Specifications include, but are not limited to: DEC seeks proposals for the following:
1. Loan Program
a. The contractor will determine if the applicant owns sufficient real or personal property (collateral)
to ensure that each loan is adequately secured. The contractor will conduct a thorough credit
review on each applicant and analyze each applicant's ability to repay the loan. Based on this
information, and using approved criteria, the contractor will make a recommendation to DEC
whether or not the ability to repay the loan within the ten (10) years is possible. A
recommendation will also be made as to the collateral for the loan. Within 30 days of each credit
review, the contractor will provide DEC with a report summarizing the recommendation that
includes the following:
i. Applicant’s financial ability to repay the loan.
ii. Real or personal property required as security for the loan.
iii. Recommendation as to whether the loan should be approved and additional conditions that
may be appropriate.
iv. All financial information submitted by the applicant to the contractor shall be returned to
DEC with the Contractor’s written report.
b. The contractor will contact the applicant for additional financial information as needed.
c. The contractor will complete each credit review within 30 days of receipt of all documentation and
will submit the recommendation report to DEC.
d. DEC shall be responsible for closing the loan.
e. Conditions applying to the loan program:
i. The following financial ratios will be required, based on combined amount of existing
indebtedness and proposed State loan: 1) Debt service coverage ratio of no less than 1.25,
and 2) Debt to equity ratio of no more than 3.0.
ii. Each loan is subject to final approval by DEC.
iii. The maximum allowable term for any loan is ten years, and the maximum allowable amount
to be loaned for any one facility is $150,000.
2. Deferment Program
a. A financial review of an application for deferment, as received from DEC, within 30 business
days of receiving a completed application.
b. An evaluation of the person's ability to pay the required deductible of the cleanup costs, and an
assessment of the burden that paying the required deductible would place on the person's
finances or the business's future viability.
c. The Contractor to make a recommendation either to maintain the requirement of payment of
the required deductible, or defer the payment of the required deductible, and if deferment is
recommended, recommend a payback schedule between the party requesting deferment and
DEC. The schedule shall be tailored to each applicant, taking into account the ability to repay
the required deductible.
d. The Contractor shall submit to DEC the above items B and C in report form.
e. Conditions applying to the deferment program:
i. DEC will obtain from the tank owner or responsible party a signed and completed
application for deferment. For reference, the forms used for this program are attached
as Attachment A.
ii. All deferments are subject to final approval by DEC