Chattanooga, TN – According to the state officials, the loan for Ripley is part of a larger $7.12 million package approved by the Tennessee Local Development Authority, which also includes funds for the City of McMinnville. These loans are provided through the State Revolving Fund Loan Program.
The City of Ripley’s loan, sourced from the Drinking Water State Revolving Fund Loan Program, is specifically allocated for water line replacement projects.
The loan has a 20-year term with a 1.28 percent interest rate. Notably, Ripley has been granted $284,000 in principal forgiveness, with the remainder of the loan to be repaid as principal.
The State Revolving Fund Loan Program offers communities, utility districts, and water and wastewater authorities access to loans with significantly lower interest rates compared to private financing options.
These low-interest loans range from zero percent to below market rate, depending on the economic health of the community.