More Than $2.2 Million in Water and Wastewater Construction Loans Awarded
Low-Interest Loans Help Fund Infrastructure Improvements
NASHVILLE, Tenn. – Tennessee Gov. Bill Haslam and Tennessee Department of Environment and Conservation Commissioner Bob Martineau today announced that two communities have been approved to receive more than $2.2 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.
A Wastewater Loan was announced today for the following recipient:
City of McKenzie (Carroll County) – The City of McKenzie will receive $1,833,160 for a Wastewater Treatment Plant Improvements and I/I Correction (City wide) project. The project will be funded with a 20-year, $1,649,844 loan, with an interest rate of 0.43 percent, and $183,316 in principal forgiveness that will not have to be repaid.
A Drinking Water Loan was announced today for the following recipient:
City of Crossville (Cumberland County) – The City of Crossville will receive a loan increase of $341,010 for Water Distribution System Improvements. These additional funds will increase the total loan to $2,231,010. The project will be funded with a 20-year, $1,561,707 loan with an interest rate of 1.87 percent and $669,303 in principal forgiveness that will not have to be repaid.
A Traditional Wastewater Loan was announced today for the following recipient:
City of McKenzie (Carroll County) – City of McKenzie will receive $36,840 for Wastewater Treatment Plant Improvements and I/I Correction (City wide) project. This loan will be funded for a 20-year term with an interest rate of 0.43 percent.
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 $258 million in low-interest loans. Both programs combined award more than $90 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.