State Infrastructure Bank (SIB) - Transportation Loan Program
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State Infrastructure Bank (SIB) - Transportation Loan Program

Notice - interest rate change

The SIB program has updated the way it sets interest rates on SIB Loans. This change is effective immediately and should provide communities with lower and more consistent interest rates when considering the SIB program.

Please see this flyer and visit our Application Process page for more information.


The overall goal of the SIB Program is to provide innovative financing methods to communities to assist them in meeting their infrastructure needs.

The SIB program allows borrowers to access capital funds at or below-market interest rates. The SIB operates as a revolving loan fund, where the account balance grows through the monthly interest earned and repaid principal and interest payments.

In Texas, SIB financial assistance can be granted to any public or private entity authorized to construct, maintain, or finance an eligible transportation project.

Program status: We are currently accepting applications.

Project eligibility

To be eligible for SIB financing, projects must be eligible for assistance under United State Code Title 23 or Title 49. Examples of common projects are below:

Eligible uses

SIB funds can be used on all costs incidental to the construction or reconstruction of eligible projects. These uses typically include:

  • On or off system construction or reconstruction
  • Right of way acquisition
  • Utility relocation
  • Engineering and design
  • Local match
  • Joint bid or Advanced Funding Agreement contribution
  • Contingency for rising costs or potential overruns
  • Inspection and construction engineering
  • Financial and legal fees incurred during the course of the SIB loan application and loan agreement

While planning, preliminary studies, feasibility and environmental studies are permitted uses of the SIB, all SIB loans must have environmental clearance, if required, prior to commission consideration.

Additionally, costs must be incurred after the execution of the SIB loan agreement. The SIB cannot reimburse costs except for financial and legal costs incurred during the course of the SIB loan application and loan agreement.

Funds not used for the eligible use for the project must be returned upon project completion.


State Infrastructure Banks (SIB) were authorized in 1995 as a part of the National Highway Designation Act (NHS) to help accelerate needed mobility improvements through a variety of financial assistance options made to local entities through state transportation departments.

Since Texas was chosen as one of the ten states to test the pilot program, the state legislature authorized the Texas Department of Transportation (TxDOT) to administer the SIB program in 1997.

Current SIB loans by region

The Texas Transportation commission has approved 153 loans totaling more than $750 million from the SIB Program. The loans have helped leverage more than $8 billion in transportation projects in Texas.

View the map to find which districts are in each region.