NJ Creates Bank to Loan Towns Money for Roadwork
New Jersey towns now have a new option to move forward with local transportation projects.
The state has created the New Jersey Transportation Infrastructure Bank, a partnership between the Department of Transportation and the New Jersey Infrastructure Bank, which will provide low-interest loans for municipal and county transportation projects.
According to Chris Sturm, the managing director of policy and water at New Jersey Future, when local governments in Jersey get grants for transportation projects sometimes that grant money isn’t sufficient to pay for the entire project, so the town will have to take out a loan to cover the rest of the work.
“So what this transportation bank does is fill that financing gap by providing lower cost loans," she said.
She explained the Transportation Infrastructure Bank will offer loans at between 1.5 and 1.75 percent for terms up to 31 years for projects to build and repair roads, bridges and sidewalks.
“This is going to help projects that are on the cusp of happening but where the cost is just a little bit too much,” she said.
“Reducing financing, borrowing rates, lowers the cost over a 31-year period and those savings can add up.”
New Jersey Future is a nonprofit organization that promotes infrastructure investments, redevelopment and sensible growth in the Garden State.