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Banner, reinvesting in our industrial heritage, Rhode Island Brownfields
 
Introduction


Eligibility


Criteria
Financial Risks


Environmental Risks

Process

Application / Resources

Brownfields Cleanup Revolving Loan Fund
Loan Underwriting Criteria

Once Brownfields cleanup projects are determined to be eligible for a loan from the RIBCRLF, the primary loan underwriting criteria will be the analysis of the financial and environmental risks associated with the cleanup and redevelopment of the Brownfield site, with priority being given to sites located in urban communities. These procedures are necessary to insure that borrowers have sufficient means to repay loans. Additional criteria to be considered are the socioeconomic and public benefits of redevelopment projects. While these additional criteria are very important, they are secondary to the primary underwriting criteria to insure the financial soundness of the RIBCRLF. The Small Business Loan Fund Corporation as Fund Manager assisted (where appropriate) by the Clean Land Fund as the Brownfields Financial Advisor will have the responsibility for analyzing and evaluating the financial risks of a loan applicant. The RIDEM, as Brownfields Site Manager, will have the responsibility for analyzing and evaluating the environmental risks of a loan applicant.



Financial Risks



The Financial Risks to be considered will include but are not limited to:



        The legal structure of the applicant (corporation, partnership, limited liability partnership or sole proprietor), its ownership, and its Board of Directors if applicable;

        The adequacy, timeliness and completeness of the applicant's financial statements (audited or un-audited);

        The historical financial condition of the applicant and its comparison to industry norms;

        The applicant's record of earnings and cash flow;

        The applicant's history of borrowing and adherence to the terms and conditions of those borrowings;

        The integrity and ability of the applicant's management, ownership, and Board of Directors if applicable;

        The information from bank and credit references;

        The outlook for the applicant's industry;

        The applicant's Business Plan describing business goals, strategies and action plans;

        The applicant's Redevelopment Project Plan demonstrating the economic viability of the project and identifying the sources of repayment for the loan;

        The socioeconomic and public benefits of the redevelopment project;

        The applicant's ability to manage the cleanup project; and

        The ability of an approved remediation contractor to complete the cleanup project with appropriate contractor insurance policies.



Environmental Risks



The Environmental Risks to be considered will include but are not limited to:



        The Redevelopment Project is in compliance with the eligible Brownfields site and project costs criteria;

        The scope, completeness and acceptance by RIDEM of the Site Investigation Report (SIR);

        The applicant's environmental compliance history over the past three years;



The Rhode Island Department of Environmental Management (RIDEM) will be responsible for assessing the environmental risks of the project.  The Economic Development Corporation cannot grant a loan without the approval of the RIDEM.  Please click here for more information on the Brownfields process set forth by the RIDEM.

last updated: 04/03/03


This site is a joint effort of the Rhode Island Department of Environmental Management
Rhode Island Economic Development Corporation and Rhode Island Statewide Planning Program


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