To support rail infrastructure improvements that facilitate economic development in Michigan, the Freight Economic Development Program provides low-interest loans that can be converted to grants. Eligible applicants include rail users locating or expanding in the State and local government entities interested in these businesses. Loans are competitive, and are evaluated based on a number of factors, including the number of jobs that will be created or retained; expected impact on the local economy; and the viability of other transportation options. Priority is given to projects that demonstrate multiple users and/or the potential for future public use, such as spur tracks into new or expanding industrial parks and transloading facilities. Applications are accepted at any time of the year. The average contribution is approximately $215,000 per project, which has aided the creation/retention of approximately 75 jobs each.

• 50% of the cost of the eligible rail infrastructure.
• Minimum interest rate of 2% below the prime rate.
• Can be forgiven incrementally over a designated period of years if agreed-upon minimum carloading requirements are met.

Program Contact
Nikkie Johnson,
Rail Project Manager
517-335-0939