Six communities have been approved to receive more than $23.9 million in low-interest loans for water and wastewater infrastructure improvements, including $10,000,000 for the city of Cleveland.
“Abundant, clean water is critical to the quality of life in Tennessee, and these low-interest loans will help local communities provide needed infrastructure updates to ensure our supply of water is available for future generations,” said Governor Bill Haslam.
Tennessee’s Clean Water State Revolving Fund Loan Program has awarded more than $1.9 billion in low-interest loans since its inception in 1987. Tennessee’s Drinking Water State Revolving Fund Loan Program has awarded more than $303.25 million in low-interest loans since its inception in 1996.
“Clean water is one of our most valuable resources and these loans help ensure communities have the access they need,” said Tennessee Department of Environment and Conservation Commissioner Bob Martineau.
Through the SRF Program, communities, utility districts, and water and wastewater authorities can obtain loans with lower interest rates than most can obtain through private financing. Interest rates for loans can vary from zero percent to market rate based on each community’s economic index. Loans utilizing EPA grant funds can include a principal forgiveness component.
TDEC administers the SRF Program in conjunction with the Tennessee Local Development Authority. The U.S. Environmental Protection Agency provides grants to fund the program, and the state provides a 20 percent match. Loan repayments are returned to the program and are used to fund future SRF loans.
The funding order of projects is determined by the SRF Program’s Priority Ranking Lists that rank potential projects according to the severity of their pollution and/or compliance problems or for the protection of public health.
Two Wastewater Loans were announced Tuesday for the following recipients:
City of Chapel Hill (Shelby County) – The city of Chapel Hill will receive $788,750 for a collection System Replacement project. The project will be funded with a 20-year, $709,875 loan with an interest rate of 1.04 percent and $78,875 in principal forgiveness that will not have to be repaid.
City of Lewisburg (Marshall County) – The city of Lewisburg will receive $1,000,000 for a Wastewater Treatment Plant Improvement project. The project will be funded with a 20-year, $900,000 loan with an interest rate of 1.05 percent and $100,000 in principal forgiveness that will not have to be repaid.
Three Traditional Wastewater Loans were announced Tuesday for the following recipients:
City of Cleveland (Bradley County) – The city of Cleveland will receive $10,000,000 for an Infiltration/Inflow Correction project. The project will be funded with a 20-year, $10,000,000 loan with an interest rate of 1.58 percent.
City of Lewisburg (Marshall County) – The city of Lewisburg will also receive $75,000 for a Wastewater Treatment Plant Improvement project. The project will be funded with a 20-year, $75,000 loan with an interest rate of 1.05 percent.
City of Memphis (Shelby County) – The city of Memphis will receive $11,000,000 for the T.E. Maxson Wastewater Treatment Plant Headworks Improvements Project. The project will be funded with a 20-year, $11,000,000 loan with an interest rate of 0.81 percent.
Two Drinking Water Loans were announced today for the following recipient:
Town of Bell Buckle (Bedford County) – The town of Bell Buckle will receive $294,000 for a Distribution System Water Main line Replacements project. The project will be funded with a 20-year, $235,200 loan with an interest rate of 0.27 percent and $58,800 in principal forgiveness that will not have to be repaid.
Town of Erwin (Unicoi County) – The town of Erwin will receive $750,000 for a New Water Storage Tank project. The project will be funded with a 20-year, $600,000 loan with an interest rate of 1.10 percent and $150,000 in principal forgiveness that will not have to be repaid.
Any local government interested in the SRF Loans should contact the State Revolving Fund Loan Program, Tennessee Tower, 12th floor, 312 Rosa L. Parks Ave., Nashville, TN 37243, or call (615) 532-0445. Additional information may be found online at https://www.tn.gov/environment/program-areas/wr-water-resources/water-quality/state-revolving-fund-program.html.