Which type of loans support clean water projects in Tennessee?

The correct answer is B, CWSRF Loans, which stands for Clean Water State Revolving Fund loans. These loans are specifically designated to provide financing for projects aimed at improving water quality and managing stormwater in communities. In Tennessee, these loans help local governments and public entities fund a range of initiatives, including wastewater treatment facilities, nonpoint source pollution control projects, and stormwater management systems.

CWSRF loans are distinctive because they often come with favorable terms, such as low-interest rates and extended repayment periods, which make it easier for municipalities to invest in necessary infrastructure to protect and improve water resources. The focus on clean water means that these funds are aligned with state and federal environmental goals.

While other types of loans listed may also contribute to infrastructure or economic development in various ways, they do not specifically target clean water projects as CWSRF loans do. SLFRF loans relate to the State and Local Fiscal Recovery Funds, focusing on broader economic recovery efforts. SBA loans are designed primarily to support small businesses, and ARPA loans refer to funding from the American Rescue Plan Act, which encompasses a wider range of recovery actions but doesn’t have the specific environmental focus of CWSRF loans.