,000,000; and FY 03 est $8,000,000.

Range and Average of Financial Assistance:  
The maximum line of credit is $750,000. There is no minimum line of credit amount.

During fiscal year 2001, 30 applications have been approved in the amount of $12,000,000.

REGULATIONS, GUIDELINES, AND LITERATURE:

Public Law 97-449, 49 U.S.C. 332.

INFORMATION CONTACTS:

Regional or Local Office:   Not applicable.

Headquarters Office:  
Clinton Dunn 1200 New Jersey Ave., S.E., Washington, District of Columbia 20590 Phone: (800) 532-1169.

Web Site Address:  
http://www.dot.gov

EXAMPLES OF FUNDED PROJECTS:

Not applicable.

CRITERIA FOR SELECTING PROPOSALS:

Not applicable.