N.J. Admin. Code § 19:31B-1.4

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

Section 19:31B-1.4 - Evaluation process

(a) When all of the required information is received, the Authority will perform its own credit evaluation based on the following:

1. Visitation to the applicant's place of business, which may take place prior to the Application as part of the meeting to determine eligibility;

2. An analysis of historic and projected financial statements and a comparison to industry peers;

3. An independent industry study using source material such as the U.S. Department of Commerce's Industrial Outlook and the Standard & Poor's Industry survey, comparing the applicant's projections to the study, and considering the short term and long term outlook for the industry;

4. Contact with applicant's customers to ascertain the quality of the product or service provided, the competitiveness of the pricing, reliability and timeliness of delivery, length of the relationship, likelihood of the relationship being continued, and the customers' opinions of the applicant's management;

5. Contact with applicant's suppliers to ascertain the length of the relationship, the amount of credit extended, the amount of purchases, payment history, the likelihood of the relationship being continued, and possibly an opinion of applicant's management;

6. Contact with applicant's bank(s) to ascertain credit history and an opinion of the applicant's management;

7. An analysis of collateral available to secure the requested financing as to adequacy of amount, quality, condition, and marketability; and

8. Independent credit investigations of the applicant and its principals, which may include real estate searches, financing statement searches, and judgment and lien searches.

(b) After completing (a) above, a determination is made as to the merits of the request, the likelihood of repayment, and the adequacy of the collateral available to secure the requested financing. For a brownfields loan, the determination of the amount of the loan shall also be based on the amount of the funding gap.

(c) If a positive determination is made, the requested financing is presented to the Members for approval.

N.J. Admin. Code § 19:31B-1.4

Amended by R.2019 d.111, effective 10/7/2019.
See: 51 N.J.R. 820(a), 51 N.J.R. 1537(a).
In (b), inserted the second sentence.

Recodified from 19:31-3.4 56 N.J.R. 807(a), effective 5/6/2024