Presentation PPT Office of Small and Disadvantaged Business .ppt by longze569

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									SHORT TERM LENDING PROGRAM


Small Business Vendor Day
        “Access to Capital”

      Wednesday November 13, 2009
                  Nancy Strine, Manager
               Financial Assistance Division
            U.S. Department of Transportation
 Office of Small and Disadvantaged Business Utilization
         Financial Assistance Division


• Provides a variety of financial assistance tools
  for your company to grow
• Short Term Lending Program (STLP)
• Disadvantaged Business Enterprise (DBE)
  American Recovery and Reinvestment Act
  (ARRA) Bonding Assistance Reimbursement
  Fee Program (BAP)
• Financial Maintenance tips for your company
• How to improve your credit
• Technical Assistance to obtain credit
                  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 (6-6.5%)
                             OSDBU


      STLP ELIGIBILITY REQUIREMENTS

(a) CERTIFIED AS A DBE UNDER DOT CERTIFICATION
       GUIDELINES (49 CFR, PART 23 & 26)
                            - OR -
    CERTIFIED BY THE U.S. SMALL BUSINESS ADMINISTRATION
       SECTION 8(A) PROGRAM, HUBZONE, DISABLED VETERAN
       OR SERVICE DISABLED VETERAN OWNED BUSINESS

(b) HAVE A CURRENT TRANSPORTATION-RELATED CONTRACT

(c) MUST BE CURRENT ON FEDERAL TAXES
                                 OSDBU

          STLP ELIGIBLE ACTIVITIES


Maintenance, rehabilitation, restructuring,
improvements, or revitalization of any of the
nation’s transportation modes – public,
commercial, Federal, State, or local agency

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
            PROGRAM ADMINISTRATION

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

 Loan documentation and financing
  transactions are performed by the
  Participating Lender (PL)

 Loan application processing turnaround
  is 30-60 days
HOW TO APPLY: KEY STEPS

    ESTABLISH
    ELIGIBILITY

 COMPLETE APPLICATION
   & PREPARE PROPER
     DOCUMENTATION


        SUBMIT
      COMPLETED
 APPLICATION & FEE TO
  PARTICIPATING LENDER
                 DBE ARRA BAP

• Program authority: American Recovery and
  Reinvestment Act (ARRA) (P.L. 111-5, February 17,
  2009 to be administered pursuant to 49 U.S.C. § 332(e)

•    Disadvantaged Business Enterprises (DBE) performing
    on a transportation infrastructure project receiving ARRA
    funding from any DOT mode of transportation will
    receive financial bonding assistance in the form of
    bonding fee cost reimbursement.

•    DOT will directly reimburse DBEs the premiums paid to
    the surety company for performance, payment or
    bid/proposal bonds.
                   BONDS FEES
                   REIMBURSED
• The range of the premium fee is between 1-3%
  of the total bond amount.

•    In the event the DBE also obtains a bond
    guarantee from the Small Business
    Administration’s (SBA) Surety Bond Guarantee
    Program (SBGP), the DOT will also reimburse
    the DBE for the small business concern
    (principal) fee of .729% of the contract price.
Dates of Eligibility

• Aug 28, 2009 – Sept 8, 2010

• NO RETROACTIVE REIMBURSEMENT
                     Eligibility
• Certified as a DBE under DOT certification guidelines
  (49 CFR Part 23 & 26)

•    Have an ARRA transportation infrastructure related
    contract

•    Have a current Data Universal Numbering System
    (DUNS) - Dun and Bradstreet

•    Be registered in the Central Contractor Registration
    (CCR), www.CCR.gov, complete with bank information
    for electronic payment
                    Application Process

• DBE will submit an application for reimbursement along
  with all required supporting documents (electronically
  filed or sent via mail)

• OSDBU will review the submitted application to
  determine eligibility. FHWA will be maintaining a master
  file of ARRA project numbers from all of the OAs for
  verification of the federal project number.

• Approved applications will be sent to Budget with
  supporting documentation to be paid as an unmatched
  invoice. OSDBU will request expedited payment to be
  between 12 and 15 business days.
       Benefits of DBE ARRA BAP
• Can assist the DBEs short term cash infusion

•    Enable the DBE to reduce cost estimate - 2-4%
    the cost of obtaining the bond

•    Can help the Primes not have to carry the
    DBEs in their bonding capacity

•    Can make the DBE become stronger, more
    competitive in order to go after bigger contracts
DOT Resources

• http://www.dot.gov/recovery/ost/osdbu/

•   Email: bap.arra@dot.gov

•   Phone: 1-800-532-1169
          Resources if DBEs are not
              Bond Ready
• NASBP – www.nasbp.org
• SIO – www.sio.org/LSAdirectory.html
• SFAA – www.sfaa.org
• SBA Bond Guarantee Program –
  http://www.sba.gov/aboutsba/sbaprograms/osg/i
  ndex/html
• Contact a local bond producer and start the
  bonding process
                         Improving your credit

PERSONAL
                                                      BUSINESS
•   Keep track of your credit/credit card
    statements                                        •   Make sure your business name is
                                                          consistent, not using aka's, and you follow
•   Pay the highest balances first                        state naming policies
•   Try maintain a 30% balance                        •   Incorporate your business, get an
•   Do not apply for many credit cards or loans           Employee Identification Number (EIN) from
    within a short time frame, this will lower your       the IRS
    score                                             •   Get a business phone line with a 411/yellow
•   Do not cancel inactive credit cards, allowing         pages listing
    them to cancel will boost your score              •   Open a business banking account at a local
•   Apply for department store credit cards, but          small community bank
    pay them off on time                              •   Take your phone bill and business bank
•   Pay more than the bare minimum each                   account info to your local business supply
    month                                                 store –open an account, buy some office
•   Sign up for a free credit report with                 supplies, charge it, and pay it off within thirty
    www.annualcreditreport.com and monitor                days
    your credit for mistakes or potential fraud       •   Monitor your credit
                                                      •   Do not close bad or inactive accounts
                                                      •   Keep your credit balance within 20-30% of
                                                          your limit
                                                      •   Make sure your vendors are reporting your
                                                          payments –check often
   Financial Maintenance Tips and Technical
                   Assistance

Cash Flow Management; Preparing Your Cash
     Flow Statement; Accounting for Your
    Business; Work In Progress; Accounts
   Receivable and Account Payables forms;
      building your track record through
          performance emails/letters

       Website: http://osdbuweb.dot.gov
(STLP) Short Term Lending Program Contacts
                  Nancy Strine, Manager
               Financial Assistance Division
                   Tel: (202) 366-1930
               Email: nancy.strine@dot.gov

              Grant Smith, Financial Analyst
               Financial Assistance Division
                   Tel: (202) 366-5577
               Email: grant.smith@dot.gov

                U.S. Department of Transportation
     Office of Small and Disadvantaged Business Utilization
                     1200 New Jersey Ave SE
                     5th Floor, Room W56-497
                      Washington, DC 20590
BANK CONTACT INFORMATION

 ADAMS NATIONAL BANK
   1130 Connecticut Ave., NW
     Washington, DC 20036


        Susan Banks
    VP, Commercial Lending
     Telephone: (202) 772-3721
   Email: sbanks@adamsbank
  Website: www.adamsbank.com
     Tiffany King
Project Director, SBTRC

       105 N. 22nd Street
Philadelphia, Pennsylvania 19103
       Ph: (215) 399-0062
      Fax: (215) 399-0063
    Email: tking@gpmbsa.com
   Website: www.gpmbsa.com

								
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