49 CFR 22.11 – Eligibility criteria
(a) Eligible Borrower. To be eligible to apply for a STLP loan guarantee, a borrower must meet the following requirements:
Terms Used In 49 CFR 22.11
- Contract: A legal written agreement that becomes binding when signed.
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
(1) Be a for-profit entity;
(2) Have an eligible transportation-related contract;
(3) Demonstrate an eligible use for the desired credit;
(4) Be an established business with experience in the transportation industry and trade for which the STLP loan is sought;
(5) Be certified as a DBE or have another eligible certification issued by the SBA; and
(6) Be current on all federal, state, and local tax liabilities.
(b) Eligible Transportation-Related Contract. Any fully-executed transportation-related contract, subcontract, or purchase order held directly with DOT or with grantees and recipients receiving federal funding from DOT for the maintenance, rehabilitation, restructuring, improvement or revitalization of any of the nation’s modes of transportation shall be considered an eligible contract.
(c) Eligibility Period. A borrower is eligible for participation in the STLP for a period up to a total of five (5) years. The STLP renewal is not automatic. The borrower has to demonstrate its continued eligibility and creditworthiness for STLP and must submit a complete application package.
(1) The continued eligibility of any borrower who would exceed the period limit in paragraph (c) of this section will be determined on a case-by-case basis by the OSDBU Director and is subject to the following provisions:
(i) The STLP loan guarantee may be reduced; and
(ii) The STLP loan interest rate may be increased.
(2) Should any borrower currently in the STLP become ineligible per paragraph (a) of this section during the term of a STLP loan, the failure to comply with a specific requirement must be brought to the immediate attention of all remaining parties.
(3) Borrower ineligibility may result in a termination of the current guarantee.