RAILROAD ASSISTANCE PROGRAM
LOCAL RAIL FREIGHT ASSISTANCE (LRFA)
The State of Kansas began a revolving loan program
in 1991, through the Federal Railroad Administration to assist railroads in
their rehabilitation efforts. The revolving loan program works in the
following manner: federal funds from the Federal Local Rail Freight Assistance
(LRFA) Program are loaned to railroads at a rate below the prime interest rate.
The payments on the loan (including principle and interest) are used to
generate additional loans. Currently, the State of Kansas has eight loans
outstanding in fiscal year 2000.
The total number of dollars currently in this program
for the State of Kansas is slightly more than $3 million dollars. The
shows the details of the grant and loan program by year, federal funds allocated,
distribution of funds, and entity receiving funds. Some of the grants
resulted from the 1993 floods in Kansas.
This program is intended to help ensure that rail
service continues in Kansas. This loan program allows the railroads to
improve and rehabilitate their systems for more profit and safety. Such
service contributes to the state’s economy, enhances market competitiveness,
attracts new industry, and encourages expansion of current business.