State Infrastructure Bank Program

The Michigan State Infrastructure Bank (SIB) loan program was established under Section 350 of the National Highway System Designation Act of 1995 to provide loans to public entities for eligible transportation improvements and to meet urgent project financing demands. Program priorities include accelerating transportation project delivery through short-term financial assistance (especially during emergency situations), increasing the financial viability of projects by reducing borrowing costs, and attracting new public and private investment in transportation infrastructure.

Eligible borrowers are limited to Act 51 eligible public entities, including county road commissions, cities, villages, and MDOT. Priority is given to projects that repay their loan within the shortest time period. Applicants must identify dependable revenue sources to repay the loan, such as future federal aid, future Act 51 funds, local government general funds, tax increment financing revenue, assessment fees, impact fees, or state revenue sharing.

Eligible projects include highway, rail, transit, or intermodal projects as defined under Title 23 U.S.C., Title 49 U.S.C., Public Act 51 of 1951, or Public Act 295 of 1976. MDOT considers financing any stage of a proposed project, including planning, feasibility studies, environmental and economic impact analyses, design, right-of-way acquisition, engineering, and construction. SIB financing cannot be used for operating or administrative costs.

Applications are accepted year-round. Applicants must complete loan application Form 1784. MDOT evaluates applications based on project feasibility, level of public support, borrower creditworthiness, and SIB financial capacity, with notification typically within 30 days. Approved projects proceed to a state/local loan agreement. Loan requests over $500,000 require State Administrative Board and State Transportation Commission approval (taking up to 12 weeks), while requests under $500,000 take up to six weeks. Final project accounting must be submitted within 60 days of project completion.