• State Infrastructure Banks-State infrastructure banks (SIBs) are state or multi-state revolving loan funds that provide loans, credit assistance and enhancements, and other financial assistance for surface transportation projects. SIBs are established with initial seed capital from states and administered by states. Revenue from borrowers goes back to the SIB to help fund future projects.
In 1995, The National Highway System Designation Act authorized SIB pilot programs in 10 states. Subsequent legislation in 1997 and 1998 allowed all states to develop SIBs and enabled several states to fund their SIBs with revenue from the federal Transportation Equity Act for the 21st Century (TEA-21).
In 2005, SAFETEA-LU established a new SIB program that allows all states, American Samoa, the Commonwealth of the Northern Mariana Islands, the District of Columbia, Guam, Puerto Rico, and the Virgin Islands to capitalize SIBs with federal transportation funds authorized for fiscal years 2005-2009 using an 80-20 federal to non-federal funds match. The new law allows states to establish three different SIB accounts for highway, transit and rail projects and allows SIBs to provide loans and credit enhancement to both public and private entities for authorized projects.
According to the U.S. DOT, 38 states and Puerto Rico have established SIBs. As of June 2005 SIBs in 33 states had completed more than $5 billion in loans for transportation projects.41