• FAQs - Loan Program

    Infrastructure Ontario's (IO) Loan Program is one of the alternative financing approaches that the government is using to help municipalities, universities and other public sector partners renew Ontario's public infrastructure.

    IO has helped improve the quality of life in communities across Ontario by providing affordable, long-term financing in support of infrastructure development.  

    With more than 440 public sector clients, IO has helped finance various types of infrastructure projects - from the construction of roads, bridges, arena complexes, and long-term care homes to the acquisition and installation of capital assets like fire trucks, smart meters and energy efficient street lighting. 

    To date, IO has approved over $11 billion in support of over 3,100 community infrastructure projects across the province. Modern and efficient public infrastructure is key to building a strong economy, prosperous communities and a clean healthy environment.

    The following organizations are eligible to apply for loans:

    • Aboriginal Health Access Centres
    • Community Health & Social Service Hubs 
    • Hospices
    • Housing Providers 
    • Local Services Boards
    • Long-term Care Homes
    • Municipal Corporations
    • Municipalities
    • Professional Arts Training
    • Sports & Recreation Organizations
    • Universities & Affiliated Colleges

    For more details on eligibility please see the program guidelines on the webpage of each sector.

    The Loan Program provides various benefits to public sector borrowers:

    • Affordable interest rates 
    • Flexible terms of up to 30 years, designed to match the life of the asset
    • Access to dedicated and experienced staff throughout the loan process 
    • Instant access to capital markets with no extra fees or commissions
    • No need to refinance over the life of the loan

    Loan applicants need to make sure that they compare the facts before signing financing agreements. Infrastructure Ontario's cost of capital is very low, and it passes these savings onto borrowers by way of low interest rates.

    Please consult our program guidelines for sector specific details on eligibility.

    All borrowers are subject to a credit review and are required to meet financial soundness criteria before qualifying for a loan. 

    Infrastructure Ontario also monitors borrowers on a continuous basis. It conducts financial soundness reviews of its borrowers after loan approval to ensure that their credit quality continues to meet the loan criteria. 

    In the unlikely event there is a default, there are processes in place to resolve the issue, including restructuring the financial agreement to facilitate full repayment of a loan, as well as the potential to intercept provincial payments to public sector borrowers. 

    No. When borrowers take out a loan under the Loan Program, the financing agreement is entirely between Infrastructure Ontario and the borrower. A default by any other borrower has no financial impact whatsoever on the individual borrower.

    All of OMEIFA's assets and liabilities, including the commitments made under its 2003-04 Loan Program, have been assumed by Infrastructure Ontario. Infrastructure Ontario continues to honour the commitments made under the 2003-04 OMEIFA Municipal Loan Program.  

    Please call Infrastructure Ontario toll free at 1-800-230-0937 for information regarding the 2003-04 OMEIFA Municipal Loan Program.

  • Applying for a Loan

    All loan applicants must complete our online Webloans application. If you have not previously applied for an IO loan you may request a username and password by contacting us at 1-800-230-0937.

    The online application contains information regarding your project(s), project financing, related capital expense(s) and borrowing requirements. When completed, your application may be submitted and supporting documents forwarded to IO.

    Our loans can be used to finance a broad range of capital expenditures including construction and expansions, energy efficiency projects as well as systems and equipment purchases. 

    Please consult our program guidelines for sector specific details on eligibility.

    To help ensure effective and efficient delivery of projects financed (in whole or in part) with funds from the Loan Program, Infrastructure Ontario has reporting requirements for certain capital construction projects only. Loan clients are responsible to submit project reports according to the Estimated Project Start Date as indicated in their online application and Financing Agreement.

    Infrastructure Ontario reserves the right to withdraw applications if they become inactive for more than one year after the date of submission.

    All new loan applications are subject to loan pricing based on the borrower's market sector.

    Infrastructure Ontario's sector loan pricing recognizes the unique fundamental credit character of each eligible client sector and continues to provide equitable access to affordable financing rates. Pricing is based on the relative long term credit strengths of each eligible client sector, recognizing the varying degrees of government involvement and the security afforded to Infrastructure Ontario.

    This loan pricing approach ensures that Infrastructure Ontario can support all eligible clients in an equitable and non-discriminatory manner. All eligible clients within each sector share the same affordable rates, and same benefits of the Loan Program.

    Borrowers can access our lending rates by contacting their Relationship Manager who will provide an indicative rate, as well as answer any financing questions.

    Infrastructure Ontario disburses money to approved borrowers upon request once project expenses are incurred. Some borrowers forgo construction financing and opt to go directly to debenture at a convenient milestone or upon project completion. 

    Clients who have signed a financing agreement but have not drawn on the loan for a period of 12 months will be required to pay an annual standby fee of 0.25% on the committed amount. 

  • Short & Long-term Financing

    Short-Term or Construction Financing 

    Short-term (construction) financing is available during the construction period of an approved project based on incurred costs. Interest is calculated and payable monthly on the 1st day of each month based on the posted short-term rates.

    Short-term advances are processed on the 1st and 15th of every month and Infrastructure Ontario requires five business days notice to process a payment.

    Clients can request construction loans through the online loan application and also view a summary of advances previously taken. 

    Long-Term Financing 

    On an agreed upon date, Infrastructure Ontario will purchase a debenture from the loan client for up to the approved amount of the loan as per their financing agreement. Principal and interest payments are payable monthly or bi-annually with the first payment being due one month or six months from the date of debenture purchase. The interest rate is fixed for the entire term. Debentures close on the 1st and 15th of every month. The debenture process generally takes about 4 weeks to complete.

    Infrastructure Ontario offers both amortizing and serial debentures to clients. With amortizing debentures, borrowers pay equal amounts of blended principal and interest every six months. Alternately, with serial debentures, borrowers pay equal amounts of principal every six months and interest is calculated on the declining principal balance.

    Infrastructure Ontario also offers Promissory Notes to non-municipal applicants.

    Approved borrowers can request construction loans though the online Loan Application system on the Infrastructure Ontario website. The online Loan application system provides users with an intuitive step-by-step process to carry out their construction loan requests.

    Clients are able to:

    • Manage their own information and produce detailed reports for advances, debentures and projects
    • View outstanding requests and historical loan information
    • Generate documentation with a click of a mouse
    • Request advances prior to the start of construction (pre-flow advances)
    • Access client summary reports 

    A debenture is an unsecured debt backed by the credit worthiness of the borrower. Like a mortgage, it is a long-term debt that is paid back over time according to a fixed payment schedule. Unlike a mortgage, however, debenture payments are fixed for the entire loan period, and are not renegotiated every few years.  

    Infrastructure Ontario offers flexible approaches to financing and provides borrowers with the option of serial, amortizing or bullet loans over a variety of different terms.

    Infrastructure Ontario also offers Promissory Notes to non-municipal applicants.

    Any participating borrower interested in long-term financing may contact Infrastructure Ontario to begin the debenture process. The borrower will then be provided with an offer letter that describes the detailed steps necessary to complete the debenture process. 

    Debentures close on the 1st and 15th of every month - the process generally takes about 4 weeks assuming that all documentation is provided in a timely manner. 

    Please contact Infrastructure Ontario toll free at 1-800-230-0937 to begin the debenture process. 

    Infrastructure Ontario staff spoke to various large and small municipal borrowers prior to setting up the debenturing process. The result is a process that is very similar to other debenture processes.

    Infrastructure Ontario's debenture process will meet the accountability needs of both the province and borrowers, and is consistent with the current process used by borrowers when they go to the capital markets to sell debentures.

    Infrastructure Ontario is committed to providing high quality customer service. As has been the case since the start of the 2003-04 loan process, Infrastructure Ontario staff will work closely with borrowers to assist them with the loan process.