Tennessee Gov. Bill Lee and Tennessee Department of Environment and Conservation (TDEC) Commissioner David Salyers has announced two State Revolving Fund Loan Program loans totaling $47 million for the City of Springfield to improve water infrastructure.
The loans are among four approved by the Tennessee Local Development Authority, with loans for the City of Springfield, Erwin Utilities Authority, and Northwest Dyersburg Utility District totaling $48.6 million.
“The State Revolving Fund Loan Program provides significant financial help to communities with needs for water infrastructure improvements,” Lee said. “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.”
“We are pleased to have a program like this to loan funds for crucial infrastructure needs,” Salyers said. “We appreciate local leaders stepping up and going through the process to obtain this assistance.”
The two loans for the City of Springfield come from the Clean Water State Revolving Fund. One is for $37 million, another for $10 million, both going toward a new wastewater treatment plant. The $10-million loan comes with $5 million in principal forgiveness. Each has a 20-year term at 2.49 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 $8,806,173 in drinking water loans and $47 million in clean water loans to meet the state’s infrastructure needs. During fiscal year 2024, TDEC awarded $54,108,182 in drinking water loans and $85,350,843 in clean water loans for a total of $139,459,025.
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.
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