Lee, TDEC Announce $621,000 Loan for Fayetteville Water Improvements
Gov. Bill Lee and the Tennessee Department of Environment and Conservation (TDEC) Commissioner David Salyers today announced a $621,000 loan for the City of Fayetteville to improve water infrastructure.
The loan is one of two approved by the Tennessee Local Development Authority, with loans for Fayetteville and Hampton Utility District totaling $1.87 million.
“The State Revolving Fund Loan Program continues to be an excellent way to assist communities in addressing infrastructure needs,” Lee said. “These low-interest loans make it possible not only to finance such projects but to ensure citizens get the quality service they need and deserve.”
“A clean, reliable water system is essential for every community in our state,” Salyers said. “These loans make important upgrades possible and we are pleased we can help make that happen.”
The loan for Fayetteville comes from the Drinking Water State Revolving Fund Loan Program. It will address improvements to the water distribution system. The loan has a five-year term at 0.14 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 $7.2 million in drinking water loans and $76.1 million 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.