Funded projects include track rehabilitation, equipment acquisition, line acquisition, new construction, and debt refinancing.
The Department of Transportation's mission is to ensure fast, safe, efficient, accessible and convenient transportation that meets vital national interests and enhances the quality of life of the American people, today and into the future.
Since 2002 the program has approved almost $800 million in direct loans. In the current fiscal year, nine applications have been approved for a total of $248 million.
Uses and Use Restrictions
Funds provided by direct loans or loan guarantees under the RRIF Program can be used to: (1) Acquire, improve, or rehabilitate intermodal or rail freight or passenger equipment or facilities, including track, components of track, bridges, yards, buildings and shops (2) Refinance outstanding debt incurred for purposes described in the previous paragraph (3) Develop or establish new intermodal or railroad facilities The maximum loan amount will be based on the remaining available funds under the Program's authorization.
The repayment period for direct loans and loan guarantees is up to 25 years.
The interest rate on direct loans will be equal to the rate on Treasury securities of a similar term.
Eligible applicants include State and local governments, government-sponsored authorities, government-sponsored corporations, railroads, and joint ventures that include at least one railroad.
The beneficiaries of the Program will be the State or local government organizations, railroad, or joint ventures that include a railroad that will receive the financial assistance to permit them to complete the specified projects.
Aplication and Award Process
A pre-application meeting may be held if requested by a potential applicant.
Procedures for requesting such a meeting are available on the FRA website.
This program is eligible for coverage under E.O.
12372, Intergovernmental Review of Federal Programs.
An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review.
Complete and submit application form available on the FRA website.
FRA will evaluate application and advise applicant of approval or disapproval.
There are no application submission deadline dates.
Railroad Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 821, et seq.)
Range of Approval/Disapproval Time
Application will be approved or disapproved within 90 days after a complete application is deemed to have been submitted.
There is no appeal process.
Disapproved applicants may reapply at any time.
Formula and Matching Requirements
This program has no statutory formula. This program has no matching requirements.
Length and Time Phasing of Assistance
As a part of the application package, the borrower provides a projected timetable for the completion of the project. The funding will be made available as progress payments to pay directly or reimburse the Borrower for prior payment of allowable costs incurred in connection with the project.
Post Assistance Requirements
Yearly audited and certified profit and loss statement, balance sheet and statement of cash flows must be submitted for the life of the financial assistance.
During the course of the project, monthly progress reports of work completed and actual expenditures compared to the budget.
Audits of project expenditures will be conducted upon completion.
FY 07 $183,500,000; FY 08 est $123,000,000; and FY 09 est not available.
Range and Average of Financial Assistance
Range: Fiscal 2007-$48.0 million to $59.0 million. Average: Fiscal 2007-$53.5 million.
Regulations, Guidelines, and Literature
Railroad Rehabilitation and Improvement Financing Program, 49 CFR 260.
Regional or Local Office
Office of Freight Programs, Federal Railroad Administration, Department of Transportation, 1200 New Jersey Avenue, S.E., Washington DC 20590 Telephone: (202) 493-6381. Fax: (202) 493-6330.
Criteria for Selecting Proposals
Initially the criteria are based on the relevance to the programs' objectives and uses. The program provides direct loans and loan guarantees to State and local governments, government-sponsored authorities and corporations, railroads, and joint ventures that include at least one railroad. Eligible projects include: (1) refinancing outstanding debt that was incurred for eligible purposes, (2) developing or establishing new intermodal or railroad facilities, or (3) acquisition, improvement or rehabilitation of intermodal or rail equipment or facilities (including tracks, components of tracks, bridges, yards, buildings and shops.
Nobel Peace Prize winner, founder of Grameen Bank and chairman, Muhammad Yunus, writes about happiness: That happiness comes from many sources, not as the current economic framework assumes, just from making money.