Financial charts with calculator and pen

The Application and Lending Process

​​​The availability of funds for new Loans is often limited. Any local government unit or authority that contemplates a Loan from DelVal should contact the DelVal Administrator at jcalhoun@delval.us or (215) 402-0270 and should submit an application. The submission of an application is not binding on either DelVal or the prospective borrower. 

Loan Application

The Process

The typical DelVal Loan closes 6-8 weeks after the receipt of an application.  DelVal manages the process and prepares all the principal documents for the Loan.  DelVal assesses a fee of 0.50% of the Loan principal amount, payable from proceeds of the Loan at closing, to cover its administrative and legal costs.  The only other issuance costs would be the costs of the newspaper advertisements, the application fee of the Department of Community and Economic Development ("DCED") to approve the Loan, and the fees, if any, of the borrower's solicitor and any other consultants to the borrower.

Loan Application

​​The DelVal Loan process begins with the submission of an application.  The principal information in the application is:

  • A description of the project to be funded by the Loan,
  • Financial statements,
  • Tax or revenue collection history, and
  • Contact information.

The DelVal Administrator reviews the information provided, and if the borrower meets DelVal's credit criteria, approves the application and refers the application to DelVal's Board of Directors for consideration.  If acceptable, the Board will adopt a resolution authorizing the Loan and approving the forms of the principal Loan documents.

 

Borrower Authorization of the Loan

DelVal prepares drafts of all the documents required for approval of the Loan by the borrower and drafts of the principal closing documents of the Loan.  After reviewing those documents the borrower would enact an ordinance (boroughs, townships, and counties) or adopt a resolution (school districts and authorities) to authorize the Loan. 

DelVal manages the process to authorize the Loan:

  • Submits the Loan Commitment with drafts of the Loan Agreement and Note.
  • Prepares and submits the advertisement of consideration,
  • Drafts the Ordinance or Resolution, Interest Rate Management Plan, the Borrowing Base, Debt Statement, and, if applicable, the Guaranty Agreement,
  • Prepares and submits the advertisement of enactment or adoption,
  • Prepares and submits the application for approval of the DCED, and
  • Drafts the Loan Agreement, Note, Continuing Disclosure Agreement, Tax Compliance Agreement, forms of opinions, and other certificates required for closing.

Borrower Credit Requirements and Ratings

Generally, DelVal requires a borrower (or its guarantor) to have a published rating of "A3" or higher from Moody's Investors Service ("Moody's") or "A-" or high from S&P Global Ratings ("S&P").  If the borrower (or its guarantor) does not have a published rating, DelVal may require the borrower to: (i) request a rating of its Loan or (ii) secure a financial guaranty policy for the Loan.   In this event, DelVal will provide the rating agency or bond insurer with the information prepared for DelVal's credit review; no additional disclosure document would be required. The borrower would be responsible for the rating fee or insurance premium (if either is required), that would be payable from proceeds of the Loan.  DelVal does not normally require ratings or insurance for: (i) small Loans of less than $1 million or (ii) short-term Loans that will be repaid from grant proceeds.

The applications for the various types of political subdivisions are posted below.  The appropriate Word and Excel files should be submitted to the Administrator. Current rates can be found on the “Home” page.  For more specific information and pro forma debt service schedules, please contact the Administrator, Jeffrey Calhoun, at jcalhoun@delval.us or (215) 402-0270.