BROWNFIELDS LOAN PROGRAM
The Brownfields Loan Program is currently closed
For any questions, please email BFLoans@njeda.com.
We are currently accepting applications for the Brownfields Impact Fund, please visit https://www.njeda.gov/brownfieldsimpactfund/ for more information.
Historically, remediation has been a major barrier to successful brownfield redevelopment projects because of the lack of funding sources available to support site assessment, planning, and cleanup. The new $15 million Brownfields Loan Program is a unique investment tool that addresses this challenge by filling in these funding gaps to make the remediation phase of revitalization projects financially viable.
DOLLAR AMOUNT
Loans of up to $5 million to potential brownfield site purchasers and current brownfield site owners for costs associated with brownfields site remediation
BENEFITS
Low-interest bridge financing that makes the remediation phase of a brownfields redevelopment project feasible.
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Interest rates may be further reduced depending on the proposed end-use of the redevelopment site.
ELIGIBILITY
Please see Eligible Applicants, Sites and Uses below for more information
APPLICATION
Application Closes: April 13, 2021
Applications for the Brownfields Loan Program must be received by the NJEDA no later than Tuesday, April 13, 2021. Any applications received after the date specified shall not be considered.
Prior to submitting an application for the Brownfield Redevelopment Loan Program, please contact the Brownfields and Sustainable System Program at BrownfieldsLoan@njeda.com, to be assigned a Program Officer.
It is highly recommended that you initiate the submittal of your application and supplemental information a minimum of four (4) hours prior to the application due date/time, to allow some time to identify and troubleshoot any issues that may arise when using the NJEDA online application.
Applicants may find more information on the application submission and review process in the“User’s Guide”
Appeals Process
An applicant has a right to appeal the declination of its Brownfields Loan application. An appeal must be submitted to brownfieldsloan@njeda.com within ten (10) business days of receiving written notice of the declination. The appeal must be in writing and include certain information to be deemed complete. It must identify the applicant that is submitting the appeal; it must identify the decision being appealed; it must specify all grounds for the appeal and all arguments, materials and/or documents that support the appeal; and it should indicate whether an oral presentation is requested, and if so, the reason for the oral presentation.
A hearing officer will be assigned and will decide whether an oral presentation is appropriate under the circumstances. The hearing officer will review all documentation and any oral presentations and make a recommendation to the Board. The Board serves as the final decision-maker. Pursuant to NJEDA policy, an applicant who appeals from a Board decision may appear and speak to the Board before the Board votes on the appeal. After that vote, if the applicant is dissatisfied with the Board’s final administrative decision, it may appeal to the Appellate Division of the Superior Court of New Jersey, pursuant to the Rules of Court
PROGRAM DETAILS
The Brownfields Loan Program provides financing to potential brownfield site purchasers and current brownfield site owners (including local government redevelopers) that intend to develop commercial (including but not limited to manufacturing), retail, mixed-use developments, expansions or reuses.
Parties that have caused or contributed to environmental contamination at the site are not eligible.
AVAILABLE FINANCING
Maximum loan amount: $5,000,000
Minimum loan amount: $100,000
ELIGIBILTY
TERMS AND RATES
10-year term. Principal and interest payments will be deferred for the first two years. Interest during this two-year period will accrue and be capitalized onto the principal balance of the loan. Then, interest only payments for years three and four, followed by full amortization of the principal balance for the remaining term. Full amortization is based on principal and interest payments with no penalty for prepayment.
Interest Rate: Base rate of 3% with opportunity for rate reductions to a floor of 2% based on the redevelopment project design. Please see “Rate Reductions” (below) for more information.
Rate Reductions
A project may be eligible for interest rate reductions based on the redevelopment project design*. Interest rate reductions of 20 basis points per applicable criteria may be available for the following criteria:
* Applicants will be expected to provide any information available that validates that the proposed end use of the site includes any of the features for which the applicant is applying for a reduced interest rate.
**A deed restriction for 10 years after completion of the remediation will be placed on the project requiring the redevelopment to be consistent with the proposed end-use and factors considered at time of application for eligibility and interest rate reductions.
Lein and Collateral
Lien on property, subordinated to purchase mortgage, removed upon repayment.
Brownfields loans are subject to the Authority’s affirmative action requirements, P.L. 1979, c. 203 (N.J.S.A. 34:1B-5.4) and prevailing wage requirements, P.L. 2007, c. 245 (N.J.S.A. 34:1B-5.1). For Brownfields Loan, the Authority’s affirmative action and prevailing wage requirements shall apply to both the remediation project and the redevelopment project.
Fees:
- Application Fee: $2,500
- Commitment Fee: 0.875% of loan amount
- Closing Fee: 0.875% of loan amount
PROGRAM GUIDE
QUESTIONS
The Authority will electronically accept written questions and inquiries from all potential applicants, via the web at brownfieldsloan@njeda.com by Thursday, March 25, 2021, at 5:00 pm. The subject of the email should read “Question – Brownfields Loan Program”. Phone calls/faxes shall not be accepted.
An applicant must not contact an Authority staff/board member directly, in person, by telephone or by e-mail, concerning this application.
All Questions received and Answers given in response to this Brownfields Loan Program will be answered in the form of a “Questions & Answers” document. It is the applicant’s responsibility to continue to check the EDA’s website page for any updated Questions and Answers that are posted.
NOTE: This is a competitive loan program and therefore NJEDA will be limited in the type of support that can be offered during a competitive round. General questions will be addressed on the Questions & Answers document. The NJEDA cannot provide specialized assistance to any specific applicant.