Loans and Capacity Development
Capacity Development Program
The Drinking Water State Revolving Fund aims to assist publicly owned and privately owned community water systems and nonprofit noncommunity water systems to finance the cost of the infrastructure needed to achieve or maintain compliance with Safe Drinking Water Act requirements and to protect the public health in conformance with the objectives of the Safe Drinking Water Act. The DWSRF is administered as a component of the Environmental Infrastructure Financing Program, which also administers the State’s Clean Water State Revolving Fund. The annual intended use plans (IUP) filed each year with the USEPA, which are open to public comment, describe how the State intends to spend federal grant moneys, including eligible projects and non-project set-aside expenditures. The DWSRF program updates project priority system and project priority lists, verifies capacity development for project sponsors, assists in the development of SRF policies and procedures, and coordinates and prepares work plans for non-project set-aside expenditures.
Project sponsors receive a loan for a portion of the project costs from the New Jersey Environmental Infrastructure Trust at market rate, and a portion of the project costs from NJDEP at 0% interest. The Trust and the NJDEP provide loans for a maximum of 20-year repayment terms, not to exceed the useful life. Proposed Loan Terms are as stated, or will be amended, as needed, to meet the requirements in the Federal Fiscal Year DWSRF Federal Appropriation Bill. The Loan Terms may provide an allotment to be distributed to projects as principal forgiveness. The prospective applicant must file the Letter of Intent online at www.njeit.org/forms.htm to be placed on the Project Priority List for potential funding. The “Call for Projects” for all funding cycles will be continuous and projects can be added to the list during the time period between the publication of the proposed IUP and the public hearing date. This will still allow for public review prior to the loans being issued.
Application for Loan
SRF loan program reports