The STLP provides short-term working capital to eligible firms for work on transportation contracts. Here we answer some basic questions about the STLP program.

In a nutshell, what is STLP?

The STLP is an initiative to help small businesses gain access to working capital through a working line of credit necessary to participate in transportation related contracts.  STLP guarantees eligible firms a direct loan from a bank at the current prime rate plus two percentage points.

Who is eligible to receive financing?

Three types of businesses are eligible to receive financing:

•  Firms that have received DBE certifica­tion from a state or local transportation agency;

•  Firms that have been certified by the SBA as an 8(a), Small Disadvantaged Business, or HUBZone; and

•  Firms that have received a disability rating by the U.S. Veteran’s Administration and have certified themselves as an SDVOSB.

Please note that start-up businesses are not eligible to receive a STLP line of credit.  These businesses should instead contact SBA regarding other possible forms of financial assistance.

What activities can the funds be used for?

The STLP provides revolving lines of credit to finance accounts receivable arising from “transportation-related contracts.”  “Transportation-related contracts” meet the following criteria:

•  Work involves the maintenance, rehabilitation, re­structuring, improvement, or revitalization of any of the nation’s modes of transportation; and

•  Work is for any public or commercial transportation provider of any federal, sate or local transportation agency. 

The funds can be used only for covering short-term costs of performing the contracts being financed.  For more information, please go to http://www.osdbu.dot.gov.