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Local Airport Loan Program is sponsored by Department of Transportation. This program provides discretionary State loans to eligible public-use airports for projects that enhance an airport’s ability to provide general aviation services.
Types of projects funded by these loans include hangars, General Aviation (GA) terminals, utilities, GA fueling facilities, Caltrans Acquisition and Development eligible projects, or local share for a federal Airport Improvement Program grant. The maximum term of a loan is 17 years. The Department approves the amount of the loan in accordance with the project’s feasibility and the sponsor’s financial situation.
For details including eligibility, please see the publication, State Dollars for Your Airport (PDF), Chapter 2; and the California Code of Regulations, Title 21, Division 2. 5, Chapter 5, California Airport Loan Program.
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The Local Airport Loan Program provides discretionary State loans to eligible airports for projects that enhance an airport’s ability to provide general aviation services (hangars, General Aviation (GA) terminals, utilities, GA fueling facilities, Acquisition and Development (A&D)-eligible projects, etc.) A loan may also provide the local share for an AIP grant.
Such a loan can be used in conjunction with a State-funded AIP Matching grant. The maximum term of a loan is 17 years. Interest rates match the latest California General Obligation Bond sale interest rate.
The Department approves the amount of the loan in accordance with the project’s feasibility and the sponsor’s financial situation. For details including eligibility, please see the publication, State Dollars for Your Airport (PDF) , Chapter 2; and the California Code of Regulations, Title 21, Division 2. 5, Chapter 5, California Airport Loan Program.
There are three different types of loans available under this program: Revenue Generating (Form DOTDOA-0020 - Revenue Generating Loan – Application (PDF)) , Matching Funds ( Form DOTDOA-0019 - Matching Funds Loan – Application (PDF) ), and Airport Development (Form DOTDOA-0013 - Airport Development Loan – Application (PDF)) .
Local Airport Loan Program - Sponsor Eligibility The airport must be owned by an eligible public agency (e.g., a city, county, or airport district). Ensure that the airport is open to the public without restriction. Have a valid State permit for the airport.
Adopt rules that give it sufficient control over the operation of the airport. Have height restrictions around the airport which are adequate to ensure that operations can be conducted without any hazardous obstructions. Certify eligibility with a Form DOTDOA-0007 - California Air to Airports Program Certification that is provided by the Department.
Have local government approval ( Resolution or minute order - Sample [PDF] ) as described in Section 4072. 1(a). Local Airport Loan Program – Restrictions For a revenue-generating project, a separate account must be established to receive income from the project.
Expenses for maintaining the project may be paid from this separate account, but revenues received must be held in an amount equal to one year’s repaying of the loan. No limit on the size of a loan has been established in either law or regulation. The Department determines the amount for each individual loan in accordance with the feasibility of the project and the sponsor’s financial status.
Economic feasibility is an especially strong factor in the approval of loans for revenue generating projects such as hangars and fueling facilities. A checklist for demonstrating economic feasibility is on the second page of the Form DOA-0020 - Revenue Generating Loan Application. Local Airport Loan Program - Pay-Back Requirements A pay-back schedule is included in each Loan Agreement.
Generally, the term of a loan is 17 years unless a shorter term is requested by the sponsor. Loans may be repaid early without penalty. Simple interest is charged on the outstanding balance of the loan’s principal.
Interest rates match the latest California General Obligation Bond sale interest rate conducted prior to preparing the Loan Agreement. Local Airport Loan Program - Funding Level Funding depends upon the available balance in the Local Airport Loan Account. Local Airport Loan Program - Audits Loans are subject to State audit.
Records that substantiate the expenditure of loan monies should be retained until three years after the retirement of the loan. Funds may have to be repaid by the sponsor if an audit finds that State law or generally accepted accounting principles have been violated. Please submit your application and supporting documentation via email to: AeronauticsGL@dot.
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According to the current listing, eligibility includes: Public Agency. An eligible public agency and must: Ensure that the airport is open to the public Have a valid State permit Adopt rules that give it control over the operation of the airport Have height restrictions around the airport to ensure that operations can be conducted without hazardous obstructions Certify eligibility with a Form DOA-0007 Have local government approval. Confirm the full requirements in the official notice before applying.
Local Airport Loan Program is funded by Department of Transportation. Verify program details on the funder's official page before applying.
Start from the official opportunity page linked in this listing — it carries the sponsor's submission instructions.
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