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The
loan process follows a 13-month cycle that begins in
October and ends the following November. Use the information
and schedule below to gain a better understanding of
how to apply for a loan. As attested by many of our
borrowers, it’s not more complicated than traditional
financing.
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Program Rules (NJDEP Website)
N.J.A.C. 7:22
Financial Assistance Programs for Environmental Infrastructure Facilities (PDF Format) |
| Loan
Structure |
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Borrowers
receive loans in two equal parts: Approximately one half
to three quarters comes from a zero interest State Revolving
Fund (SRF) maintained by the DEP. The other portion comes
from proceeds of highly rated tax-exempt revenue bonds
sold by the Trust. Combining these two funds results in
a loan that is 50 to 75% lower than traditional loan rates. |
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| Pre-Award
Program |
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This
process addresses conflicts between a borrower's construction
or land acquisition schedule and the finance program's
13 month cycle. When borrowers must commence construction
or close on a land acquisition prior to the November
loan closing, a pre-award approval can be issued. This
approval allows borrowers to either seek interim financing
themselves or apply to the Trust for interim financing.
Pre-Award Approval must be received both from the NJDEP and the NJEIT prior to commencement of work. Upon receipt of Pre-Award Approval, a borrower may immediately advertise for bids. Work performed pursuant to contracts that were bid or awarded prior to Pre-Award Approval is ineligible for NJEIFP funding reimbursement.
Pre-Award Approval Eligibility (Non-Emergency Conditions, see N.J.A.C. 3:11-3.11)
| Borrower Submission Requirements |
Deadline |
| Fall Loan Submission Package |
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| Planning Documents |
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| Loan Application |
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| Identification of all required NJDEP permit applications and evidence of application submission |
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| Design Documents |
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| Contract Documents containing SED provisions (N.J.A.C. 7:22-9.12(a)) |
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| SED Utilization Plan |
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| Program Approval |
| Borrower compliance with Borrower Submission Requirements |
| Design Document Approval |
| Planning Document Approval |
| Confirmation that Borrower has received all relevant permits |
| SED Approval |
| NJDEP issues Pre-Award Approval |
| Borrower passes Reimbursement Resolution |
| Determination of the availability of funds |
| NJEIT issues Pre-Award Approval |
| Borrower advertises for bids |
| SED Utilization Plan |
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| Interim Project
Financing |
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Ready
to go before November? Interim Project Financing (IPF) allows borrowers
to access capital prior to the regular November loan closing.
It is available to borrowers that have submitted a Loan Request and have been 1) granted all
required DEP approvals, 2) have been granted pre-award approval
by the DEP and the Trust and 3) are ready to start their
project. Loans are available in January each year up to
a maximum of $10 million dollars per project. All interim
loans are converted into permanent financing in November.
Click here
to access the Interim Project Financing program applications.
IPF Loan Eligibility (Requirements for IPF Loans issued after May1)
| Receive Pre-Award Approval |
No Later Than (NLT) 30 days prior to loan closing |
| Submit a Financial Addendum Form (FAF) |
March 23 |
| Submit an IFP Financial Addendum Form |
March 23 |
| Be identified in a NJEIFP January or May Legislative Report |
Prior to loan closing |
| Pass Local Bond Ordinance |
NLT 30 days prior to loan closing |
| Receive LFB/BPU Approval |
NLT 30 days prior to loan closing |
| Comply with all other FAF requirements |
NLT 30 days prior to loan closing |
| IFP Closing |
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| Borrower submits requisition forms |
NLT 30 days prior to disbursement |
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LOAN
PROCESS
October 15 – Loan Request and Planning Document
Deadline |
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Plan
to meet with DEP personnel well in advance of this date
to clarify all aspects of the program. Borrowers are required
to submit a Loan Request Form and planning document
to DEP and the Trust by October 15. A Loan Request informs the
NJEIT of your interest to pursue financing for a project
in the upcoming financing cycle. Loan Request forms received after October 15 will be considered for the following financing cycle. |
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Forms |
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| January |
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Interim
financing is available for projects with pre-award approval. |
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| February |
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The Trust conducts seminars with borrowers to outline the entire loan process and answer any questions. Click Here for the current seminar schedule. |
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| March |
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Submit
your loan
application and design documents to DEP. |
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Start
applying for required permits. If you have question about
what permits will be necessary please contact Stanley
Cach, Assistant Director, Municipal Finance and Construction
Element at (609) 292-8961. Click
here to view average permit review times from DEP
Permit Activity Reports. |
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Secure
a Bond Counsel and a Financial Advisor. |
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| Financial
Addendum forms are due in April. These
forms are checklists of items needed by the Trust. CLICK HERE to access these
forms. |
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| April |
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Borrowers
must apply for Local Finance Board (LFB) approval.
Local
Finance Board Application
Applications are considered at the board’s meetings
(LFB
Meeting Schedule). Borrowers should choose their desired
meeting date and submit their application by the due date
specified for that meeting.
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Borrowers
under
Board of Public Utilities (BPU) jurisdiction must
submit a request for approval to incur debt. |
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Borrowers
return completed Financial
Addendum Forms (FAF) to Environmental Infrastructure
Trust. |
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| May |
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Late
submission of LFB or BPU applications. |
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| June |
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The Trust board adopts a resolution authorizing loans
and agreements. |
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The
Trust’s Bond Counsel distributes Draft #1 of the
Loan, Escrow and Continuing Disclosure Agreements to borrowers. |
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The
Trust’s Bond Counsel distributes Draft #1 of Trust
Bond Resolution to borrowers. |
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Both
houses of the legislature must approve the projects. |
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| July |
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Borrowers
submit written comments to Draft #1 of Loan, Escrow and
Continuing Disclosure Agreements to the Trust, the Trust’s
Bond Counsel and Trust’s General Counsel. |
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The
Trust’s Bond Counsel addresses borrower’s
written comments and distributes Draft #2 of the Loan,
Escrow and Continuing Disclosure Agreements to borrowers. |
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| August |
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Borrowers
and counsels complete or submit any missing documentation
and obtain all necessary permits. |
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The
DEP issues a Project Certification. To receive Project
Certification, all planning, design, environmental requirements
and permits must be finalized. |
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The
Trust Board approves projects with conditional or final
certification. |
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Borrowers
submit final written comments to Draft #2 of the Loan,
Escrow and Continuing Disclosure Agreements, including
the borrower’s disclosure for Preliminary Offering
Statement, to the Trust and the Trust’s Bond Counsel,
General Counsel and Financial Advisor. |
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Borrowers
and the DEP agree on final Trust and Fund Loan amounts
and Loan Agreement Draw Schedules. |
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Trust/Borrower
escrow closings are held at the Trust Bond Counsel’s
offices. |
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Borrowers are not allowed to accept bids during a specified black-out period (August 15). |
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| September |
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Conditional Project Certifications are approved at the
Trust Board’s meeting. |
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| October |
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The
Trust disseminates Preliminary
Offering Statements |
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The
Trust publishes the Summary of Notice
of Sale |
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The Trust holds Bond Sale/Purchase of Investments. |
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Borrowers
receive Trust Loan amounts and Trust and Fund Loan repayment
schedules from the Trust Financial Advisor. |
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Confirmatory
resolutions are adopted by borrowers finalizing Trust
Loan amounts and Trust and Fund Loan repayment schedules. |
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The Trust prints Offering Statements and distributes to
successful bidders. |
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| November |
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Borrower closings are held. |
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Financing pre-closing and closing held at the Trust Bond
Counsel’s Offices. |
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End of the bid black-out period. |
