Environmental Infrastructure Financing Program loans offer the lowest interest rates available. In fact, the annual debt service on a 20-year Trust loan is lower than a traditional rate 30-year loan (more information). But loan costs don't stop at interest rates. Other factors such as debt service, bond insurance and arbitrage management can increase the overall cost of a loan. Click here to view more ways you save money by borrowing from us.

» Earnings Credits - Earnings from all bond funds, such as the project fund, and the debt service reserve funds, are distributed to borrowers as credits toward their debt service payments.
» State-funded debt service reserve fund - The state, through the use of federal funds, provides a debt service reserve fund equal to one year's debt service on each of the Trust's bond series.
» Capitalized interest - Loans may include all or part of construction period interest costs. Additionally, borrowers may defer repayment on principal until completion of the capitalized interest period. This feature is not available to municipalities providing their own financing.
» No need for bond insurance - The security provided by the Trust's financial structure saves borrowers the expense of purchasing costly bond insurance.
» Defrayed financing costs - Pooling multiple loans into a larger bond issue provides economies of scale. As a result, program costs are allocated to each borrower's pro-rated share of a bond series. This means each borrower only pays its share of the Trust's bond issuance costs.
» Generous allowable costs - Associated project costs, including planning and design, engineering, local financing and curb-to-curb right-of-way restoration may be financed at half the market interest rate. In smart growth areas, reserve capacity costs such as excess project capacity may be financed through the program.
» No front-loading requirement - State bond law requires local government units issuing their own general obligation debt to "front load" their repayment schedule. This ensures that debt service payments are larger in the early years of the loan, and grow smaller over time. The Financing Program provides for level debt service throughout the life of the loan. This is particularly helpful when financing a non-revenue-producing project.
» No arbitrage worries - The trust assumes responsibility for complying with federal arbitrage rebate requirements, relieving borrowers of the cost and responsibility of this duty.
» Flexible timing - Shorter term financing is available for borrowers who wish to avoid a 20-year obligation.
» Net Funding - Each borrower submits a loan drawdown schedule. Funds are invested by the Trust and accrue earnings. These earnings are used to further lower a borrower's loan amount.
» No Secondary Disclosure Requirements - Due to the size of the Financing Program, no single borrower is a material obligated entity. As a result, Financing Program borrowers are note required to fulfill secondary disclosure requirements.
» Interim Financing - Interim financing allows borrowers to access capital prior to the Trust's regular November loan closing. It is available to borrowers that have been granted all required DEP approvals, have been granted pre-award approval by the DEP and the Trust and are ready to start their project. Interim financing eliminates a borrower's need to seek short-term financing.
» Refunding Bond Issues - The Trust routinely monitors bond market conditions to identify opportunities for savings on its outstanding loans. All savings realized from prior bond refundings are passed on to borrowers, further lowering loan costs. Over the past 21 years, the Trust has saved municipalities more than $91 million in refinanced loans. This service ensures that your financing will remain at the most cost effective rate.
» Timely Decisions - The DEP prioritizes Financing Program projects reviews to ensure permits are granted in time for loan closing.