Pennsylvania Infrastructure Bank (PIB)

The Pennsylvania Infrastructure Bank (PIB) is a transportation-focused revolving loan fund administered by the Pennsylvania Department of Transportation (PennDOT). Since its inception in 1998, the PIB has supported more than $500 million in infrastructure improvements across the Commonwealth, making it a key financial instrument for accelerating transportation projects. It is designed to provide low-interest, direct loans to a broad array of borrowers involved in transportation-related developments, and is recognized nationally for its success and effectiveness. The program's funds are divided into four distinct accounts for aviation, highway/bridge, rail freight, and transit projects. These categories guide the types of projects that may be financed and ensure targeted allocation of resources. The purpose of the PIB is to offer financing that enables the advancement of critical transportation projects that may otherwise face delays due to lack of capital. Loan funds can be used to expedite schedules, support local and regional governments, stimulate economic growth, leverage state and federal funds, and address emergency-related projects. The bank does not refinance existing debt or previous PIB loans. Funding eligibility spans a wide spectrum of capital transportation projects, including but not limited to runway construction, land acquisition, highway and bridge upgrades, stormwater infrastructure, traffic signal improvements, intermodal facilities, and the purchase of maintenance equipment. A unique feature of the program is its inclusive eligibility criteria. Potential borrowers include municipalities, counties, school districts, commissions, transportation authorities, economic development agencies, private for-profit and nonprofit organizations, and even public-use airports and railroads. Importantly, eligibility is based on the proposed project rather than the borrower entity. Loan interest rates are fixed at half the prime lending rate, currently listed at 3.75%. The maximum loan term is 10 years for general infrastructure, and 5 years for equipment purchases. Equipment loans require a 50% match, while other loans do not require a local match. In emergencies, public sector borrowers may qualify for 0% interest loans. The application process is managed through the Pennsylvania Department of Community and Economic Development’s Electronic Single Application portal. Required documents include IRS W-9 forms, financial audits or statements, project cost estimates and schedules, and collateral identification. Applications are accepted year-round with no set deadlines or application cycles, and funds are disbursed following loan agreement execution, submission of acceptable collateral, and satisfaction of applicable legislative and regulatory requirements. Disbursement may occur as a lump sum or through drawdowns, depending on borrower readiness. Loan approval is overseen by the Secretary or Deputy Secretary of Transportation. Borrowers will receive a commitment letter, amortization schedule, and a formal loan agreement outlining responsibilities and conditions. Government borrowers also receive a resolution agreement template. Disbursement is contingent upon adherence to Local Government Unit Debt Act (LGUDA) and PennDOT’s Liquid Fuels policies where applicable. Borrowers are responsible for maintaining records, segregating loan funds, acquiring project permits, and managing bidding and construction activities in compliance with applicable laws. Interested applicants can contact the PIB Manager at PennDOT’s Center for Program Development & Management via phone at 717-787-5798 or by email at PIB@pa.gov. The program is open and accepting applications on a rolling basis with no closing date. As the loan fund is designed to be evergreen, it is expected to continue accepting applications well into the future, supporting recurring infrastructure investment cycles across Pennsylvania.