Railroad Rehabilitation and Improvement Financing Program
Program Funding
Annual program obligations reported to SAM.gov.
Program Objective
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.
Eligibility
Eligible Applicants
- U.S. State Government
- Interstate Organization
- Federally Recognized Tribal Government
- Municipality/Township Government
- County Government
- Local Government Consortium
- Airport Authority
- Port Authority
- Transit Authority
- Other Special District Government
- Local
- State
- Tribal
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.
How to Apply
Award Procedure
USDOT will evaluate application and advise applicant of approval or disapproval. Final approved is reserved by the Secretary of Transportation.
Decision Timeline
- Approval: 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.
Program details & compliance
Description
The RRIF Credit Program provides flexible, low-interest financing for various eligible surface transportation projects and project sponsors throughout the United States. Because the RRIF Program offers credit assistance, rather than grant funding, its potential users are infrastructure projects capable of pledging revenue streams generated through user charges or other dedicated funding sources.
Mission Categories
Primary: Rail Transportation
Other categories:
Urban Mass Transit
Use of Funds
Allowed Uses
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.
Restrictions
Examples of costs that are ineligible for funding include RRIF debt service reserve amounts, Project Sponsor opportunity costs, and the USDOT's costs of various advisory services to review RRIF Letters of Interest and Loan Applications. However, specific cost eligibility is determined by USDOT prior to approving a loan application.
Required 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.
Matching Requirements
The percentage field is not correct, as a borrower may finance up to 100% of eligible project costs with a RRIF loan.
Matching requirements may be necessary due to statutory limitations based on the type of project being financed. For example, a RRIF loan may only finance up to 75% of total eligible costs for a transit-oriented development project. In addition, if a RRIF loan is combined with a TIFIA loan, the total RRIF and TIFIA financings cannot exceed 80% of total eligible project costs.
Reporting & Compliance
Applicable 2 CFR 200 Subparts
- Subpart B — General Provisions
- Subpart C — Pre-Federal Award Requirements
- Subpart D — Post-Federal Award Requirements
- Subpart F — Audit Requirements