Railroad Revolving Loan and Grant Program (RRLP)
The Railroad Revolving Loan and Grant program (RRLGP) provides assistance to rail facilities that create jobs and spur economic development and provides assistance to railroads for the preservation and improvement of the rail transportation system. A program review was conducted in the summer of 2009 and the application process was revised. The program updates are intended to make the application process easier to understand and ensure the goals of job creation are met. Applications may be submitted at any time and will be reviewed periodically by the Iowa DOT Commission.
The "new" aspects of the RRLP are summarized below.
- Legislation in 2009 moved the authority for the RRLGP to the Iowa Transportation Commission.
- Two separate funding categories were created — Targeted Job Creation and Rail Network Improvements, which are explained in detail below.
Targeted Job Creation projects
Targeted Jobs Creation applications will be reviewed using a 100 point review criteria.
When applying for loan funds, an applicant must provide a minimum cash match of 20 percent of the cost of the proposed rail project. Loans will be offered at for a maximum term of 10 years at 0 percent interest.
Job creation is defined to include new direct jobs created and jobs retained within two years of the completed rail project. (If an applicant chooses to claim retained jobs, they must provide evidence of the potential job loss.) The number of jobs pledged to be created or retained will become part of the final agreement should an applicant receive funding.
As a threshold for project consideration, the average wage for jobs to be created or retained must meet the wage threshold equal to 100 percent of the average county wage as published annually by the Iowa Department of Economic Development on July 1 of each year. Applicants not meeting this threshold will not be considered for funding.
For new projects only, an advance eligibility waiver may be available that will allow reimbursement of certain preparatory expenditures (such as land acquisition or design) incurred prior to any future award. A written request for a waiver must be requested and granted prior to the expenditure. Granting of a waiver does not imply or guarantee in any way a future award, but may maximize eligible expenses in the event of an award. Contact Rose Wazny (515-239-1066) for more detailed information.
- Jobs leverage score (40 points)
- Wage quality score (20 points)
- Capital iInvestment Leverage score (20 points)
- Loan leverage score (20 points)
When applying for loan funds, an applicant must provide a minimum cash match of 20 percent of the cost of the proposed rail project. Loans will be offered at for a maximum term of 10 years at 0 percent interest.
Job creation is defined to include new direct jobs created and jobs retained within two years of the completed rail project. (If an applicant chooses to claim retained jobs, they must provide evidence of the potential job loss.) The number of jobs pledged to be created or retained will become part of the final agreement should an applicant receive funding.
As a threshold for project consideration, the average wage for jobs to be created or retained must meet the wage threshold equal to 100 percent of the average county wage as published annually by the Iowa Department of Economic Development on July 1 of each year. Applicants not meeting this threshold will not be considered for funding.
For new projects only, an advance eligibility waiver may be available that will allow reimbursement of certain preparatory expenditures (such as land acquisition or design) incurred prior to any future award. A written request for a waiver must be requested and granted prior to the expenditure. Granting of a waiver does not imply or guarantee in any way a future award, but may maximize eligible expenses in the event of an award. Contact Rose Wazny (515-239-1066) for more detailed information.
Rail Network Improvement projects
Each fiscal year, the department may set aside 10 percent or a minimum of $200,000 of the amount available under the Rail Revolving Loan and Grant Program for rail network improvement projects. These funds will be reserved in the first round of funding only.
Immediate job creation is not required for rail network improvement projects.
Examples of projects eligible in this category include, but are not limited to: rail yard improvement or expansion; rehabilitation or construction of branch lines and passing track; industrial park development without specific job commitment.
Loans will be offered for a maximum term of 10 years at 0 percent interest.
Rail Network Improvement project applications will be reviewed using these criteria:
Rose Wazny, Iowa DOT
Office of Rail Transportation
800 Lincoln Way, Iowa, IA 50010
Applications submitted by Oct. 14, 2009, will be considered for funding at the Dec. 8, 2009, meeting of the Iowa Transportation Commission.
Immediate job creation is not required for rail network improvement projects.
Examples of projects eligible in this category include, but are not limited to: rail yard improvement or expansion; rehabilitation or construction of branch lines and passing track; industrial park development without specific job commitment.
Loans will be offered for a maximum term of 10 years at 0 percent interest.
Rail Network Improvement project applications will be reviewed using these criteria:
- Ratio of private and other public investment to RRLG requested investment; and
- Analysis of other private and public benefits (see application form for details).
Rose Wazny, Iowa DOT
Office of Rail Transportation
800 Lincoln Way, Iowa, IA 50010
Applications submitted by Oct. 14, 2009, will be considered for funding at the Dec. 8, 2009, meeting of the Iowa Transportation Commission.
Funding availability
The program can provide assistance as either loans or grants. Industries, railroads, local governments or economic development agencies may apply for financial assistance for projects such as:
- Building rail spurs to a new or expanding development;
- Building or rebuilding sidings to accommodate growth;
- Purchasing or rehabilitating existing rail infrastructure;
- Rehabilitating existing rail lines to increase capacity; or
- Other rail related development.
Downloadable application forms for the Railroad Loan and Grant Program (RRLGP)
RRLGP Application (electronic application, Word d fillable form)
RRLGP Application (PDF/printable format)
Railroad Project Preliminary Cost Estimate (Word fillable form)
RRLGP Application (PDF/printable format)
Railroad Project Preliminary Cost Estimate (Word fillable form)
The Railroad Revolving Loan and Grant program (RRLGP) was created by the 2005 Iowa Legislature. The program is administered by the Iowa Rail Finance Authority (IRFA) Board with staff assistance from the Iowa DOT. The program is funded by appropriations and the repayments from previous Iowa DOT and IRFA loans.
Additional Information:
Railroad Revolving Loan and Grant Program — Administrative Rules
For further program information or questions, contact
Rose Wazny at 515-239-1066.
Recent awards funding availability
- Iowa Transportation Commission approves funding for railroads
- Iowa Railway Finance Authority approves loans for flood-damaged railroads on July 31, 2008
- Iowa Rail Finance Authority approved project funding on Oct. 24, 2007, for eleven projects.
- Iowa Rail Finance Authority approved project funding on June 26, 2006, for fourteen projects.
- Iowa Rail Finance Authority approved project funding on Dec. 14, 2006, for six projects.
- The Funding Guide provides information on this and a variety of other funding programs available for transportation projects.
