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DOT outlines rail loan fund terms and current balance; seven active loans, $13M uncommitted
Summary
Deputy director Chad Orrin told the committee the department’s rail loan fund is a revolving account with a current uncommitted balance of roughly $13,000,000, maximum loan size of $5,000,000 and three loan varieties: a 0% system‑critical loan for short lines, a half‑prime infrastructure loan, and a 70% economic‑development loan.
Chad Orrin, deputy director for planning at the North Dakota Department of Transportation, gave committee members an overview of the department’s rail loan fund, including program categories, terms and current balances.
Orrin said the rail loan program offers three types of loans: a system‑critical product (0% interest, up to 80% of eligible costs, repayment in up to 15 years) available to short‑line operators; an infrastructure improvement loan (half‑prime interest, up to 80% of eligible costs, 15‑year repayment) for eligible public applicants and rail partners (Class I freight carriers are not eligible for this category); and an economic development product (up to 70% participation, 10‑year repayment). He said the program’s maximum loan award is $5,000,000 per project and that the fund is a revolving account administered by DOT.
Orrin told the committee the program had seven active loans, recent repayments flow back into the fund, and the uncommitted balance available for new applicants was about $13,000,000 as of the most recent report. He said the department had no pending applicants at that point.
On policy mechanics: Orrin said the fund’s balance grows as loans are repaid, and that the department was seeking a continuing appropriation mechanism to streamline re‑lending of returned principal and interest rather than seeking a new authorization each year.
Why this matters: The rail loan program is one tool to invest in short‑line track, crossing, loop and siding projects that can reduce truck traffic and support commodity movements; committee members asked whether the $5,000,000 cap and program terms are adequate for longer track rehabilitation needs.
