DOT Creates Credit Council for Title XI Loans

Published Sep 23, 2004 12:01 AM by The Maritime Executive

The U.S. Department of Transportation announced the establishment of a department-wide Credit Council to enhance oversight and management of the Department's direct loan and loan guarantee programs that are administered by the Maritime Administration, the Federal Railroad Administration, the Federal Highway Administration, and the Office of Small and Disadvantaged Business Utilization. Currently, the Department's four credit programs are responsible for $7.5 billion in outstanding loans and guarantees (including pending commitments). MARAD's Title XI Loan Guarantee Program will be subject to the Credit Council's review.

"As we continue to build a transportation infrastructure and transportation assets that keep our economy moving, it is critical that we act on proven principles of financial management to assure both taxpayers and users of the Department's direct loan and loan guarantee programs that we are protecting the integrity and management of these programs," said U.S. Secretary of Transportation Norman Y. Mineta. "The DOT Credit Council achieves this important need."

The DOT Credit Council is scheduled to meet quarterly and is modeled after the Transportation Infrastructure Finance and Innovation Act (TIFIA) Credit Council that will now be combined into the department-wide Council.
The establishment of the DOT Credit Council will lead to a more expedient and streamlined application review process, while preserving autonomy within each operating administration. For example, applications for the Title XI Loan Guarantee Program will continue to be submitted to the Maritime Administration, and decisions to approve or disapprove an application will continue to reside with the Administrator.

"Shipbuilders and ship owners should be pleased to note that the Department has developed a process that encourages and enhances efficiency, transparency, and reliability from the time an application arrives to the point when a decision is made," said Maritime Administrator Captain William G. Schubert.