Tennessee Governor Bill Lee and Department of Environment and Conservation (TDEC) Commissioner David Salyers announced a $5,000,000 low-interest loan for the City of Pikeville to modernize and expand its local water infrastructure.

The funding, awarded through the Clean Water State Revolving Fund Loan Program, will specifically finance the expansion of Pikeville’s wastewater treatment plant, increasing its capacity from 0.254 to 0.366 million gallons per day.

Key Details of the Loan:

• Term & Rate: 20-year term at a 1.40% interest rate.

• Principal Forgiveness: The city received $1.45 million in principal forgiveness, significantly easing the local repayment burden.

• Broader Initiative: This funding is part of a larger package approved by the Tennessee Local Development Authority, which includes $82.5 million in total loans for four municipalities, including Columbia, Maynardville, and Pegram.

Supporting Growth and Water Quality

Governor Lee emphasized the importance of pairing economic expansion with robust environmental protection:

“In Tennessee, we are balancing record growth with a plan to protect our natural resources, and that requires infrastructure investments. These funds make water quality improvement projects affordable for local governments and provide critical resources for Tennesseans across the state.”

Commissioner Salyers echoed this sentiment, highlighting the essential nature of reliable utility services:

“Providing dependable, safe water service is one of the most important issues that local communities face. We are grateful to partner with local leaders to provide towns and cities the assistance they need.”

State Revolving Fund Impact

The State Revolving Fund Loan Program offers communities and utility districts access to below-market and zero-percent interest rates—often much lower than private financing options—tailored to each community’s economic health.

Since its inception, the Clean Water program has awarded more than $2.5 billion in loans statewide since 1987, while the companion Drinking Water program has provided over $550 million since 1996.