Tennessee Governor Bill Lee and Tennessee Department of Environment and Conservation (TDEC) Commissioner David Salyers have announced the approval of two State Revolving Fund Loan Program loans totaling $47 million for the City of Springfield. These loans aim to improve the city’s water infrastructure.
The loans for Springfield are part of four loans approved by the Tennessee Local Development Authority, which also includes financing for the Erwin Utilities Authority and the Northwest Dyersburg Utility District, bringing the total to $48.6 million.
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“The State Revolving Fund Loan Program provides significant financial help to communities with needs for water infrastructure improvements,” said Governor Lee. “Across our state, projects such as these give Tennesseans the service they need and boost the local economy. We look forward to seeing the impact of the projects these loans will help deliver.”
“We are pleased to have a program like this to loan funds for crucial infrastructure needs,” added Commissioner Salyers. “We appreciate local leaders stepping up and going through the process to obtain this assistance.”
The loans for Springfield come specifically from the Clean Water State Revolving Fund. One loan amounts to $37 million, while the other is set at $10 million, both designated for a new wastewater treatment plant. Notably, the $10 million loan includes $5 million in principal forgiveness. Both loans have a 20-year term at an interest rate of 2.49 percent.
The State Revolving Fund Loan Program offers communities, utility districts, and water and wastewater authorities the opportunity to secure loans at lower interest rates than those available through private financing. The interest rates for these loans can range from zero percent to below market rates, depending on the economic health of each community.
In the current fiscal year, TDEC has awarded $8,806,173 in drinking water loans and $47 million in clean water loans. During fiscal year 2024, TDEC awarded $54,108,182 in drinking water loans and $85,350,843 in clean water loans, totaling $139,459,025.
Since its inception in 1987, Tennessee’s Clean Water State Revolving Fund Loan Program has granted over $2 billion in low-interest loans. Additionally, the state’s Drinking Water State Revolving Fund Loan Program, established in 1996, has provided more than $300 million in low-interest loans.
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Tennessee Funds Erwin Water Infrastructure Improvements
Tennessee Governor Bill Lee and TDEC Commissioner David Salyers announced a $1.35 million loan to the Erwin Utilities Authority to enhance water infrastructure, part of a broader $48.6 million loan package approved by the Tennessee Local Development Authority.