State Infrastructure Bank

 
SIB Home Page 

BACKGROUND

The State Infrastructure Bank (SIB) is a revolving loan and credit enhancement program that provides loans and other assistance to public and private entities proposing to carry out projects eligible for assistance under state and federal law.

The SIB consists of two separate accounts. The Federal-funded account is capitalized by federal money matched with state money as required by law, and the State-funded account is capitalized by state money and bond proceeds.

SIB participation from the Federal-funded account is limited to projects which meet all federal requirements pursuant to the Transportation Equity Act for the 21st Century (TEA-21) and are eligible for assistance under Title 23, United States Code (USC) or capital projects as defined in Section 5302 or Title 49 USC and other applicable federal guidelines.

SIB participation from the State-funded account is limited to a transportation facility project that is on the State Highway System or that provides for increased mobility on the state's transportation system in accordance with Section 339.55, Florida Statutes or provides for intermodal connectivity with airports, seaports, rail facilities, transportation terminals, and other intermodal options for increased accessibility and movement of people, cargo, and freight.

Projects of the Transportation Regional Incentive Program (TRIP) are eligible for the State-funded SIB provided the project is matched by a minimum of 25% from funds other than SIB. The State-funded SIB can be used in constructing and improving transportation facilities or ancillary facilities that produce or distribute natural gas or fuel.  The State-funded SIB may also lend capital costs or provide credit enhancements for emergency loans for damages incurred to public-use commercial deepwater seaports, public-use airports, and other public-use transit and intermodal facilities that are within an area that is part of an official state declaration of emergency.

The SIB can leverage funds through loans, and credit enhancement assistance to improve project feasibility. The SIB cannot provide assistance in the form of a grant. The amount of any loan or other assistance may be subordinated to other debt financing for a project with an investment grade rating of "BBB" or higher. Loans from the SIB may bear interest at or below market interest rates, as determined by the Florida Department of Transportation.

The National Highway System (NHS) Act of 1995 authorized up to 10 States to establish a pilot SIB.  In 1997, Florida was selected as one of the original ten states to establish such a SIB.  The "bank" which is actually a revolving fund loan program, was eligible to be capitalized with as much as ten percent of federal highway and transit funds apportioned to these states in federal fiscal years 1996 and 1997.  Under TEA-21, another SIB pilot was implemented with Florida as one of four participating states.  In the previous NHS Act, SIB was rolled into the new pilot under TEA-21 to form the SIB program.  Several major improvements were made to the program including: 

  • States may contribute up to the total federal highway funds apportioned to the state for major programs such as Interstate Maintenance, National Highway System, Surface Transportation, and Bridge Construction Rehabilitation.  The state can also contribute the total funds made available to the state or other federal transit grant recipients for capital projects and the total funds made available to the state under Subtitle V of Title 49 USC.
  • The ability to capitalize funds from USDOT was shortened from nine to five years, to be received at twenty percent each year.
  • Capitalized funds may be deposited into one SIB account instead of segregated between highways and transit as outlined in the previous law.  

Congress made a major change to the program that required all funds capitalized into the SIB, plus all future repayments of SIB assistance for all sources (including non-federal sources) to be federal funds. 

June 2000 - Governor Jeb Bush executed Senate Bill 862 into law adding flexibility to the program.  The bill finalized a proposal to create and fund a State-funded SIB to be funded with $50 million for three consecutive years.  The first $50 million was deposited in the state-funded SIB in state fiscal year 2000/01.  Due to budget constraints and general revenue shortfalls, the capitalization was reduced to $43.5 million in state fiscal year 2001/02 and no capitalization in state fiscal year 2002/03.  The State Transportation Trust Fund shifted funds of $33.5 million in state fiscal year 2003/04 to fund existing awarded projects and potential future awards. 

April 2002 - Governor Jeb Bush executed House Bill 261 into law.  This bill included projects that provide for connectivity between the State Highway System and airports, seaports, rail facilities, transportation terminals, and other intermodal options for the increase accessibility and movement of people, cargo and freight. 

June 2003 - Governor Jeb Bush executed Senate Bill 24A, as part of the 2003A Special Legislative Session.  This bill authorized the department to leverage the existing State-funded SIB loan portfolio to provide a recurring source of loan funds through the issuance of revenue bonds.

June 2005 – Governor Jeb Bush executed Senate Bill 360. This bill, as part of a major initiative to improve growth management planning and funding, authorized projects of the TRIP to be eligible for SIB funding. TRIP projects are identified for the purpose of providing funds to improve regionally significant transportation facilities to regional transportation areas. The State-funded SIB was capitalized with $100 million for TRIP eligible projects, provided the project is matched by a minimum of 25% from funds other than SIB.

June 2007 – Governor Charlie Crist executed House Bill 985. This bill allows for the State-funded SIB to lend capital costs or provide credit enhancements for emergency loans for damages incurred to public-use commercial deepwater seaports, public-use airports, and other public-use transit and intermodal facilities that are within an area designated part of an official state declaration of emergency pursuant to Chapter 252 and all other applicable laws.

March 2016 - Governor Rick Scott executed Senate Bill 196.  This bill allows for financial information of a private entity applicant for loans or credit enhancements from the State-funded SIB to be protected from disclosure.  The State-funded SIB can be used in constructing and improving transportation facilities or ancillary facilities that produce or distribute natural gas or fuel. 

Beginning July 1, 2017, applications for the development and construction of natural gas fuel production or distribution facilities used primarily to support the transportation activities at seaports or intermodal facilities are eligible.  These loans may be used to refinance outstanding debt.

Florida’s SIB program is established as escrow accounts in the Florida State Treasury. All proceeds are invested by the State Treasurer in accordance with established state investment guidelines. SIB funds may be loaned to a variety of public and private entities, and may be used for various forms of financial assistance such as subordinated loans, interest subsidies, letters of credit, capital reserves for bond financing, capital improvements and all phases of construction.

SIB AUTHORIZATION AND STATUTES