“Abundant, clean water is critical to the quality of life in Tennessee, and these low-interest loans will help local communities provide needed infrastructure updates to ensure our supply of water is available for future generations,” Haslam said.
Tennessee’s Clean Water State Revolving Fund Loan Program has awarded more than $2 billion in low-interest loans since its inception in 1987. Tennessee’s Drinking Water State Revolving Fund Loan Program has awarded more than $304.82 million in low-interest loans since its inception in 1996.
“Clean water is vital to every Tennessean and these loans help communities make the updates they need to ensure access to this important resource,” Meghreblian said.
The City of Lebanon received a $1 million drinking water loan, as well as a $300,000 traditional drinking water loan for the Seay Hill Water Booster Station.
The $1 million loan will go toward distribution system improvements at the station. The project is funded with a 20-year, $800,000 loan with an interest rate of 1.81 percent and $200,000 in principal forgiveness that will not have to be repaid.
The $300,000 loan will be funded with a 20-year loan with an interest rate of 1.81 percent.
Recipients for the traditional wastewater loans were:
• City of Camden (Benton County) – The City of Camden will receive $1,900,000 for a wastewater treatment plant improvement-secondary treatment project. The project is funded with a 20-year loan with an interest rate of 1.04 percent.
• Hallsdale-Powell Utility District (Knox County) – Hallsdale-Powell Utility District will receive about $4.5 million for a Beaver Creek interceptor improvement project. The project is funded with a 20-year loan with an interest rate of 1.72 percent.
• Town of Parrottsville (Cocke County) – The Town of Parrottsville will receive $114,281 for the wastewater treatment plant improvements- advanced treatment project. The project is funded with a 20-year loan with an interest rate of 0.63 percent.
The City of Waverly (Humphreys County) will receive $273,375 for a water meter replacements project. The project will be funded with a 20-year, $218,700 loan with an interest rate of 1.29 percent and $54,675 in principal forgiveness that will not have to be repaid.
Through the program, communities, utility districts and water and wastewater authorities can obtain loans with lower interest rates than most can obtain through private financing. Interest rates for loans can vary from zero percent to market rate based on each community’s economic index. Loans utilizing EPA grant funds can include a principal forgiveness component.
The U.S. Environmental Protection Agency provides grants to fund the program, and the state provides a 20 percent match. Loan repayments are returned to the program and are used to fund future SRF loans.
The funding order of projects is determined by the program’s priority ranking lists that rank potential projects according to the severity of their pollution and/or compliance problems or for the protection of public health.