AIB Loans (Authority Infrastructure Bank)

 

What is an AIB Loan?

A low‑cost infrastructure loan offered through the State of Utah’s Authority Infrastructure Loan Bank to help build public‑benefit infrastructure that supports jobs, logistics, and local economies. It’s meant to bridge funding gaps so critical infrastructure can start sooner.

Not a grant. It must be repaid. Terms are set case‑by‑case.

What can it pay for?

Projects that create long‑term public value in or benefiting a UIPA project area, such as:

  • Land or building acquisition (when tied to infrastructure)
  • Construction and development (roads, utilities, rail, sewer, remediation, etc.)
  • Reconstruction/rehabilitation and environmental cleanup

Priority is given to projects that improve rail, logistics, and advance environmental sustainability.

Who can apply?

  • Cities/counties and public entities
  • Private companies working on eligible public infrastructure that directly benefits a UIPA project area

Why use AIB instead of a regular bank loan?

  • Lower interest than most private options (state borrowing rate)
  • Gap financing to unlock other funding (bonds, private capital)
  • Faster project start while long‑term financing is finalized

Key terms 

  • Interest rate: Tied to the State’s bond rate +.5% (low, set at time of approval)
  • Repayment: Tailored to the project; short‑term “bridge/gap” structures are common
  • Collateral: Usually required (e.g., land or other security)
  • Proximity: The project must be inside a UIPA project area

How the process works

Total timeline: ~6 months from complete application to funds available (typical, varies by deal)
  1. Intro & Eligibility (5–10 business days)
    Meet with UIPA Business Development → confirm basic eligibility → gather required documents.  Submit formal application.
  2. Staff Review (2–4 weeks)
    Financial, credit, collateral, and project‑area/tax differential analysis. Terms of the loan are discussed and a formal recommendation is prepared.
  3. Loan Approval Committee (2–4 weeks)
    The committee reviews staff recommendations in a public meeting and recommends to the UIPA Board for approval.
  4. UIPA Board (2–10 weeks)
    Board approves  loan terms in a public meeting .
  5. Executive Appropriations Committee (EAC)
    Final legislative approval in a public meeting.
  6. State Division of Finance
    Works with UIPA team to prepare and executes the loan agreement and disburses funds to the borrower.

Tip: Work backward from target Board/EAC dates to keep your project on schedule.

What to have ready (typical)

  • Business & financials (up to 3 years where applicable)
  • Project budget & cash flow (showing how the loan is repaid)
  • Collateral plan (what you can pledge and its value)
  • Project‑area linkage (location or direct benefit)
  • Team & timeline (who’s doing what and when)

What AIB is not

  • Not a reimbursement program
  • Not for private‑only amenities with no public benefit
  • Not designed as permanent, long‑term financing by itself

Quick example 

A developer and city need to build a regional sewer line to unlock industrial sites and future housing. An AIB loan provides short‑term, low‑rate capital so construction can start now, while the long‑term bond/PID financing is finalized. The land is pledged as collateral, and the loan is repaid when permanent financing closes.

Getting started

  1. Email UIPA Business Development to schedule an intro meeting
  2. Confirm eligibility and documents
  3. Submit application and stay responsive through reviews