SIB Refinancing

Current borrowers have the opportunity to refinance their State Infrastructure Bank (SIB) loan via an interest rate amendment to their loan agreement once during the loan term.

For active borrowers, the SIB offers a one time per loan term refinancing for borrowers in good standing. The terms for refinancing a SIB loan are as follows:

• Borrower will pay a fee equal to 0.50 percent of the current outstanding loan balance.
• Borrower may refinance the SIB loan only one time during the loan term.
• The loan term will not be extended.
• Borrower may finance the refinancing fee.
• Borrower should be in good standing with the SIB.

To begin the refinancing process, an active borrower should:

• Reach out to the SIB team to inquire about current rates and provide their intent to refinance.
• Obtain an approval (resolution) from borrower’s governing body to submit for refinancing.
• Submit a request on official letterhead requesting the refinancing to TexasSIB@txdot.gov or via the address in the notification provision of the loan agreement.
  

Sample refinance resolution and request letter templates can be found below.

Once TxDOT receives the refinancing request, TxDOT will:

• Provide the new interest rate to the borrower and confirm the borrower wants to proceed.
• If all applicable terms are met, bring the request before the Texas Transportation Commission for consideration.
• After Commission consideration, TxDOT will provide an amended loan agreement with an updated amortization schedule to the borrower for execution.