Lee, TDEC Announce $20 Million Loan for City of Chattanooga Water Improvements

Tennessee Gov. Bill Lee and the Tennessee Department of Environment and Conservation (TDEC) Commissioner David Salyers today announced a $20 million loan for the City of Chattanooga to improve water infrastructure.

The loan comes from the Clean Water State Revolving Fund Loan Program and will address infiltration and inflow corrections. The loan has a 20-year term at 2.6 percent interest.

“This program goes a long way in addressing water infrastructure needs across the state,” Gov Lee said. “Tennessee's fiscal responsibility has allowed us to secure low interest rates to move forward on projects that better our communities." 

 “Water infrastructure is one the most important responsibilities for a community, and we are glad the program can assist Chattanooga,” Salyers said. “We look forward to the results that will come from this loan.”    

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 $75,000 in drinking water loans and $38,905,000 in clean water loans to meet the state’s infrastructure needs. During fiscal year 2023, TDEC awarded $47,345,000 in drinking water loans and $64,095,945 in clean water loans for a total of $111,440,945.

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.