Cleveland, Tenn., gets $10 million water loan

Cleveland, Tenn., gets $10 million water loan

March 13th, 2018 by Staff Report in Breaking News

The city of Cleveland, Tenn., will receive $10 million from the Clean Water State Revolving Fund Loan Program to fix an infiltration/inflow problem in its water system, according to a news release from the Tennessee Department of Environment and Conservation.

The grant is among more than $23.9 million in low-interest loans for water and wastewater infrastructure improvements in six communities announced Tuesday.

"Abundant, clean water is critical to the quality of life in Tennessee, and these low-interest loans will help local communities provide needed infrastructure updates to ensure our supply of water is available for future generations," Gov. Bill Haslam said in the release. The interest rate for Cleveland's loan will be 1.58 percent.

The revolving loan fund offers lower interest rates than communities, utility districts, and water and wastewater authorities can obtain through private financing. The U.S. Environmental Protection Agency funds the programs and some loans include a principal forgiveness component. TDEC administers the loan program with the Tennessee Local Development Authority and the state provides a 20 percent match.

Loan repayments are returned to the program and are used to fund future SRF loans, the release states.