Residents of Pegram can expect improvements to their wastewater treatment system via a $2.4 million loan from the state.
The funding comes from the Clean Water State Revolving Fund Loan Program and was recently announced by Gov. Bill Lee and the Tennessee Department of Environment and Conservation Commissioner David Salyers, according to a city statement.
The loan will help upgrade Pegram’s wastewater treatment plant and expand its land application system. It comes with a 20-year term and a 3.31% interest rate.
Statewide infrastructure investments underway
The loan is one of four approved by the Tennessee Local Development Authority, totaling $82.5 million for water infrastructure projects in Columbia, Maynardville and Pikeville.
"In Tennessee, we are balancing record growth with a plan to
protect our natural resources, and that requires infrastructure investments," Lee said in the announcement. "These funds make water quality improvement projects affordable for local governments and provide critical resources for Tennesseans across the state, and we’re grateful for local leaders’ partnership."
Salyers emphasized the importance of reliable water service for communities.
"Providing dependable, safe water service is one of the most important issues that local communicates face," Salyers said. "We are grateful to partner with local leaders to provide towns and cities the assistance they need to meet their water infrastructure needs."
How the State Revolving Fund Loan Program works
The State Revolving Fund Loan Program offers low-interest loans to communities, utility districts and water and wastewater authorities. Interest rates vary based on each community’s economic health and can range from zero percent to below market rate.
This fiscal year, the Tennessee Department of Environment and Conservation has awarded $75 million in drinking water loans and over $6 million in clean water loans. In fiscal year 2026, the department awarded over $12.1 million in drinking water loans and more than $60.6 million in clean water loans, totaling about $72.7 million.
Since its inception in 1987, the Clean Water State Revolving Fund Loan Program has awarded more than $2.5 billion in low-interest loans. The Drinking Water State Revolving Fund Loan Program, which began in 1996, has awarded over $550 million in loans.
For more information about the State Revolving Fund Loan Program, visit tn.gov/environment/srf.
Disclaimer: This story was produced by reporter Katie Nixon, knixon@gannett.com, with the assistance of Artificial Intelligence (AI). Journalists were involved in every step of the review, editing and publishing process.
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This article originally appeared on Nashville Tennessean: Pegram secures $2.4 million for wastewater treatment plant upgrade
