(The Center Square) – Tennessee is sending $47 million in loans to Springfield for water infrastructure.
The state will send a pair of loans toward a new water treatment plant in the city. The funds come from the Clean Water State Revolving Loan Fund, which allows communities, utility districts, and water and wastewater authorities to obtain below market rate loans for water infrastructure.
The loans have 20-year terms with a 2.49% interest rate with $5 million in principal forgiveness.
“The State Revolving Fund Loan Program provides significant financial help to communities with needs for water infrastructure improvements,” Tennessee Gov. Bill Lee said. “Across our state, projects such as these give Tennesseans the service they need and boost the local economy. We look forward to seeing the impact of the projects these loans will help deliver.”
The Tennessee Department of Environment and Conservation has awarded $8,806,173 in drinking water loans and these were the first clean water loans this fiscal year.
The fund has awarded more than $2 billion in low-interest loans since it began in 1987.
