The Michigan State Infrastructure Bank (SIB) was established as a pilot program under section 350 of the National Highway System Designation Act of 1995 (NHS Act), state enabling legislation, and a cooperative agreement dated February 24, 1998, by the Federal Highway Administration (FHWA), the Federal Transit Administration (FTA), and the Michigan Department of Transportation (MDOT). The NHS Act authorized the creation of the Michigan SIB program to provide loans to public and private entities for eligible transportation improvements.

The SIB complements traditional funding techniques and serves as a useful tool to meet urgent project financing demands, stretching federal, state and local dollars. These loans allow eligible applicants to close financing gaps, expand project scopes, improve safety, and through project acceleration, avoid cost increases and reduce construction period disruptions.

Eligible borrowers include any public entity, such as, political subdivisions, state agencies, regional planning commissions, transit agencies, airports, port authorities, and economic development corporations. Private companies, such as, railroads, and non-profit organizations that are developing a publicly owned facility are eligible for SIB financing.

There is no minimum loan amount. Because of capital restrictions, SIB financing will generally not exceed $2 million. The level of SIB participation in proposed projects is determined on a case-by-case basis.

The interest rate for SIB loans is currently set at 3%. The interest rate may vary, depending on the level of risk and repayment terms requested by the borrower. The interest rate may also vary for projects in need of emergency financing.

For further information, contact Deanna Finch, State Infrastructure Bank Coordinator, at 517-241-4778 or email at finchd@michigan.gov