Application Notes:

Mandatory LOIs are accepted on a rolling basis.

Prior to submitting an LOI, applicants are encouraged to contact the funding agency, using the information provided in the Contact section, to confirm that the project meets program requirements and that initial risk assessments are complete, as well as to identify major hurdles that might delay a project early in the process.

LOIs must be emailed to the appropriate address provided in the Contact section.

LOIs must include:

• Summary information
• Applicant information
• Project information
• Financial plan
• Creditworthiness
• Signature
• Attachments, including the SF LLL (as applicable)

The following are required in order to submit an application:

• Unique Entity Identifier (UEI) number
• SAM (System for Award Management) registration

Applicants may obtain a UEI number and verify or renew SAM registration status at www.ecivis.com/sam.

For applicants that submit successful LOIs, the funding agency will conduct a creditworthiness review of the applicant. Applicants deemed creditworthy will be required to deliver an oral presentation, and, if approved, will be invited to submit a full application. Refer to page 9 of the NOFA file and page 71 of the Guide file for detailed information regarding the application review process.

Refer to the NOFA, Guide, and LOI files for additional application information.

Match Notes:

Applicants must provide matching funds for this program. The required amount for the match will vary according to the requested type of credit instrument, as follows:

• Secured loans and loan guarantees: applicants must provide at least 51 percent of reasonably anticipated eligible project costs
• Standby lines of credit: applicants must provide at least 67 percent of reasonably anticipated eligible project costs
• Direct loans: applicants must provide at least 51 percent of reasonably anticipated eligible project costs

Applicants will also be responsible for the following fees:

• Advisors' fees: $250,000 to be provided during the creditworthiness review, upon request of the funding agency
• Annual loan servicing fee: approximately $13,000, indexed to inflation
• Project monitoring fees: fee amount is not provided; fee will be charged in cases where the funding agency incurs costs in connection with monitoring the performance of a project, enforcement of credit agreement provisions, amendments to the credit agreement and related documents, and other performance-related activities

In the event that advisors’ fees cumulatively exceed the $250,000 paid upfront, additional fees may be necessary to cover costs. A typical transaction generally ranges between $400,000 and $700,000. Refer to page 63 of the Guide file for details.

Applicants with project costs reasonably anticipated to be less than $75 million may qualify for a waiver of advisors' fees. Refer to page 10 of the Guide file for additional information.

Funding Notes:

An unspecified amount of funding is available to support credit instruments through this program. The total amount of credit assistance may not exceed 33 percent of the total of reasonably anticipated eligible project costs.

Funding will be provided through the following types of credit instruments:

• Secured/direct loans: Loans will cover up to 49 percent of reasonably anticipated eligible project costs. Loan repayments may begin up to five years after substantial completion of the project. Applicants for direct loans must provide a strong rationale for requesting more than 33 percent of costs.
• Loan guarantees: Guarantees will cover up to 49 percent of reasonably anticipated eligible project costs. Loan repayments must begin no later than five years after substantial completion of the project. Requests for loan guarantees may be preferred over requests for the other credit instruments available.
• Standby Lines of credit: Credit will cover up to 33 percent of reasonably anticipated eligible project costs. Credit may be used to supplement project revenues, if needed, during the first ten years of project operations, and will be available for up to ten years after substantial completion of the project. Lines of credit may be combined with direct loans or loan guarantees for up to 49 percent of eligible project costs.
• Master credit agreements: Any master credit agreements awarded must satisfy the terms and conditions of the statutes of the relevant credit program.
• TIFIA 49: Loans for transit and transit-oriented development (TOD) projects will cover up to the maximum TIFIA level of 49 percent of total costs, whereas most other projects are eligible for TIFIA loans up to 33 percent.

Eligible project costs must be at least $50 million, with the following exceptions:

• Transit-oriented development (TOD) projects and local infrastructure projects: at least $10 million
• Intelligent transportation system (ITS) projects: at least $15 million
• Rural projects: at least $10 million, but not to exceed $100 million

Applicants experienced with debt financing seeking to apply to this program via an expedited process known as TIFIA Lite may receive up to a $100 million loan. The loan repayment sources must be a general obligation pledge, a dedicated tax revenue pledge, or government appropriations. Refer to page 3 of the NOFA file for additional information.

Funds will be provided on a reimbursement basis.

Award notification will be provided to applicants no later than 60 days following the notice regarding the completeness of the application.

In general, the maximum maturity of all credit instruments provided through this program is the lesser of 35 years after a project's substantial completion, or the useful life of the project. The repayment period may last up to 75 years for some projects.

The construction contracting process may begin no more than 90 days from the execution of the credit instrument.

For loan guarantees, prepayment features must be negotiated between the applicant and lender, and must meet the approval of the funding agency.

Generally, secured or direct loans may be prepaid in whole or in part, at any time, without penalty. Refer to pages 23-24 of the Guide file for information regarding repayment and prepayment structuring for all credit instruments.

For lines of credit, full repayment is due no later than 25 years after the end of the 10-year period of credit availability.

The interest rate on a direct or secured loan will be equal to or greater than the yield on U.S. Treasury securities of comparable maturity on the date of execution of the credit agreement.

The interest rate for loan guarantees must be negotiated between the applicant and the lender, and it must meet the approval of the funding agency.

The interest rate for funds drawn on lines of credit will be equal to or greater than the yield on a 30-year U.S. Treasury security on the date of the execution of the credit line agreement.

Funds may not be used for:

• Supplanting existing markets
• Capitalized interest on credit assistance provided through this program
• Administrative charges, such as application fees, transaction fees, loan servicing fees, credit monitoring fees, and the charges associated with obtaining the required preliminary rating opinion letter
• Acquisition of real property that is not physically and functionally related to the project
• Legal counsel and financial advisors needed to negotiate and close awards