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State Infrastructure Banks (SIBs)

Practitioners' Survey: Summary of Survey Results

Fall 2017

Purpose of the Survey:

To provide insights to how SIBs are utilized nationwide, identify marketing techniques and to provide customer feedback to the Center for Innovative Finance Support (CIF$).

Survey Response Rate

  • 29 Surveys Sent to Division POCs
  • 19 Respondents
  • 66% Response Rate

Highlights

  • Vast majority (18/19) of the responding SIBs were capitalized under NHS, two SIBs received additional capitalization under TEA-21 (CO,MO), and one SIB also capitalizing under SAFTEA-LU and the FAST ACT (CO).
  • Approximately 40% (8/19) of SIBs reported having written operation procedures.
  • One state (WY) reported that they were considering closing their SIB.
  • Two responders asked CIF$ to better help the SIB program in promotion or technical assistance, one to identify best practices of operating SIBs and one for CIF$ to identify new funding sources for SIBs.
  • One State (MI) is looking for additional capitalization.

The majority of SIBs receive between 0-2 applications a year.

pie chart

Loan Applications Received chart as table data

Loan Applications Received Number of Respondents
0-2 Applications received per year 12
2-5 Applications received per year 2
5-10 Applications received per year 3

The majority of SIBs accept loan applications at any time.

bar graph

Loan Applications Accepted graph as table data

Loan Applications Schedule Number of Respondents
On a set application schedule 4
At any time 13


Terms and Fees

  • Two of 19 SIBs require application fees. (OH, MO)
  • Three States have a minimum borrowing amount requirement. (FL, MN, MO)
  • States have varying maximum borrowing amount limits, with secondary approval processes.

Terms and Fees, Detailed Responses:

State Minimum/Maximum terms
Colorado First come, first served to the SIB. The amounts lent depend on the request total, and qualifications of the borrower.
Florida $1 million minimum.
Michigan No minimum amount. No maximum amount but generally not over $2 million. State will work with applicants to identify
other potential sources for larger projects.
Minnesota Yes
Missouri MoDOT staff can accept loan request for $10 million or less. Any loan requests greater than $10 million require pre-approval by MoDOT's Executive Director. The minimum loan amount is $50,000. Terms of a loan over 10 years, require pre-approval by the MoDOT's Executive Director.
Ohio 1-10 Years for Loans
Loan requests greater than $5 million may be referred to the SIB Bond Program.
Interest rates set by SIB Loan Committee and must be at or below market rate as of loan approval date.
Texas Two programs currently - First-Come, First-Served for all SIB loans for TxDOT projects less than $10 million. No minimum limit. Other program is a SIB Program Call which is a TxDOT project > than $10mm or any Non-TxDOT project.

We further limit the SIB Loans to the following guidelines:
  1. Limit of 10% of the SIB per project
  2. Limit of 20% of the SIB per borrower
  3. Limit of 50% of the SIB for loans to be re-paid with project revenues

Most Frequent Borrowers

bar graph

Most Frequent Borrowers graph as table data

Type of Borrower Number of Respondents
Grants Only 1
Local Government 10
Private/P3 Projects 2
State/Self 6
Transit Operators 1
Utility Relocation 1
Public Use Airports 1

Types of Credit Analysis on prospective borrowers

  • Half (10/19) of the respondents did not report any types of credit analysis.
State Response
CO CDOT uses an external financial advisor to review borrower responses on the application, as well as our internal SIB Committee, and CDOT staff.
FL Certified Annual Financial Reports (CAFR), debt service coverage ratios, historical revenue analysis, personal guarantees, rating analysis, asset based financing, collateral, sinking funds, debt service reserve accounts, etc...
MI Nothing formal but the State reviews the applicants Act 51 distribution amounts (State law that distributes transportation funds to counties and local agencies...) outstanding SIB loans, and project terms.
MN After MnDOT certifies project eligibility, the Minnesota Public Facilities Authority (PFA) requires that the applicant provide a TRLF loan application for underwriting review, including annual audit reports, estimated project costs, anticipated repayment source, and existing debt service requirements. Subject to PFA underwriting approval, loan funding requires the applicant provide its G.O. Note as commitment support for a term consistent with the loan maturity.
MO If the entity is rated by a rating company (Standard & Poor's), MoDOT staff uses this rating. If the entity is Not rated, MoDOT staff uses an interest rate criteria to determine a rating by reviewing the times coverage, additional dedicated revenue and term of the loan. MoDOT staff also reviews the application and financial statements in detail before approving the loan.
OH ODOT Financial Advisor reviews application to determine borrower's ability to repay loan, financial statements required for application package. ODOT Financial Advisor provides recommendation.
Application presented to SIB Loan Committee and is Approved, Disapproved, or Approved with Modifications.
TX Every loan receives a legal and financial analysis to determine ability to repay - and continued monitoring of the borrower during the loan term.
VA The analysis is part of larger efforts for projects procured as Public-Private Transportation Projects. By direction in the Code of Virginia, the SIB loan is only available to a private operator as provided for in the Public-Private Transportation Act of 1995 (as amended).
VT Municipal Application: Cash flow availability, municipal backing If private: Same underwriting as commercial loans. This includes additional analysis of financial viability of business and the product.
If private: Same underwriting as commercial loans. This includes additional analysis of financial viability of business and the product.

Does Your SIB Use Any Specific Software to Track Loans?

bar graph

Software Information graph as table data

Type of Software Used Number of Respondents
Business Objects 1
Excel 3
No / No Response 10
Nortridge 1
State Financial System 4
Yes, Unspecified 1

SIB Health Check

bar graph

My SIB is Active graph as table data

My SIB is Active Number of Respondents
Strongly Disagree 3
Disagree 3
Neutral 2
Agree 10
Strongly Agree 1

My DOT Actively Promotes the SIB

bar graph

MY DOT Actively Promotes the SIB graph as table data

My DOT Actively Promotes the SIB Number of Respondents
Strongly Agree 3
Agree 4
Neutral 5
Disagree 4
Strongly Disagree 3

Do Local Public Agencies know about the SIB?

bar graph

LPAs in my state know about SIB graph as table data

LPAs in my state know about SIB Number of Respondents
Strongly Agree 1
Agree 4
Neutral 7
Disagree 4
Strongly Disagree 3

Marketing Strategies

bar graph

SIB Marketing Graph as table data

My SIB is marketed through: Number of Respondents
Dedicated Website 4
DOT Website 7
State held informational meetings 4
FHWA (Division) held informational meetings 1
Print advertisements 5
Social media 1
TV/Radio ads 0
Other 3
SIB not marketed to prospective lenders 10

What can CIF$ do to help you and your SIB?

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What can CIF$ do to Help graph as table data

What can CIF$ do to help you and your SIB? Strongly Agree Agree Neutral Disagree Strongly Disagree
I would like to see more training and assistance from CIF$/OIPD for SIBS - 6 13 - -
The SIB guidance document is a good resource for SIB practitioners 1 14 4 - -
CIF$/OIPD website provides good links to information on SIBs 3 11 5 - -
CIF$/OIPD staff provides FHWA divisions and states with needed support for the SIB program 2 9 8 - -

Conclusion

Thank you to all the FHWA Divisions and State DOT partners that took the time to reply to this survey!

Your responses will help us provide valuable technical assistance and promote innovative financing tools, like the SIB, to all users.

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