Tennessee grants $16.5M in low-interest water infrastructure loans

Published 9:12 am Tuesday, October 10, 2023

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The Center Square

Tennessee has agreed to send four loans worth $16.5 million to municipalities in the state for water infrastructure as part of the state’s Clean Water State Revolving Fund Loan Program.

The loans include $9 million to Lakeland for improvements to its wastewater collection system on a 20-year loan with 3.35% interest.

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Cleveland will receive a pair of loans worth a combined $5.8 million for a 20-year term with 2.4% interest. That includes $3.1 million for wastewater treatment plant improvements and $2.7 million for wastewater collection system expansion.

Brownsville will receive a $1.7 million loan at 1.3% interest over 20 years for its wastewater collection system. Of that, the Brownsville Energy Authority received $890,000 in principal forgiveness.

The loans are part of Tennessee’s State Revolving Fund Loan Program, where municipalities can receive low-interest loans to complete water infrastructure projects from the Tennessee Department of Environment and Conservation.

So far this fiscal year, TDEC has awarded $75,000 in drinking water loans and $18.9 million in clean water loans. During fiscal year 2023, TDEC awarded $ 47.3 million in drinking water loans and $64.1 million in clean water loans for a total of $111.4 million.