purple logo ISRF Loan Eligibility

IBank Infrastructure State Revolving Fund applicants include, but are not limited to any subdivision of a local government, including cities, counties, special districts, assessment districts, joint powers authorities and non-profit corporations (as deemed eligible).


Eligible Projects include, but are not limited to:

  • City streets
  • County highways
  • Defense conversion
  • Drainage, water supply and flood control
  • Economic development facilities
  • Educational facilities
  • Environmental mitigation measures
  • Goods movement-related infrastructure
  • Housing-related infrastructure
  • Military infrastructure
  • Organic-recycling projects
  • Parks and recreational facilities
  • Port facilities, public transit
  • Power and communications facilities
  • Public safety facilities
  • Public transit
  • Sewage collection and treatment
  • Solid waste collection and disposal
  • State highways
  • Water treatment and distribution
  • Zero emissions vehicle fleets, maintenance vehicles, school buses, charging stations

Eligible Costs

Eligible Costs for financing include:

  • All or any part of the cost of construction, renovation, and acquisition of all lands, structures, real or personal property.
  • Rights, rights of way, franchises, licenses, easements, and interests acquired or used for a project.
  • The cost of demolishing or removing any buildings or structures on land so acquired, including the cost of acquiring any lands to which the buildings or structures may be moved.
  • The cost of machinery and equipment.
  • Other expenses necessary or incidental to determining the feasibility of any project or incidental to the construction, acquisition, or financing of any project.
  • The cost of architectural, engineering, financial and legal services, plans, specifications, estimates, and administrative expenses.
  • Interest prior to, during, and for a period after, completion of construction, renovation, or acquisition, as determined by IBank.
  • Reserves for principal and interest and for extensions, enlargements, additions, replacement, renovations, and improvements.

View our most recent loan financing

The Infrastructure State Revolving Fund (ISRF) has helped finance projects that are vital to communities throughout the state of California including wastewater treatment plant construction and upgrades, city and county street and highway improvements, educational and cultural facilities and so much more. ISRF financing has made a positive impact throughout the state with these and many other projects.

View our most recent loan financing

We’d like to recognize and spotlight these amazing companies who have benefited from the loan financing program. Pellentesque tempor, orci non fringilla consectetur, orci lacus feugiat sapien.

Frequently Asked Questions

Infrastructure State Revolving Fund Program (ISRF)

Q: Is there a matching fund requirement?

A: No, there is not a matching fund requirement, and ISRF financing may serve as matching funds for other financing.

Q: Are there any requirements associated with this loan, such as “Buy American”, Bacon Davis Act or other requirements? Any other administrative functions from USD to support the loan that we should know about?

A: Some things to keep in mind:

Prevailing Wages and Contractor Pre-Qualification. Projects financed with IBank funds will be required to comply with Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code, including the payment of prevailing wages.

Permits: Applicant must provide evidence that it has applied for and/or received all permits or approvals, if appropriate for the type of financing being considered, necessary for the construction of the project.

All borrowers that receive IBank financing above $2 million, and that are also the entity awarding the construction contract, must pre-qualify contractors bidding on the IBank financed project using the model pre-qualification questionnaire approved by the Department of Industrial Relations (“DIR”) pursuant to AB 574 (Chapter 972 of the Statutes of 1999). The model questionnaire can be obtained from DIR’s website at: http://www.dir.ca.gov/prequal.htm (If the District has its own construction process, this criteria may be waived upon review and approval of your process.)

General and administrative costs may not be paid with loan proceeds.

A specific form will need to be completed at the time of reimbursement, to provide payment for eligible hourly rates and benefits of staff who perform direct work specific to the proposed project.

IBank funds are tax exempt, and may therefore, not be used to benefit private activity. (No more than 10% of our tax-exempt bond proceeds may be used for private use and/or private payment.)

Q: How much money does an applicant need to have upfront?

A: A City does not need to have money upfront. IBank may consider financing up to 100% of the eligible project costs.

Q: What collateral is acceptable for securing an ISRF loan?

A: Acceptable collateral will depend on the repayment source. Enterprise Fund projects are secured by a pledge on revenues of the fund. If the project repayment comes from the General Fund, then IBank can do a lease-lease back financing structure. The leased asset can be the project itself or any other real property asset that is owned free and clear by the applicant.

Q: Can housing be financed through the ISRF program?

A: No, while ISRF financing is available for many types of projects, housing is not allowed per our legislative statute. However, housing-related infrastructure on publicly owned land is eligible.
Q: Is prepayment allowed and if so, is there a prepayment penalty?

A: Prepayment is allowed after 10 years and there is no prepayment penalty.

Q: What is eligible to be included in the loan? Is prior design an eligible component of a project?

A: All project costs are reimbursable if the costs were incurred following the signing of the financing agreement. Yes, preliminary soft costs are eligible for reimbursement if there is a reimbursable resolution in place. This includes engineering, design, permits etc., hard costs incurred (such as when dirt is moved, or construction has begun) are reimbursable IF there is a reimbursement resolution. However, we cannot reimburse any construction only costs prior to 60 days of any reimbursement resolution. Costs that are part of the regular overheard, including salaries of staff, are not reimbursable.

Contact the IBank Infrastructure Loan Team

For small businesses looking for loans, please check out the California Office of the Small Business Advocate.

ISRF Program Manager: Lina Moeller

E-mail us, HERE 

Office: 1325 J Street, Suite 1300, Sacramento, CA 95814

Contact the IBank Infrastructure Loan Team

For small businesses looking for loans, please check out the California Office of the Small Business Advocate.

ISRF Program Manager: Lina Moeller

E-mail us, HERE

Office: 1325 J Street, Suite 1300, Sacramento, CA 95814

Mailing: P.O. Box 2830, Sacramento, CA 95812-2830