2. DBE Eligibility
Business Size Determination: small business as defined by SBA standards:
DBE - annual gross receipts may not exceed $23.98 million (previous 3 year average)
ACDBE - annual gross receipts may not exceed $56.42 million (previous 3 year average)
Personal Net Worth: $1.32 million cap
Exclusions
Ownership interest in applicant firm
Primary residence
Source:

3. Limitations and Obstacles Financing ACDBE/DBE Projects

4. 1. DOT: Short Term Lending Program (STLP)
Eligibility:
DBE/ACDBE Certified
SBA Certified under Section 8(a)
Small Disadvantaged Business
HUBZONE Empowerment Contracting Program, and
Service-Disabled Veterans.
Startup businesses are not eligible to apply for the STLP.
Maximum Loan Amount: $750,000
Interest Rate: Variable rate, generally tied to the Prime Rate published in the Wall Street Journal.
Loan Term: Normally, the line of credit covers a one-year period.
Turnaround Time: 30 to 60 day
Source:

5. 3. Traditional Bank Financing
Limitations:
Borrowers generally have little to no collateral available
May have to pledge personal assets/personal guaranty
 4. Cash Reserves: Cash flow from current operations
No leverage on money
Drains cash reserves
 5. Joint Venture Partner Loans
Interest rate may be higher than traditional financing
Must clearly differentiate profit distributions and loan payments

6. Guaranteed Loan Programs (Debt Financing)
2. SBA Loan Programs
Guaranteed Loan Programs (Debt Financing)
Bonding Program (Surety Bonds)
Venture Capital Program
Source: