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Need Financing for a Road or Bridge Project? Check out the PIB!

Friday March 2nd, 2018
Townships with road and bridge projects can apply for a low-interest loan from the Pennsylvania Infrastructure Bank (PIB). Repayments to this PennDOT-operated program are recycled, which creates financing opportunities for new projects.
 
The goal is to leverage state and federal funds, spur economic development, and help local governments with their transportation needs.
 
The interest rate for PIB loans is fixed at one-half the Federal Reserve’s published prime lending rate and is set when PennDOT accepts a complete application. As of this writing, the PIB interest rate was 2.25 percent. The maximum term for a PIB loan is 10 years, although shorter terms are preferred.
 
Who is eligible?
 
Any township may borrow from the PIB as long as the proposed project is eligible for PennDOT funding, federal aid, or liquid fuels funds.
 
While the PIB can finance any phase of project development, Penn­DOT prefers projects that have progressed through the design and municipal approval phase.
 
Examples of eligible projects include:
 
• Road and bridge repair, improvement, or construction;
 
• Traffic signals;
 
• Transportation enhancement projects;
 
• Improvements required by highway occupancy permits;
 
• Rail safety projects, including grade crossings;
 
• Drainage structures, signs, guiderails, and protective structures used in
connection with these projects.
 
Municipal loans
 
Loans are also available to support municipal projects that were not previously eligible for PIB loans (i.e., projects that are eligible for state and federal funding).
 
Municipalities must contact their PennDOT district Municipal Services representative before submitting an application for a PIB loan.
 
Eligible expenses include road repair and reconstruction, bridges and culverts, traffic signals and other lighting, salt and other storage buildings, equipment, etc.
 
Not all loans may be repaid with liquid fuels funds. Municipalities should consult with their district Municipal Services representative on specific eligibility issues.
 
For more information about the PIB, contact Manager Hugh J. McGowan at (717) 787-5798 or email hmcgowan@pa.gov.