This is accomplished by awarding non-interest bearing loans to help fund qualifying projects with a repayment period of up to ten years. Railroads, local governments, economic development corporations, and current or potential users of freight railroad services are eligible to apply for loan funds. Loans are limited to $1 million per project (and per applicant) for each year of the program. A MiRLAP loan can fund up to 90% of eligible project costs. The loan recipient must provide a funding match of at least 10% of eligible project costs, and expenditure of the funding match is required before state funds may be drawn down. The loan repayment period may not exceed ten years. The program operates as a revolving fund; therefore, unexpended funds, together with interest earned, repayments and any late payment penalties remain in the fund for the purpose of funding future MiRLAP projects.

We anticipate that there will be approximately $3.3 million available for this year's call for projects.

Projects are evaluated to determine their relative merit in conjunction with program goals. Among other things, the selection process evaluates the project's economic and safety benefits to the public, e.g., jobs created or retained; improved rail service to industrial and agricultural rail customers; elimination of grade crossings; reduction in highway traffic congestion, etc. All loans must be approved by the State Transportation Commission and the State Administrative Board. This generally takes 60-90 days after applications have been evaluated.

Applications for this year's call for projects, together with supporting documentation, must be received no later than 5:00 p.m., February 5, 2008.

For questions concerning this program, please contact:
Kathleen Grover (517) 373-1321 groverk@michigan.gov

MiRLAP Forms:

3052 - MiRLAP Application Form
W-9 - Taxpayer ID Request
0106 - Title VI/EEO Compliance Application