In an effort to simplify the process of applying for financing, the NJ Environmental Infrastructure Financing Program has adopted a streamlined application schedule.

The new 13-month process, which takes effect this year, begins with the submittal of a commitment letter and planning document on or before the first Monday in October (Oct. 2 this year) and ends with loan closing in the first week of November of the following year.

The program has retained a provision that allows projects to move forward prior to the award of the loan. Borrowers who obtain pre-award approval may commence construction of their project once all necessary permits and approvals are obtained. Construction costs incurred after pre-award approval and prior to loan closing will be reimbursed upon loan closing.

A pre-planning meeting is strongly encouraged and should be scheduled during the spring or summer prior to submittal of the commitment letter.

Financing Program loans are closed in escrow prior to the actual sale of bonds. If bids received between escrow closing and loan closing were lower than anticipated, the bond over-issuance would be taxable. To avoid this problem, the program imposes a bid opening blackout period. In the past, the blackout period was from the end of August until loan closing in November. To give borrowers more time to receive bids, the blackout period will be shortened as part of the new schedule. Beginning in 2000, the blackout will not commence until the end of September.

Following is the new finance program schedule:

PROGRAM SCHEDULE

For more information concerning the new program schedule, please Theresa Fenton, Chief, Bureau of Program Development and Technical Services at (609) 292-3859.