Low-interest loans help fund infrastructure improvements
NASHVILLE – Tennessee Gov. Bill Haslam and Tennessee Department of Environment and Conservation (TDEC) Commissioner Shari Meghreblian today announced that six communities have been approved to receive approximately $8.13 million in low-interest loans for water and wastewater infrastructure improvements.
“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 Haslam.
Tennessee’s Clean Water State Revolving Fund Loan Program has awarded more than $2 billion in low-interest loans since its inception in 1987. Tennessee’s Drinking Water State Revolving Fund Loan Program has awarded more than $304.82 million in low-interest loans since its inception in 1996.
“Clean water is vital to every Tennessean and these loans help communities make the updates they need to ensure access to this important resource,” said Meghreblian.
Three Traditional Wastewater Loans were announced for the following recipients:
City of Camden (Benton County) – The City of Camden will receive $1,900,000 for a Waste Water Treatment Plant Improvement-Secondary Treatment project. The project is funded with a 20-year loan with an interest rate of 1.04 percent.
Hallsdale-Powell Utility District (Knox County) – Hallsdale-Powell Utility District will receive $4,548,250 for a Beaver Creek Interceptor Improvement Project. The project is funded with a 20-year loan with an interest rate of 1.72 percent.
Town of Parrottsville (Cocke County) – The Town of Parrottsville will receive $114,281 for the Waste Water Treatment Plant Improvements- Advanced Treatment Project. The project is funded with a 20-year loan with an interest rate of 0.63 percent.
Two Drinking Water Loans were announced for the following recipient:
City of Lebanon (Wilson County) – The City of Lebanon will receive $1,000,000 for a Distribution System Improvements project for the Seay Hill Water Booster Station. The project is funded with a 20-year, $800,000 loan with an interest rate of 1.81 percent and $200,000 in principal forgiveness that will not have to be repaid.
City of Waverly (Humphreys County) – The City of Waverly will receive $273,375 for a Water Meter replacements project. The project will be funded with a 20-year, $218,700 loan with an interest rate of 1.29 percent and $54,675 in principal forgiveness that will not have to be repaid.
One Traditional Drinking Water Loan was announced for the following recipient:
City of Lebanon (Wilson County) – The City of Lebanon will receive $300,000 for a Distribution System Improvements project for the Seay Hill Booster Station. The project will be funded with a 20-year loan with an interest rate of 1.81 percent.
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.
Any local government interested in a SRF Loan 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.