Low Interest Loans for Water

 (NASHVILLE, TN), June 6, 2012 – State Senator Mae Beavers (R-Mt. Juliet), Representative Mark Pody (R-Lebanon) and Representative Linda Elam (R-Mt. Juliet) said today they have been informed by Governor Haslam and the Department of Conservation and Environment that the City of Lebanon will receive $3.67 million for Water Treatment Plant improvements, including new clearwells.  The project will be funded with a 20-year, $2.94 million loan with an interest rate of 1.76 percent and $0.73 million in principal forgiveness (20 percent) that will not have to be repaid.

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 city of Lebanon will also receive a $1.33 million in a traditional 20-year loan with an interest rate of 1.76 percent for Water Treatment Plant improvements. 
 
According to the Department, Tennessee’s Clean Water State Revolving Fund Loan Program has awarded more than $1.2 billion in low-interest loans since it was created in 1987.  Tennessee’s Drinking Water State Revolving Fund Loan Program has awarded more than $198 million in low-interest loans since it was implemented in 1996. Both programs help Tennessee’s local governments with funds to improve water and wastewater infrastructure projects.
 
 “I am very pleased that this money is available for needed improvements to our water system,” said Senator Beavers. “Clean drinking water is essential to our citizens and for the economic development of our area.”

“This grant is good news for the citizens of Lebanon,” added Representative Pody. “It’s great that these low-interest loans were secured for this project so we can move forward with drinking water improvements that will benefit the entire community.”

“Our county will see positives from the enhancements that will be implemented in this project,” added Representative Elam. “Wilson County is at the heart of a fast-growing region that needs its infrastructure to be modernized in order to handle that growth.”