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Funds Disbursement and Loan Payments

We signed up for ACH at loan closing and our payment came by check - why?
If a payment request was submitted immediately after closing, the ACH system may not have been put in place at your bank. Every ACH account must be pre-tested with a $0 dollar amount before any real funds are electronically transferred. This process usually takes a month from the time PENNVEST receives the ACH information and the account is set up.

I have received a portion of my money; where is the rest?
At this point, your Loan payment or disbursement can be electronically sent to your bank via the Automated Clearing House (ACH) program and your Grant payment or disbursement is issued by the PENNVEST Comptroller and sent by CHECK. In the near future, PENNVEST Grant disbursements will also be sent by ACH and all projects will be required to participate in the ACH program.

Will I get all my grant money first and then my loan money?
Loan and Grant funds are disbursed in proportion with each payment request.

How soon do I get my money after I mail a payment request?
PENNVEST typically processes payments, with money out the door within 21 working days, provided all the information sent with the payment request is correct and included. The first payment request may take longer if there are Outstanding Items from loan closing that prohibit the disbursement of funds.

My payment is being held by PENNVEST because I have been told that I’m (Project Borrower) on a Debarred List. What is the debarred list? What can I do?
PENNVEST is required to check the Debarred List for any disbursements that exceed $10,000. The Debarred List is maintained by the Department of Revenue. The List contains anyone that has a tax liability to the Commonwealth. We must check to see that all borrowers have paid their taxes to the state. You must contact the Department of Revenue, Collections and Tax Services or the Department of Labor and Industries, Employee Tax Operations, to be removed from the Debarred List prior to any funds can be disbursed. PENNVEST financial staff will assist you but all tax matters must be resolved prior to the release of any funds.

Will I get an invoice every month telling me how much interest that will be owed to PENNVEST?
Interest billings are based on the amount of money that was disbursed to the project. You will receive an interest invoice from the PENNVEST Comptroller’s Office each time you receive a disbursement of loan funds, i.e. if funds are disbursed to you monthly, you will receive a new invoice each month. If you do not receive a disbursement in a particular month there will be no new invoice. In this case, check the prior month's invoice. You may make a copy of the previous month’s interest invoice and submitted it for reimbursement as interest payments during construction are (may be) capitalized into the loan. You will find a notification of the amount due each month following the disbursement month on each invoice until there is another disbursement and a new invoice. Once your loan is Interim of Final Amortized you will make the same payment each month.

How will I know when my payment will be deposited in my bank account?
As some disbursements are sent electronic, you will need to check with your individual bank to know when the funds are actually deposited. Presently, a letter is sent to the principle borrower indicating that a payment has been processed. You can begin checking about two to three weeks after submission of a payment request; however, you should keep in mind that it typically takes 21 working days to receive payment after PENNVEST receives a payment request.

What is an Interim Amortization? How is it different from a Final Amortization?
As part of your loan closing documents an amortization date is established. If you have not drawn all your loan funds and proceeded through all the closeout steps by this date, your loan will be Interim Amortized. This means you will begin principal and interest repayment. The monthly payment amount is calculated on the full loan amount for the amortization term. This results in a monthly payment amount. However, when your payment is posted to your account the interest is calculated on the outstanding principal balance to date and not the full amount of the Loan and this amount is subtracted from the monthly payment amount, the balance of the monthly payment will be applied against the outstanding principal balance. You can continue to submit payment requests after Interim Amortization; however, you will not be allowed to capitalize any additional interest following Interim Amortization. When you have drawn all your loan funds, you must notified PENNVEST that you have submitted your Final payment request, and proceeded through all the closeout steps the loan will be Final Amortized.

Once the project is in a Final Amortized stage, principle and interest are applied in the amount listed in schedule and based on the repayment term.

What does it take to close out my loan? (Final Amortize)
The closeout steps necessary to Final Amortize your loan are: (1) construction is 100%, (2) the Department of Environmental Protection has completed and approved a final inspection of the project (3) a Final payment request (so marked) has been submitted to PENNVEST, (4) all Change Orders have been submitted and approved or disapproved, (5) a Continuing Education Plan is in place and current, and (6) all Financial Statements and Workouts have been submitted. Upon complete of these steps the Holdback will be released (disbursed), any unused funds released, and a final monthly payment amount calculated and a Final Amortization schedule issued. Your loan is now Final Amortized.

We have a Letter of No Prejudice (LONP). Why do I need to send in Status Reports before we close the loan? Do I have to send them monthly or quarterly?
When you were issued a LONP, a requirement was to submit a status report monthly. PENNVEST needs to monitor the progress of your project both from a construction and a financial point of view. Once certain benchmarks have been reached, PENNVEST must initiate certain actions. These reports ensure that when money is needed by any project; we will be able to provide it.

My loan is Interim Amortized. When I have requested all the money I want/need, is there anything else I need to do?
You need to advise PENNVEST that construction is 100% complete and that you have submitted your Final payment request. Be sure all Change Orders have been submitted for approval/disapproval. All Financial Statements should have been submitted and your Continuing Education Plan submitted and current.

We Interim Amortized our loan and have drawn all the money we need. DEP was here a long time ago and did the final inspection. Why are you now contacting us wanting information?
It is necessary for PENNVEST to close out all loans. PENNVEST was probably never notified the project was 100% complete and that there were no more payment requests to be submitted. You will need to contact your entity's attorney or engineer if there is no other employee who is aware of the PENNVEST funded project. You always contact us at PENNVEST and we will work with you.

We submitted a payment request at closing several months ago, but we haven't received our money. Why?
There are several reasons that a payment application can be delayed in being processed. Payment requests cannot be processed until all loan closing documents have been submitted and approved. When the Legal Staff notifies the Finance Staff that all documents have been received, the payment is processed. Additional time may be necessary to process the payment if there are errors or omissions in the payment request such as a correct authorized signature. In most cases, you will be notified of what you need to do for the payment request to proceed.

What kind of audits can we expect to be done on us by PENNVEST or others? When?
The PENNVEST Comptroller’s Office is responsible for conducting two type of audits, Construction or Financial. Each year, a random selection of PENNVEST borrowers is selected for audit. However, PENNVEST may request that an audit be conducted.

These audits may occur at any time during construction or soon after.