IBank Innovates, Invests In California’s Future

Sunstone Cities, really Sunstone as a whole, long has considered the California IBank a close friend and partner. So it was with great enthusiasm that we welcomed Andy Nakahata as the P3 Strategy Series expert on Oct. 3. 

Nakahata is the newly appointed president and CEO of the IBank – formally known as the California Infrastructure and Economic Development Bank. It is part of the GoBiz initiative in the Governor’s office. 

“We are the only general purpose financing entity in the state,” Nakahata said. “The key is economic development, along with the infrastructure. 

“IBank is a bank,” he continued. “We expect to see our money come back so we can send it out again.” 

Nakahata outlined the five major programs IBank uses to finance economic development and infrastructure projects in the state. Each offers assistance to different sectors of the state economy. 

  1. The Infrastructure State Revolving Fund Program helps fund needed infrastructure projects in municipalities and counties without the expense of bond financing and debt service. 
  2. The Bond Financing Program offers ways for 501(c)(3) nonprofit and public benefit organizations to take advantage of tax-exempt bonds through IBank. It also supports industrial development, exempt facility and public agency revenue bonds. 
  3. Climate Financing has become a popular topic and an emphasis for the governor. IBank offers Climate Incentives Bridge Loans and loan guarantees of up to 80%, maximum $5 million, for climate-related projects. 
  4. The Small Business Finance Centers program has become the fastest growing of the IBank sectors, Nakahata said. A wide range of small business loans and financing programs are available through regional centers such as the Small Business Development Corporation of Orange County. (Jim Ely, president of that organization, was at the P3 Strategy Series event and provided details about many of those programs.) 
  5. Investing in Venture Capital funds and startups is the newest area of business for IBank – it is so new it isn’t on the website yet. The program is called Expanding Venture Capital Access. 

Nakahata said the IBank staff does its due diligence on all loans, loan guarantees and other financing programs just like any other bank, but with an eye towards economic development. There also is a deliberate effort to find programs in under-represented populations and zip codes. 

Job creation is the result of many IBank programs, Nakahata said, from small business loans to infrastructure bonds. But it takes the entire community to make it happen, he added. 

“When we invest, we invest as a limited partner,” Nakahata said. “You’ve got to fundraise through others, too. With the loan guarantees, for example, the lenders are at risk for 20% or more. They’ve got some serious skin in the game. 

“We want to be the catalyst to make things happen,” he added. “Capital is tight, is hard to find right now. We can help.” 

For more information about IBank programs, www.ibank.ca.gov. 

Next on the P3 Strategy Series calendar on Friday, October 17th at 1PM is Scott Tayor, director of the CSU Fullerton Conley Center for Entrepreneurship. RSVP at registration. For more information, contact Ryan Phong at Ryan.Phong@SunstoneCities.com. 

About Sunstone Cities  

Sunstone Cities is an economic development consulting firm that helps local government leaders unlock economic development, new business formation, and job growth. Data-driven insights, industry expertise and public-private partnerships help cities revitalize economies, attract businesses and better monetize community assets. Visit www.sunstonecities.com to learn more.  

© Sunstone Cities 2025 

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