The Massachusetts Water Pollution Abatement Trust received $77.5 million in grant funding to support low-interest water loans, state Treasurer Steven Grossman announced.
According to Grossman, who also chairs the trust, the funding from the federal and state governments will support roughly $245 million in low-interest loans to Massachusetts communities.
He said related projects will improve drinking-water quality and reduce water pollution statewide through the construction and upgrading of drinking water and wastewater infrastructure.
Loans through the trust are typically offered at a 2% interest rate and repayment is over 20 or 30 years. Grossman said the average community will save about $500,000 in debt service costs for every $5 million borrowed and repaid over 20 years.
About $64.7 million of the total amount comes from a federal grant, which was leveraged through $12.8 million in state funding.