More Than $20.6 Million in Water and Wastewater Construction Loans Awarded
Low-Interest Loans Help Fund Infrastructure Improvements
NASHVILLE – Tennessee Gov. Bill Haslam and Department of Environment and Conservation Commissioner Bob Martineau today announced that seven communities and one utility district have been approved to receive more than $20.6 million in low-interest loans for water and wastewater infrastructure improvements.
The State Revolving Fund (SRF) Loan Program provides low-interest loans that help communities, utility districts, and water and wastewater authorities finance projects that protect Tennessee’s ground and surface waters and public health. Loans are used to finance the planning, design and construction of water and wastewater facilities.
“The State Revolving Fund Loan Program helps communities address current infrastructure needs and prepare for future needs, improving the health of our communities and their ability to grow,” Haslam said.
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.
“Community investments in our drinking water and wastewater systems are vital to maintaining environmental and public health,” Martineau said. “These loans will help keep our communities moving forward, and the principal forgiveness provisions help local communities accomplish this work in difficult economic times.”
The 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.
Wastewater Loans were announced today for the following recipients:
Town of Carthage (Smith County) – The Town of Carthage will receive $625,000 for a Pump Station Rehabilitation/Replacement (Replace existing main pump station) project. The project will be funded with a 20-year, $593,750 loan with an interest rate of 0.83% and $31,250 in principal forgiveness that will not have to be repaid.
City of Cleveland (Bradley County) – The City of Cleveland will receive $2,500,000 for a Water Meter Replacements project. The project will be funded with a 20-year, $2,325,000 loan with an interest rate of 1.38% and $175,000 in principal forgiveness that will not have to be repaid.
City of Crossville (Cumberland County) – The City of Crossville will receive $1,950,000 for an Infiltration and Inflow Correction project that includes Dayton Ave/Oakmont Drive, Miller Ave/Harper Ln, and Holiday Drive Areas. The project will be funded with a 20-year, $1,755,000 loan with an interest rate of 1.61% and $195,000 in principal forgiveness that will not have to be repaid.
Town of Erwin (Unicoi County) – The Town of Erwin will receive $4,000,000 for an Infiltration and Inflow Correction and WWTP Improvements project. The project will be funded with a 30-year, $3,800,000 loan with an interest rate of 1.39% and $200,000 in principal forgiveness that will not have to be repaid.
City of Fayetteville (Lincoln County) – The City of Fayetteville will receive $4,000,000 for a WWTP Improvements project. The project will be funded with a 20-year, $3,720,000 loan with an interest rate of 1.38% and $280,000 in principal forgiveness that will not have to be repaid.
City of Fayetteville (Lincoln County) – The City of Fayetteville will also receive an additional loan of $1,700,000 for the WWTP Improvements project. This loan will be funded for a 20 years term with an interest rate of 1.38% and will not include principal forgiveness.
Town of Oliver Springs (Anderson, Roane and Morgan Counties) – The Town of Oliver Springs will receive $3,458,000 for a WWTP Improvements project. The project will be funded with a 20-year, $3,215,940 loan with an interest rate of 0.68% and $242,060 in principal forgiveness that will not have to be repaid.
A Drinking Water Loan was announced today for the following recipient:
Bloomingdale UD (Sullivan County) – The Bloomingdale UD will receive $2,200,000 for a Water System Improvements project. The project will be funded with a 20-year, $1,430,000 loan with an interest rate of 0.91% and $770,000 in principal forgiveness that will not have to be repaid.
A traditional Drinking Water Loan was announced today for the following recipient:
Town of Livingston (Overton County) – Town of Livingston will receive an increase of $250,000 to an existing Water Treatment Improvements project. This loan will be funded for a 20 years term with an interest rate of 1.64%.
Since its inception in 1987, Tennessee’s Clean Water State Revolving Fund Loan Program has awarded more than $1.6 billion in low-interest loans. Since its inception in 1996, Tennessee’s Drinking Water State Revolving Fund Loan Program has awarded more than $252 million in low-interest loans. Both programs combined award more than $80 million annually to Tennessee’s local governments for water and wastewater infrastructure projects.
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 www.tn.gov/environment/srf.
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