GOSHEN, Ind. -- The Indiana Finance Authority announced it has given approximately $8 million in low-interest loans to help Goshen and Kendallville finance drinking and/or waste-water infrastructure projects.

IFA officials say this financial assistance will save the utilities an estimated $14 million in principal and interest costs, compared to open-market financing.

Goshen received a $3 million low-interest loan through the IFA’s program for improvements to the city’s aging water treatment plants and wellfields.

Using the State Revolving Fund Loan program, the city is set to save approximately $5.1 million in principal and interest, compared to an open-market financing.

City officials say they're facing pumping and storage issues as well as source water contamination.

The project being funded includes the design of a new wellfield and water treatment plant so the city can provide more consistent water quality and help protect the public health of residents and businesses in the service area.

The City of Kendallville received a $5 million low-interest loan.

The IFA administers the SRF loan program with funding from the U.S. Environmental Protection Agency and the State of Indiana.

SRF loan programs operate in all states to provide resources necessary to maintain and improve the infrastructure that protects water resources.

You can learn more about the SRF program online.