Tennessee Governor Bill Lee and the Tennessee Department of Environment and Conservation (TDEC) Commissioner David Salyers have announced a $1.35 million loan for the Erwin Utilities Authority. This loan aims to improve the water infrastructure in the area.
The loan to the Erwin Utilities Authority is part of a larger package approved by the Tennessee Local Development Authority, which includes loans for the City of Springfield and the Northwest Dyersburg Utility District. The total amount of these loans is $48.6 million.
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Governor Lee highlighted the importance of the State Revolving Fund Loan Program, stating, “The State Revolving Fund Loan Program provides significant financial help to communities with needs for water infrastructure improvements. 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.”
Commissioner Salyers added, “We are pleased to have a program like this to loan funds for crucial infrastructure needs. We appreciate local leaders stepping up and going through the process to obtain this assistance.”
The loan for the Erwin Utilities Authority comes from the Drinking Water State Revolving Fund Loan Program and will be used to address waterline extensions. The loan has a 20-year term at an interest rate of 1.24 percent. Additionally, the Erwin Utilities Authority has received $677,000 in principal forgiveness, with the remaining amount to be repaid as principal.
The State Revolving Fund Loan Program offers communities, utility districts, and water and wastewater authorities loans at lower interest rates compared to private financing. These loans can have interest rates ranging from zero percent to below market rate, 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 to meet the state’s infrastructure needs. For 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 provided more than $2 billion in low-interest loans. Similarly, since 1996, the state’s Drinking Water State Revolving Fund Loan Program has awarded over $300 million in low-interest loans.
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$332,000 Loan for Dyersburg Water Improvement
Tennessee Governor Bill Lee and TDEC Commissioner David Salyers have announced a $332,173 loan for water infrastructure improvements in the Northwest Dyersburg Utility District, part of a wider $48.6 million initiative for state projects.