Tennessee Governor Bill Lee and Tennessee Department of Environment and Conservation (TDEC) Commissioner David Salyers have announced a $5.7 million loan for the City of McMinnville aimed at enhancing its water infrastructure. The loan is part of two approved by the Tennessee Local Development Authority, with the combined total for McMinnville and the City of Ripley amounting to $7.12 million. These funds are sourced from the State Revolving Fund Loan Program.
“Reliable water infrastructure is a crucial need in our communities, and this program addresses it,” said Governor Lee. “We commend the cities seeking this assistance for going through the loan process, and we look forward to the results that come from their efforts.”
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Commissioner Salyers added, “The State Revolving Fund Loan Program gives communities an affordable way to provide quality water infrastructure. The loans are for important projects, and we are fortunate to have this program.”
The loan for McMinnville comes specifically from the Drinking Water State Revolving Fund Loan Program and will be used to improve the city’s water treatment plant. The loan has a 20-year term with an interest rate of 1.28 percent. Additionally, McMinnville received $2,850,000 in principal forgiveness, with the remainder to be repaid.
The State Revolving Fund Loan Program offers communities, utility districts, and water and wastewater authorities the opportunity to secure loans at lower interest rates compared to private financing. Interest rates can range from zero percent to below market rate, depending on the economic health of the community.
The $7,120,000 in loans for Ripley and McMinnville are the first issued this fiscal year under the program. In fiscal year 2024, TDEC awarded a total of $139,459,025 in loans, which includes $54,108,182 for drinking water and $85,350,843 for clean water projects.
Since its inception in 1987, Tennessee’s Clean Water State Revolving Fund Loan Program has awarded over $2 billion in low-interest loans. Similarly, the state’s Drinking Water State Revolving Fund Loan Program, established in 1996, has awarded more than $300 million in low-interest loans.
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