U.S. Department of Transportation (USDOT) officials said Railroad Rehabilitation and Improvement Financing Express (RRIF Express) program revisions would yield expanded eligibility and greater flexibility for short line and regional railroad loans.
“Expanding this financing program will strengthen the short line and regional railroad system, promote economic growth in rural communities, and boost America’s economic competitiveness,” said Transportation Secretary Elaine L. Chao said.
Officials said RRIF Express seeks to reduce the time and costs associated with securing loans to modernize aging freight and commuter rail infrastructure.- expediting the loan request process while providing loans of up to $150 million for qualified borrowers.
“The RRIF Express program, originally introduced in December 2019, was a well-thought-out attempt to improve the traditional RRIF program, and it has generated substantial interest throughout the country,” Chuck Baker, president of the American Short Line and Regional Railroad Association (ASLRRA), said.
“Since that time, the RRIF Express program was modified and improved, once in March 2020, and again now. In my opinion, the modifications being introduced in this iteration combine to form a robust and significant improvement to the RRIF Express program.”
Eligibility expansion includes increasing loan amounts from $50 million to $150 million; making more types of projects eligible; increasing the option to finance loan amount from 40 percent to 75 percent; and increasing flexibility in considering different environmental review categories.
The revision also raises Credit Risk Premium assistance from the previous 5 percent up to 10 percent of the loan value – capped at $5 million per application.