NASHVILLE – Gov. Bill Lee and Tennessee Department of Environment and Conservation Commissioner David Salyers today announced a $670,000 loan for the Chuckey Utility District to improve water infrastructure.
The loan is from the State Revolving Fund Loan Program and was approved by the Tennessee Local Development Authority.
“Tennessee continues to support infrastructure investments for a growing state, including water quality improvements,” said Lee. “We are pleased these funds will make projects affordable to deliver important resources for Tennesseans across the state.”
“The loans make it possible for communities to make improvements in affordable ways,” Salyers said. “We are pleased we can use this program to make it easier to improve water infrastructure.”
The Chuckey Utility District loan comes from the Drinking Water State Revolving Fund Loan Program. It will address the construction of a new water storage tank. The loan has a 20-year term at 1.87 percent interest. The Chuckey Utility District received $335,000 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.
This fiscal year, TDEC has awarded $32,356,173 in drinking water loans and $72,026,500 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.
