Aviation - Community Aviation Revitalization Board loan
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Community Aviation Revitalization Board loan measures
Community Aviation Revitalization Board loan program awards approximately $9.2 million to 17 projects
In May 2021, the Community Aviation Revitalization Board loan program was made permanent with the passage of Senate Bill 5031 and funded with an additional $5 million for the 2021-2023 biennium. The revolving loan program was designed to provide low-interest loans to airports for revenue-producing projects that will help them become more self-sufficient and less reliant on state and federal funding.
To date, the program has received 38 applications totaling $23,038,096. The CARB has awarded loans for 17 projects totaling $9,184,402.
Eight of the 17 (47%) of the projects have been completed, with four of them starting on loan repayments. A $750,000 CARB loan partially funded the Port of Bremerton's new $4.2 million multi-purpose facility at the Bremerton National Airport, which includes a multi-plane hangar, aeronautical office space, pilot flight-planning room, multiple restrooms, and a 147-seat restaurant.
Another round of CARB loans are planned for July 2023 subject to additional funding being secured in the 2023-2025 capital budget.
Community Aviation Revitalization Board loan program awards more than $7 million to 15 projects
In May 2021, the Washington State Legislature voted to make the Community Aviation Revitalization Board loan program permanent and provided $5 million in state funding to be awarded during the 2021-2023 biennium. The revolving loan program provides low-interest loans to airports for revenue-producing projects to help them become more self-sustainable and less reliant on state and federal funding.
To date, the loan program has received 31 applications totaling over $17 million. The eight-person board has awarded loans for 15 projects totaling $7,070,000.
Forty percent of the projects (six out of 15) have been completed, and three have started making loan repayments. Another round of funding is planned for spring 2022.
Community Aviation Revitalization Board Loan Program awards more than $4.7 million for 11 projects
The Community Aviation Revitalization Board Loan Program provides low-interest loans to airports with less than 75,000 annual enplanements. The funds from these loans are invested in revenue-producing projects to help these airports become more self-sufficient and less reliant on state and federal funding.
Since its inception on July 1, 2019, the program has received 26 applications totaling $14.9 million. The CARB has selected and entered into loan agreements for 11 projects totaling $4,740,000.
COVID-19 impacts on businesses and construction have delayed most of these projects by up to four months. However, if no further delays occur, all of the projects under agreement are expected to be completed by the end of 2021. Both of the Sequim Valley Airport projects have been completed and reimbursed through the CARB Loan program. The Othello Municipal Airport's Hangar project and the William R. Fairchild's Sewer Extension and Hangar Development projects are under construction and expected to be completed before the end of 2020.
Community Aviation Revitalization Loan Program assists airport projects
The Community Aviation Revitalization Loan Program was established following the recommendations of a 2015 Airport Investment Study and was initially funded with $5 million in 2018. The revolving loan program is for revenue-producing capital projects that help public-use general aviation airports become more self-sustaining.
The program funds will be distributed with the guidance of an eight-member Community Aviation Revitalization Board (CARB), which includes various aviation-minded members from across Washington.
The program provides low-interest loans of up to $750,000 to airports with fewer than 75,000 annual commercial enplanements, which includes passengers boarding or ticketed passengers. Eligible projects include hangars, fueling facilities, business parks on airport property, paid parking facilities, passenger amenities, and other revenue-generating or cost-cutting developments that help make the airport more self-sufficient and less dependent on public funding.
The loan application became available in October 2019. The application deadline for the first round of loans was in November 2019. In December 2019, the CARB will select projects that meet the goals of the program for funding.
State creates Aviation Revitalization Loan Program to assist with airport projects throughout Washington
The Airport Investment Study evaluated short- and long-term airport capital and preservation needs at Washington's public-use airports, identifying funding gaps between forecast funding and needs. WSDOT determined that the 134 public-use airports evaluated for the study would need an estimated $3.6 billion over the next 20 years. To address the shortfall, WSDOT identified 10 core solutions, one of which called for establishing a state-sponsored revolving aviation infrastructure loan fund.
The revolving loan fund is a self-replenishing pool of funds that uses interest and principle payments on old loans to issue new loans. Key benefits include:
- A new self-generated aviation funding source for revenuegenerating projects;
- A wide range of user group support; and
- Relief for an airport's borrowing capacity for other projects and programs.
The primary goal of the CARB is to issue loans to strengthen Washington's aviation system while providing additional funding for revenue generating projects that are not eligible for federal money. Loans issued through CARB must be used for improvements that either generate revenue or reduce the cost of maintaining and/or operating the airport. General public use airports with fewer than 50,000 commercial boardings annually will be eligible for funding under the new program. The CARB will score and evaluate eligible projects based upon one or more of the following criteria:
- Will the project create or retain long-term revenue generating opportunities?
- Is a specific private development or expansion ready to occur, and will it only occur if the aviation facility improvement is made?
- Does the loan ultimately result in the creation of jobs or private sector capital investment?
- Does the application clearly identify the source of funds intended to repay the loan?
- Is the project shovel ready and how quickly can the project be completed?
- Does the project result in leveraging additional funding for the airport or adjacent business park?