Located between Chattanooga and Knoxville, Tennessee Wesleyan University is a comprehensive liberal arts institution located in rural McMinn County. Home to just over 1,000 students, the university’s main campus is comprised of 21 buildings on 40 park-like acres. And, like most thriving private universities of its size, Tennessee Wesleyan is constantly seeking ways to enhance and expand facilities and services for students.
Throughout the summer of 2016 and beyond, Tennessee Wesleyan is upgrading facilities across its campus with the assistance of a United States Department of Agriculture Community Facilities Direct Loan, made available as part of the USDA’s Rural Growth and Opportunity Initiative. Tennessee Wesleyan applied for and received a low-interest loan of $20.6 million.
“These loans create economic stimulus in designated rural communities,” said Harley Knowles, Ph.D., president of Tennessee Wesleyan. “By helping institutions such as ours access affordable funds to build and grow, the USDA is in turn boosting the respective local economies.”
The USDA Rural Development loans come without the high interest rates and significant collateral requirements of commercial loans. Additionally, interest rates are fixed for the entire term of the loan—a maximum of 40 years—and there are no penalties for early payment.
Tennessee Wesleyan has used $2.2 million so far to upgrade numerous campus facilities. Projects that are already completed or will be completed in the fall of 2016 include refurbishment of a former post office/federal building into Reece Hall, which will house the school’s visual art and communication studies program, installation of new HVAC systems and new roofs on multiple buildings, and refurbishment of a men’s residence building. The lion’s share of the loan will be used to construct a state-of-the-art, 30,000-square-foot student life building, with remaining funds going to other campus improvements, such as parking lot renovation, and to refinance a portion of the university’s debt, allowable under the loan’s terms.
“We’ve raised significant funds for the student life building, but much of that is in the form of pledges being paid over time. The loan allows us to go ahead and put the shovel in the ground right away and, as pledges come in, we’ll use them to pay down the loan,” said Knowles. “The context of these projects is to prepare Tennessee Wesleyan for the next level of growth. We’re able to complete upgrades and repairs around campus, extend the life of multiple buildings for years to come and stay focused on the future.”
Construction on the new student life building is expected to begin in the next several months, with completion anticipated for the first half of 2018.
Funding is available for nonprofit institutions within rural areas designated by the USDA for support. For more information and to determine eligibility, go to www.rd.usda.gov/programs-services/community-facilities-direct-loan-grant-program.
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