FEDERAL RAILROAD ADMINISTRATION : FREIGHT RAILROADING

The Railroad Rehabilitation & Improvement Financing (RRIF) Program provides direct federal loans and loan guarantees to finance development of railroad infrastructure.

RRIF PROGRAM OVERVIEW
APPLICATION INFORMATION
QUICK LINKS TO DOCUMENTS
CONTACT INFORMATION

RRIF PROGRAM OVERVIEW TOP

The RRIF program was established by the Transportation Equity Act for the 21st Century (TEA-21) and amended by the Safe Accountable, Flexible and Efficient Transportation Equity Act: a Legacy for Users (SAFETEA-LU). Under this program the FRA Administrator is authorized to provide direct loans and loan guarantees up to $35.0 billion. Up to $7.0 billion is reserved for projects benefiting freight railroads other than Class I carriers.

The funding may be used to:

Acquire, improve, or rehabilitate intermodal or rail equipment or facilities, including track, components of track, bridges, yards, buildings and shops;

Refinance outstanding debt incurred for the purposes listed above; and

Develop or establish new intermodal or railroad facilities

Direct loans can fund up to 100% of a railroad project with repayment periods of up to 25 years and interest rates equal to the cost of borrowing to the government.

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 who intend to construct a new rail connection.

Loan agreements have been executed with the following railroads:

ORGANIZATION YEAR AMOUNT

Nashville and Eastern Railroad 2008 $4.6 million

Columbia Basin Railroad 2008 $3.0 million

Great Western Railway 2007 $4.0 million

Virginia Railway Express 2007 $72.5 million

R.J. Corman Railway 2007 $59 million

Dakota, Minnesota & Eastern Railroad 2007 $48 million

Iowa Northern Railroad 2006 $25.5 million

Wheeling & Lake Erie Railway 2006 $14 million

Iowa Interstate Railroad 2006 $9.35 million

Great Smoky Mountains Railroad 2005 $7.5 million

Riverport Railroad 2005 $5.5 million

The Montreal, Maine & Atlantic Railway 2005 $34 million

Tex-Mex Railroad 2005 $50 million

Iowa Interstate Railroad 2005 $32.7 million

Stillwater Central Railroad 2004 $4.6 million

Wheeling & Lake Erie Railway 2004 $25 million

Arkansas & Missouri Railroad 2003 $11 million

Nashville and Western Railroad 2003 $2.3 million

Dakota, Minnesota & Eastern Railroad 2003 $233 million

Amtrak 2002 $100 million

Mount Hood Railroad 2002 $2.07 million

APPLICATION INFORMATION TOP

Timing

The Federal Railroad Administration (FRA) will approve or disapprove a request for a loan within 90 days after receipt of a complete application. Applications will be deemed complete after the following:

(1) The FRA has fulfilled its obligations under the National Environmental Policy Act (NEPA) and related laws, regulations and orders. In many cases, the FRA will need simply to approve a short environmental form submitted with the application. However, in some cases, compliance with NEPA may require preparation of detailed environmental assessments, consultation with Federal and State authorities, publication of documents, and public review and comment on these documents.

(2) The FRA has completed its initial review of the application (not to exceed 30 days) and, if additional information and/or clarification have been requested, the applicant has provided the requested information.

Note: Since a great variety of projects are eligible to be funded under the RRIF Program, it is impossible to anticipate all the information that will be necessary to evaluate a project for which funding is requested, or the level of detail that will be provided by an applicant. Therefore, a short period of time will be necessary to review applications and determine if there is a need for additional information.

Fees

All federal financial assistance programs must pay for the cost to the government of providing that financial assistance. In most cases this is done with appropriations from Congress. Since the RRIF Program does not currently have an appropriation, this cost must be borne by the applicant, or another entity on behalf of the applicant, through the payment of the Credit Risk Premium. The Administrator will calculate the amount of the Credit Risk Premium that must be paid for each loan before it can be disbursed.

In addition to the Credit Risk Premium, which is paid only if a loan is approved, each applicant must pay an Investigation Fee regardless of whether the loan is approved. The Investigation Fee defrays costs the FRA incurs in evaluating RRIF loan applications. The Investigation Fee may not exceed one half of one percent of the requested loan amount, but it is often substantially less.

Preliminary Meeting Information

Application Form (MS Word)

QUICK LINKS TO DOCUMENTS TOP

RRIF Application Form (MS Word)

RRIF Statute (45 USC § 822)

RRIF Statute (45 USC § 823)

RRIF Regulations (49 CFR § 260)

FRA Categorical Exclusion Worksheet for compliance with environmental regulations.(MS Word)
(This form can also be accessed via a link from the online application form .)

FRA Environmental Regulations (PDF)
(This information can also be accessed via a link from the online application form.)

Summary of FRA's substantive criteria for reviewing RRIF loan applications

FRA press releases, including those related to RRIF

CONTACT INFORMATION TOP

If you have questions about the program, or if you wish to discuss the possibility of funding your project with a loan or a loan guarantee under the RRIF Program, you can contact the Office of Railroad Development.

Telephone: (202) 493-6381
Fax: (202) 493-6330
E-mail: Innovative Finance Division

Applications and other correspondence may be sent to:

Federal Railroad Administration
Office of Railroad Development — Innovative Finance Division
RDV-12, Room W36-320
1200 New Jersey Ave. S.E., Washington, DC 20590

PLEASE NOTE: LETTERS AND PACKAGES SENT TO FEDERAL BUILDINGS ARE SUBSTANTIALLY DELAYED BECAUSE OF SECURITY SCREENING. USE OF A PRIVATE CARRIER SUCH AS UPS, FEDEX, DHL, ETC. IS STRONGLY RECOMMENDED.

Staff List for FRA Innovative Finance Division