N.J. Admin. Code § 19:31-1.4

Current through Register Vol. 56, No. 12, June 17, 2024

Section 19:31-1.4 - Eligibility standards

(a) Generally, to be eligible for bond financing:

1. A project must serve a public purpose; that is, maintain or expand employment in New Jersey, assist in the economic development or redevelopment of a municipality, maintain or increase the tax base of the municipality, and maintain or diversify business and industry in the State; and

2. Applicants must represent to the Authority that they would not proceed with their project in the present time, place, or scope without the Authority's assistance.

(b) The Authority generally will not approve financial assistance to a project involving relocation within New Jersey if the relocation will result in a job loss and/or hardship for the existing employees or if the relocation endangers the maintenance of tax ratables in a particular community.

(c) There is no minimum size for borrowings under the program, but loan requests of less than $ 750,000 should be carefully reviewed by the applicant to assure that participation in the program is cost effective.

(d) Tax-exempt bonds are subject to the terms and conditions of the Internal Revenue Codes (IRC); therefore, it is advisable to consult with financial and legal advisors to determine the eligibility of the project.

(e) Taxable bonds issued through the Authority are not subject to the IRC. Loans may be made to borrowers for various projects and purposes including, but not limited to:

1. Office buildings;

2. Healthcare financings;

3. Warehouses and distribution facilities;

4. Manufacturing projects;

5. Commercial and retail projects;

6. Debt refinancing; and

7. Working capital needs.

N.J. Admin. Code § 19:31-1.4

Amended by R.1995 d.435, effective 8/21/1995.
See: 27 New Jersey Register 2377(a), 27 New Jersey Register 3216(a).
Amended by R.1997 d.270, effective 7/7/1997.
See: 29 New Jersey Register 1485(b), 29 New Jersey Register 2844(b).
In (d), deleted last sentence, relating to tax exemptions for interest income.