A $10.8 million no-interest loan was awarded to the eastern Sullivan County Town of Fallsburg last week so it can upgrade a wastewater treatment plant.

The state Environmental Facilities Corporation’s board of directors announced the money will go toward improvements at the Loch Sheldrake Wastewater Treatment Plant, which was built in 1938 and last renovated in 1980. Upgrades will include a membrane bioreactor for secondary treatment at the plant and an ultraviolet light system for disinfection.

The money will be provided through the state’s Clean Water State Revolving Fund.

The Facilities Corporation said the upgrades would increase the plant’s capacity from 700,000 gallons per day to 997,000 gallons per day.

Project upgrades are expected to be completed by 2017.