The Tennessee State School Bond Authority has approved $212 million in construction loans for 15 school districts.
The loans will be made available through the state’s qualified school construction bond pool program, which will sell debt soon so the districts can build, renovate, and repair their facilities.
Of the 15 school districts receiving loans, the top three largest amounts will be provided to Shelby County, which will receive $67.6 million, Metro Nashville, which will get $31.15 million, and Knox County, which will receive $29.5 million.
The bond sale is tentatively scheduled for the week of Sept. 13, the School Bond Authority announced Monday.
The SBA will invest the proceeds from the bond sale in the state pooled investment fund for distribution to the school districts.
The loans are expected to be repaid at a low interest rate, according to the authority.
The SBA’s members include state Comptroller Justin Wilson, Treasurer David Lillard, Secretary of State Tre Hargett, Gov. Phil Bredesen, Finance and Administration Commissioner David Goetz, Board of Regents chancellor Charles Manning, and acting University of Tennessee president Jan Simek.
“I am very pleased that we are once again able to provide funding for these school districts through the qualified school construction bond program,” Wilson said. “In difficult economic times, this is an important source of financing for our state’s schools.”
Last year, the authority provided $177 million in QSCB loans to 13 local districts.
The loans are being repaid over 17 years at an interest rate of 1.515%.
“The low interest rates available through this program are as good as school districts are likely to find anywhere,” Lillard said.
“The needs of some of our school districts are substantial. I am glad that this type of financing is available to meet those needs,” the treasurer added.
Tennessee is one of several states that established a pool bond program to sell qualified school construction bonds to help school districts save on issuance costs.
