Several million dollars in water and sewer upgrades are coming to Southeast Tennessee, thanks to the approval this week of nearly $37 million in loans by the Tennessee Local Development Authority.

Athens, Tenn., received more than $4 million to expand its sewer lines to areas off of Interstate 75’s exit 52, city manager Mitchell Moore said.

By providing sewer lines to currently unserved areas, the city hopes to encourage industrial and commercial development, he said. The loan — with 40 percent of the principal automatically deducted from the payback — was a good deal for the city and made the sewer expansions possible, he said.

“We’ve been looking at trying to get sewer to this area for a number of years,” he said.

In Cleveland, Tenn., the development authority approved more than $1.3 million to extend sewer lines to the Westside Drive area and off APD 40 (U.S. 64 bypass) near Interstate 75, according to Tom Wheeler, general manager of Cleveland Utilities.

Laying the new sewer lines had been postponed earlier because of budget concerns, Mr. Wheeler said. Cleveland also will be forgiven 40 percent of its loan, he said.

“The fact that we were able to get a loan and get some loan forgiveness allowed us to go ahead and jump on it and get the program going again,” he said.

Mr. Wheeler said the sewers will serve commercial and residential areas that never have had sewers.

“It’s certainly going to help with the future growth plans of Cleveland,” he said.

The Sewanee Utility District received a $1.2 million loan increase to its $3.4 million project for improving the drinking water systems at Lake O’Donnell and Jackson Lake. The loan increase must be repaid in full at an interest rate of 1.22 percent, officials said.

All of the loans are funded as part of the federal stimulus package and the state’s revolving loan programs.