| Credit Product | Description | Project Phase | Maximum Term | Maximum Amount | Repayment Provisions | Interest Rate |
|---|---|---|---|---|---|---|
| Direct Loan | Direct, flexible payment loans from the federal gov-ernment would provide financing of construction costs in a manner that enables loan repayments to coincide with the receipt of revenues rather than adhere to inflexible repayment schedules. | Construction through Maturation | Up to 35 years after construction is complete. | Up to 33 percent of project costs. | Could have a junior claim on annual revenues. Deferral of principal and interest is permissible during the ramp-up phase (though interest will continue to accrue). | Set at the pre-vailing yield on U.S. Treasury bonds issued for a comparable term. |
| Loan Guarantee | Loan guarantees from the federal government to private lenders would attract private capital on similar terms as direct loans. | Construction through Maturation | Guarantees would apply for the term of the private loan (up to 35 years). | Up to 33 percent of project costs. | Could have a junior claim on annual revenues. Deferral of principal and interest would be negotiated between borrower and lender. | The interest rate on the private loan would be negotiated between project sponsor and lender, with DOT approval. |
| Standby Line of Credit | Standby lines of credit represent secondary sources of funding in the form of con-tingent federal loans that may be drawn on to supplement project revenues if needed during the ramp-up phase. | Ramp-Up | Draw could be made up to ten years after construction; repayments must be completed within 35 years after construction. | Up to 33 percent of project costs with up to 20 percent of the line available in any given year. | Repayment of draws would have terms similar to direct federal loan. | The rate on contingent federal loans would be set at the prevailing yield on 30-year U.S. Treasury bonds. |
| Development Cost Insurance | Development cost insurance would provide federal reimbursement to project sponsors for a portion of the pre-construction develop-ment phase costs in the event the project fails to proceed to construction. | Development | Coverage could be claimed at the end of five years if the project failed to proceed to construction. | The lesser of 40 percent of pre-construction costs or $4 million. | If, after claiming insurance coverage, a project advances to construction, then the federal payment is reimbursable. | Not applicable. |
