Lee, TDEC Announce $1.35 Million Loan for Erwin Utilities Authority Water Improvements

Tennessee Gov. Bill Lee and the Tennessee Department of Environment and Conservation (TDEC) Commissioner David Salyers today announced a $1.35 million loan for the Erwin Utilities Authority to improve water infrastructure.

The loan is among four approved by the Tennessee Local Development Authority, with loans for the Erwin Utilities Authority, City of Springfield, and Northwest Dyersburg Utility District, totaling $48.6 million.  

“The State Revolving Fund Loan Program provides significant financial help to communities with needs for water infrastructure improvements,” Lee said. “Across our state, projects such as these give Tennesseans the service they need and boost the local economy. We look forward to seeing the impact of the projects these loans will help deliver.”

“We are pleased to have a program like this to loan funds for crucial infrastructure needs,” Salyers said. “We appreciate local leaders stepping up and going through the process to obtain this assistance.” 

The Erwin Utilities Authority loan comes from the Drinking Water State Revolving Fund Loan Program. It will address waterline extensions. The loan has a 20-year term at 1.24 percent interest. The Erwin Utilities Authority received $677,000 in principal forgiveness with the remainder of the loan amount to be paid back as principal.

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 $8,806,173 in drinking water loans and $47 million in clean water loans to meet the state’s infrastructure needs. During fiscal year 2024, TDEC awarded $54,108,182 in drinking water loans and $85,350,843 in clean water loans for a total of $139,459,025.

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.