[1st-mile-nm] RUS Takes a New Approach to Broadband Loan Applications
Richard Lowenberg
rl at 1st-mile.org
Fri Mar 30 07:58:55 PDT 2018
RUS Takes a New Approach to Broadband Loan Applications
3/29/18 at 10:47 AM by Joan Engebretson
http://www.telecompetitor.com/rus-takes-a-new-approach-to-broadband-loan-applications/
The U.S. Department of Agriculture’s Rural Utilities Service has begun
accepting RUS broadband loan applications for fiscal year 2018. For
years, the program has provided low-interest loans for broadband network
construction and is currently operating based on parameters established
in the 2014 Farm Bill. There are some changes to the RUS broadband loan
application process effective immediately, however.
The minimum and maximum loan amounts that applicants can request have
been raised to $100,00 and $25 million, respectively. In addition, the
RUS has revised the definition of broadband service and broadband
lending service. Those definitions are now identical and are set at 25
Mbps downstream and 3 Mbps upstream, which means that applicants will be
eligible for funding for areas lacking 25/3 Mbps service and will be
required to deploy service at speeds of at least 25/3 Mbps in areas for
which they receive funding.
Importantly, the RUS is also taking a new approach to the loan
application period and to how applications are selected to receive
funding.
RUS Broadband Loan Applications
Traditionally, RUS broadband loan applications have been accepted only
during specific time windows, but the agency now plans to accept loan
applications on a rolling basis through September 30.
“Based on a review of the applications submitted since the
implementation of the 2014 Farm Bill, RUS has determined that the use of
application windows has not effectively supported the agency’s mission
to finance improved broadband service in rural areas,” said the RUS in a
notice published in the Federal Register yesterday.
Applications will be processed on a first come, first served basis and
every 90 days the RUS will conduct an evaluation of the submitted
applications. During the evaluation, applications will be ranked based
on the percentage of unserved households that the applicant proposes to
serve.
“[E]ligible applications that propose to serve a higher percentage of
unserved households will receive funding offers before other eligible
applications that propose to serve a lower percentage of unserved
households,” the RUS wrote. “Loan offers are limited to the funds
available at the time of the agency’s decision to approve an
application.”
The changes to the RUS broadband loan program, aimed at financing
improved broadband service in rural areas, are the latest example of a
broad policy push toward improving broadband availability in rural
areas. Other examples of this push include a recent $540 million
increase in the Universal Service Fund and a wide range of proposed
legislation.
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Richard Lowenberg, Executive Director
1st-Mile Institute 505-603-5200
Box 8001, Santa Fe, NM 87504,
rl at 1st-mile.org www.1st-mile.org
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