Step 5: Submit a Project Loan Application

Step 5: Submit a Project Loan Application

Upon completion of project design, the fourth step in application process is to submit a Project Loan Application, along with hard copies of plans and specifications.

You will be asked the following questions:

  • Have any project scope revisions been included in this Loan Application (Application Step 4) and associated design documents that have not been previously identified in the Letter of Intent (Application Step 3) and/or Project Planning Document/Report?
  • Does the applicant intend to or has already applied for (or received) other funding from State?

You will then be required to upload the following:

1. Authorizing Resolution (LP-2B)

  • If the applicant is a local government unit, a resolution passed by the local government unit authorizing the filing of an application for a Water Bank loan and specifying the individual authorized to sign the Water Bank loan application on behalf of the local government unit.
  • If the applicant is a private entity, a letter from the private entity authorizing the filing of an application for a Water Bank loan and specifying the individual authorized to file the loan application on behalf of the private entity, as well as providing evidence of ownership of the water supply facilities.
  • If two or more project sponsors are involved in the project, a resolution or letter indicating the lead applicant and the authorized representative is required from each.

2. Statement of Assurances (LP-3) If the applicant is a local government unit, an executed Professional Services Affidavit for each person or firm whose professional services have been procured by the local government unit for the project for which cost reimbursement will be sought is required.7

3. Assurance of compliance (LP-4) with the civil rights requirements of Title VI of the Civil Rights Act of 1964 (P.L. 88-352) and the New Jersey Law Against Discrimination (N.J.S.A. 10:5-1 et seq.)

4. Building Costs (LP-5A/LP-5C): Form LP-5A is to used to calculate total project costs for new projects. These includes the following cost categories:

  • Administrative Expenses (limited to 3% of building costs)
  • Other Costs
  • Building Costs
  • Contingencies (5% of building costs)
  • Planning and Design Costs

Applicants will be require to delineate what portion of the total project costs are allowable under I-Bank funding and what is not allowable.

5. Contracts (LP-6A): You will be required to provide the name, contract description, allowable cost and total cost for your project contractors, and to upload the associated Contract Documentation (Bid Book). Contracts may include the following:

  • Construction
  • Architecture
  • Engineering
  • Plans and Specs
  • Construction Management
  • Land preservation and conservation

6. Project Disbursement Schedule (LP-6B) You will enter the following project milestones:

  • Advertisement of Contract
  • Notice to Proceed
  • Initiation of Operation
  • Construction Completion
  • Bid Opening
  • Advertisement for Construction
  • Equipment Purchase
  • None

7. Plans, Specifications, and Associated Documentation (LP-6C) You will upload the following.

  • Construction contract documents (plans & specifications).
  • Projected cash flow schedule to be used to establish the Water Bank loan disbursement schedule.
  • Project construction schedule. A court-sanctioned order or a Department-issued Administrative Consent Order indicating a compliance schedule shall be required where applicable.
  • Legal opinion from counsel as to title or mechanism to obtain title necessary for project sites and easements.
  • Statement from the applicant indicating that it has not violated any federal, State or local law pertaining to fraud, bribery, graft, kickback, collusion or conflicts of interest relating to or in connection with the planning and design of the project.
  • Statement from the applicant which indicates that it did not use the services of a person for planning or design of the project whose name appears on the State Treasurer's list of debarments, suspensions and voluntary exclusions.
  • Executed joint service agreement or other intermunicipal agreements, if applicable.8
  • Draft engineering agreements for building services.
  • Statement on other related Federal or State assistance (previous, pending or anticipated) on this project.
  • A statement on whether the applicant is currently in default on any State loan. A Water Bank loan agreement will not be executed between the Department and the Project Sponsor unless the Department determines that repayment of the defaulted loan will be received.
  • Complete Project Report/Facilities Plan, which must include:
  1. A description of both the proposed environmental infrastructure facilities and the complete environmental infrastructure system of which it is a part;
  2. Relevant preliminary engineering parameters, including a description of the environmental infrastructure facilities to be built, schematic flow diagrams, hydraulic profiles and preliminary design criteria;
  3. Cost impacts on system users; and
  4. Institutional and management arrangements necessary for successful implementation, such as service agreements, local ordinances, interagency agreements or intermunicipal agreements.
  • Sewer System Evaluation Survey (Wastewater Projects Only)


  • Public Participation process to date, including transcripts from public hearing
  • Planning and Design SED Utilization Report (N.J.A.C. 7:22-9.12(a)) / SED Utilization Plan (N.J.A.C. 7:22-9.4)
  • Administrative and Judicial Consent Order (If any)
  • Sewer Use Ordinance (Wastewater Projects Only); User Charge System for environmental infrastructure facilities (and/or other means to repay loan)
  • Value Engineering ($10 million or more; Wastewater Projects Only)
  • Infiltration/Inflow Information (Wastewater Projects Only)

8. Applicable Permit(s) / Approval(s) (LP-7) Affidavit certifying required permits and approvals for building the environmental infrastructure facilities were received from applicable Federal, State and local agencies and attach copies of all the required permits and approvals.

9. Additional Information (LP-9) You will be asked to answer the following questions:

  • Does the assistance requested serve a State or Federal installation?
  • Is the project for which assistance is required on State or Federal land or installation?
  • Does the assistance requested serve industrial users?
  • Has the project for which assistance is requested caused, or will cause, the displacement of any individual, family, business, or farm?
  • Is the project in a designated special flood hazard area?
  • Has the applicant obtained the necessary land? How?

10. Professional Services (LP-11) Provide the name and contact of any professional services firm utilized (bond counsel, legal advisor, financial advisor). Indicate the services performed and compensation (not to exceed amount).


7 If the professional services for which cost reimbursement will be sought under this chapter have not been procured at the time of loan application, submittal by the local government unit of a letter of commitment to comply with the requirements of the Professional Services Affidavit, and to submit a copy of the executed Professional Services Affidavit to the Department immediately upon execution of the contract for the professional services, will satisfy this requirement.

8 If the project will serve two or more project sponsors, the applicant shall submit the executed service agreements, contracts or other legally binding instruments necessary for the financing, building and operation of the proposed environmental infrastructure facilities. At a minimum, these documents must include the basis upon which costs are allocated, the formula by which costs are allocated, and the manner in which the cost allocation system will be administered.

Step 5: Submit a Project Loan Application