Rural Broadband Access Loan and Loan Guarantee Program

Department of Agriculture, Rural Utilities Service

Summary:

The Rural Broadband Access Loan and Loan Guarantee Program (Broadband Program) furnishes loans and loan guarantees to provide funds for the costs of construction, improvement, or acquisition of facilities and equipment needed to provide service at the broadband lending speed in eligible rural areas.

Eligible Recipients:

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

Eligible Recipients Detail:

State and Local Governments; Tribal Entities; ISPs; Non-Profit Organizations; ; Cooperative or mutual organization; Corporation; Limited Liability Company; Partnerships are not eligible

Eligible Purpose:

Backbone Connectivity; Last Mile Connectivity; Middle Mile Connectivity

Eligible Purpose Detail:

Loans and loan gurantees for broadband improvement.

-The construction, improvement, and acquisition of facilities required to provide service at the broadband lending speed including facilities required for providing other services through the same facilities
-The cost of leasing facilities required to provide service at the broadband Lending speed if such lease qualifies as a capital lease under Generally Accepted Accounting Principles (GAAP)
-An acquisition, under certain circumstances and with restrictions

Excluded Programs:

Communities where USDA Rural Utilities Service has previously provided funding for construction of broadband infrastructure may not be eligible

Other Eligibility Criteria:

Rural Area; 15% of households in area must not have access to broadband service; No part of area may have three or more incumbent service providers; No part of area may overalp with service area of current RUS borrowers or grantees

Funding Match/Terms:

Cost of money loans are available. In general Loan Terms are limited to the expected composite economic life of the assets to be financed plus 3 years.

Note/Additional Resources:

https://www.rd.usda.gov/sites/default/files/fact-sheet/508_RD_FS_RUS_FarmBillBroadbandLoans.pdf

Source:

https://broadbandusa.ntia.doc.gov/sites/default/files/bbusa_federalfunding_all_200511.pdf