What is SAIL
The Disaster Relief Emergency Financing Program (Statewide Assistance Infrastructure Loan (“SAIL”) Program), is a short-term financing program that provides temporary bridge loans for environmental infrastructure projects in advance of federal relief grant reimbursements (e.g. Federal Emergency Management Act (FEMA) or Housing and Urban Development Community Development Block Grants (HUD-CDBG)). SAIL is designed to provide ready cash to communities impacted by a declared disaster alleviating financial stress that may result from delays in the receipt of federal reimbursements. SAIL also provides compliance support for many local communities neither equipped nor experienced in dealing with FEMA or HUD requirements.
SAIL provides quick access to temporary, low-cost, short-term bridge loans in the aftermath of a declared disaster to address immediate cash flow needs for disaster related water infrastructure projects. SAIL Loans can be for local match requirement and/or in anticipation of reimbursement through federal grant programs such as the FEMA and HUD-CDBG.
SFY2017 SAIL loans are currently structured as zero percent (0%) interest rate loans for terms not to exceed three fiscal years (up to 47 months) and are intended to be in place for the duration of construction. Amounts not reimbursed by the federal grant program are incorporated into a long-term financing program package. The base long-term financing program package currently consists of a 75% zero interest loan from the DEP and 25% AAA-rated market rate loan from the NJEIT, resulting in an effective market rate of 25% of the AAA rate for each loan.