Gov. Bill Lee and Commissioner David Salyers of the Tennessee Department of Environment and Conservation (TDEC) today announced a $2.5 million loan for the Metropolitan Government of Lynchburg, Moore County to improve water infrastructure.
The loan is one of two approved by the Tennessee Local Development Authority, with loans for the Metropolitan Government of Lynchburg, Moore County and the City of Camden totaling $2,755,000. The loans come from the State Revolving Fund Loan Program.
“We are pleased to provide these important loans for water infrastructure improvements in Tennessee communities,” Lee said. “The loans will help to provide needed services for Tennesseans, and we are proud to assist local governments in these efforts.
“The State Revolving Fund Loan Program provides a way we can make water services affordable for our local communities,” Salyers said. “Water infrastructure is a critical component for quality of life, and these loans are a way to help meet that need.”
The Metropolitan Government of Lynchburg, Moore County’s loan comes from the Clean Water State Revolving Fund Loan Program. The loan will address infiltration and inflow correction within the sewer collection system and has a 20-year term at 1.03 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 $1.7 million in drinking water loans and $60.2 million in clean water loans to meet the state’s infrastructure needs. During fiscal year 2021, TDEC awarded $7,171,000 in drinking water loans and $77,568,000 in clean water loans for a total of $84,739,000.
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.