Infrastructure Improvement Act of 1987

Infrastructure Improvement Act of 1987 - Authorizes the Secretary of Commerce to make loans to States (from accounts established by this Act) to enable them to make loans to units of local government to carry out eligible public works construction projects.

Sets forth formulae for determining State eligibility for such loans. Requires States to repay such loans, with interest, over a ten-year period. Requires the Secretary to adjust such repayments as required to reflect any deferrals granted or amounts forgiven.

Makes a unit of local government eligible for loans under this Act if it has a population of at least 50,000 and can demonstrate at least one economic distress requirement. Describes such requirements.

Requires each unit of local government seeking a loan to apply to the chief executive officer of the State specifying the amount to be borrowed and an economic plan for its use.

Describes an eligible public works project as one which involves construction of publicly owned facilities located on publicly owned lands.

Prohibits the use of loans to local governments to replace funding for infrastructure projects or to provide the non-Federal share of any project under any other Federal law.

Requires a State to give priority to projects: (1) which maximize use of the existing pool of labor in the jurisdictional area; (2) for which most employees will be economically disadvantaged, dislocated workers, or certified unemployed; (3) where the employees will reside within the jurisdictional area; (4) which contribute to the creation and maintenance of new jobs and businesses in the area; and (5) which provide retraining and employment opportunities for the economically disadvantaged and dislocated workers.

Requires a local government to repay such loans over a ten-year period, with interest. Sets forth circumstances under which repayments may be deferred or 25 percent of the total amount of loans may be forgiven.

Establishes in the Treasury the Nondiscretionary Infrastructure Loan Account, for allocations of 95 percent of amounts appropriated to carry out this Act, consisting of: (1) the Above-Average Unemployment Loan Account; (2) the High Unemployment Loan Account; and (3) the Business Failures Loan Account.

Establishes the Discretionary Infrastructure Loan Account for allocations of five percent of any amounts appropriated to carry out this Act.

Requires the Secretary, not later than 90 days after enactment of this Act, to transmit to the Congress a schedule: (1) for collecting information necessary to carry out this Act, including information regarding unemployment and business failures; and (2) for making loans under this Act.

Requires the General Accounting Office to report annually to the Congress and the President on a review of activities carried out by States and units of local governments under this Act.

Authorizes appropriations for FY 1989 through 1993.