Summary:

ReConnect furnishes loans and grants to provide funds for the costs of construction, improvement, or acquisition of facilities and equipment needed to provide broadband service in eligible rural areas. Projects are eligible to receive up to $25 million in grant awards, $50 million in loans, and a maximum of $50 million in support according to the three following schedules.

-$200 million available for 100% grants- Rural Broadband Grant
-$25 million per grant
-Applicants must match equal to 25% of overall project cost
-The matching contribution must be expended first, followed by grant funds, except for approved pre-application expenses

-$200 million available for 50% loan / 50% grant - Grant + Loan Combo
-$25 million grant and $25 million loan max amount
-Interest rate for 50% loan component set by Treasury Rate for remaining amortization period at the time of each advance of funds.
-Cash provided in lieu of loan funds, followed by loan funds, followed by grant funds.

-$200 million for 100% loan - Low Interest Rural Broadband Loan
-$50 million max amount for loans
-Interest rate for a 100% loan set at a fixed 2%. Tangible equity to total assets must be at least 20% at the end of the calendar year.

Eligible Recipients:

For-Profit Business; Local Government; Non-Profit Organization; State Government; Internet Service Provider

Eligible Recipients Detail:

Cooperatives, non-profits, mutual associations; private corporations or LLCs; states, local governments or affiliates; US territory or possession; Indian Tribe;

Eligible Purpose:

Building Infrastructure; Anchor Institution Infrastructure; Last Mile Infrastructure; Middle Mile Infrastructure; Backbone Infrastructure

Eligible Purpose Detail:

Eligible to fund the construction or improvement of buildings, land, and other facilities that are required to provide broadband service; reasonable pre-application expenses (Not more than 5% of award amount); the acquisition and improvement of an existing system that is currently providing insufficient broadband service (Eligible for 100% loan requests only, May not exceed 40% of the loan amount); and terrestrial based facilities that support the provision of satellite broadband service.

ReConnect offers three types of funding options for broadband infrastructure to connect rural families, businesses, farms, ranches, schools, libraries, and public safety facilities to modern, high-speed internet. A rural area is eligible if it currently does not have sufficient access to broadband (defined as 10/1 Mbps). The ReConnect grants, grant and loan combinations, and low-interest loans can be used to construct, improve, and acquire facilities that provide internet services to customers’ premises, with reliable technologies that are suitable for the type of rural community and the type of high-speed internet use.