NASHVILLE - The town of Jasper is getting nearly $730,000 in low-interest loans for wastewater infrastructure improvements.
Gov. Bill Haslam and Environment and Conservation Commissioner Bob Martineau announced the two loans for the Marion County municipality on Thursday.
"The State Revolving Fund Loan Program helps citizens enjoy a better quality of life by assisting communities with current and future infrastructure needs for improved health," Haslam stated in a news release.
Tennessee's Clean Water State Revolving Fund (SRF) Loan Program has awarded more than $1.9 billion in low-interest loans since its inception in 1987. Tennessee's Drinking Water State Revolving Fund Loan Program has awarded more than $300 million in low-interest loans since its 1996 creation.
Jasper will receive a $599,471 wastewater loan for an infiltration and inflow correction project, which will include rehabilitation/replacement of 8-inch and 10-inch diameter sewer lines and manhole rehabilitation in the downtown area.
The project will be funded with a 20-year $569,497 loan with an interest rate of 1.45 percent. The remaining $29,974 has been deemed "principal forgiveness" will not have to be repaid.
Jasper is also getting a more traditional wastewater loan of $150,529 for the same project. That too is a 20-year loan with a 1.45 percent interest rate. But it doesn't involve any principal forgiveness.
Through the State Revolving 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.
"Clean water is the lifeblood of our communities," said Martineau. "Investments in our drinking water are essential to maintaining environmental and public health."
Meanwhile, the town of Carthage in Smith County is getting a 20-year $65,000 traditional drinking water loan.
The money is going for improvements in the town's water treatment plant. The project has an interest rate of 1.23 percent.
Contact staff writer Andy Sher at asher@timesfreepress.com or 615-255-0550. Follow him on Twitter @AndySher1.