More Than $1.5 Million in Water and Wastewater Construction Loans Awarded
Tennessee Governor Bill Haslam and Tennessee Department of Environment and Conservation Commissioner Bob Martineau today announced that one community and one Utility District have been approved to receive more than $1.5 million in low-interest loans for water and wastewater infrastructure improvements.
“One of the ways we can continue to make our communities great places to live is to make sure our basic infrastructure needs are met,” Haslam said. “The State Revolving Loan Program helps communities fund important investments in our drinking water and wastewater systems, which are essential to public health.”
Tennessee’s Clean Water State Revolving Fund Loan Program has awarded more than $1.7 billion in low-interest loans since its inception in 1987. Tennessee’s Drinking Water State Revolving Fund Loan Program has awarded more than $290 million in low-interest loans since its inception in 1996.
“Clean water is the lifeblood of our communities,” Martineau said. “These projects will help us protect Tennessee’s ground and surface waters while keeping our communities moving forward.”
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.
The Tennessee Department of Environment and Conservation administers the SRF Loan Program for the state of Tennessee 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 Loan 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.
A Drinking Water Loan was announced today for the following recipient:
Smith Utility District (Smith County) – The Smith Utility District will receive $1,464,500 for a Waterline Replacements project along Main St. and Downtown/Cedar St. Areas. The project will be funded with a 20-year, $1,098,375 loan with an interest rate of 0.53% and $366,125 in principal forgiveness that will not be repaid.
A Wastewater Loan was announced today for the following recipient:
The City of Cleveland (Bradley County)-The City of Cleveland will receive $110,418 for Mobile Communicator Water Meter reading equipment. The project will be funded with a 20-year, $104,897 loan with an interest rate of 0.88% and $5,521 in principal forgiveness that will not 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 Avenue, Nashville, TN 37243, or call (615) 532-0445. Additional information about the SRF Loan Program may be found online at https://tn.gov/environment/topic/wr-srf-state-revolving-fund-program.