Lee, TDEC Announce $15 Million Loan for Memphis Water Improvements
Tennessee Gov. Bill Lee and Tennessee Department of Environment and Conservation (TDEC) Commissioner David Salyers today announced a $15 million loan for the City of Memphis to improve water infrastructure.
The loan is one of three approved by the Tennessee Local Development Authority, with two loans for the Brownsville Energy Authority and the loan for Memphis totaling $15,375,000.
“Modernizing local infrastructure across Tennessee is one of our key initiatives this year,” Lee said. “These loans provide an affordable way for communities to finance important projects that will greatly benefit their residents and deliver clean water.”
“We can help communities big and small with funds from this program,” Salyers said. “The revolving fund loans help hold down costs while making sure needs are met in public services.”
The Memphis loan comes from the Clean Water State Revolving Fund Loan Program. The loan will address infiltration and inflow correction within the wastewater collection system. The loan has a 20-year term at 0.61 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 $5.3 million in drinking water loans and $76,123,000 in clean water loans to meet the state’s infrastructure needs. During fiscal year 2020, TDEC awarded $37,374,000 in drinking water loans and $150,529,200 in clean water loans for a total of $187,903,200.
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.