SIBs are designed to complement traditional funding programs and would give states significantly increased flexibility regarding project selection and financial management. For example, states could lend that money to sponsors of transportation projects, or use the SIB funds to provide credit enhancement tools. Credit enhancement tools, such as loan guarantees, provide additional security or credit support for financing projects that, when used, result in lower interest costs. As loans are repaid, the SIB's funds would be replenished, and the SIB could make new loans or loan guarantees to other transportation projects. In short, a SIB is like a private bank, which needs equity capital to get started, and offers customers a range of loan and credit options.
More recent information indicates several other states have taken similar steps.
Potential SIB users are entities that provide eligible transportation facilities in each state. This includes county and local transportation districts, transportation authorities, private project sponsors, and state DOTs. Certain projects, especially those supported by dedicated revenue sources and user fees, and face specific obstacles which, if overcome, would enable those projects to be financed in part by private capital markets. It is highly likely that states will need to adopt specific state legislation authorizing creation of a SIB, especially if it is to receive authority to issue debt to leverage the revolving loan program. There are a variety of administrative structures that will work for establishing a state-level infrastructure bank program.