NASHVILLE, TN. (WLAF)- Gov. Bill Lee and Tennessee Department of Environment and Conservation (TDEC) Commissioner David Salyers have announced a $2,875,000 loan for the City of LaFollette to improve water infrastructure.

The loan is one of two approved by the Tennessee Local Development Authority, including a loan of $1.1 million for the Perryville Utility District.

The City of LaFollette loan comes from the Drinking Water State Revolving Fund Loan Program. It will address waterline extensions and the construction of a booster pump station. The loan has a 20-year term at 1.32 percent interest. The City of LaFollette received $1,437,500 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 $75,720,597 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.

(WLAF NEWS PUBLISHED 4/8/2025-6AM)

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