FHWA Office of Tribal Transportation

Financial Administrative

Technical Assistance

Doug Roberts

Financial Specialist
Financial Technical Assistance

• Financial Technical Advice and Strategy

 Best Practices

• Policy & Regulation Implementation

 2 CFR 200

• Process & Procedure Evaluation

 Courtesy Evaluation / Review
Financial Technical Assistance

• Financial Risk Assessment

• Single Audit Preparation

• Accounts Payables & Vendor Evaluation

• Accounting / Financial Systems

• Workflow Analysis, Segregation of Duties, etc.
Who do I contact for assistance?

Start developing, refining or updating your 

Financial processes and systems today!

Your direct point of contact for Financial Technical 

and Administrative Assistance is Doug Roberts in 

coordination with your Agency Point of Contact. 

Doug Roberts

850.553.2213

Doug.Roberts@dot.gov
Introduction to Innovative 

Finance

The Essentials of Innovative Finance for Tribal, State, and 

Local Governments

Peter Mancauskas

Innovative Finance Program Manager
AGENDA

Introduction

1. Value Capture

2. FHWA Revenue Bonds (GARVEEs)

3. State Infrastructure Banks (SIBs)

4. Private Activity Bonds (PABs)

5. TIFIA Loan Program

7. Combining SIB and TIFIA for a Rural Project

8. Leveraging multiple Federal Resources

2
7

Who Am I?

 I am the Project Finance Program Manager for the Center for Innovative 

Finance Support (CIFS).

 CIFS provides program oversight for Tolling, GARVEEs, SIBs, and P3 

transportation initiatives.

 CIFS is a part of the Office of Innovative Program Delivery (OIPD), which 

improves transportation performance by driving innovation into action 

through partnerships, technology deployment, and capacity building.

Introduction
8

What Can We Do for You?

 CIFS can assist you and your infrastructure partners by facilitating 

relationships with State DOT, FHWA division offices, DOT program 

offices, and other Federal resources.

• Identify innovative financing and funding solutions for your projects.

• Assist with SIB applications.

• Develop Public Private Partnerships (P3) strategies.

• Provide in-depth innovative finance training.

• Real-Time technical assistance.
9

What is Innovative Finance?

Innovative Project Finance Defined~

Specially designed techniques and tools that supplement 

traditional highway financing methods, improving governments' 

ability to deliver transportation projects.
10

Techniques

 Funding

• Tolling

• Public Private Partnerships

• Funds Leveraging

• Special Assessments

• Tax Increment Financing

• Fees

• Advertising and Naming Rights

• Developer Contributions

• Concessions

• Joint Development

• Toll Credits

 Financing

• Opportunity Zones

• GARVEE Program

• TIFIA

• Joint Ventures

• State Infrastructure Banks

• FHWA Grant Programs

• Other Federal Financing
11

Innovative Finance vs. Conventional 

Approaches

Conventional Transportation 

Funding

• Gas taxes 

• Pay-as-you-go

• Issue State-backed bonds

Innovative Finance

• Use of project-based revenues (e.g., 

tolling, value capture)

• Debt Financing (Public or Private)

• Expanded private sector role in 

financing and delivering projects

• Value Capture leveraging

• Funds leveraging – identifying projects 

that have dual funds’ eligibility across 

existing federal programs.
Why should 

innovative finance 

be considered in 

the planning 

process?

12
Advantages

• Maximize capital options and leverage existing funding

• Accelerate project delivery

• Increase stakeholder and public awareness

• Incorporate financing considerations to project selection criteria

13
14
15

Other Federal 

Financing

USDOT Grants

State 

Infrastructure 

Banks

Joint Ventures

TIFIA Loans

GARVEE 

Program

Opportunity 

Zones

Constrained Unconstrained

Expand Your TIP

Project A: 

Funded 

Project C: 

Funded 

Project C: 

Funding unclear

Project B: 

Funding unclear 

Project B: 

Funded 

Project A: 

Funded 

Project D: 

Unfunded 

Project D: 

Funded 
16

 Learn how to introduce innovative finance earlier in the transportation planning process and how 

different financing tools could alter your funding projections and expand your programming options

 Consider how the transportation planning process could help assemble finance packages for 

projects

 Learn how to use innovative financing and funds leveraging to expand your options for program and 

project delivery

 Learn how to compare the comparative risks associated with different finance and leveraging 

options

 Gain a better understanding of policy constraints and obstacles that may restrict or prohibit 

innovative finance options at the State and local levels

Start the discussion early. We can help:

www.fhw.dot.gov/ipd

Peter.Mancauskas@dot.gov

Put Innovative Finance to work for you
Lead Program Office: Center for Innovative Finance Support, OIPD

Point of Contact:

Value Capture

Thay Bishop, CPA, CTP/CCM 

Senior Program Advisor 

Office of Innovative Program Delivery

Center for Innovative Finance Support

404-562-3695

Thay.Bishop@dot.gov

38
Value Capture Definition

Value Capture is defined as a revenue source (fee, tax, assessment, or 

other mechanisms) for capitalizing on the value created by transportation 

improvements and investments. 

39
Examples of Transportation

Improvements

 Roads and bridges.

 Transit improvements and expansion.

 Complete streets improvements.

 Bicycle and pedestrian connections.

 Street trees and landscaping.

40
Beneficiaries

 Developers.

 Property owners (residential, commercial, retail, industrial).

 Employers.

 Businesses.

 Transportation users.

41
Typical Value Capture Mechanisms

42
Special Assessment Districts (SAD)

SAD captures the increase in property value due to public improvement based upon 

proximity.

 It’s only levied against those parcels receiving a special benefit from improvement.

 Assessment amount is directly related to the value of the benefits the property 

received.

 Sales tax districts are a type of SAD that uses a sales tax rather than property tax.

 Examples:

 SAD financing provides more than 9 percent of annual budgets of Montana’s counties.

 Atlanta’s Peachtree Streetcar line.

43
Tax Increment Financing (TIF)

TIF is a value capture revenue tool that uses taxes on future gains in real estate 

values to pay for new infrastructure improvements.

 TIF uses these future increments in property taxes generated within a 

specified area to finance the initial costs of the public improvements.

 Offers a source of long-term revenues.

 Used in almost every State.

 Examples:

 TIF is used in Oregon for Transit ― $7.5 million for a portion of Central City Streetcar and 

$30 million for Interstate Avenue Light Rail.

 San Francisco’s Transbay Terminal is being partially funded through tax increments.

44
Land Value Tax

Conventional property tax – same rate for land and buildings.

 Tax on land.

 Tax on buildings.

 Examples:

 Pennsylvania has split rate tax over 100 years: 1913 Pittsburgh and Scranton, 1951 third-class 

cities, 1992 school districts, etc.

 Maryland: Attorney General in 1995 ruled 1916 law allows cities.

 New York: Only for the City of Amsterdam.

 Virginia: 2002 for Fairfax County.

45
Joint Development (JD)

A formal public-private agreement that involves mutually beneficial investments. 

 Private sector payments to the public entity and/or sharing of capital assets.

 Incentives for the public entity – Additional revenue for capital improvements.

 Incentives for the private sector – Enhanced real estate development potential.

 Examples:

 Oregon: Bechtel Corporation and Trammell Crow Company build $28 million Red Line extension 

to airport in exchange for the development rights around a transit station.

 Denver: FastTrack expansion.

 Maryland: Midtown rail stations.

 Washington, DC: WMATA rail stations.

46
Transportation Utility Fees

 Transportation network functions as a utility and a fee is charged. Known as:

 Road utility fee.

 Street maintenance fee.

 Road user fee.

 Applies to all residents and businesses.

 Example:

 Hillsboro, Oregon uses a transportation utility fee to pay for street repairs.

48
Development Impact Fees

Type of exaction collected with a building permit.

 Proportional to the impact caused by the development.

 Offset the impact of the development.

 Used in CA, FL, and TX.

Example

 Osceola County (Florida) Roadways & Bridges Program (impact fees).

 Mercer County, New Jersey’s transportation Development Districts (I-95/I-295).

 The State Route 4 Bypass is being partially funded by traffic mitigation fees from Eastern Contra 

Costa County, CA.

48
Air Rights

Development right to use or develop the space above one’s property.

 Rights above or below a facility used to generate/capture an increment of land 

value.

 Type of joint development.

 One-time payment for sales; ongoing for leases.

 Very location-specific.

 ROW use agreements covered in 23 CFR 710.405.

Example:

 Development over depressed freeways in Seattle; NYC; Columbus, OH; Duluth, MN; and 

Washington, DC.

49
Negotiated Exactions/Developer 

Contributions

Exactions are one-time, direct payment or in-kind contributions made by developers to 

local governments as part of agreement to grant development permit.

 Site-specific, case-by-case basis.

 Exactions applied locally to site-specific requirements.

 Covers costs that otherwise would be borne by public.

 Can be exacted before or after construction.

Example

 Eagle Road SH-55 Fairview Avenue Intersection (ID).

 The Potomac Yard (VA).

50
Benefits

Value Capture is mostly initiated by local governments.

 Facilitate access to ongoing revenue sources such as new property tax revenue to the 

City/County/State.

 Value Capture can be a valuable “gap funding” approach for highway improvements:

 Sources of revenue.

 Revenue = alternative financing.

 Raised capital/revenue helps secure funding from multiple Federal sources and/or 

Federal matching share: TIFIA, Section 129 Loans, SIBs, INFRA Grants.

 Part of an overall funding strategy.

51
Challenges

 May require statutory authority.

 Stakeholders coordination & involvement process can be lengthy:

Tribal Government, Local governments and State DOT.

Property owners and/or developers.

Private companies.

Transportation corporation.

Federal agencies.

 Transaction costs.

 Expertise.

52
Resources

 FHWA Center for Innovative Finance Support Resources:

https://www.fhwa.dot.gov/ipd/value_capture/.

https://www.fhwa.dot.gov/ipd/project_profiles/.

https://www.fhwa.dot.gov/ipd/fact_sheets/ .

 FHWA Right of Way Use Policy and Guidance:

https://www.fhwa.dot.gov/real_estate/right-ofway/policy_and_guidance/airguide.cfm.

53
Lead Program Office: Center for Innovative Finance Support, OIPD-FHWA

Point of Contact:

Grant Anticipation Revenue 

Vehicles − GARVEE

Peter Mancauskas

Innovative Finance Program Manager

Office of Innovative Program Delivery

Center for Innovative Finance Support

(202) 503-9850

Peter.Mancauskas@dot.gov

62
What are GARVEEs?

 Definition: Debt issued (usually bonds) by States, local governments, 

Tribal governments, and territories; backed by, and repaid with, 

specific Federal-aid funds.

 Purpose: Issued to provide new funding for eligible projects or to 

refinance existing GARVEE bonds.

 Key Provisions:

• No Federal guarantee of repayment; any pledges or obligations 

must come from the issuer.

• Non-Federal match is required with every debt service repayment.

63
Advantages of GARVEEs

 Accelerate construction of critical projects.

 Avoid costs of inflation.

 Facilitate large project financing.

 Promote efficient resource allocation by matching debt 

term with life of asset. 

 Provide benefit of relatively low interest rates.

64
Advantages of GARVEEs (cont.)

 Provide economic and fiscal stimulus.

 Leverage Federal funds.

 Reduce use of General Obligation (GO) Bonds. 

 Possibly avoid GO Bond debt limits and bond referenda.

 Preserve general credit rating.

 Allow claim of interest and issuance costs as eligible Federal-aid costs. 

65
Disadvantages of GARVEEs 

 Debt service reduces future financial, programmatic, and political 

flexibility. 

 May lead to debt capacity constraints. 

 Federal aid used for interest and issuance costs rather than construction

costs.

 May require enabling legislation and policy.

 Periodic reauthorization risk. 

 Significant stewardship, oversight and reporting responsibilities for FHWA.

66
Traditional Financing vs. 

GARVEE Bonds Cash Flows

70
Candidate Projects

 Large-scale capital projects with 

economic life lasting longer than the 

debt.

 Projects whose costs of delay outweigh 

the costs of financing.

 Projects with significant economic 

development potential.

 Projects that are eligible for 

Federal-aid funding.

 Borrowers have dedicated source of 

Federal-aid funds. 

67

US-DOT
40

States that use GARVEEs

Have used 

GARVEE
Lesson 4

Examples of 

GARVEE Programs

THE 2017 Tax Cuts & Jobs Act signed December 22, 

2017 (Pub. L. 115-97), ELIMINATED STATE AND 

LOCAL GOVERNMENTS’ ABILITY TO USE TAXEXEMPT BONDS TO ADVANCE REFUND 

OUTSTANDING BONDS, AS OF JANUARY 1, 2018. 
42
Idaho

 GARVEE Program launched by legislation in 2005

 Legislation identified 13 corridors statewide for possible use of 

GARVEE proceeds

 Seven series of bonds were issued, totaling $858 million

 Maturity (length) is 10-18 years, with an average interest rate of 4.1%

 Currently 59 projects are underway in six corridors
Innovative GARVEE Usage

(Not your father’s GARVEE...)

GARVEEs are not just for Bond Issuances.....

• Other types of debt can be repaid using GARVEE, Commercial loans, 

Government loans, and SIB loans are all potentially eligible under the 

GARVEE program.

Example: FHWA and USDA-Rural Development are collaborating on an 

explorative effort allowing the Territory of Guam to borrow from the 

Capital Facilities Program and repay the loan using the GARVEE 

program. The target project is an essential highway connector and is 

Federal-aid eligible.

72
Lead Program Office: Center for Innovative Finance Support, OIPD-FHWA

Point of Contact:

State Infrastructure Banks

Peter Mancauskas

Innovative Finance Program Manager

Office of Innovative Program Delivery

Center for Innovative Finance Support

(202) 503-9850

Peter.Mancauskas@dot.gov

73
State Infrastructure Banks (SIBs) are revolving loan funds for 

highway, transit, and rail projects. Usually administered by a 

State DOT, a SIB can offer a range of loans and credit 

enhancement products. The typical SIB borrower is a local 

public agency (LPA), but the program allows a State to lend 

to a variety of public and private entities including Tribal 

Governments.

What Are SIBs?

74
Types of Assistance

 Fund short-term construction or long-term debt 

financing.

 Fund all or part of a project's cost.

 Offer flexible repayment terms at below-market 

interest rates.

 Can be subordinated to other lenders.

75
Current SIB Status

 Number of available SIBs (federally capitalized): 28.

 Total Federal capitalization: $661 million.

 Number of loans executed to date: 1,192.

 Value of loans executed to date: $3.1 billion.

 Estimated SIB funds currently available for lending: 

$775 million.

76
Current Status: 

Active Federal SIB 

Alaska

Arkansas

California

Colorado

Florida

Indiana

Iowa

Michigan

Minnesota

Missouri

Nebraska

New Mexico

North Carolina

North Dakota

Ohio

Oregon

Pennsylvania

Puerto Rico

Rhode Island

South Dakota

Tennessee

Texas

Vermont

Virginia

Washington

Wisconsin

Wyoming

77
Innovative Examples of SIB Usage by 

States for Local Projects

 Usage of Tax Increment Financing (TIF) as a source of repayment, depending on 

governing laws and regulations.

 Defer short-term transportation investment costs with very low interest loan to offset budget shortfalls.

 SIBs can be used to accelerate a local government’s transportation program, 

similar to bonding.

 Can be utilized by private and quasi-private project sponsors.

 Assist Public-Private Partnerships to upgrade facilities to aid economic development.

 May offer key “bridge financing” to complete a financial plan.

78
51

Project Spotlight, Ohio 

US-DOT
52

Created 1,500 Full Time Jobs and 4,000 seasonal jobs

TIF revenues are exceeding initial project estimates.
SIB Federal Match Assistance

Funding for federal-eligible projects requires a match 

of state or local funds.

• Match requirement of between 20% and 50% on 

sliding scale depending on the federal program

• Match required for project elements must be repaid 

through non-federal funds
SIB Federal Match Assistance

 For smaller communities, this can be a major burden to provide 

the required match in a short period from existing budgetary 

resources.

 Using a SIB loan allows these communities to spread the 

impact of the match requirement over multiple years and reduce 

the cash flow impact and credit impact to their existing budgets.
Reducing Budgetary Constraints 

 Using a SIB loan allows communities to spread the impact of 

the match requirement over multiple years and reduce the cash 

flow impact and credit impact to their existing budgets.

 For communities that already have the cash on hand or plan to 

use pay-as-you-go for new projects, SIBs allow these 

communities to use the cash on hand for additional projects, 

work programs, or other community needs. 
A full cost benefit analysis for SIB use is 

critical in the decision-making process

 As in any financial decision process, it is important to compare 

the SIB to traditional borrowing approaches and perform a cost 

benefit analysis. Key elements to consider should include:

• Costs to Borrow – fully loaded including any advisory fees 

• Time to Market – a full time line to actual funds delivered to the project

• Benefit of Loan Terms – how do the loan terms benefit the borrower

• Economic Impact of Advanced Delivery – what benefit does the community derive 

from advancement of the project schedule as compared to pay-as-you-go or 

traditional borrowing time lines
Key Comparators for SIB Consideration

Pay-As-You-Go Traditional Bonds SIB Loan

10-year project delay required to 

save enough money to pay in 

cash resulting in higher capital 

costs due to inflation

Known Process SIB Benefits

-Transaction costs -Minimal if any transaction 

costs

-Legal fees -Minimal legal and advisory 

costs; can and often are 

handled in-house -Advisor/consultant fees

-Rating fee -Does not require a rating

-Interest Expense -Reduced interest expense

Strict payment terms Flexible loan terms

Generally longer time to delivery Shorter time to delivery
Project Example
Project Example – Required 

Local Match

 Project assumption:

• Project Type – Bridge Replacement

• Project Costs – $25 million

• Local Match Required - $5 million

• Community Size – 20,000

• Annual Budget Available for Matching Purposes- $500,000

 Under normal pay-as-you-go approach:

• Takes 10 years to save the $5 million match requirement

• Project cost would increase further delaying the time period for the 

project.
Project Example – Required 

Local Match

 Project moves forward now

 Use SIB loan for local match - $5 million

 Key loan terms:

• Deferral of payments - 1-Year

• Loan term - 15-Years

• Interest rate - 3.08% (market rate for U.S. Treasury, State and Local 

Government Series, November 30, 2018)

• Annual Debt Service Payment - $445,282

• Coverage of 1.12 times 

• Available annual amount of $500,000 compared to annual payment
Project Example – Required 

Local Match

 Costs benefits and savings

• Project delivered now - 10 years in advance of saving for matching

• Economic benefits of project accrued to community 10 years earlier

• Jobs to deliver the project

• Commuters and visitors use of the project

• Safety improvements

• Private development supported by the project

• Inflationary savings of $8.5 million due to advanced delivery assuming 

an annual inflation rate of 3.0% for 10 years
Actual Project
 Dublin Ohio

• SIB Loan from Ohio DOT (borrower Mid-Ohio Regional Planning Commission 

(MORPC) and the City of Dublin)

• Project - US33/I-270 Interchange - $10,010,000

• Benefits:

• Project a priority by both the City of Dublin and several board members at MORPC, 

but the project had no local funds identified. 

• The city's portion of the construction costs could be financed in any manner deemed 

most financially appropriate. Staff evaluated using the SIB loan versus traditional 

financing methods and determined that using the SIB would result in savings of 

approximately $446,600 versus issuing tradition general obligation debt.

• The term of the loan is 20 years with no interest assessed on the loan for the first 12 

months. From the 13th month through final maturity, the interest rate will be 3.0%. To 

use the SIB, there is a $10,000 fee, which is incorporated in the loan amount.

• Project would not have been completed without the use of the SIB loan. 

• Assume an advance for the project of 10 years with inflation rate of 3% on the project 

amount of $10,010,000, the SIB loan saved a total of $3 million in reduce project 

costs.
Regional Program Office: Build America Bureau, U.S. DOT 

Point of Contact:

TIFIA Credit Program

Sam Beydoun

Build America Bureau, USDOT

(202) 366-0198

Nefretiti.Harrison@dot.gov

90
About TIFIA

The Transportation Infrastructure Finance 

and Innovation Act of 1998 (TIFIA) 

established a Federal credit program under 

the U.S. Department of Transportation 

(DOT) for eligible transportation projects.

91
 Leverage limited Federal resources and stimulate capital 

market investment.

 Facilitate projects with significant public benefits.

 Encourage new revenue streams and private participation.

 Fill capital market gaps for secondary/subordinate capital.

 Be a flexible, “patient” investor willing to take on investor 

concerns about investment horizon, liquidity, predictability, and 

risk.

 Limit Federal exposure by relying on market discipline.

TIFIA Program Objectives

92
Types of Credit Assistance

 Secured (Direct) Loan

• Maximum term of 35 years from substantial completion.

• Repayments must start within 5 years after substantial completion.

 Loan Guarantee

• Guarantees a project sponsor’s repayments to a non-Federal lender.

• Loan repayments to lender must commence within 5 years after substantial 

completion.

 Line of Credit

• Contingent loan available for draws as needed up to 10 years after substantial 

completion of project.

93
TIFIA Approved Projects (in millions)

94
Highways and Bridges

Intelligent Transportation 

Systems

Intermodal Connectors

Transit Vehicles and Facilities

Intercity Buses and Facilities

Freight Transfer Facilities

Pedestrian and Bicycle 

Infrastructure Networks

Transit-Oriented 

Development

Rural Infrastructure Projects

Passenger Rail Vehicles and 

Facilities

Surface Transportation 

Elements of Port Projects

ELIGIBLE SPONSORS ELIGIBLE PROJECTS

Eligible Sponsors and Projects

State Governments

State Infrastructure Banks

Private Firms 

Special Authorities

Local Governments

Transportation 

Improvement Districts

95
TIFIA Benefits

 Long term, fixed cost, permanent, upfront financing.

 Borrower/revenue source may be minimum investment grade.

 Non-recourse financing — project cash flow supported.

 Funds drawn as needed.

 Senior or subordinate lien.

 Flexible amortization. 

 No prepayment penalty.

 Low interest rates.

Low Interest Rate -

Interest rate on 3/13/2020 

was 1.57% for 

a 35-year loan

96
TIFIA Major Requirements

 Minimum Anticipated Project Costs – At least $10 million for 

transit-oriented development, local, and rural projects.

 TIFIA Credit Assistance Limit – Credit assistance limited to 33 

percent of reasonably anticipated eligible project costs (unless the 

sponsor provides a compelling justification for up to 49 percent, 

the statutory maximum).

 DOT Rural Initiative – Rural projects are now eligible for credit 

assistance up to the statutory maximum of 49 percent.

97
FAST Act Changes: Small Projects

Relief from Fees for Small Projects

 Small projects are those with less than $75 million in reasonably anticipated eligible 

project costs.

 TIFIA will reserve at least $2 million each year to be used in lieu of the fees it charges to 

potential applicants as part of the TIFIA application process.

 Potential applicants interested in such fee relief must indicate such in their letter of 

interest.

 TIFIA cannot guarantee that funding will be available for all potential applicants requesting 

fee relief.

98
FAST Act Amendments: Rural Projects

 Lower Rural Project Cost Thresholds – Lowers the rural project cost threshold to $10 million (from 

$25 million) and sets a maximum of $100 million. 

 Modified Rural Area Eligibility – A rural project is now defined as a “surface transportation 

infrastructure project located outside of an urbanized area with a population greater than 150,000 

individuals, as determined by the Bureau of the Census.”

 Rural Project Interest Rate – A rural project is eligible to receive a TIFIA loan at the discounted rate of 

one-half Treasury rate.

 SIB Rural Projects Fund – TIFIA can now lend up to $100 million for rural projects, at discounted rate 

of one-half Treasury rate. Rural Rate -

Interest rate on 03/13/2020 

was 0.79% for 

a 35-year loan

99
FAST Act Changes: TOD Projects

 Transit-Oriented Development (TOD) – The FAST Act expands the TIFIA program by allowing TOD projects to be eligible to apply for TIFIA credit assistance.

 Eligibility – TIFIA must ascertain the TOD project’s relationship to a transportation facility, including:

• The TOD project’s distance from the transportation facility.

• The nexus between the TOD Project and the transportation facility.

 Eligible Project Elements – Subject to TOD project-specific review, a variety of elements could be eligible including the following, among others:

• Property acquisition

• Site preparation

• Walkways

• Pedestrian and bicycle access to a 

public transportation facility

• Demolition of existing structures

100
FAST Act Changes: Local 

Projects

 Local Projects – The FAST Act also expands the TIFIA program to consider 

infrastructure projects to be “local” if one of the following criteria are met:

• The applicant for the project (or program of projects) is a local government, public 

authority, or instrumentality of local government;

• The project (or program of projects) is located on a facility owned by a local government; 

or

• The Secretary determines that a local government is substantially involved in the 

development of the project (or program of projects). 

101
Combining TIFIA and a SIB for a 

Rural Project

102
77

Intentionally... or not!

TIFIA offers two pathways for credit assistance to a rural infrastructure 

project:

 Direct loan for a project with eligible costs between $10 million and 

$100 million.

 Direct loan to capitalize a Rural Projects Fund established by a SIB that 

offers loans to rural infrastructure projects.

Which approach maximizes TIFIA assistance? 
78

Rural Project: $10M-$100M

Type of 

Assistance

Rural

Interest 

Rate? Maximum Loan Size Discussion

Direct Loan from 

TIFIA 

Yes 49% of eligible project 

costs

Statutory maximum available 

to rural projects.

Direct Loan from 

SIB Rural 

Projects Fund

Yes 80% of eligible project 

costs

SIB would “on-loan” to rural 

project at or below the TIFIA 

interest rate.
79

Rural Project: $50 Million

 Direct loan from TIFIA for up to $24.5 million.

 Direct loan from a SIB Rural Projects Fund for up to $40 million.

 Either could be made at one-half Treasury rate.

 The SIB could mirror its TIFIA loan terms in its “on-loan” to the 

project, retiring both loans simultaneously, or could establish a 

revolving loan fund with “on-loan” repayments, if that loan has a 

shorter maturity than the TIFIA capitalization loan.
80

Rural Project: $100M+

Type of 

Assistance

Discounted 

Interest 

Rate? Maximum Loan Size Discussion

Direct Loan from 

TIFIA

No 49% of eligible project costs Project costs too large to qualify 

for discounted Treasury rate.

Direct Loan from 

SIB Rural 

Projects Fund

Yes $100 million, subject to 80 

percent limitation

$100 million cap applies to the 

amount loaned to the rural projects 

fund. The SIB could provide a 

discounted interest rate loan of up 

to $100 million to a rural 

infrastructure project of any size.
81

Rural Project: $150 Million

 Direct loan from TIFIA for up to $73.5 million at the Treasury Rate

(1.57 percent on 03/13/2020).

 Direct loan from a SIB Rural Projects Fund for up to $100 million at 

one-half of the Treasury Rate (0.79 percent on 03/13/2020).
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Conclusion, and Important Caveat

 Under the current authorization for the TIFIA program, a potential 

borrower for a rural infrastructure project has a greater opportunity 

to maximize Federal credit assistance using a SIB as an intermediary

between TIFIA and the project itself.

 This conclusion applies only if TIFIA can obtain a high-quality 

repayment pledge, unrelated to project performance, on its loan.
Lead Program Office: Center for Innovative Finance, OIPD-FHWA

Point of Contact:

Leveraging Federal Resources

Peter Mancauskas

Innovative Finance Program Manager

Office of Innovative Program Delivery

Center for Innovative Finance Support

(202) 503-9850

Peter.Mancauskas@dot.gov

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Transportation Infrastructure Is 

More than FHWA!

 Other Federal agencies offer both funding and financing for 

transportation projects.

 Under each agency’s mission, rural, or economic development, 

certain transportation projects will be eligible for grant funding and 

financing.
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 Financing can be integrated with FHWA innovative finance programs 

to create the most advantageous financing package.

 FHWA can help you connect to Federal agency partners.

 Project Example -

• A local Public Agency borrows from USDA-Rural Development Community 

Facility Program for a Federal-aid-eligible project. The LPA also uses the 

GARVEE program to repay the USDA loan.
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Doug Roberts

Office of Tribal Transportation

850.553.2213

Doug.Roberts@dot.gov

Peter Mancauskas

Office of Innovative Program Delivery

Center for Innovative Finance Support

202.503.9850

Peter.Mancauskas@dot.gov