[Code of Federal Regulations]
[Title 49, Volume 4]
[Revised as of October 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 49CFR260.25]

[Page 692-693]
 
                        TITLE 49--TRANSPORTATION
 
       CHAPTER II--FEDERAL RAILROAD ADMINISTRATION, DEPARTMENT OF 
                             TRANSPORTATION
 
PART 260--REGULATIONS GOVERNING LOANS AND LOAN GUARANTEES UNDER THE RAILROAD REHABILITATION AND IMPROVEMENT FINANCING PROGRAM--Table of Contents
 
            Subpart C--Applications for Financial Assistance
 
Sec. 260.25  Additional information for Applicants not having a credit rating.

    Each application submitted by Applicants not having a recent credit 
rating from one or more nationally recognized rating agencies shall 
include, in the order indicated and identified by applicable numbers and 
letters corresponding to those used in this section, the following 
information:
    (a) A narrative statement detailing management's business plan to 
enhance Applicant's ability to provide rail services including a 
discussion of the following:
    (1) Applicant's current and prospective traffic base, including by 
commodity and geographic region, major markets served, major interchange 
points, and market development plans;
    (2) Applicant's current operating patterns, and plans, if any, to 
enhance its ability to serve its current and prospective traffic base;
    (3) System-wide plans to maintain equipment and rights-of-way at 
current or improved levels; and
    (4) Specific plans for rationalization of marginal or uneconomic 
services;
    (b) Detailed financial information, including:
    (1) Financial statements prepared by a Certified Public Accountant 
(audited, if available), for the four calendar years immediately 
preceding the date of filing of the application, including:
    (i) A copy of Applicant's most recent year-end general balance sheet 
and a copy of Applicant's most recent unaudited general balance sheet; 
and
    (ii) Applicant's most recent annual income statement and a spread 
sheet showing unaudited monthly and year-to-date income statement data 
up to the date the application is filed;
    (2) Projected financial statements, including spread sheets showing 
for each of the four years subsequent to the year in which the 
application is

[[Page 693]]

filed, both before and after giving effect to the proceeds of the 
assistance requested in the application:
    (i) Forecasted annual income statement;
    (ii) Forecasted year-end balance sheets. These spread sheets shall 
be accompanied by a statement setting forth the bases for such 
forecasts; and
    (iii) A spread sheet showing changes in financial position for the 
year in which the application is filed, including the period ending on 
the date of the application based upon actual data and the period from 
the date of the application to the end of the year, based upon estimated 
and forecasted data;
    (c) Capital spending plans for the next five years;
    (d) Cash flow projections;
    (e) Contingency plans for termination of the project before 
completion, if necessary; and
    (f) A narrative description of Applicant's management team, 
including:
    (1) Rail experience of top management;
    (2) Management's plans for achieving growth and its long-term 
capital spending plan; and
    (3) A narrative description of Applicant's workforce and the 
historical rate of employee turnover.