State Infrastructure Bank Program

The Michigan State Infrastructure Bank (SIB) loan program provides loans to public entities for eligible transportation improvements, complementing traditional funding techniques to meet urgent project financing demands. Program priorities include accelerating the delivery of transportation projects by providing financial assistance that is otherwise unavailable in the short term (especially during emergency situations), reducing borrowing costs to increase financial viability, and attracting new public and private investment in transportation infrastructure.

Eligible borrowers are Act 51 eligible public entities, including county road commissions, cities, villages, and MDOT. While other public and private entities cannot apply directly, they may enter into agreements with eligible borrowers. Priority is given to projects that repay their loan within the shortest period of time. Applicants must identify reliable revenue sources for repayment, such as future federal aid, Act 51 funds, local general funds, tax increment financing revenue, special assessment fees, impact fees, or state revenue sharing.

Eligible projects include highway, rail, transit, and 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 and cost estimation, feasibility studies, environmental and economic impact studies, project design, right-of-way acquisition, project engineering, and construction. SIB funds cannot be used to finance operating or administrative costs.

Applications are accepted year-round using Form 1784. MDOT evaluates proposed projects based on feasibility, public support, applicant creditworthiness, and SIB financial capability, typically notifying applicants within 30 days of submission. Approved projects proceed to a state/local loan agreement; agreements exceeding $500,000 require approval from the State Administrative Board and State Transportation Commission (taking up to 12 weeks), whereas loans under $500,000 do not require SAB/STC approval and take up to six weeks.