TELECOMMUNICATIONS INFRASTRUCTURE LOANS AND GUARANTEES
US DEPARTMENT OF AGRICULTURE (USDA), RURAL DEVELOPMENT
This loan and loan guarantee program offers financial assistance to eligible service providers that will construct, improve, or expand telephone and broadband networks in rural areas.
Deadline to Apply
Applications for this program are accepted all year-round.
Public bodies providing telephone service in rural areas as of October 28, 1949
: Cooperative, nonprofit, limited dividend or mutual associations
: State or local governments
: Federally recognized Tribes
: An emergency communications equipment provider
This loan program is intended to benefit rural areas, which have populations of 5,000 or less. However, in some cases, loans may also serve non-rural subscribers. For additional detail, see the Code of Federal Regulations, 7 CFR 1735.
Funding Potential for Award–Funding availability is pending the congressional budget of FY 2017.
Range of Awards–There is no maximum limit on loans beyond the approved congressional budget. The loan awards in FY 2016 ranged from $1.2 million to $40.3 million.
Funding Cycle – Duration–Standard loan terms include:
: Five (5) year window for construction following the issue of a contract
: Two (2) years of principal deferral
: Interest rates at the cost-of-money
: Loan maturities of the life of the assets plus three (3) years
Source of Funds–This program is federally funded.
Deadline–Applications for this program are accepted all year-round.
How to Apply–Applications must be submitted through the Agency’s online application system located at http://www.rd.usda.gov/programs-services/rd-apply. All materials required for completing an application are included in the online system. For assistance, contact the General Field Representative who serves your area.
Selection Criteria & Decision Authority–Applications are reviewed for loan feasibility and security, coverage of the service area(s), and non-duplication of service. See 7 CFR 1735 Subpart E and 7 CFR 1737 Subparts F-J for more information.
7 U.S.C. 901 et seq., 1921 et seq., and 6941 et seq.; 7 CFR 1735 and 1737
Rural Broadband Access Loans and Loan Guarantees Program, administered by the USDA Rural Utilities Service: Community Connect Grant Program, administered by the USDA Rural Utilities Service