Lee, TDEC Announce $4.4 Million Loan for Cedar Grove Utility District Water Improvements

Gov. Bill Lee and Tennessee Department of Environment and Conservation (TDEC) Commissioner David Salyers today announced a $4,407,200 loan for the Cedar Grove Utility District in Lavinia to improve water infrastructure.

“Tennessee continues to support infrastructure investments for a growing state, including water quality improvements,” said Lee. “We are pleased these funds will make projects affordable to deliver important resources for Tennesseans across the state.”

“We look forward to the results that will come from this financial assistance,” Salyers said. “Water infrastructure is a high priority for a community, and the loan can make a real difference.”

The Cedar Grove Utility District loan comes from the Drinking Water State Revolving Fund Loan Program. It will address waterline replacements. The loan has a 20-year term at 1.97 percent interest. The Cedar Grove Utility District received $2,203,600 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 $4,407,200 in drinking water loans to meet the state’s infrastructure needs. During fiscal year 2025, TDEC awarded $42,631,173 in drinking water loans and $95,327,432 in clean water loans for a total of $137,958,605.

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.