The Arkansas and Missouri Railroad has become just the second railroad to be approved for a loan under the Railroad Rehabilitation and Improvement Financing (RRIF) program.

The RRIF program is administered by the Federal Railroad Administration and was established by TEA-21 and provides for up to $3.5 billion in loan guarantees for railroad infrastructure improvements. Although TEA-21 passed in 1997, the first loan wasn’t approved until last year when the FRA approved a loan for the I & M Railink.

According to the American Short Line and Regional Railroad Association News & Views newsletter, the A&M was seeking a $12 million loan under RRIF.

Railroads initially were reluctant to apply for funding under program because of stringent eligibility requirements that reportedly were set by the Office of Management and Budget.