Last month the New Jersey Legislature announced the creation of New Jersey’s first loan program, the Transportation Infrastructure Bank.
What is it?
The New Jersey Infrastructure Bank was established by the New Jersey State Legislature as a partnership between the New Jersey DOT and I-Bank to make low-interest loans for local transportation infrastructure projects.
Local government agencies such as “county, municipality, municipal, county or regional transportation authority, or any other political subdivision of the State, authorized to construct, operate, and maintain public highways or Transportation Projects.”
Approved projects will initially receive a Line of Credit Loan which will later be refinanced and restructured through a long-term loan.
Financing through this program will secure significant interest cost savings, there is no down payment required, and borrowers are charged a flat 2% administrative fee for reviewing applications and a .15% administrative fee for loan servicing. The loans are between 0% and 50% of the market rate.
According to NJTIB, the following projects are eligible: Keep existing bridge functioning and in good repair including rehabilitation and replacing components, improvements for alternative modes of transportation such as bicycle and pedestrian, and intermodal connections, keep existing highway system functioning and in a state of good repair, and projects maintaining or increasing the movement of passengers and goods such as intelligent transportation systems and travel demand management.
How to apply?
Each project requires a separate application and applications are accepted throughout the year.
Only authorized employees of the local government can submit an application. The application is available at https://www.njib.gov/njtib/apply/
Where do I find more information?
Details available here.