The Federal Railroad Administration (FRA) last week issued a $6.8 million Railroad Rehabilitation and Improvement Financing (RRIF) loan to the Arkansas and Missouri Railroad (A&M).
A&M plans to use the funds to refinance the purchase of three locomotives.
“Expanding financing opportunities for railroads will create jobs, grow the economy and improve the quality of our rail infrastructure,” U.S. Transportation Secretary Anthony Foxx said. “The GROW AMERICA Act will strengthen the RRIF program by reducing the cost of obtaining a loan and making the program more accessible.”
The RRIF program bestows direct federal loans and loan guarantees to fund the purchase and development of railroad and intermodal facilities and equipment. In 2003, FRA granted an $11 million RRIF loan to A&M to purchase and rehabilitate track.
“RRIF is a vital tool for railroads,” Acting Federal Railroad Administrator Sarah Feinberg said. “FRA has significantly decreased the time it takes to process RRIF loans, and we look forward to closing additional loans later this year.”
FRA has issued 35 RRIF loans totaling nearly $2.7 billion.
