Valley Transportation Authority

SBTRC OVERVIEW & SHORT TERM LENDING PROGRAM (STLP)

October 3, 2013Scott Leslie, Project Director

Southwest Region Small Business Transportation Resource CenterThe California Asian Pacific Chamber of Commerce

U.S. Department of TransportationOffice of Small and Disadvantaged Business Utilization Grantee

Topics for discussion include:

• Brief overview of DOT, OSDBU and SBTRC

• Southwest Region SBTRC

• Short Term Lending Program Description

DOT MISSION

Serve the United States by ensuring a fast, safe,efficient, accessible and convenient transportationsystem that meets our vital national interests andenhances the quality of life of the American people,today and into the future.

OSDBU MISSION:

To ensure that small and disadvantaged business policies and goals of the

Secretary of Transportation are implemented in a fair, efficient and effective

manner to serve small and disadvantaged businesses throughout DOT and the

nation by providing opportunities, technical assistance and financial services.

OSDBU Objectives

Advocate for small businessCreate opportunities at the local, state and federal level

Provide technical assistanceProvide financial services

Small Business Transportation Resource Center - SW

• Serving small and disadvantaged businesses in Arizona, California, Hawaii and Nevada.

• Headquartered in Sacramento, CA - Operated by the California Asian Pacific Chamber of Commerce (CAPCC)

• Provides assistance with OSDBU programs, i.e. STLP

• Provides counseling, technical assistance, training, and information dissemination to businesses that have or have the potential to do business with public and private entities in the transportation industry

Short Term Lending Program (STLP)

OSDBU

Short Term Lending Program (STLP) Description

Provides a loan guarantee on a revolving line of credit

Primary collateral is receivables from transportation contract(s)

Participants can apply for renewal for up to 5 years

cont. STLP program description

• Maximum loan amount $750,000

• Subcontract at any tier in transportation related field

• Application fee of $150.00 payable to the bank

• Interest rate based on WSJ variable rate

OSDBU

STLP Eligibility Requirements

(a) Certified as a DBE under DOT certification guidelines (49 CFR, part 23 & 26)

- or -certified by the U.S. SBA 8(a) program, Hubzone, Disabled Veteran or Service Disabled Veteran Owned Business

(b) Have a current contract with a US DOT mode or state or local entity funded by US DOT, i.e. Hawaii DOT, CalTrans, FAA, FTA

(c) Must be current on federal taxes

OSDBU

STLP Eligible Activities

Eligible contracts must be for the maintenance, rehabilitation, restructuring, improvements, or revitalization of any of the nation’s transportation modes – public, commercial, Federal, State, or local agency

OSDBU

Funds may NOT be used for:

-Contract mobilization

-Equipment purchases or other long term uses

-Refinance of existing debts

-Payment of non-current taxes

-Distributions or other

-Payments to stock holders

The STLP is administered by the DOT OSDBU through cooperative agreements between DOT and severalSTLP Participating Lenders (PLs)

Loan documentation and financingtransactions are performed by theParticipating Lender (PL)

Loan application processing turnaround is 30-60 days, excluding packaging and SBTRC assistance

Program Administration

1. DOT OSDBU STLP application, dated and signed.

2. Prepare Documentation: Proper documentation is listed on the STLP Application Checklist. See SBTRC for review.

3. Submit to Participating Lender (PL) for Approval

4. After PL approves the loan, DOT will receive a copy of the application package to review and make a final decision on the loan guarantee request.

Complete STLP Application and Submit to Bank

Funds are borrowed against each invoiceof the contract(s)

Repayment occurs as the project owner or prime contractor pays the invoice. Thepayment is made jointly to the borrowerand to the PL Bank and is sent to thebank, which repays the amount borrowedagainst the invoice and transmits thebalance to the borrower

Funds Administration

HOW TO APPLY: KEY STEPS

ESTABLISHELIGIBILITY

COMPLETE APPLICATION & PREPARE PROPER

DOCUMENTATION

SUBMIT COMPLETED APPLICATION PACKAGE TO SBTRC FOR REVIEW

AFTER SBTRC PACKAGE REVIEW,SUBMIT APPLICATION PACKAGE AND

FEE TO PARTICIPATING LENDER

Scott LeslieProject Director, SBTRCsleslie@calasiancc.org

Ph: (916) 443-59572012 H Street, Suite 101Sacramento, CA 95811

Fax: (916) 446-7098

www.osdbu.dot.gov

Southwest Region Small Business Transportation Resource Center (SBTRC):