Assistance Listings

Railroad Rehabilitation and Improvement Financing Program

Objectives

The Railroad Rehabilitation and Improvement Financing (RRIF) program provides direct loans and loan guarantees to: State and local governments, interstate compacts consented to by Congress under section 410(a) of the Amtrak Reform and Accountability Act of 1997 (49 U.S.C. 24101); government sponsored authorities and corporations; railroads; joint ventures that include at least one railroad; and solely for the purpose of constructing a rail connection between a plant or facility and a second rail carrier, limited option rail freight shippers that own or operate a plant or other facility that is served by no more than a single railroad.

Examples of Funded Projects

Range and Average of Financial Assistance

There is no minimum amount for a loan request. The largest RRIF loan to date was for $2.45 billion. The maximum RRIF loan amount is subject to overall statutory limitations on total outstanding loans in the RRIF portfolio.

Accomplishments

Account Identification

69-4420-0-3-401

Types of Assistance

E - Direct Loans

Credentials and Documentation

All applicants must demonstrate relevant experience, strong qualifications, a sound project approach, all necessary funding commitments, and a project that can demonstrate financial feasibility. Applicants also must meet various Federal standards for participation in a Federal credit program. For example, applicant may not be delinquent or in default on any Federal debts. Such requirements will be specified in the contractual documents between the DOT and each applicant. This program is excluded from coverage under 2 CFR 200, Subpart E - Cost Principles.

Applicant Eligibility

Eligible borrowers include railroads, state and local governments, government-sponsored authorities and corporations, joint ventures that include at least one railroad, and limited option freight shippers which intend to construct a new rail connection.

Beneficiary Eligibility

The beneficiaries of the Program will be the State or local government organizations, railroad, joint ventures that include a railroad, and limited option freight shippers that will receive the financial assistance to permit them to complete the specified projects.

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 to reimburse the Borrower for prior payment of allowable costs incurred in connection with the project. Method of awarding/releasing assistance: Lending commitments are available at closing, though loan disbursements are made upon borrower request based on eligible project expenditures and completion of construction milestones.

Use of Assistance

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 above (3) Develop or establish new intermodal or railroad facilities.RRIF credit assistance is available in the form of either secured (direct) loans and loan guarantees made for up to the weighted average useful life of assets financed. The interest rate on direct loans will be not less than the yield on U.S. Treasury securities of a similar term.

Deadlines

Preapplication Coordination

Preapplication coordination is required. An environmental impact statement is required for this listing. An environmental impact assessment is required for this listing. This program is excluded from coverage under E.O. 12372. For more information, please visit the RRIF website at https://www.transportation.gov/buildamerica/financing/rrif.

Application Procedures

2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program.

DOT reviews Letters of Interest for RRIF credit assistance on a “first come, first served” basis. Projects are reviewed to ensure they meet the eligibility requirements under all applicable regulations and statutes, as well as for financial feasibility. Upon receiving notification that the project meets the basic eligibility criteria, the USDOT will invite a project sponsor to submit an application. The application form is available on the Build America Bureau website at: https://www.transportation.gov/buildamerica/financing/tifia/applications.

Criteria for Selecting Proposals

USDOT reviews Letters of Interest for RRIF credit assistance on a “first come, first served” basis. Projects are reviewed to ensure they meet the eligibility requirements under all applicable regulations and statutes, as well as for financial feasibility.

Award Procedure

USDOT will evaluate application and advise applicant of approval or disapproval. Final approved is reserved by the Secretary of Transportation.

Date Range for Approval/Disapproval

From 60 to 90 days. After a complete application has been filed with all supporting documents, processing time is approximately 60 to 90 days. The average time to execute a RRIF credit agreement from the date of Secretarial approval is 1 to 6 months.

Renewals

Not Applicable. Disapproved applicants may reapply at any time.

Appeals

Not Applicable.

Policy Requirements

Reports

Audits

Records

Documentary evidence required for each loan varies. However, standard loan terms require financial and project reports as well as evidence of lien perfection for collateral. All such records must be kept until five (5) years after the RRIF loan shall have been paid in full.

Regulations, Guidelines, and Literature

See the Build America Bureau website at https://www.transportation.gov/buildamerica/financing/programs-guide.

Formula and Matching Requirements

Regional or Local Locations:

Headquarters Office: