Lee, TDEC Announce $525,000 Loan for City of Etowah Water Improvements
Gov. Bill Lee and the Tennessee Department of Environment and Conservation (TDEC) Commissioner David Salyers today announced a $525,000 loan for the City of Etowah to improve water infrastructure.
The loan is one of six approved by the Tennessee Local Development Authority, with loans for Etowah, the Town of Huntingdon, the Cleveland Utilities Authority, and three loans for the City of Fayetteville totaling $24.3 million.
“This program allows communities to secure low-interest-rate loans to meet important needs in water infrastructure,” Lee said. “I thank local leaders for taking steps to responsibly steward state funds for the best possible outcomes.”
“Water infrastructure is an important responsibility for a community, and we are glad the program can assist in this way,” Salyers said. “We look forward to the results that will come from these loans.”
The City of Etowah loan comes from the Drinking Water State Revolving Fund Loan Program. It will address water treatment plant expansion and distribution system improvements. The loan has a 5-year term at 1.78 percent interest. The City of Etowah received $250,000 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 $24,327,750 in drinking water loans and $38,905,000 in clean water loans to meet the state’s infrastructure needs. During fiscal year 2023, TDEC awarded $47,345,000 in drinking water loans and $64,095,945 in clean water loans for a total of $111,440,945.
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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