Lee, TDEC Announce $3.45 Million in Loans for South Pittsburg Water Improvements
Tennessee Gov. Bill Lee and the Tennessee Department of Environment and Conservation (TDEC) Commissioner David Salyers today announced two loans totaling $3.45 million for the City of South Pittsburg to improve water infrastructure.
The loans are among three approved by the Tennessee Local Development Authority, with a loan of $1.6 million for Tullahoma Utilities Authority.
“These loans help provide important water infrastructure projects in communities across the state, and we look forward to the improvements they will bring,” Lee said. “The program makes loans more affordable, and we commend local officials for their commitment to meeting these needs.”
“This is an important program because every community deserves high quality water infrastructure,” Salyers said. “The low-interest loans help make the path to such improvements easier.”
One loan for the City of South Pittsburg is $2.7 million from the Drinking Water State Revolving Fund Loan Program. It will address improvements to the water storage and distribution system. The loan has a 20-year term at 2.01 percent interest.
The City of South Pittsburg will also receive a loan for $750,000 from the Clean Water State Revolving Fund Loan Program and will address infiltration and inflow correction within the wastewater collection system. The loan has a 20-year term at 2.01 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 $46,245,000 in drinking water loans and $50,478,445 in clean water loans to meet the state’s infrastructure needs. During fiscal year 2022, TDEC awarded $26,192,400 in drinking water loans and $82,825,220 in clean water loans for a total of $109,017,620.
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.