New Jersey Administrative Code › Title 19 - OTHER AGENCIES › NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY › Chapter 31B - DIRECT LOAN PROGRAM › Subchapter 1 - DIRECT LOAN PROGRAM › Section 19:31B-1.5 - Approval process

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Only the Members can approve a direct
				  loan, either directly or through delegation.
(b) When the Members approve a request, the
				  minutes of the meeting at which such approval occurs are submitted to the
				  Governor.
(c) The Members' approval
				  is effective 10 working days after the Governor's receipt of the minutes,
				  provided no gubernatorial veto of this action has occurred.
(d) If there has been no veto, a formal
				  commitment letter is issued to the applicant.
1. The commitment letter contains all terms,
				  conditions, and collateral required by the Authority. As applicable, direct
				  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).
2. With the exception of the New Jersey
				  Growth Fund, the Edison Innovation Angel Growth Fund, the Edison Innovation VC
				  Growth Fund, the Edison Innovation Growth Stars Fund, and the Brownfields Loan
				  Program, usually, life insurance on the applicant's principal officer(s) is
				  required in an amount equal to the Authority's guarantee. The life insurance
				  must name the Authority as a collateral assignee.
3. With the exception of the New Jersey
				  Growth Fund, the Edison Innovation Angel Growth Fund, the Edison Innovation VC
				  Growth Fund, the Edison Innovation Growth Stars Fund, and the Brownfields Loan
				  Program, personal guarantees of owners of 10 percent or more of the applicant
				  are usually required, and there may be a requirement for collateral apart from
				  the applicant's collateral to secure the personal guarantees.
4. For the Brownfields Loan Program,
				  applicants are required to:
i. As a condition
				  to closing:
(1) Provide documentation of
				  owner equity equal to a minimum of 10 percent of the appraised value of the
				  brownfield site in a remediated state; and
(2) Demonstrate site control, which includes
				  the ability to perform the remediation and redevelopment projects, grant a lien
				  on the brownfield site as collateral to the Authority if applicable, and record
				  the deed restriction in (d)4iii below.
ii. Upon closing, record a deed restriction
				  that requires that for 10 years after completion of the remediation project,
				  any redevelopment project on the brownfield site shall be consistent with the
				  proposed use and the factors considered to determine eligibility, rate of
				  interest, or other benefits under the Brownfields Loan Program.
iii. Ensure that the Authority's affirmative
				  action and prevailing wage requirements shall apply to the remediation project
				  and the redevelopment project.
iv.
				  Prior to final disbursement, provide evidence that the remediation project is
				  completed. There shall be no requirement for the applicant to complete the
				  redevelopment project.