The exact terms for each loan are negotiated between the USDOT and the borrower, based on the project economics, the cost and revenue profile of the project, and any other relevant factors. For example, USDOT policy does not generally permit equity investors to receive project returns unless the borrower is current on TIFIA interest payments. Fill market gaps and leverage substantial private co-investment through supplemental, subordinate investment in critical improvements to the nation’s transportation system. Project sponsors must reimburse DOT for the costs of the outside advisors who advise TIFIA on the transaction.
With TIFIA Lite, experienced borrowers with strong credit and small, shovel-ready projects can access an expedited application process. By agreeing to use a loan template with standard terms and forgoing the typical negotiation process, borrowers can access the traditional benefits of TIFIA (low interest rate, payment deferral https://forexarena.net/ up to five years, no pre-payment penalties, etc.) with a shorter review process. Projects eligible for TIFIA Lite can be approved up to six months faster than an average TIFIA application. Historically, TIFIA has been a useful tool for large, complex transportation infrastructure projects that needed low-cost financing.
For more information, please see theTIFIA Credit Program Overview, which summarizes the basic purpose, processes and historical activity of the program.
Loan guarantee- Provides full-faith-and-credit guarantees by the Federal Government and guarantees a borrower’s repayments to non-Federal lender. Loan repayments to lender must commence no later than five years after substantial completion of project. Depending on market conditions, these rates are often lower than what most borrowers can obtain in the private markets. Unlike private commercial loans with variable rate debt, TIFIA interest rates are fixed. TIFIA credit assistance is often available on more advantageous terms than in the financial market, making it possible to obtain financing for needed projects when that financing might not otherwise be available.
TIFIA is a flexible tool that allows borrowers to customize their loan terms and amortization. However, this flexibility can prolong the application process due to the custom negotiations the Bureau and tifia malaysia its advisors undertake with each borrower. The Transportation Infrastructure Finance and Innovation Act program provides credit assistance for qualified projects of regional and national significance.
Secured loan- Offers flexible repayment terms and provides combined construction and permanent financing of capital costs. Repayments can start up to five years after substantial completion to allow time for facility construction and ramp-up. Standby line of credit- Represents a secondary source of funding in the form of a contingent Federal loan to supplement project revenues, if needed, during the first 10 years of project operations, available up to 10 years after substantial completion of project.
Many large-scale, surface transportation projects – highway, transit, railroad, intermodal freight, and port access – are eligible for assistance. Eligible applicants include state and local governments, transit agencies, railroad companies, special authorities, special districts, and private entities. The amount of Federal credit assistance may not exceed 33 percent of total reasonably anticipated eligible project costs.