NASHVILLE, Tenn. (TN Government Release) – Tennessee Gov. Bill Lee and the Tennessee Department of Environment and Conservation (TDEC) Commissioner David Salyers announced Monday a $48 million loan for the City of Memphis to address water infrastructure.
The loan is one of a group of loans approved by theTennessee Local Development Authority covering Memphis, Johnson City andLebanon totaling $68.7 million.
This Clean Water State Revolving Fund loan will addresswastewater treatment plant improvements and upgrades to secondary treatment atthe T.E. Maxson Wastewater Treatment Facility. The loan has a 20-year term at0.47 percent interest.
“The State RevolvingFund Loan Program serves our state well, and we are pleased to announce thisfunding for Memphis,” Lee said. “These loans show our commitment to modernizinginfrastructure, and this should be of major assistance to the community.”
“We look forward to the improvements this loan can bringto Memphis and its wastewater treatment plant,” Salyers said. “This program hasconsistently helped communities across our state, and this loan will be a keystep for improved infrastructure for the city.”
Through the State Revolving Fund Loan Program,communities, utility districts, and water and wastewater authorities can obtainloans with lower interest rates than through private financing. These lowinterest rate loans can vary from zero percent to below market rate, based oneach community’s economic health.
In addition to the Memphis loan, the SRF program awardeda $15 million clean water loan to Johnson City, and both a $4.3 million cleanwater loan and a $1.4 million drinking water loan to Lebanon.
TDEC administers theState Revolving Fund Program in conjunction with the Tennessee LocalDevelopment Authority. The U.S. Environmental Protection Agency provides grantsto fund the program, and the state provides a 20-percent match to the federalfunding. Loan repayments are returned to the program and are used to fundfuture SRF loans.
This fiscal year, TDEC has awarded $1,485,000 in drinkingwater loans and $100,300,000 in clean water loans to meet communityinfrastructure needs in Tennessee.
Tennessee’s Clean Water State Revolving Fund Loan Programhas awarded more than $2 billion in low-interest loans since its inception in1987. The state’s Drinking Water State Revolving Fund Loan Program has awardedmore than $300 million in low-interest loans since its inception in 1996.