49 CFR § 260.5 - Eligible purposes.

---
identifier: "/us/cfr/t49/s260.5"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "49 CFR § 260.5 - Eligible purposes."
title_number: 49
title_name: "Transportation"
section_number: "260.5"
section_name: "Eligible purposes."
chapter_name: "FEDERAL RAILROAD ADMINISTRATION, DEPARTMENT OF TRANSPORTATION"
part_number: "260"
part_name: "REGULATIONS GOVERNING LOANS AND LOAN GUARANTEES UNDER THE RAILROAD REHABILITATION AND IMPROVEMENT FINANCING PROGRAM"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "49 U.S.C. 22401, 22402, 22403, 22404, 22405, 22406; 49 U.S.C. 116."
regulatory_source: "65 FR 41841, July 6, 2000, unless otherwise noted."
cfr_part: "260"
---


# 260.5 Eligible purposes.

(a) Financial assistance under this part is available solely to:

(1) Acquire, improve, or rehabilitate intermodal or rail freight or passenger equipment or facilities, including track, components of track, bridges, yards, buildings, and shops;

(2) Refinance outstanding debt incurred for purposes described in paragraph (a)(1) of this section; or

(3) Develop or establish new intermodal or railroad facilities.

(b) Financial assistance under this part cannot be used for railroad operating expenses.