Chuckey utility gets $1.8M state loan for waterlines

NASHVILLE, Tenn. (WJHL) — Chuckey Utility District, a local water district that was hard hit in the wake of Hurricane Helene, will receive a $1.83 million loan from Tennessee’s clean water revolving loan fund program to help pay for waterline extensions. Half the amount is being forgiven and won’t have to be paid back.

The Tennessee Department of Environment and Conservation (TDEC) announced the funds Wednesday.

“Every community deserves high-quality water services, and this loan program helps make that happen,” TDEC Commissioner David Salyers said in a news release. “We are glad to see these steps taken, and we look forward to the results in infrastructure that will follow these loans.”

The 20-year loan from the Drinking Water State Revolving Fund program carries an interest rate of just 1.87%, and includes $915,000 in “principal forgiveness.”

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.

Tennessee has awarded more than $16 million in drinking water loans and $71 million in clean water loans since the new fiscal year began July 1.

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