$1.6 million loan announced for City of Parsons water improvements
PRESS RELEASE FROM THE TENNESSEE DEPARTMENT OF ENVIRONMENT AND CONSERVATION:
LEE, TDEC ANNOUNCE $1.6 MILLION LOAN FOR CITY OF PARSONS WATER IMPROVEMENTS
NASHVILLE – Gov. Bill Lee and Tennessee Department of Environment and Conservation (TDEC) Commissioner David Salyers today announced a $1,606,835 loan for the City of Parsons to improve water infrastructure.
The loan is one of two approved by the Tennessee Local Development Authority, including a loan of $17 million for the Brownsville Energy Authority.
“Tennessee continues to support infrastructure investments for a growing state, including water quality improvements,” said Lee. “We are pleased these funds will make projects affordable to deliver important resources for Tennesseans across the state.”
“Water quality is one of the most important priorities we have at TDEC,” Salyers said. “Low-interest-rate loans are a great way to meet a community need, and we look forward to the results of this process.”
The City of Parsons loan comes from the Clean Water State Revolving Fund Loan Program. It will address collection system relocation. The loan has a 20-year term at 1.32 percent interest. The City of Parsons received $803,417.50 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 $42,631,173 in drinking water loans and $95,327,432 in clean water loans to meet the state’s infrastructure needs. During 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.
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