Gov. Bill Lee and Tennessee Department of Environment and Conservation Commissioner David Salyers have announced a $1.83 million loan for the Chuckey Utility District to improve water infrastructure.
The loan is one of three approved by the Tennessee Local Development Authority, with loans for the Chuckey Utility District, Hamilton County Water and Wastewater Treatment Authority, and the City of Rockwood totaling $31.7 million.
The Chuckey Utility District loan comes from the Drinking Water State Revolving Fund Loan Program and will address waterline extensions. The loan has a 20-year term at 1.87 percent interest. The Chuckey Utility District received $915,000 in principal forgiveness with the remainder of the loan amount to be paid back as principal.
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.
The Tennessee 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.
