Assistance goes to Smith Utility District in Smith County
NASHVILLE– Gov. Bill Lee and the Tennessee Department of Environment and Conservation (TDEC) Commissioner David Salyers today announced $85,000 in a low-interest loan for drinking water infrastructure improvements.
The loan is for Smith Utility District in Smith County. Smith Utility District will receive a construction loan totaling $85,000 to replace an existing water storage tank. The loan has a 20-year term with a 0.49% interest rate and is part of the State Revolving Fund Loan Program.
Tennessee’s Revolving Fund Loan Program maintains priority ranking lists for both the Drinking Water State Revolving Fund and the Clean Water State Revolving Fund. Projects in the Drinking Water State Revolving Fund program are ranked by risk to human health and compliance with the federal Safe Drinking Water Act (SDWA). Long-term goals in the Clean Water State Revolving Fund program are to protect and enhance the water quality in Tennessee in accordance with the Clean Water Act (CWA) and its provisions.
“We are pleased to assist local communities with important infrastructure resources,” Lee said. “These loans directly meet vital needs and will bolster quality of life for citizens across Tennessee.”
“The low-cost loan program has been a major boost for communities across the state,” Salyers said. “We look forward to the improvements in Smith County that this loan will make happen.”
Through the State Revolving Fund Program, communities, utility districts and water and wastewater authorities can obtain loans with lower interest rates than most can obtain through private financing. Interest rates for loans can vary from 0% to market rate, based on each community’s economic index. Loans utilizing EPA grant funds can also include a principal forgiveness component.
During fiscal year 2019, TDEC has awarded $13,430,300 in drinking water loans and $83,194,500 in clean water loans for a total of $96,624,800 to meet the state’s water infrastructure needs.
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.
TDEC administers the State Revolving Fund Program in conjunction with the Tennessee Local Development Authority. The U.S. Environmental Protection Agency provides grants to fund the program, and the state provides a 20% match. Loan repayments are returned to the program and are used to fund future SRF loans.