State Infrastructure Banks (SIBs) are revolving infrastructure investment funds created by state governments to issue loans for infrastructure projects. Loans are repaid with interest, and the bank's capital grows over time. Local governments are able to apply for loans, and the banks choose projects based on potential success. Approximately 30 states have SIBs, which require an infusion of capital—usually from the state's government—to get started. Most SIB projects are transportation or water resource projects.