Information About the Loan Application Process
DelVal expects to issue a new series of bonds in 2018. The Program Administrator expects most of those funds will be committed by the end of the year. Any local government or authority that contemplates a loan from DelVal should contact the Program Administrator and should submit an application. The submission of an application is not binding on either DelVal or the prospective borrower.
The DelVal loan process begins with the submission of a loan application. The loan must be approved by the Program Administrator and the DelVal Board. Following those approvals, the borrower would enact an ordinance (or adopt a resolution) to authorize the loan. The closing of the loan typically occurs 8-12 weeks after the application is submitted.
DelVal assesses an origination fee equal to 0.50% of the loan principal to pay its issuance costs. DelVal assumes responsibility for the preparation of the:
- Ordinance (or resolution) to authorize the issuance of debt,
- Advertisements of consideration and enactment (or adoption),
- Application to the Department of Community and Economic Development ("DCED") for approval of the new debt or guaranty,
- Opinion of bond counsel, and
- Loan Closing Documents (principally the Loan Agreement, Note, Tax Compliance Agreement, Continuing Disclosure Agreement, and related certificates).
If the borrower does not have a published rating and the permanent financing portion of the loan exceeds $1 million, the Program Administrator will require the borrower to secure a published rating or bond insurance for the Note. In this event, the Program Administrator will provide the rating agency or bond insurer with the information prepared for DelVal's credit review. In addition to DelVal's origination fee, the borrower will be responsible for the rating fee or insurance premium (if either is required), newspaper advertisements, the DCED application fee, its solicitor's fees, and the fees of any consultants that represent it. The total costs of issuance are generally less than half the costs of a public sale of bonds.
The applications for the various types of political subdivisions are posted below. The appropriate Word and Excel files should be submitted to the Program Administrator. Current loan rates can be found on the "DelVal Loan Program Home" webpage. Please contact the Program Administrator (See "Program Administrator Contacts" in the left sidebar.) for additional information and for pro forma debt service schedules.