Lee, TDEC Announce $884,000 in Loans for City of Etowah Water Improvements

Gov. Bill Lee and Tennessee Department of Environment and Conservation Commissioner David Salyers today announced two loans totaling $884,000 for the City of Etowah to improve water infrastructure.

The loans are from the State Revolving Fund Loan Program and were approved by the Tennessee Local Development Authority.

“Tennessee continues to support infrastructure investments for a growing state, including water quality improvements,” said Lee. “We are pleased these funds will make projects affordable to deliver important resources for Tennesseans across the state.”

“The loans make it possible for communities to make improvements in affordable ways,” Salyers said. “We are pleased we can use this program to make it easier to improve water infrastructure.”

One loan for the City of Etowah is $279,000 from the Clean Water State Revolving Fund Loan Program for pump station replacement and improvements. The loan has a five-year term at 1.46 percent interest. The City of Etowah received $139,500 in principal forgiveness with the remainder of the loan amount to be paid back as principal.

The City of Etowah will also receive a loan for $605,000 from the Clean Water State Revolving Fund Loan Program for a wastewater treatment plant expansion. The loan has a five-year term at 1.46 percent interest. The City of Etowah received $242,000 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 $32,356,173 in drinking water loans and $72,026,500 in clean water loans to meet the state’s infrastructure needs. During fiscal year 2024, TDEC awarded $54,108,182 in drinking water loans and $85,350,843 in clean water loans for a total of $139,459,025.

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.