Tennessee Gov. Bill Lee and the Tennessee Department of Environment and Conservation (TDEC) Commissioner David Salyers today announced two loans totaling $20.2 million for the Town of Smyrna to improve water infrastructure.
The loans are among three approved by the Tennessee Local Development Authority, with a loan of $300,000 for the Arthur Shawanee Utility District in Harrogate.
“These loans go a long way toward meeting the needs of communities throughout our state,” Lee said. “Tennesseans deserve reliable infrastructure, and the State Revolving Fund Loan Program is an excellent way to meet that need.”
“We are pleased we can provide these loans,” Salyers said. “They make investments in local communities affordable and pave the way for environmental responsibility.”
A loan for Smyrna for $17.2 million comes from the Clean Water State Revolving Fund Loan Program and will address improvements to the wastewater treatment system. The loan has a 30-year term at 0.9 percent interest.
Smyrna also receives a $3 million loan 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 0.68 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 $5.2 million in drinking water loans and $60,848,000 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.