Tennessee Gov. Bill Lee and the Tennessee Department of Environment and Conservation (TDEC) Commissioner David Salyers today announced a $5.7 million loan for the City of McMinnville to improve water infrastructure.
The loan is one of two approved by the Tennessee Local Development Authority, with loans for the City of McMinnville and the City of Ripley totaling $7.12 million. The funds come from the State Revolving Fund Loan Program.
“Reliable water infrastructure is a crucial need in our communities, and this program addresses it,” Lee said. “We commend the cities seeking this assistance for going through the loan process, and we look forward to the results that come from their efforts.”
“The State Revolving Fund Loan Program gives communities an affordable way to provide quality water infrastructure,” Salyers said. “The loans are for important projects, and we are fortunate to have this program.”
The City of McMinnville loan comes from the Drinking Water State Revolving Fund Loan Program. It will address water treatment plant improvements. The loan has a 20-year term at 1.28 percent interest. The City of McMinnville received $2,850,000 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 $7,120,000 in drinking water loans for Ripley and McMinnville are the first this fiscal year from the program. In 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.
