Lee, TDEC Announce $5.3 Million in Loans for Humboldt Water Improvements
Tennessee Gov. Bill Lee and the Tennessee Department of Environment and Conservation (TDEC) Commissioner David Salyers today announced two loans totaling over $5.3 million for the City of Humboldt to improve water infrastructure.
The loans are among five approved by the Tennessee Local Development Authority, with loans for Waverly, Smyrna, and Erwin Utilities Authority in addition to the loans for Humboldt, totaling $26 million.
“The State Revolving Fund Loan Program continues to be a key resource for communities across our state to meet water infrastructure needs,” Lee said. “We are pleased we can assist the City of Humboldt with these loans, and we look forward to the improvements that will come from them.”
“Loans like these help communities improve quality of life,” Salyers said. “We are pleased these loans for Humboldt can address important infrastructure needs.”
The City of Humboldt received a loan for $4.8 million from the Clean Water State Revolving Fund Loan Program. It will address wastewater treatment plant expansion, including improvements to treatment systems and sludge disposal. The loan has a 20-year term at 0.48 percent interest.
Humboldt also received a loan of $510,000 from the Drinking Water State Revolving Fund Loan Program. This is a green project based on eligibility requirements established by the Environmental Protection Agency, with at least 20 percent of the total project cost dedicated to eligible green components. The loan addresses water treatment plant and water distribution system improvements. This loan likewise has a 20-year term at 0.48 percent interest.
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 $4,881,100 in drinking water loans and $134,511,200 in clean water loans to meet the state’s infrastructure needs. During fiscal year 2019, TDEC awarded $13,345,300 in drinking water loans and $83,324,500 in clean water loans for a total of $96,669,800.
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.