SIB interest rates
State Infrastructure Bank (SIB) application process
Interest rate information
General Information
The SIB uses the Municipal Market Index (MMD) to set interest rates. This index is updated weekly.
- Rates are set at the time we receive a completed application.
- The rate will be reset if the loan does not go before the Texas Transportation Commission within 12 months of receiving an application.
- Rate is determined based on the current credit rating of the borrower and the term of the loan.
- The SIB team will use the AAA MMD scale for the term requested for the week of the application.
- The longer the term, the higher the interest rate will be.
- A small premium will be applied based on the credit rating and requested term of the loan.
- Credit rating is not required to borrow.
- Fixed rate for the life of the loan.
| Rating | 1-10 Years |
11+ Years |
| AAA | AAA | AAA |
| AA | AAA +05 basis points (bps) | AAA +10 bps |
| A | AAA +10 bps | AAA +20 bps |
| BAA | AAA +15 bps | AAA +30 bps |
| BBB-/Not Rated | AAA +20 bps | AAA +40 bps |
Economically Disadvantaged County (EDC) Program
- Find eligible counties and learn more about the Economically Disadvantaged County Program (EDCP).
- Available to any entity residing in an economically disadvantaged county.
- Rate reduced in basis points based on the adjustment percentage listed. See the example below.
| AAA interest rate* | 3.75% |
| Rate spread | +.20 |
| EDC reduction | -0.80% |
| Final rate | 3.15% |
* AAA interest rate and rate spread is provided as an example. Rates update weekly and are based on the requested term of the loan.