The Division of Innovative Finance manages a number of programs that complement traditional grant-based funding strategies to facilitate investment in California's transportation infrastructure. Debt service on the bonds is repaid through future county or interregional share allocations. Projects must be STIP-eligible for federal funds apportioned to the State, have environmental clearance, a completed project design, and must meet all applicable federal requirements.
Funding is limited to right of way and construction costs.
The SIB Program was established to provide flexible project financing through loans, debt service guarantees, lines of credit and other capital financing support. California established its SIB, the Transportation Finance Bank, to offer credit assistance to public and private entities for any stage of an eligible highway construction or transit capital project. This statute authorized Caltrans to solicit proposals and enter into agreements with the private sector to develop, construct and operate four privately-financed public transportation demonstration projects. Credit assistance, in the form of direct loans, loan guarantees, and lines of credit, is available to public and private sponsors. While applications for assistance are submitted directly to the US DOT, Caltrans' staff is available to assist in the application process and providing support for eligible projects.