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iBank outlines infrastructure loans: up to $65M, 30-year terms and eligibility limits
Summary
The California Infrastructure and Economic Development Bank (iBank) presented its loan programs for infrastructure projects, eligibility rules, typical timelines and examples of past loans and projects.
Representatives from the California Infrastructure and Economic Development Bank explained how iBank finances infrastructure projects and what types of applicants and projects are eligible.
Why it matters: iBank lending can fill financing gaps for local infrastructure projects, offering tax-exempt loans, long terms and potentially 100% financing for eligible projects located in California.
Betty Bien and Lydia Workman described iBank’s Infrastructure State Revolving Fund (ISRF) loan program and other financing tools. iBank is a state agency housed in the Governor’s Office of Business and Economic Development (GO-Biz). iBank’s ISRF loans may cover costs associated with acquisition, planning, design, construction and improvement but exclude housing construction costs (iBank can finance infrastructure around housing but not the construction of private homes). The presenters said iBank generally lends to state and local governments, special districts, joint powers authorities and, in limited circumstances, nonprofits; loans to private parties are taxable and subject to additional conditions.
Loan sizes discussed ranged from $1,000,000 to $65,000,000, with terms up to 30 years depending on useful life of the project. Presenters said iBank can provide 100% financing in some cases, offers AAA-rated bonds to lower borrowing costs and that applications are processed on a rolling, first-come-first-served basis; standard processing time is 5–6 months, faster if materials are complete.
Examples cited included loans for landfill projects, stormwater and street improvements, fire stations and a $40,000,000 loan for an organics processing facility in San Diego. Presenters urged applicants to prepare five years of financial statements and projections, to demonstrate viable repayment sources (enterprise revenues or general fund lease-leaseback structures) and to ensure projects include tangible construction elements (not only planning or demolition). iBank staff will be in breakout rooms for project-specific questions.
