RRIF Express 2.0: More Accessible to Small Roads

Written by Marybeth Luczak, Executive Editor
The new RRIF Express “modifications combine to form a robust and significant improvement to the program and should allow for more short line projects to be presented and selected for funding,

The new RRIF Express “modifications combine to form a robust and significant improvement to the program and should allow for more short line projects to be presented and selected for funding," ASLRRA President Chuck Baker said.

The U.S. Department of Transportation is expanding eligibility and providing more flexibility for the Railroad Rehabilitation and Investment Financing Express (RRIF Express) program.

The aim of the program, which launched in December 2019, is to expedite long-term, low-cost loans for short line and regional railroads.

The new RRIF Express 2.0 is:

  • Increasing loan amounts from $50 million to $150 million.
  • Expanding the scope of eligible projects to include “most everything eligible under the traditional RRIR program.” (Freight and commuter rail infrastructure projects are eligible.)
  • Increasing the option to finance the loan amount from 40% to 75% of total project cost.
  • Offering increased flexibility in considering different categories of environmental review.
  • Raising Credit Risk Premium assistance from the previous 5% up to 10% of the loan value, capped at $5 million per application.
  • Extending the filing time for applications.

“The ASLRRA and the short line freight railroads we represent are excited about these improvements being rolled out as RRIF Express 2.0,” American Short Line and Regional Railroad Association (ASLRRA) President Chuck Baker said. “The modifications combine to form a robust and significant improvement to the program and should allow for more short line projects to be presented and selected for funding.”

Railroads that have submitted applications under the RRIF Express program already this year will be able to utilize the new provisions, according to ASLRRA.

The U.S. DOT Build America Bureau (Bureau), which administers the program, will accept letters of interest until all available financing is exhausted. The Bureau and ASLRRA are “coordinating closely to provide educational training and technical assistance to help any parties interested in applying for a loan under the RRIF Express program.”

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