Governor Bill Lee and the Tennessee Department of Environment and Conservation Commissioner David Salyers announced Tuesday a $10 million loan in the State Revolving Fund Loan Program for the City of Cleveland to improve water infrastructure.
The loan is one of two approved by the Tennessee Local Development Authority, with loans for Cleveland and Woodbury totaling $10.8 million.
“These loans from the State Revolving Fund Loan Program address important infrastructure needs and demonstrate our commitment to assisting communities throughout our state,” Governor Lee said.
“We are pleased to help to improve water infrastructure in the City of Cleveland.”
“These loans should have a big impact,” Comm. Salyers said. “Communities across Tennessee are served by this program, and we are glad to play a role in the program’s success.”
Cleveland’s loan comes from the Clean Water State Revolving Fund Loan Program. The loan addresses infiltration and inflow correction within the city’s sewer collection system. The loan has a 20-year term at 0.73 percent interest.
Through the State Revolving Fund Loan Program, communities, utility districts, and water and wastewater authorities can obtain loans with lower interest rates than through private financing. These low-interest-rate loans can vary from zero percent to below market rate, based on each community’s economic health.
This fiscal year, TDEC has awarded $950,000 in drinking water loans and $16.2 million in clean water loans to meet the state’s infrastructure needs. During fiscal year 2020, TDEC awarded $37,374,000 in drinking water loans and $150,529,200 in clean water loans for a total of $187,903,200.
Tennessee’s Clean Water State Revolving Fund Loan Program has awarded more than $2 billion in low-interest loans since its inception in 1987. The state’s Drinking Water State Revolving Fund Loan Program has awarded more than $300 million in low-interest loans since its inception in 1996.