Transportation Infrastructure Finance and Innovation Act
May 30, 2011
The TIFIA program provides federal credit assistance to nationally or regionally significant surface transportation projects, including highway, transit and rail. The program is designed to fill market gaps and leverage substantial private co-investment by providing projects with supplemental or subordinate debt.
The TIFIA credit program consists of three types of financial assistance, designed to address requirements throughout a project’s life cycle:
Secured loans are direct federal loans to project sponsors offering flexible repayment terms and providing combined construction and permanent financing of capital costs.
Loan guarantees provide full-faith-and-credit guarantees by the federal government to institutional investors, such as pension funds, that make loans for projects.
Lines of credit represent contingent sources of funding in the form of federal loans that may be drawn upon to supplement project revenues, if needed, during the first 10 years of project operations.
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