Lee, TDEC Announce $275,000 Loan for Arthur-Shawanee Utility District Water Improvements
Gov. Bill Lee and Commissioner David Salyers of the Tennessee Department of Environment and Conservation (TDEC) today announced a $275,000 loan for the Arthur-Shawanee Utility District in Harrogate to improve water infrastructure.
The loan is one of two approved by the Tennessee Local Development Authority, with loans for the Town of Etowah and the Arthur-Shawanee Utility District totaling $1.275 million.
“This program provides significant assistance for local communities across Tennessee,” Lee said. “Water infrastructure is essential, and these low-interest loans provide an affordable pathway to infrastructure upgrades.”
“We continue to address local needs with the State Revolving Fund Loan Program,” Salyers said. “This program has been a great success, and we look forward to the improvements these loans will bring.”
The loan for the Arthur-Shawanee Utility District comes from the Drinking Water State Revolving Fund Loan Program. It will address improvements to the water distribution system. The loan has a 20-year term at 0.66 percent interest. It comes with $55,000 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 $1,430,000 in drinking water loans and $15,587,000 in clean water loans. In fiscal year 2021, TDEC awarded $7,171,000 in drinking water loans and $77,568,000 in clean water loans for a total of $84,739,000.
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.