Loan Program

NADB provides direct financing to public and private entities for the implementation of environmental infrastructure projects located within the U.S.-Mexico border region. It also offers a variety of financial services to support border communities and other sponsors in developing sustainable projects with sound financial structures.

Available Financing

NADB works closely with project sponsors to structure appropriate and affordable financing packages to meet the specific needs of each community or project.

Financing may be provided in a number of ways, including:

  • Direct loans: Term, bridge, A/B, etc.
  • Revolving lines of credit
  • Participation in municipal bond issues

Additionally, NADB may act as the sole lender or co-finance projects with other public or private financiers, depending upon the characteristics and financing needs of the project.

Non-disclosure of Confidential Information

The Bank has established regulations to protect business or proprietary information from disclosure, as well as information that would violate personal privacy or the confidentiality of government decision-making.  Project sponsors that request assistance or submit an application to the Bank may request that information contained therein be designated confidential by the Bank.

Need Project Development Support?

NADB can provide technical assistance and financial services to help sponsors prepare projects for financing and implementation.

Project Studies & Design

Grant assistance may be available to fund studies and develop documentation needed to complete a comprehensive analysis of the project, as well as to support its long-term sustainability.

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Financial Services

NADB offers a variety of financial services to support border communities and other sponsors in developing sustainable projects with sound financial structures.

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Financing Terms & Conditions


Loan maturities may range up to 30 years, depending on individual project requirements.


Loans are available in U.S. dollars or Mexican pesos, depending on the project location and source of repayment.


As a matter of prudent risk management, the Bank imposes limits per project and per borrower. In general, NADB cannot finance more than 85 percent of the eligible costs of a project. Funding from other sources in the form of equity contributions, subordinated loans, grants or co-financing is required.


Project Type

To be eligible for financing and other forms of assistance from NADB, projects must remedy an environmental and/or human health problem. Some examples of eligible project types are listed below.

  • Water: Drinking water supply, treatment & distribution; wastewater collection, treatment & reuse; water conservation; storm drainage & flood control
  • Waste Management: Sanitary landfills, dumpsite closure, collection & disposal equipment, recycling & waste reduction, hazardous waste treatment & disposal facilities, industrial site remediation
  • Air Quality: Street paving & roadway improvements; public transportation; ports of entry, reduction of industrial emissions; methane capture
  • Energy: Clean and renewable energy sources: solar, wind, biogas & biofuels, hydroelectric, geothermal; Energy efficiency: equipment replacement, public lighting, building retrofits
  • Basic Urban Infrastructure: These projects consist of a mix of works from various sectors, such as street paving, installation or replacement of water and sewer lines, storm drainage and public lighting

Project Location

Projects must be located within the border region, defined as 100 kilometers (62 miles) north of the international boundary in the four U.S. states of Arizona, California, New Mexico and Texas and within 300 kilometers (about 186 miles) south of the border in the six Mexican states of Baja California, Chihuahua, Coahuila, Nuevo Leon, Sonora, and Tamaulipas.

Legal Authority

The project sponsor must have the legal authority to develop the project, provide the proposed services and/or contract the proposed financing.

A project must also observe or be capable of observing the environmental and other laws and regulations of the place where it is to be located or executed, including obtaining the necessary operating permits, licenses, and other regulatory requirements related to land acquisition and rights-of-way.


The project must meet or be capable of meeting the technical, environmental and financial criteria for certification and financing approval by the Board of Directors.

More detailed information about these requirements is provided in the Project Certification Criteria and Loan Policies and Procedures.

Loan Evaluation Criteria

NADB undertakes a rigorous due-diligence process of each project submitted for loan financing to ensure that the project is technically, environmentally, financially and economically sound; that the project sponsor has the institutional, managerial and structural capability to carry out the project; and that the project meets market standards.

Loan Financing Process

The main steps that NADB follows to approve a loan are summarized below. 

Determine if project is eligible and request detailed information about project.
Begin internal due-diligence review and analysis upon receipt of requested information.
Offer technical assistance and financial services, if necessary and available, to assist sponsor with project development.
Prepare project certification and financing proposal and conduct 30-day public comment period.
Monitor project operation and loan amortization.
Submit the project proposal to its Board of Directors for approval.
Review financing documentation and close loan.
Disburse loan and monitor project implementation progress.
Confirm project completion.
Perform project closeout 1 year after project startup.

Getting Started (210) 231-8000

To get the conversation started, complete the form below or call the above number above to talk to a project development officer.