Areas are ineligible to receive support from the ReConnect program if they've already received support from RUS Broadband Loans (Telecommunications Infrastructure Loan; Farm Bill Broadband Loan; Broadband Initiatives Program); RUS Community Connect Grants; RUS BIP Grants; State-funded areas: CAF Auction 903 Winners; or ReConnect Program Awards.
Other Eligibility Criteria:
90% of households in the proposed funded service area must lack access to fixed, terrestrial broadband of 10 mbps download / 1 mbps upload. Rural Area that is not located in a city, town, or incorporated area that has a population of greater than 20,000 inhabitants or an urbanized area contiguous and adjacent to a city or town that has a population of greater than 50,000 inhabitants.
An eligible project must demonstrate a positive ending cash balance as reflected on the cash flow statement for each year of the forecast period and demonstrate positive cash flow from operations in year five of the forecast period. Eligible projects must also meet at least two of the following requirements in year five of the forecast period: a minimum Times Interest Earned Ratio (TIER) requirement of 1.20, a minimum Debt Service Coverage Ratio (DSCR) requirement of 1.20 and a minimum Current Ratio of 1.20.
Grant Applicants must provide a matching contribution equal to 25% of the cost of the overall project.
If an applicant receives a 50% loan / 50% grant award, all cash provided in lieu of loan funds must be expended first, followed by loan funds, and then by grant funds, except for approved pre-application expenses.