Federal Register / Vol. 75, No. 71 / Wednesday, April 14, 2010 / Rules and Regulations 19285 

(iii) There are no limitations on the 

number of frequencies that may be 

trunked. Authorizations for non-SMR 

stations may be granted for up to 20 

trunked frequency pairs at a time in 

accordance with the frequencies listed 

in §§ 90.615, 90.617, and 90.619. 

(2) For conventional systems the 

assignment of frequencies will be made 

in accordance with applicable loading 

criteria. Accordingly, depending upon 

the number of mobile units to be served, 

an applicant may either be required to 

share a channel, or, if an applicant 

shows a sufficient number of mobile 

units to warrant the assignment of one 

or more channels for its exclusive use, 

it may be licensed to use such channel 

or channels on an unshared basis in the 

area of operation specified in its 

application. 

(i) Channels will be chosen and 

assigned in accordance with §§ 90.615, 

90.617, or 90.619. 

(ii) A mobile station is authorized to 

transmit on any frequency assigned to 

its associated base station. 

* * * * * 

PART 95—PERSONAL RADIO 

SERVICES 

■ 14. The authority citation for part 95 

continues to read as follows: 

Authority: Secs. 4, 303, 48 Stat. 1066, 

1082, as amended; 47 U.S.C. 154, 303. 

■ 15. Section 95.1101 is revised to read 

as follows: 

§ 95.1101 Scope. 

This subpart sets out the regulations 

governing the operation of Wireless 

Medical Telemetry Devices in the 608– 

614 MHz, 1395–1400 MHz, and 1427– 

1432 MHz frequency bands. See 

§ 95.630 regarding permissible 

frequencies. 

■ 16. Section 95.1103 is amended by 

revising paragraph (c) to read as follows: 

§ 95.1103 Definitions. 

* * * * * 

(c) Wireless medical telemetry. The 

measurement and recording of 

physiological parameters and other 

patient-related information via radiated 

bi-or unidirectional electromagnetic 

signals in the 608–614, 1395–1400 MHz 

and 1427–1432 MHz frequency bands. 

■ 17. Section 95.1111 is amended by 

revising paragraph (a) introductory text 

and adding paragraph (c) to read as 

follows: 

§ 95.1111 Frequency coordination. 

(a) Prior to operation, authorized 

health care providers who desire to use 

wireless medical telemetry devices must 

register all devices with a designated 

frequency coordinator. Except as 

specified in § 95.1105, operation of 

WMTS equipment prior to registration 

is not authorized under this part. The 

registration must include the following 

information: 

* * * * * 

(c) As of April 14, 2010, no 

registrations may be accepted for 

frequencies where WMTS does not have 

primary status. Previously registered 

secondary facilities may continue to 

operate as registered. 

■ 18. Section 95.1115 is amended by 

revising paragraphs (a)(2) and (d)(1) as 

follows: 

§ 95.1115 General technical requirements. 

(a) * * * 

(2) In the 1395–1400 MHz and 1427– 

1432 MHz bands, the maximum 

allowable field strength is 740 mV/m, as 

measured at a distance of 3 meters, 

using measuring equipment with an 

averaging detector and a 1MHz 

measurement bandwidth. 

* * * * * 

(d) * * * 

(1) In the 1395–1400 MHz and 1427– 

1432 MHz bands, no specific channels 

are specified. Wireless medical 

telemetry devices may operate on any 

channel within the bands authorized for 

wireless medical telemetry use in this 

part. 

* * * * * 

■ 19. Section 95.1121 is revised to read 

as follows: 

§ 95.1121 Specific requirements for 

wireless medical telemetry devices 

operating in the 1395–1400 and 1427–1432 

MHz bands. 

Due to the critical nature of 

communications transmitted under this 

part, the frequency coordinator in 

consultation with the National 

Telecommunications and Information 

Administration shall determine whether 

there are any Federal Government 

systems whose operations could affect, 

or could be affected by, proposed 

wireless medical telemetry operations in 

the 1395–1400 MHz and 1427–1432 

MHz bands. The locations of 

government systems in these bands are 

specified in footnotes US351 and US352 

of § 2.106 of this chapter. 

[FR Doc. 2010–7648 Filed 4–13–10; 8:45 am] 

BILLING CODE 6712–01–P 

DEPARTMENT OF TRANSPORTATION 

Office of the Secretary 

49 CFR Part 22 

[Docket No OST–2008–0236] 

RIN 2105–AD50 

Short-Term Lending Program (STLP) 

AGENCY: Office of the Secretary (OST), 

Department of Transportation (DOT). 

ACTION: Final rule. 

SUMMARY: This final rule governs the 

Short Term Lending Program (STLP), 

which provides financial assistance in 

the form of guarantees of short-term 

revolving lines of credit from 

Participating Lenders (PLs) to 

disadvantaged Business Enterprises 

(DBEs) and other certified small and 

disadvantaged business (SDBs) in 

connection with transportation-related 

contracts at the local, state and federal 

levels. The program is administered 

through cooperative agreements 

between DOT’s Office of Small and 

Disadvantaged Business Enterprise 

(OSDBU) and Participating Lenders and 

under the STLP’s governing policies and 

procedures. 

DATES: This rule is effective May 14, 

2010. 

FOR FURTHER INFORMATION CONTACT: 

Nancy Strine, Financial Assistance 

Division Manager, U.S Department of 

Transportation, OSDBU, 1200 New 

Jersey Ave, SE., Room W56–497, 

Washington, DC 20590. Telephone: 

(800) 532–1169 or e-mail: 

Nancy.Strine@dot.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

On August 21, 2008, the Office of 

Small and Disadvantaged Business 

Utilization (OSDBU) of the Office of the 

Secretary (OST) of the Department of 

Transportation (DOT) issued a Notice of 

Proposed Rulemaking (NPRM) in Docket 

OST–2008–0236 proposing to adopt 

regulations governing its Short Term 

Lending Program (STLP) and published 

the NPRM in the Federal Register. See 

‘‘Department of Transportation, Office of 

the Secretary, 49 CFR part 22 [Docket 

NO: OST–2008–0236], RIN 2105–AD50, 

73 FR 49386 et seq. (August 21, 2008).’’ 

In the NPRM, we announced that we 

were considering regulations to replace 

the internal policies and guidelines that 

had for years been used to manage the 

STLP. 

As noted in the NPRM, the Secretary 

of Transportation has delegated the 

authority to carry out the functions in 


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section 906 of the Railroad 

Revitalization and Regulatory Reform 

Act of 1976 (Pub. L. 940–210, as 

amended) known as the Minority 

Business Resource Center Program, 

which includes a guaranteed loan 

program, to the Director of DOT’s 

OSDBU. 49 U.S.C. 332 authorizes DOT’s 

OSDBU to establish, under the Minority 

Business Resource Center, programs that 

would assist disadvantaged business 

enterprises (DBEs) and small 

disadvantaged businesses (SDBs) in 

acquiring access to working capital and 

to debt financing, in order to obtain 

transportation-related contracts wholly 

or partially funded by DOT. To 

implement this authority, OSDBU 

developed its Short Term Lending 

Program (STLP) which offers DBE’s and 

other certified small and disadvantaged 

businesses short term working capital 

loans at variable interest rates to 

perform on these transportation-related 

contracts. 

Initially developed in 1989 as a direct 

loan program, the STLP was converted 

in 2001 to a loan guarantee program 

under which private sector Participating 

Lenders offer loans with a government 

guarantee of up to 75 percent for 

qualified applicants. 

These loans are revolving lines of 

credit that provide working capital 

funds to assist the borrower in financing 

the direct labor and material costs of 

completing transportation contracts. 

The contracts that are funded are 

assigned to the loan as collateral, and 

the Participating Lender advances 

monies up to 85% of eligible and 

approved Accounts Receivable that arise 

from the Assigned Contract(s). The 

contracts must be transportation-related 

and receive at least one dollar of DOT 

funding. Repayment comes in the form 

of a two-party check to the borrower and 

to the PL directly from the contract 

proceeds. The total length of time that 

an eligible borrower may remain in the 

program cannot exceed a total of five 

years. 

DOT monitors these loans, which 

require contract assignments and direct 

joint payee check remittances for 

principal repayment, through its 

relationship with the transportation 

agencies and recipients that receive 

DOT funds and the Participating 

Lenders. In recent years the total funds 

available for full principal amount of 

loans under the STLP has been limited 

to $18,367,000 per fiscal year. 

We pointed out in the NPRM that the 

STLP has undergone an extensive 

program review to improve its business 

processes and achieve operational and 

financial efficiencies and that, as part of 

this effort, we were asking for comments 

on proposed regulations to replace the 

internal policies and guidelines that 

were being used to manage the program. 

We received no comments in response 

to the NPRM. 

We have determined to adopt the rule 

as proposed, with one minor exception. 

In the NPRM, we proposed to include as 

part of the rule copies of the actual 

forms to be used by DBEs and 

Participating Lenders for various aspects 

of the STLP, such as Loan Activation, 

Loan Extension, Loan Close-out, and 

various certifications required for loan 

applications. Because those forms may 

be amended and in order to make upto-date forms more easily accessible to 

DBEs and Participating Lenders, we 

have determined that it would be in the 

public interest to make those forms 

available through the OSDBU Web site 

instead of including them with the rule 

itself. Accordingly, changes to the final 

rule have been made to accomplish this 

objective, including providing the 

appropriate Web site address for each 

form. 

Section-by-Section Analysis 

The proposed regulations utilize 

objective, plain language in an attempt 

to make the regulations more 

understandable to Participating Lenders, 

DBEs and other small and 

disadvantaged businesses. 

§ 22.1 Purpose: The purpose of the 

DOT OSDBU STLP is to provide 

financial assistance, in the form of a 

short-term loan from Participating 

Lenders that is guaranteed by DOT 

OSDBU, to DBE’s and other certified 

small businesses for the execution of 

DOT funded and supported 

transportation-related contracts. 

§ 22.3 Definitions: This section 

contains definitions of common banking 

and lending terminology included in 

STLP documents and the STLP Policy 

and Procedure Manual. 

§ 22.11 Eligibility Criteria: Paragraph 

(a) defines those requirements needed in 

order to qualify for a STLP loan. 

Paragraph (b) clarifies what instrument 

qualifies as a ‘‘transportation-related 

contract,’’ and paragraph (c) explains the 

maximum length of time in which a 

qualified business may remain as an 

STLP borrower, as well as what 

circumstances and documentation are 

required on an annual basis in order to 

remain eligible. 

§ 22.13 Loan Terms and Conditions: 

Section 22.13 describes the parameters 

of the Short Term Lending Program, 

including: maximum loan amount, 

interest rates, the term and structure of 

the loan, source of funds for loan 

repayment, allowable uses of the loan 

proceeds, how loan disbursements are 

made, as well as any personal 

guarantees, collateral or insurance. 

§ 22.15 Delinquency on Federal, 

State, or Municipality Debt: This section 

provides that the borrower must be 

current on all federal, state, and local 

taxes to be able to participate in the 

program. 

§ 22.17 Compliance with Child 

Support Obligations: STLP applicants 

must submit a certification that he or 

she is not more than 60 days delinquent 

in child support payments. The Office 

of Management and Budget (OMB) 

Circular No. A–129, Revised (Policies 

for Federal Credit Programs and NonTax Receivables) prohibits individuals 

that are delinquent in child support 

obligations from eligibility for Federal 

financial assistance. 

§ 22.19 Credit Criteria: Section 22.19 

describes the required creditworthiness 

of an STLP applicant, and lists those 

aspects of creditworthiness that OSDBU 

will consider in its evaluation of an 

STLP application. 

§ 22.21 Participation Criteria: 

Section 22.21 describes the criteria for 

banks in order to qualify as STLP 

Participating Lenders, including 

certifications, documentation, history of 

community involvement, loan 

experience, and the ability to 

implement, monitor and manage this 

loan program. 

§ 22.23 Agreement: Section 22.23 

describes the Cooperative Agreement 

that is executed between DOT and the 

Participating Lender that defines the 

relationship between the two, as well as 

the responsibilities and obligations of 

each party with regard to the STLP. 

§ 22.25 Lender Deliverables and 

Delivery Schedule: This section 

describes the obligation of the 

Participating Lenders to adhere to 

established deadlines for actions, such 

as the submission of periodic reports 

and site visits. 

§ 22.27 Eligible Reimbursements to 

Participating Lenders: Section 22.27 

describes the fees and expenses for 

which Participating Lenders are eligible 

to be reimbursed. 

§ 22.29 DOT Access to Participating 

Lenders’ Files: Section 22.29 describes 

the policy that governs DOT access to 

Participating Lenders’ records and files. 

§ 22.31 Suspension or Revocation of 

Eligibility to Participate: This section 

describes the circumstances under 

which the STLP eligibility of a 

Participating Lender may be suspended 

or revoked, and the notification 

procedure for such an action. 

§ 22.33 Termination of Participation 

in STLP: Section 22.33 explains the 

situations under which the cooperative 

agreement between DOT OSDBU and 


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the Participating Lender may be 

terminated, by either party, and the 

notification procedure for such action. 

§ 22.41 Application Procedures: 

Describes the complete STLP 

application process, the supporting 

documentation that must accompany 

the STLP application, and the 

submission process of the application to 

the Participating Lender. 

§ 22.43 Approval or Denial: Section 

22.43 describes what will occur when 

an application is approved or denied, 

and the method of notification. 

§ 22.45 Allowable Fees to Borrowers: 

This section describes those fees that a 

Participating Lender may collect from 

the borrower. 

§ 22.51 Loan Closing: Section 22.51 

discusses the process that the 

Participating Lender must follow to 

close and execute an STLP loan to a 

recipient. 

§ 22.53 Loan Monitoring and 

Servicing Requirements: Section 22.53 

describes what is required of the 

Participating Lender insofar as the 

monitoring and servicing of an STLP 

loan. 

§ 22.57 Loan Reporting 

Requirements: Section 22.57 clarifies 

that the STLP loan is subject to the 

Federal Credit Reform Act of 1990, and 

describes those reporting requirements 

that a Participating Lender must 

undertake to keep DOT OSDBU 

informed of the borrower’s compliance 

with the terms of the STLP loan. 

§ 22.59 Loan Modifications: 

Describes the procedure that the 

Participating Lender must follow for any 

proposed modifications of the terms of 

the guarantee agreement between DOT 

OSDBU and the Participating Lender. 

§ 22.61 Loan Guarantee Extensions: 

Section 22.61 describes the process 

under which an extension of the loan 

guarantee may be requested and 

granted. 

§ 22.63 Loan Close Outs: Section 

22.63 describes the process for closing 

out an STLP loan in DOT’s records that 

has been fully repaid. 

§ 22.65 Subordination: Section 22.65 

describes the parameters of a 

subordination of the line of credit in 

which the debt guarantee of DOT 

OSDBU has priority over any other debt 

of the borrower. 

§ 22.67 Delinquent Loans and Loan 

Defaults: This section describes the 

notification procedure that a 

Participating Lender must undertake 

whenever an STLP loan is delinquent. 

This section also indicates the possible 

collection or litigation processes that are 

available in the event of loan 

delinquency or default. 

§ 22.69 Claim Process: Section 22.69 

describes the action that the 

Participating Lender may take once all 

means for the collection of a delinquent 

debt have been exhausted. 

Regulatory Analyses and Notices 

A. Executive Order 12866 (Regulatory 

Planning and Review) 

This proposed rule is not a 

‘‘significant regulatory action’’ under 

section 3(f) of Executive Order 12866, 

Regulatory Planning and Review, and 

does not require an assessment of 

potential costs and benefits under 

section 6(a)(3) of the Order, as it does 

not have an annual effect on the 

economy of $100 million or more, nor 

affect the economy adversely; does not 

interfere or cause a serious 

inconsistency with any action or plan of 

another agency; does not materially alter 

the impact of entitlements, grants, user 

fees or loan programs; and does raise 

novel legal or policy issues. The rule is 

essentially a streamlining of the 

provisions for implementing an existing 

program, and it will not create 

additional burdens on program 

participants. 

B. Executive Order 12372 

(Intergovernmental Review) 

The STLP is not subject to the 

provisions of Executive Order 12372, 

which requires intergovernmental 

consultation with state and local 

officials that would provide the nonFederal funds for, or that would be 

directly affected by, proposed Federal 

financial assistance or direct Federal 

development, as the STLP program 

facilitates the participation of small and 

disadvantaged businesses in fully or 

partially federally funded local and state 

transportation projects. 

C. Regulatory Flexibility Act 

In compliance with the Regulatory 

Flexibility Act (5 U.S.C. 601–612), I 

certify that this rule will not have a 

significant economic impact on a 

substantial number of small entities. 

The rule will not place burdens on 

small entities. Rather, the rule is 

intended to provide benefits to small 

entities by providing a loan guarantee 

for DBEs and SDBs who require 

financial assistance to perform on 

transportation-related contracts. 

D. Executive Order 13132 (Federalism) 

A rule has implications for federalism 

under Executive Order 13132, 

Federalism, if it has a substantial direct 

effect on State or local governments and 

would either preempt State law or 

impose a substantial direct cost of 

compliance on them. We have analyzed 

this proposed rule under the Order and 

have determined that it does not have 

implications for federalism, as the loan 

program creates relationships and 

obligations between a borrower (usually 

a sub-contractor), a prime contractor, a 

Participating Lender and DOT/OSDBU 

only. 

E. Paperwork Reduction Act 

As required by the Paperwork 

Reduction Act of 1995, DOT has 

submitted the Information Collection 

Requests (ICRs) below to the Office of 

Management and Budget (OMB). Before 

OMB decides whether to approve these 

proposed collections of information and 

issue a control number, the public must 

be provided 30 days to comment. 

Organizations and individuals desiring 

to submit comments on the collection of 

information should direct them to the 

Office of Management and Budget, 

Attention: Desk Officer for the Office of 

the Secretary of Transportation, Office 

of Information and Regulatory Affairs, 

Washington, DC 20503, and should also 

send a copy of their comments to 

Department of Transportation, OSDBU, 

1200 New Jersey Ave, SE., Washington, 

DC 20590. OMB is required to make a 

decision concerning the collection of 

information requirements contained in 

this rule between 30 and 60 days after 

publication of this document in the 

Federal Register. Therefore, a comment 

is best assured of having its full effect 

if OMB receives it within 30 days of 

publication. 

We will respond to any OMB or 

public comments on the information 

collection requirements contained in 

this rule. OST OSDBU may not impose 

a penalty on persons for violating 

information collection requirements 

which do not display a current OMB 

control number, if required. OST 

OSDBU intends to obtain current OMB 

control numbers for the new 

information collection requirements 

resulting from this rulemaking action. 

The OMB control number, when 

assigned, will be announced by separate 

notice in the Federal Register. 

The ICRs were previously published 

in the Federal Register as part of NPRM 

[73 FR 49386] and the Department 

invited interested persons to submit 

comments on any aspect of these ICRs, 

including: (1) Whether the proposed 

collection is necessary for the OSDBU’s 

performance; (2) the accuracy of the 

estimated burdens; (3) ways for OSDBU 

to enhance the quality, usefulness, and 

clarity of the collected information; and 

(4) ways that the burden could be 

minimized without reducing the quality 

of the collected information. 


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For each of these information 

collections, the title, a description of the 

entity to which it applies, and an 

estimate of the annual recordkeeping 

and periodic reporting burden are set 

forth below. 

It is estimated that the total burden 

hours for 100 Participating Lenders to 

qualify as such, monitor loans, comply 

with monthly reporting and retain loan 

records to be approximately 8,000 hours 

per year. It is estimated that the total 

burden hours for 100 borrowers to 

complete the STLP application, with 

supporting documentation, loan 

renewals and the submission of the 

same, to be approximately 2,700 hours. 

Title: Short Term Lending Program— 

Participating Lenders—Qualifying 

Criteria. 

Background: OSDBU’s Short Term 

Lending Program (STLP) offers certified 

Disadvantaged Business Enterprises 

(DBEs) and other Certified Small 

Businesses (8a, women-owned, small 

disadvantaged, HubZone, veteranowned, and service-disabled veteranowned) the opportunity to obtain shortterm working capital at prime interest 

rates for transportation-related projects. 

The STLP provides up to a 75% 

guaranteed revolving line of credit for a 

maximum of $750,000 to finance 

accounts receivable arising from 

transportation-related contracts. The 

primary collateral consists of the 

proceeds of the transportation-related 

contracts. These loans are provided 

through banks that serve as STLP 

Participating Lenders (PL). 

Participating Lender Qualifying Criteria 

As a requirement for approval as a 

Participating Lender, banks must submit 

documentation that demonstrates: 

(A) Their philosophy and history of 

lending to small and disadvantaged 

businesses in their communities. As 

part of their submission, the bank must 

show these efforts in relationship to its 

overall lending portfolio. 

Respondents: 100. 

Frequency: Once. 

Estimated Average Burden per 

Response: 3 hours. 

Estimated Total Annual Burden 

Hours: 300 hours. 

(B) Their experience in administering 

monitored lines of credit, such as 

construction loans, accounts receivable 

financing, and/or contract financing for 

at least two years. Such experience 

should be held by any Participating 

Lender representative managing, 

reviewing or authorizing STLP loan 

portfolios. 

Respondents: 100. 

Frequency: Once. 

Estimated Average Burden per 

Response: 1⁄2 hour. 

Estimated Total Annual Burden 

Hours: 50 hours. 

(C) At least two (2) years experience 

with other federal government lending 

programs such as U.S. Small Business 

Administration (SBA), Agriculture Rural 

Development, Bureau of Indian Affairs 

(BIA), Economic Development 

Administration (EDA), Department of 

Housing and Urban Development 

(HUD), Export Import Bank of the 

United States and/or state loan 

programs. 

Respondents: 100. 

Frequency: Once. 

Estimated Average Burden per 

Response: 1⁄2 hour. 

Estimated Total Annual Burden 

Hours: 50 hours. 

(D) At least a satisfactory or better 

Community Reinvestment Act (CRA) 

rating. 

Respondents: 100. 

Frequency: Once. 

Estimated Average Burden per 

Response: 15 minutes. 

Estimated Total Annual Burden 

Hours: 25 hours. 

(E) The ability to implement, monitor 

and manage a two-party payee check 

system, in which the Participating 

Lender and borrower are joint payees of 

any checks paid to the borrower for 

performance under the assigned 

contract(s). 

Respondents: 100. 

Frequency: Once. 

Estimated Average Burden per 

Response: 15 minutes. 

Estimated Total Annual Burden 

Hours: 25 hours. 

(F) That it is not currently debarred or 

suspended from participation in a 

government contract or delinquent on a 

government debt by submitting a 

current form DOT F 2309–1 

Certification Regarding Debarment, 

Suspension. The certification form is 

available at http://www.osdbu.dot.gov/ 

financial/docs/ 

Cert_Debarment_DOT_F_2309-1.pdf. 

Respondents: 100. 

Frequency: Once. 

Estimated Average Burden per 

Response: 15 minutes. 

Estimated Total Annual Burden 

Hours: 25 hours. 

(G) That it is a drug-free workplace by 

executing a current form DOT F 2307– 

1 Drug-Free Workplace Act Certification 

for a Grantee Other Than an Individual. 

The certification form is available at 

http://www.osdbu.dot.gov/financial/ 

docs/Cert_Drug-Free_DOT_F_2307- 

1.pdf. 

Respondents: 100. 

Frequency: Once. 

Estimated Average Burden per 

Response: 15 minutes. 

Estimated Total Annual Burden 

Hours: 25 hours. 

(H) That no Federal funds will be 

utilized for lobbying by executing a 

current form DOT F 2308–1 Certificate 

Regarding Lobbying For Contracts, 

Grants, Loans, and Cooperative 

Agreements in compliance with Section 

1352, Title 21, of the U.S. Code. The 

certification form is available at http:// 

www.osdbu.dot.gov/financial/docs/ 

Cert_Lobbying_DOT_F_2308-1.pdf. 

Respondents: 100. 

Frequency: Once. 

Estimated Average Burden per 

Response: 15 minutes. 

Estimated Total Annual Burden 

Hours: 25 hours. 

Participating Lender Record Retention 

A Participating Lender must allow the 

authorized representatives of OSDBU, as 

well as representatives of the Office of 

Inspector General (OIG) and General 

Accountability Office (GAO), access to 

its STLP loan files to review, inspect, 

and copy all records and documents 

pertaining to OSDBU guaranteed loans. 

The PL shall retain all documents, files, 

books, and records relevant to the 

execution and implementation of the 

terms of its Cooperative Agreement with 

OSDBU for a period of not less than 

three years from the date of termination 

of the Cooperative Agreement or 

payment in full from the borrower; 

except in cases where litigation, 

collection action, or audit is 

commenced. In these cases, records and 

other materials shall be retained until 

the litigation, collection action, or audit 

is judicially or administratively final. 

Respondents: 100. 

Frequency: Annually. 

Estimated Average Burden per 

Response: 1⁄2 hour. 

Estimated Total Annual Burden 

Hours: 50 hours. 

Participating Lender Reporting 

Requirements 

The STLP is subject to the 

requirements of the Federal Credit 

Reform Act of 1990 (FCRA) that 

includes certain budgeting and 

accounting requirements for Federal 

credit programs. The Participating 

Lender must undertake processes to 

activate, monitor, service, and close out 

STLP loans. To fulfill the requirements 

of FCRA, the Participating Lender must 

submit regular reports and required 

documentation to OSDBU on these 

processes. 

(A) Loan Activation: The Participating 

Lender must submit to OSDBU a form 

DOT F 2303–1 Bank Verification Loan 


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Federal Register / Vol. 75, No. 71 / Wednesday, April 14, 2010 / Rules and Regulations 19289 

Activation Form that indicates the date 

in which the loan has been activated/ 

funded. The form is available at 

http://www.osdbu.dot.gov/financial/ 

docs/Loan_Activation_DOT_F_2303- 

1.pdf. 

Respondents: 100. 

Frequency: Annually, up to five years. 

Estimated Average Burden per 

Response: 1⁄2 hour. 

Estimated Total Annual Burden 

Hours: 50 hours. 

(B) Loan Close-out: The Participating 

Lender must submit to OSDBU a form 

DOT F 2304–1 Bank Acknowledgement 

Loan Close-Out Form upon full 

repayment of the STLP loan, or upon 

expiration of the loan guarantee. The 

form is available at http:// 

www.osdbu.dot.gov/financial/docs/ 

Loan_Close-Out_DOT_F_2304-1.pdf. 

Respondents: 100. 

Frequency: Annually. 

Estimated Average Burden per 

Response: 1⁄2 hour. 

Estimated Total Annual Burden 

Hours: 50 hours. 

(C) Monthly Reporting Requirement: 

The Participating Lender must submit 

each month to OSDBU form DOT F 

2306–1 Pending Loan Status Report and 

form DOT F 2305–1 Guaranty Loan 

Status Report detailing the previous 

month’s activity for their STLP loans. 

These forms are available at http:// 

www.osdbu.dot.gov/financial/docs/ 

Pending_Loan_DOT_F_2306-1.xls and 

http://www.osdbu.dot.gov/financial/ 

docs/Guaranty_Loan_DOT_F_2305-1.xls 

respectively. 

Respondents: 100. 

Frequency: Monthly. 

Estimated Average Burden per 

Response: 1 hour. 

Estimated Total Annual Burden 

Hours: 1,200 hours. 

(D) Call Reports or Thrift Financial 

Reports: Participating Lenders shall 

provide two copies of their quarterly 

Reports of Condition and Income 

(Federal Financial Institutions 

Examination Council—FFIEC Form 

041), or quarterly Thrift Financial 

Reports (Office of Thrift Supervision— 

OTS Form 1313) within 60 days after 

the close of each calendar quarter. 

Respondents: 100. 

Frequency: Quarterly. 

Estimated Average Burden per 

Response: 15 minutes. 

Estimated Total Annual Burden 

Hours: 100 hours. 

(E) Credit verification: The 

Participating Lender’s internal credit 

approval memo, credit analysis, and any 

other third-party credit verifications 

obtained to the process the loan 

application must accompany their 

internally-approved loan package 

submission to OSDBU. 

Respondents: 100. 

Frequency: For each loan submitted 

(minimum 1, approximate maximum 5). 

Estimated Average Burden per 

Response: 12 hours. 

Estimated Total Annual Burden 

Hours: (1,200, 6,000). 

(F) Loan Guarantee Extension: The 

Participating lender must submit to 

OSDBU a form DOT F 2310–1 to request 

an extension of the original loan 

guarantee for a maximum period of 

ninety (90) days. The form is available 

at http://www.osdbu.dot.gov/financial/ 

docs/Loan_Extension_DOT_F_2310- 

1.pdf. 

Respondents: 100. 

Frequency: Annually. 

Estimated Average Burden per 

Response: 1⁄2 hour. 

Estimated Total Annual Burden 

Hours: 50 hours. 

Loan Application Process—Loan 

Renewal 

A current STLP participant may 

submit a guaranteed loan renewal 

application package, comprised of an 

updated loan application, with 

supporting documentation. 

(A) Updated loan application form. 

The application may be obtained 

directly from OSDBU, from a current 

Participating Lender, or online from the 

agency’s Web site currently at http:// 

osdbu.dot.gov/documents/pdf/stlp/ 

stlpapp.pdf. 

Respondents: 100. 

Frequency: Annually, up to five years. 

Estimated Average Burden per 

Response: 8 hours. 

Estimated Total Annual Burden 

Hours: 800 hours. 

(B) Application supporting 

documentation. Supporting 

documentation may include, but is not 

limited to, the following items: 

a. Current job performance reference 

letter (within the past 12 months); 

b. Evidence of current DBE and/or 

other eligible certification; 

c. Business tax returns for the most 

recent fiscal year; 

d. Business financial statements for 

the most recent fiscal year; 

e. If the business’ last fiscal year has 

ended longer than 90 days at the time 

of application, then applicant must 

submit interim business financial 

statements to include balance sheet, 

P&L and updated aging reports of both 

receivables and payables; 

f. Current work in progress schedule 

or statement; 

g. Personal income tax returns; 

h. Personal financial statements; 

i. Signed and dated copy of 

transportation-related contracts to be 

used as collateral; 

j. Updated cash flow projections; 

Respondents: 100. 

Frequency: Annually, up to five years. 

Estimated Average Burden per 

Response: 4 hours. 

Estimated Total Annual Burden 

Hours: 400 hours. 

New Loan Application Process 

A potential STLP participant must 

submit a guaranteed loan application 

package, comprised of a loan 

application, with supporting 

documentation. 

(A) Completed loan application form. 

The application may be obtained 

directly from OSDBU, from a current 

Participating Lender, or online from the 

agency’s Web site currently at http:// 

osdbu.dot.gov/documents/pdf/stlp/ 

stlpapp.pdf. 

Respondents: 100. 

Frequency: Once. 

Estimated Average Burden per 

Response: 2 hours. 

Estimated Total Annual Burden 

Hours: 200 hours. 

(B) New loan application supporting 

documentation may include, but is not 

limited to, the following items: 

a. Business, trade or job performance 

reference letters; 

b. DBE or other eligible certification 

letters; 

c. Signed and dated borrower 

certification that all federal, state and 

local taxes are current; 

d. Business tax returns; 

e. Business financial statements; 

f. Personal income tax returns; 

g. Personal financial statements; 

h. Schedule of work in progress; 

i. Signed and dated copy of 

transportation-related contracts to be 

used as collateral; 

j. Business debt schedule; 

k. Income and cash flow projections; 

l. Evidence of bonding and insurance. 

Respondents: 100. 

Frequency: Once. 

Estimated Average Burden per 

Response: 12 hours. 

Estimated Total Annual Burden 

Hours: 1,200 hours. 

(C) Loan package submission: 

Application packages are submitted 

directly to a Participating Lender in the 

applicant’s geographic area. The list of 

Participating Lenders is available on the 

OSDBU Web site: http://osdbu.dot.gov/ 

Default.aspx?tabid=72. In the event that 

there is no Participating Lender in the 

applicant’s geographic area, the loan 

application package may be sent 

directly to OSDBU at 400 Seventh 

Street, SW., Room 9414, S–40, Attention 

STLP, Washington, DC 20590. 

Respondents: 100. 

Frequency: Once. 


jlentini on DSKJ8SOYB1PROD with RULES
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Estimated Average Burden per 

Response: 1 hour. 

Estimated Total Annual Burden 

Hours: 100 hours. 

Authority: The Paperwork Reduction Act 

of 1995; 44 U.S.C. Chapter 35, as amended; 

and 49 CFR 1.48. 

Issued this 25th day of March 2010, at 

Washington, DC. 

Ray LaHood, 

Secretary of Transportation. 

List of Subjects in 49 CFR Part 22 

Loan programs—Business and 

industry, Programs, Small business, 

Transportation, Commerce. 

■ For the reasons set forth in this 

preamble, the Department is adding 49 

CFR part 22 as follows: 

PART 22–SHORT–TERM LENDING 

PROGRAM (STLP) 

Subpart A–General 

22.1 Purpose. 

22.3 Definitions. 

Subpart B—Policies Applying to STLP 

Loans 

22.11 Eligibility Criteria. 

22.13 Loan terms and Conditions. 

22.15 Delinquency on Federal, State, and 

Municipal Debt. 

22.17 Compliance with Child Support 

Obligations. 

22.19 Credit Criteria. 

Subpart C—Participating Lenders 

22.21 Participation Criteria. 

22.23 Agreements. 

22.25 Lender Deliverables and Delivery 

schedule. 

22.27 Eligible Reimbursements to 

Participating Lenders. 

22.29 DOT access to Participating Lender 

Files. 

22.31 Suspension or Revocation of 

Eligibility to Participate. 

22.33 Termination of Participation in the 

STLP. 

Subpart D—Loan Application Process 

22.41 Application Procedures. 

22.43 Approvals and Denials. 

22.45 Allowable Fees to Borrowers. 

Subpart E—Loan Administration 

22.51 Loan Closings. 

22.53 Loan Monitoring & Servicing 

Requirements. 

22.57 Loan Reporting Requirements. 

22.59 Loan Modifications. 

22.61 Loan Guarantee Extensions. 

22.63 Loan Close Outs. 

22.65 Subordination. 

22.67 Delinquent Loans and Loan Defaults. 

22.69 Claims Process. 

Authority: 49 U.S.C. 332. 

Subpart A—General 

§ 22.1 Purpose. 

The purpose of the DOT OSDBU 

STLP is to provide financial assistance 

in the form of short-term loans from 

Participating Lenders that are 

guaranteed by DOT OSDBU, to DBEs 

and SDBs for the execution of DOT 

funded and supported transportationrelated contracts. 

§ 22.3 Definitions. 

As used in this part: 

Accounts receivable means monies 

that are due to the borrower for work 

performed or services rendered under a 

contract, subcontract, or purchase order. 

Activation date means the date that 

the STLP loan is established on the 

Participating Lender’s books and 

recorded as an open loan. It is also the 

date that the borrower can begin to 

drawn funds from the line of credit. 

Activation date is also the date in which 

the DOT OSDBU guarantee becomes 

effective. 

Assigned contract means the 

transportation-related contract(s), 

subcontract(s), and/or purchase order(s) 

that has been pledged as collateral to a 

STLP loan and perfected through an 

assignment form executed by all 

appropriate parties. 

Borrower is the obligor of a DOT 

OSDBU guaranteed loan. 

Cooperative agreement is the written 

agreement between DOT OSDBU and a 

Participating Lender that outlines the 

terms and conditions under which the 

lender may submit eligible loan requests 

to DOT OSDBU for consideration of its 

loan guarantee. The cooperative 

agreement further outlines the 

responsibilities and requirements of the 

lender in order to participate in the 

STLP. 

Director means Director, Office of 

Small and Disadvantaged Business 

Utilization, U.S. Department of 

Transportation. 

Disadvantaged business enterprise or 

DBE means a business that is certified 

as such by a recipient of DOT financial 

assistance as provided in 49 CFR part 23 

or 49 CFR part 26. 

Guarantee agreement means DOT 

OSDBU’s written agreement with a 

Participating Lender that provides the 

terms and conditions under which DOT 

OSDBU will guarantee a STLP loan. It 

is not a contract to make a direct loan 

to the borrower. 

Loan guarantee means the agreement 

of DOT OSDBU to issue a guarantee of 

payment of a specified portion of an 

approved STLP loan to the Participating 

Lender, under DOT OSDBU stated terms 

and conditions, in the event that the 

borrower defaults on the loan. 

Loan purpose means the approved 

uses for STLP loan proceeds. That is, 

only for short-term working capital 

needs related to the direct costs of an 

eligible transportation-related contract. 

Other eligible certifications mean the 

following certifications obtained by a 

borrower through the U.S. Small 

Business Administration (SBA): Small 

Disadvantaged Business (SDB); Section 

8(a) Program participant; HUBZONE 

Empowerment Contracting Program; 

and Service-Disabled Veteran Program 

(SDV). 

Participating Lender (PL) is a bank or 

other lending institution that has agreed 

to the terms of a cooperative agreement 

and has been formally accepted into the 

STLP by DOT OSDBU. 

Small and disadvantaged business 

(SDB) includes 8(a); small 

disadvantaged business; women-owned 

business, HubZone, and servicedisabled veteran-owned business. 

Socially and economically 

disadvantaged individual has the same 

meaning as stated in 49 CFR 26.5. 

Technical assistance means service 

provided by the Participating Lender to 

the DBE or SDB that will enable the DBE 

or SDB to become more capable of 

managing its transportation-related 

contracts. Technical assistance can be 

provided by collaborating with agencies 

that offer small business management 

counseling such as the SBA, the U. S. 

Department of Commerce’s Minority 

Business Development Centers 

(MBDCs), the Service Corps of Retired 

Executives (SCORE), Procurement 

Technical Assistance Centers (PTACs), 

and Small Business Development 

Centers (SBDCs). 

Transportation-related contract 

means a contract, subcontract, or 

purchase order, at any tier, for the 

maintenance, rehabilitation, 

restructuring, improvement, or 

revitalization of any of the nation’s 

modes of transportation that receive 

DOT funding. 

Work-out means a plan that offers 

options to avoid loan default or 

collateral foreclosure and/or liquidation 

that is intended to resolve delinquent 

loans or loans in imminent default, 

which may include, but not limited to: 

deferring or forgiving principal or 

interest, reducing the borrower’s interest 

rate, extending the loan maturity and 

the government guarantee to the 

Participating Lender, or postponing 

collection action. 


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Subpart B—Policies Applying to STLP 

Loans 

§ 22.11 Eligibility Criteria. 

(a) Eligible Borrower. To be eligible to 

apply for a STLP loan guarantee, a 

borrower must meet the following 

requirements: 

(1) Be a for-profit entity; 

(2) Have an eligible transportationrelated 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. 

§ 22.13 Loan Terms and Conditions. 

(a) Amount. The maximum face 

amount for an individual STLP loan 

may not exceed seven hundred and fifty 

thousand ($750,000) dollars, unless the 

requested increased amount is 

authorized by the OSDBU Director. 

(b) Interest Rates. All STLP loans 

shall have a variable interest rate. 

(1) Initial Interest Rate. The base rate 

guideline for STLP loans is the prime 

rate in effect on the first business day of 

the month in which the STLP loan 

guarantee is approved by DOT OSDBU. 

The prime rate is the rate printed in a 

national financial newspaper published 

each business day. The Participating 

Lender may increase the base rate by the 

maximum allowable percentage points 

currently allowed by STLP policies and 

procedures and as communicated in 

subsequent DOT OSDBU notices. 

(2) Frequency of Change. The first 

change may occur on the first calendar 

day of the month following the initial 

loan disbursement, using the above base 

rate in effect on the first business day of 

the month. Subsequent interest rate 

changes may occur no more than 

monthly. 

(c) Loan Structure and Term. A STLP 

loan shall be set up as a revolving line 

of credit. The line permits the borrower 

to request principal advances, pay them 

back, and then re-borrow, not to exceed 

the face value of the line of credit. 

Participating Lenders are required to 

provide DOT OSDBU written 

notification of the activation date of 

each line of credit under the STLP. The 

term of the Federal guarantee of the line 

of credit commences on the activation 

date. 

(d) Repayment. Interest payments 

must be made monthly. The principal of 

the loan is repaid as payment from 

approved accounts receivable are 

received by the Participating Lender 

through a joint payee check system. The 

assigned contract supporting the STLP 

loan is the primary source of repayment. 

(e) Use of Loan Proceeds. STLP loans 

must be used to finance short-term 

working capital needs, specifically 

direct costs generated by the assigned 

contract. Proceeds may not be used for 

the following purposes: 

(1) For long term working capital; 

(2) To repay delinquent State or 

Federal withholding taxes, local taxes, 

sales taxes or similar funds that should 

be held in trust or escrow; and/or 

(3) To provide funds for the 

distribution or payment to the owners, 

partners or shareholders of the business; 

and/or 

(4) To retire short or long-term debt. 

(f) Non-compliance by the DBE in 

using the STLP loan for purposes not 

consistent with these regulations will 

result in a non-renewal of the STLP loan 

and in forfeiture of the STLP loan 

guarantee to the PL on any ineligible 

principal advances requested by the 

borrower and made by the PL. 

(g) Disbursements. STLP funds may 

only be released to an eligible borrower 

upon the submission and verification of 

a valid written accounts receivable 

invoice, showing labor and/or materials 

amounts due for completed work on the 

contract. The Participating Lender must 

verify the accuracy of the invoice with 

the paying transportation government 

agency, if the borrower is a prime 

contractor, and/or with the prime 

contractor, if the borrower is a 

subcontractor. This verification must be 

obtained by the Participating Lender 

prior to advancing funds. No more than 

85% of an approved accounts receivable 

invoice shall be advanced to the 

borrower by the Participating Lender. 

(1) Processing time. Disbursement of 

STLP funds to the borrower should be 

accomplished within three (3) business 

days of an accounts receivable invoice 

approval by the paying agency and/or 

prime contractor. 

(2) Electronic funds transfer. If the 

disbursement of STLP funds is being 

sent to the borrower through a local 

Participating Lender, the disbursement 

should be made by electronic funds 

transfer with the preferred method of 

payment being the Automated Clearing 

House (ACH) system. 

(3) Wire transfers. Wire transfers can 

be used if the ACH system is not 

available or if a same day disbursement 

is required. 

(4) Joint payee check system. A twoparty payee check system is required in 

which the Participating Lender and the 

borrower will be the co-payees of any 

checks paid to the borrower for 

performance under the assigned 

contract. Alternative payment methods 

must have prior written approval by 

DOT OSDBU. 

(h) Personal Guarantees. Individuals 

who own at least a 20% ownership 

interest in the borrower shall personally 

guarantee the STLP loan. DOT OSDBU, 

in its discretion and in consulting with 

the Participating Lender, may require 

other appropriate guarantees for the 

loan as well. 

(i) Collateral. All advances under the 

STLP loan must be secured, at a 

minimum, by the assignment of the 

proceeds due under the transportationrelated contract(s) being funded with 

loan proceeds (the Assigned Contract). 

The Participating Lender must have first 

lien position on the Accounts 

Receivable generated by the Assigned 

Contract. The Participating Lender and/ 

or DOT OSDBU may request additional 

collateral on any loan request or loan 

guarantee request in order to mitigate 

the credit risk and reduce potential 

defaults and loan losses. 


jlentini on DSKJ8SOYB1PROD with RULES
19292 Federal Register / Vol. 75, No. 71 / Wednesday, April 14, 2010 / Rules and Regulations 

(j) Key Person Life Insurance. The 

assignment of existing life insurance 

policies of personal guarantors or other 

individuals critical to the borrower’s 

operations may be required by the 

Participating Lender and/or DOT 

OSDBU in certain instances; and it is 

encouraged for those business 

applicants that do not have a 

management succession plan clearly in 

place or where a personal guarantee 

provides nominal financial strength to 

the credit. 

§ 22.15 Delinquency on Federal, State, or 

Municipality Debt. 

(a) The borrower must not be 

delinquent on any Federal, State, or 

municipality debt, including tax debts. 

Further, none of the principals and/or 

owners of the borrower can be 

delinquent on any Federal, State, or 

municipality debt, including personal 

tax debt. The borrower must 

acknowledge its status in writing as part 

of any STLP loan guarantee application. 

Participating Lenders and the DOT 

OSDBU must verify the borrower’s 

status through the use of business and 

personal credit reports, as well as other 

appropriate Federal and State databases. 

(b) If any delinquencies are 

determined during the application 

process, consideration of the request 

must be suspended until the 

delinquency is satisfactorily resolved, as 

determined and approved by the 

Director. If the delinquency cannot be 

resolved within a reasonable amount of 

time, the loan request must be declined. 

§ 22.17 Compliance with Child Support 

Obligations. 

Any holder of 50% or more of the 

ownership interest in the recipient of a 

STLP Loan must certify that he or she 

is not more than 60 days delinquent on 

any obligation to pay child support 

arising under: 

(a) An administrative order; 

(b) A court order; 

(c) A repayment agreement between 

the holder and a custodial parent; or 

(d) A repayment agreement between 

the holder and a State agency providing 

child support enforcement services. 

§ 22.19 Credit Criteria. 

An applicant for a STLP loan must be 

creditworthy and demonstrate an ability 

to repay the loan as well as satisfactory 

handling of the repayment of past and 

current debts. The Participating Lender 

and DOT OSDBU shall consider: 

(a) Character, reputation, and credit 

history of the applicant, its principals 

and owners, and all other guarantors; 

(b) Experience and depth of key 

management in the industry; 

(c) Financial strength of the business; 

(d) Past earnings, projected earnings 

and cash flow, and work in progress; 

(e) Ability to repay the loan; 

(f) Sufficient equity to operate on a 

sound financial basis; and 

(g) Capacity to perform under the 

transportation-related contract(s). 

Subpart C—Participating Lenders 

§ 22.21 Participation Criteria. 

A lender who participates in the STLP 

must meet the following criteria: 

(a) It must operate as a lending 

institution certified by the Federal 

Deposit Insurance Corporation (FDIC), 

Federal Reserve Board, Office of the 

Comptroller of the Currency, Office of 

Thrift Supervision, Community 

Development Corporation (CDC), or 

Community Development Financial 

Institution (CDFI), for at least five (5) 

years; 

(b) It must demonstrate a philosophy 

and history of lending to small, 

disadvantaged and women-owned 

businesses in their communities. 

Information will be requested by the 

Director on the number of short-term 

loans made to companies listed in 

paragraph (a)(5) of § 22.11. The 

Participating Lender shall submit 

information showing its efforts in 

relationship to its overall portfolio; 

(c) It must demonstrate experience in 

administering monitored lines of credit, 

such as construction loans, accounts 

receivable financing, and/or contract 

financing for at least two years. Such 

experience should be held by any 

Participating Lender representative 

managing, reviewing or authorizing 

STLP loan portfolios; 

(d) It must have at least two (2) years 

experience with other federal 

government lending programs such as 

U.S. Small Business Administration 

(SBA), Agriculture Rural Development, 

Bureau of Indian Affairs (BIA), 

Economic Development Administration 

(EDA), Department of Housing and 

Urban Development (HUD), Export 

Import Bank of the United States and/ 

or state loan programs. 

(e) It must have at least a satisfactory 

or better Community Reinvestment Act 

(CRA) rating; 

(f) It must designate a Participating 

Lender representative to effectively 

administer the STLP loan portfolio; 

(g) It must have the ability to evaluate, 

process, close, disburse, service and 

liquidate STLP loans; 

(h) It must demonstrate the ability to 

implement, monitor and manage a twoparty payee check system, in which the 

Participating Lender and borrower are 

joint payees of any checks paid to the 

borrower for performance under the 

assigned contract(s); 

(i) It must not currently be debarred 

or suspended from participation in a 

government contract or delinquent on a 

government debt. The Participating 

lender must submit a current form DOT 

F 2309–1 Certification Regarding 

Debarment, Suspension. The 

certification form is available at http:// 

www.osdbu.dot.gov/financial/docs/ 

Cert_Debarment_DOT_F_2309-1.pdf. 

(j) It must be a drug-free workplace. 

The Participating Lender must execute 

current form DOT F 2307–1 Drug-Free 

Workplace Act Certification For A 

Grantee Other Than An Individual. The 

certification form is available at http:// 

www.osdbu.dot.gov/financial/docs/ 

Cert_Drug-Free_DOT_F_2307-1.pdf.; 

and 

(k) It must certify that no Federal 

funds will be utilized for lobbying by 

executing a current form DOT F 2308– 

1 Certificate Regarding Lobbying For 

Contracts, Grants, Loans, and 

Cooperative Agreements in compliance 

with section 1352, title 21, of the U.S. 

Code. The certification form is available 

at http://www.osdbu.dot.gov/financial/ 

docs/Cert_Lobbying_DOT_F_2308-1.pdf. 

§ 22.23 Agreements. 

(a) DOT OSDBU may enter into a 

cooperative agreement with a lender 

that meets the criteria defined in § 22.21 

in order for the lender to become a 

Participating Lender in the STLP. Such 

an agreement does not obligate DOT 

OSDBU to participate in any specific 

proposed loan that a lender may submit. 

The existence of a cooperative 

agreement does not limit the rights of 

DOT OSDBU to deny a specific loan or 

establish general policies. The current 

cooperative agreement is available at 

http://www.osdbu.dot.gov/financial/ 

docs/Coop_Agreement.pdf. 

(b) The cooperative agreement is 

generally for a minimum period of 

twenty-four (24) months. DOT OSDBU 

will consider the cooperative agreement 

for renewal at the end of the designated 

term. If a cooperative agreement has 

expired, no further applications for the 

STLP shall be submitted to DOT OSDBU 

by the Participating Lender until a new 

cooperative agreement is executed by 

both parties. 

(c) Unless instructed otherwise by 

DOT OSDBU, after the expiration of the 

cooperative agreement, the Participating 

Lender will complete the 

documentation of any loans which have 

been given final DOT OSDBU approval 

prior to expiration of the cooperative 

agreement. 

(d) Following the expiration of the 

cooperative agreement, the Participating 


jlentini on DSKJ8SOYB1PROD with RULES
Federal Register / Vol. 75, No. 71 / Wednesday, April 14, 2010 / Rules and Regulations 19293 

Lender may, subject to the written 

concurrence of DOT OSDBU, sell its 

STLP loans to another bank or to 

another Participating Lender that 

assumes the original rights and 

responsibilities to fund, service and 

collect the loan or loans. 

§ 22.25 Lender Deliverables and Delivery 

Schedule. 

All Participating Lenders must adhere 

to certain required periodic reports, 

submissions, and other actions that are 

outlined in the cooperative agreement 

and the loan guarantee agreements, as 

well as to the required due dates to DOT 

OSDBU. 

§ 22.27 Eligible Reimbursements to 

Participating Lenders. 

Participating Lenders will be 

reimbursed by DOT OSDBU for 

reasonable expenses and costs that are 

incurred in the processing, 

administration, and monitoring of a 

STLP loan. The Participating Lender 

will be reimbursed as follows: 

(a) Processing/Underwriting Fee. A 

fee, as specified in the cooperative 

agreement will be reimbursed by DOT 

OSDBU, with a minimum fee of not less 

than one thousand ($1,000), per 

approved STLP loan guarantee, 

provided that DOT OSDBU receives 

proper notification of the activation date 

of the STLP loan. 

(b) Additional Administrative Fee: For 

total loan amounts of $150,000.00 or 

less, the Participating Lender can 

request an additional one-half (1⁄2) 

percent administrative fee for the 

increased loan monitoring and 

administrative assistance required to 

process the loan. The request must be 

supported with the information 

specified in the cooperative agreement. 

(c) Travel Expenses. For any preapproved travel expenses, the 

Participating Lender will be reimbursed 

for certain costs, provided that 

paragraphs (c)(1) and (2) of this section 

are met: 

(1) A written request for travel, along 

with a statement of the purpose of the 

travel and proposed cost estimate, is 

submitted for DOT OSDBU for its 

approval no less than ten (10) business 

days prior to travel; and 

(2) A travel invoice accompanied by 

a written report explaining the findings 

of the travel is submitted to DOT 

OSDBU no later than thirty (30) days 

following the approved travel. Payment 

or reimbursement for travel shall be in 

accordance with the Joint Travel 

Regulations, Federal Travel Regulations 

and DOD FAR 31.205.46. 

(d) Attorney Fees. Legal fees incurred 

by the PL may be eligible for 

reimbursement. Prior written approval 

from DOT OSDBU is required. Attorney 

fees will be reimbursed on a pro-rata 

basis in proportion to the percentage of 

the government loan guarantee in 

relation to the total loan amount. 

§ 22.29 DOT Access to Participating 

Lenders Files. 

A Participating Lender must allow the 

authorized representatives of DOT 

OSDBU, as well as representatives of the 

Office of Inspector General (OIG) and 

General Accountability Office (GAO), 

access to its STLP loan files to review, 

inspect, and copy all records and 

documents pertaining to DOT OSDBU 

guaranteed loans. Record retention of all 

relevant documents and other materials 

is specified in the cooperative 

agreement between DOT OSDBU and 

the Participating Lender. 

§ 22.31 Suspension or Revocation of 

Eligibility to Participate. 

(a) DOT OSDBU may suspend or 

revoke the eligibility of a Participating 

Lender to participate in the STLP by 

giving written notice in accordance with 

the terms and conditions cited in the 

cooperative agreement. Such notice may 

be given because of a violation of DOT 

OSDBU regulations; a breach of any 

agreement with DOT OSDBU; a change 

of circumstance resulting in the 

Participating Lender’s inability to meet 

operational requirements; or a failure to 

engage in prudent lending practices. A 

suspension or revocation will not 

invalidate a loan guarantee previously 

approved by DOT OSDBU, providing 

that the specific loan was handled in 

accordance with its guarantee 

agreement, the cooperative agreement 

and/or these regulations. 

(b) The written notice to suspend or 

revoke participation in the STLP will 

specify the corrective actions that the 

Participating Lender must take, as well 

as the time period allowed for cure, 

prior to DOT OSDBU considering a 

termination of the cooperative 

agreement. 

§ 22.33 Termination of Participation in the 

STLP. 

(a) DOT OSDBU Termination for 

Convenience. DOT OSDBU may 

terminate a cooperative agreement for 

the convenience of the government, and 

without cause, upon prior written notice 

of thirty (30) days of its intent to 

terminate. Upon termination, DOT 

OSDBU shall remain liable on the prorata share of the loan guarantee(s) 

received by the PL which received the 

Director’s final approval, prior to the 

effective date of termination. 

(b) Participating Lender’s 

Termination. The Participating Lender 

may terminate a cooperative agreement 

with written notice of sixty (60) days to 

DOT OSDBU of its intent to terminate. 

Upon termination, DOT OSDBU shall 

remain liable on the pro-rata share of 

the loan guarantee(s) received by the 

Participating Lender which received the 

Director’s final approval, prior to the 

effective date of termination of the 

cooperative agreement. 

(c) DOT OSDBU Termination for 

Cause. DOT OSDBU may terminate a 

cooperative agreement, in whole or in 

part, at any time before the expiration of 

the term of the cooperative agreement or 

the expiration of any renewal term of 

the cooperative agreement, and without 

allowing any cure period as described in 

this section, if it determines that the 

Participating Lender failed to comply 

with any terms and conditions of its 

cooperative agreement and such failure 

cannot be reasonably addressed. DOT 

OSDBU shall promptly notify the 

Participating Lender in writing of this 

determination and the reasons for the 

termination, together with the effective 

date of termination. 

(d) DOT OSDBU may also terminate 

for cause any cooperative agreement 

with a Participating Lender that fails to 

comply with the corrective actions 

requested in a written notice of 

suspension of revocation within the 

specified cure period, in accordance 

with the terms and conditions further 

described in the cooperative agreement. 

Subpart D—Loan Application Process 

§ 22.41 Application Procedures. 

(a) A STLP loan guarantee request 

application package shall consist of the 

DOT OSDBU Application for Loan 

Guarantee and supporting 

documentation as outlined below at 

paragraph (b) of this section. The 

application may be obtained directly 

from the office of DOT OSDBU, from a 

current Participating Lender, or online 

from the agency’s Web site, currently at 

http://osdbu.dot.gov/documents/pdf/ 

stlp/stlpapp.pdf. 

(b) Supporting documentation may 

include, but is not limited to, the 

following items: Business, trade or job 

performance reference letters; current 

DBE or SDB eligibility certification 

letters and/or affidavit; signed and dated 

borrower certification that all federal, 

state and local taxes are current; 

business tax returns; business financial 

statements; personal income tax returns; 

personal financial statements; schedule 

of work in progress; signed and dated 

copy of transportation-related contracts; 

business debt schedule; income and 

cash flow projections; and evidence of 

bonding and insurance. It also includes, 


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19294 Federal Register / Vol. 75, No. 71 / Wednesday, April 14, 2010 / Rules and Regulations 

from the Participating Lender, the 

lender’s internal credit approval memo 

and analysis and other third-party credit 

verifications obtained. 

(c) Application packages are 

submitted directly to a Participating 

Lender, which will perform its own 

credit review. The Participating Lender 

must initially approve or decline the 

loan based upon its internal analysis of 

the request. Loans approved by the 

Participating Lender are then forwarded 

to DOT OSDBU for its STLP eligibility 

review, independent credit review, and 

for presentation to the DOT OSDBU 

Loan Committee. All loan approvals 

shall require the final approval of the 

Director, or the Director’s designee, for 

the issuance of a Government Loan 

Guarantee. 

§ 22.43 Approval or Denial. 

If a loan guarantee is approved by 

DOT OSDBU, a Guarantee Agreement, 

form DOT F 2314–1, will be issued to 

the Participating Lender. If a loan 

guarantee is declined by the 

Participating Lender, the Participating 

Lender is responsible for 

communicating the reasons for the 

decline to the applicant. The 

Participating Lender must notify the 

applicant, in writing, of the reasons for 

the decline; and a copy of this 

notification must be sent to DOT 

OSDBU. If a loan guarantee is declined 

by the DOT OSDBU, DOT OSDBU will 

be responsible for communicating the 

reasons for the decline to the applicant. 

The form is available at http:// 

www.osdbu.dot.gov/financial/docs/ 

Loan_Guarantee_DOT_F_2314-1.pdf. 

§ 22.45 Allowable Fees to Borrowers. 

(a) Application Fees. The 

Participating Lender may charge the 

applicant a non-refundable loan 

application fee, as determined from time 

to time by DOT OSDBU, for each STLP 

loan application processed, whether a 

new loan request or a renewal request. 

(b) Reasonable Closing Expenses. 

Provided the Participating Lender 

charges similar fees to its non-STLP 

borrowers, the Participating Lender may 

collect reasonable closing expenses from 

the borrower, provided that full 

disclosure of such fees is made to the 

borrower prior to the loan closing date. 

These expenses include necessary outof-pocket expenses to third parties such 

as filing and recordation fees, as well as 

loan closing document preparation fees. 

Subpart E-Loan Administration 

§ 22.51 Loan closings. 

(a) The Participating Lender must 

promptly close all STLP loans in 

accordance with the terms and 

conditions approved by DOT OSDBU in 

its Guarantee Agreement. The 

Participating Lender must report 

circumstances concerning any STLP 

loans not closed within a reasonable 

time period after DOT OSDBU approval. 

(b) The Participating Lender uses its 

own internal loan closing documents 

and must use standard banking 

practices and procedures to ensure 

proper execution of the debt and 

perfection of the collateral. The 

Participating Lender must forward 

copies of all executed closing 

documents and filings to DOT OSDBU 

within the time period specified in the 

cooperative agreement. 

§ 22.53 Loan Monitoring and Servicing 

Requirements. 

The Participating Lender must review 

STLP principal advance requests, 

process loan disbursements, and 

payments, and maintain contact with 

the borrower during the term of the 

loan. The Participating Lender must 

monitor the progress of the project being 

financed and the borrower’s continued 

compliance with the terms and 

conditions of the loan. The Participating 

Lender must promptly report any 

material adverse change in the financial 

condition or business operations of the 

borrower to DOT OSDBU. 

§ 22.57 Loan Reporting Requirements. 

The STLP is subject to the 

requirements of the Federal Credit 

Reform Act of 1990 (FCRA) that 

includes certain budgeting and 

accounting requirements for Federal 

credit programs. To fulfill the 

requirements of FCRA, the Participating 

Lender must provide DOT OSDBU 

prompt written notification of the 

activation date by the time period 

specified in the cooperative agreement. 

The Participating Lender must submit to 

OSDBU a form DOT F 2303–1 Bank 

Verification Loan Activation Form that 

indicates the date in which the loan has 

been activated/funded. The form is 

available at http://www.osdbu.dot.gov/ 

financial/docs/ 

Loan_Activation_DOT_F_2303-1.pdf. 

The Participating Lender must also 

provide DOT OSDBU prompt written 

notification of the date the loan is 

repaid and closed. The Participating 

Lender must submit to OSDBU a form 

DOT F 2304–1 Bank Acknowledgement 

Loan Close-Out Form upon full 

repayment of the STLP loan, or upon 

expiration of the loan guarantee. The 

form is available at http:// 

www.osdbu.dot.gov/financial/docs/ 

Loan_Close-Out_DOT_F_2304-1.pdf. To 

fulfill this requirement, the Participating 

Lender must also submit a monthly 

report to the DOT OSDBU detailing the 

previous month’s activity for their STLP 

loans. The Participating Lender must 

submit form DOT F 2306–1 Pending 

Loan Status Report and form DOT F 

2305–1 Guaranty Loan Status Report. 

These forms are available at http:// 

www.osdbu.dot.gov/financial/docs/ 

Pending_Loan_DOT_F_2306-1.xls and 

http://www.osdbu.dot.gov/financial/ 

docs/Guaranty_Loan_DOT_F_2305-1.xls 

respectively. 

§ 22.59 Loan Modifications. 

Any modification to the terms of the 

DOT OSDBU guarantee agreement must 

have prior written approval of the 

Director, and executed in writing as an 

Addendum to the original guarantee 

agreement. 

§ 22.61 Loan Guarantee Extensions. 

An extension of the original loan 

guarantee may be requested, in writing, 

by the Participating Lender. The 

Participating lender must submit to 

OSDBU a form DOT F 2310–1 to request 

an extension of the original loan 

guarantee for a maximum period of 

ninety (90) days. The form is available 

at http://www.osdbu.dot.gov/financial/ 

docs/Loan_Extension_DOT_F_2310- 

1.pdf. The request must comply with 

the terms and conditions described in 

the guarantee agreement and with the 

STLP policies and procedures. All 

extension requests must be approved by 

the Director. 

§ 22.63 Loan Close Outs. 

Upon full repayment of the STLP 

loan, or upon expiration of the loan 

guarantee, the Participating Lender must 

submit to OSDBU a form DOT F 2304– 

1 Bank Acknowledgement Loan CloseOut Form. The form is available at 

http://www.osdbu.dot.gov/financial/ 

docs/Loan_Close-Out_DOT_F_2304- 

1.pdf. 

§ 22.65 Subordination. 

DOT OSDBU must not be placed in a 

subordinate position to any other debt. 

§ 22.67 Delinquent Loans and Loan 

Defaults. 

(a) The Participating Lender must 

bring to the immediate attention of the 

Director any delinquent STLP loans. 

The Participating Lender and DOT 

OSDBU are jointly responsible for 

establishing collection procedures and 

must exercise due diligence with 

respect to collection of delinquent debt. 

The Participating Lender is responsible 

for initiating actions to recover such 

debt. DOT OSDBU must approve any 

compromise of a claim, resolution of a 

dispute, suspension or termination of 


jlentini on DSKJ8SOYB1PROD with RULES
Federal Register / Vol. 75, No. 71 / Wednesday, April 14, 2010 / Rules and Regulations 19295 

collection action, or referral for 

litigation. A work-out solution will only 

be considered if it is expected to 

minimize the cost to the federal 

government in resolving repayment 

delinquencies and/or loan default. They 

must only be used when the borrower 

is likely to be able to repay the loan 

under the terms of the work-out, and if 

the cost of establishing the work-out 

plan is less than the costs of loan default 

and/or foreclosure. 

(b) In an appropriate situation, DOT 

OSDBU may authorize the Participating 

Lender to undertake legal action 

deemed necessary to collect delinquent 

loans and DOT will reimburse the 

Participating Lender on a pro rata basis 

in proportion to the loan guarantee 

percentage for the associated fees and 

costs, with prior authorization from the 

Director. Penalties and late fees are not 

eligible for reimbursement. Any legal 

action undertaken by the Participating 

Lender without OSDBU authorization 

will not be eligible for a pro rata basis 

reimbursement of the associated fees 

and costs. Net recoveries applicable to 

accrued interest must be applied on a 

pro rata basis in proportion to the 

formula used during the term of the 

loan. 

§ 22.69 Claim Process. 

After reasonable efforts have been 

exhausted to collect on a delinquent 

debt, the Participating Lender may 

demand in writing that DOT OSDBU 

honor its loan guarantee, provided 

however that the maximum liability of 

DOT OSDBU shall not at any time 

exceed the guaranteed amount. The 

borrower must be in default for no less 

than thirty (30) days, and the 

Participating Lender must have made 

written demand for payment from the 

borrower, in accordance with the 

guarantee agreement. 

[FR Doc. 2010–7622 Filed 4–13–10; 8:45 am] 

BILLING CODE 4910–9X–P 


jlentini on DSKJ8SOYB1PROD with RULES