Tennessee Governor Bill Haslam and Department of Environment and Conservation Commissioner Bob Martineau today announced that The Town of Smyrna has been approved to receive more than $5 million in low-interest loans for water and wastewater infrastructure improvements.
The State Revolving Fund (SRF) Loan Program provides low-interest loans that help communities, utility districts, and water and wastewater authorities finance projects that protect Tennessee's ground and surface waters and public health. Loans are used to finance the planning, design and construction of water and wastewater facilities.
"The State Revolving Fund Loan Program helps communities address current infrastructure needs and prepare for future needs, improving the health of our communities and their ability to grow," Haslam said.
Through the SRF Program, communities, utility districts, and water and wastewater authorities can obtain loans with lower interest rates than most can obtain through private financing. Interest rates for loans can vary from zero percent to market rate based on each community's economic index. Loans utilizing EPA grant funds can include a principal forgiveness component.
"To be awarded more than $5 million through the SRF Program is great news for the Town of Smyrna", said Mayor Mary Esther Reed. "As the Town of Smyrna's infrastructure needs continue to expand due to the population growth in our area, these low-interest loans will enable us to serve the developing area on Jefferson Pike towards I-840 without putting a tax burden on our citizens."
"Community investments in our drinking water and wastewater systems are vital to maintaining environmental and public health," Martineau said. "These loans will help keep our communities moving forward, and the principal forgiveness provisions help local communities accomplish this work in difficult economic times."
The Department of Environment and Conservation administers the SRF Loan Program for the state of Tennessee in conjunction with the Tennessee Local Development Authority. The U.S. Environmental Protection Agency provides grants to fund the program, and the state provides a 20 percent match. Loan repayments are returned to the program and are used to fund future SRF loans.
Wastewater Loan: $2,896,278 for a Collection System Relocation and Expansion project along SR266 to the I-840 Interchange. The project will be funded with a 30-year, $2,693,539 loan, with an interest rate of 1.24%, and $202,739 in principal forgiveness that will not have to be repaid.
Drinking Water Loan: $1,950,600 for a Waterline Relocation and Expansion project along SR266 to the I-840 Interchange. The project will be funded with a 20-year, $1,462,950 loan, with an interest rate of 1.00%, and $487,650 in principal forgiveness that will not have to be repaid.
A Traditional Drinking Water Loan: $668,721 for the Waterline Relocation and Expansion project along SR266 to the I-840 Interchange. This loan will be funded for a 20-year term with an interest rate of 1.00%.
Since its inception in 1987, Tennessee's Clean Water State Revolving Fund Loan Program has awarded more than $1.6 billion in low-interest loans. Since its inception in 1996, Tennessee's Drinking Water State Revolving Fund Loan Program has awarded more than $258 million in low-interest loans. Both programs combined award more than $90 million annually to Tennessee's local governments for water and wastewater infrastructure projects.