Rural Development
Rural Communities Broadband Roundtable
RUS Broadband Loan and Grant Programs
Rob O’Hara – Telecom Program GFR
Phone - 413-253-4333
rob.ohara@wdc.usda.gov
Rural Development
RUS Broadband Loan and Grant Programs
• Loan Programs
– Farm Bill Broadband Loan Program
– Telecom Loan Program
• Available to Incumbent Local Exchange Carriers
• Funding for Expansion of E911 Access
• Grant Programs
– Distance Learning and Telemedicine Grants
– Community Connect Grants
Rural Development
Farm Bill Broadband Program
Project Requirements
• 100% rural service area
• Last mile projects with middle mile sections
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25% of household are underserved households
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Underserved = area or household that is not offered broadband service or
offer broadband service by only one incumbent service provider
Less than 3 incumbent service providers
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Last mile service must be at 5Mbps or greater
Incumbent provides 3Mbps service to at least 5% of households
Satellite providers not considered
Does not overlap current or pending RUS borrowers or grantees
Rural Development
Farm Bill Broadband Program
Loan Terms
• Loan award based on economic feasibility
– Minimum Equity Requirement – 10% -but may be higher
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Eligible Loan Purposes
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Covers capital costs and pre-loan expenses (up to 5%)
Loans made at treasury rates
One year principal deferment
First lien position on all assets and revenue of applicant
Ineligible Loan Purposes
– Operating expenses
– Any cost incurred prior to the application being deemed complete
(except pre-loan)
– Acquisition of stock or facilities of an affiliate
– Vehicles not for construction
Rural Development
Farm Bill Broadband Program
Additional Requirements
• RUS makes a Preliminary Assessment
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Market Survey
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Is the service area rural
Does the service area overlap with current or pending RUS borrowers or
grantees
For service offerings projecting more than a 20% penetration rate, a market
survey is required
Public Notice & Mapping Tool
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Map of each service area
Number of underserved households
Number of households without terrestrial based broadband service
Types of proposed services
30 day public comments period
Rural Development
Telecom Program funding for E911 Access
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New rules implementing the Expansion of E911 access and integrated emergency
communications
Authorized in the 2008 Farm Bill - Rule modifies 7 CFR Part 1735
– Funding to come from money authorized under the Traditional Infrastructure Loan
Program
– Funds available FY 2014
Special Rural Definition for funding under these purposes
– City, town, or Incorporated area of 20,000 or less
– Outside urbanized areas contiguous and adjacent to cities and towns of 50,000 or
less
Definition of rural for traditional program remains the same for all other purposes
(5000 or less).
Eligible Loan Purposes
– 911 Access,Integrated Interoperability Emergency Communications,
Homeland Security Communications, Transportation Safety Communications,
Location technologies used outside an urbanized area
Rural Development
Distance Learning and Telemedicine Grants
Purpose and definitions
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The focus of the DLT Grant Program is on using the unique capabilities of
telecommunications to connect rural areas to each other and to the world, thus
overcoming the effects of remoteness and low population density.
Distance learning means a curriculum delivered via telecommunications and stresses
the connection of students and teachers at remote sites.
Telemedicine means the delivery of health care from medical professionals at one
site to patients at other sites via telecommunications. Telemedicine shows benefit to
rural residents either in reduced travel or improved access to services.
Eligible Applicants
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Corporation or a partnership; tribal nation or organization a state or local unit of
government; a consortium; or other legal entity. For or not-for profit able to contract
with the US Government. No individuals or sole-proprietorships.
Operate a rural community facility or deliver DLT services to entities that operate a
rural community facility or to residents of rural areas at rates calculated to ensure that
the benefit of the financial assistance passes through to such entities or to residents of
rural areas.
Rural Development
Distance Learning and Telemedicine Grants
Eligible Equipment
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Audio and video equipment, Computer hardware and software, Computer
network components, Terminal equipment, Data terminal equipment,
Interactive audio/video equipment
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For 2013 maximum grant amount $500,000
Ineligible Costs
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Salaries and benefits of awardee
Administrative expenses (overhead)
Telecommunications transmission equipment
Recurring costs, including telecommunications
Medical equipment
Equipment owned by telecom provider (LECs, CLECs, etc.)
Duplication of facilities
Costs incurred before the application deadline
Rural Development
Distance Learning and Telemedicine Grants
Typical Projects • Distance Learning:
- Video-conferencing equipment is primary use of distance learning grants including bridges, servers, cameras, projectors, etc.
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Telemedicine:
- Visiting nurse links from patient homes to health professionals elsewhere
- Tele-radiology
- Tele-dentistry
- Tele-pharmacy
- Virtual ICU
Rural Development
Community Connect Grants
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A nationally competitive grant program to provide broadband
service to the most rural and economically challenged communities
Rural Areas and Communities of 20,000 population or less
To be eligible for a Community Connect competitive grant, the
Project must:
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Serve an area in which Broadband Service does not currently exist;
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Offer service at the Broadband Grant Speed to all residential and business
customers within the PFSA;
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Offer free service at the Broadband Grant Speed to all Critical Community
Facilities located within the PFSA for at least 2 years starting from the time service
becomes available to each Critical Community Facility;
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Provide a Community Center with at least 2 Computer Access Points and wireless
access at the Broadband Grant Speed, free of all charges to all users for at least 2
years.
For 2013 grants range from $100K to $3M
Rural Development
Community Connect Grants
Grants are available to –
Corporations
Limited Liability Companies
Cooperative or Mutual Organizations
Indian Tribes
Public Body
Grant funds may be used to finance:
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The construction, acquisition, or leasing of facilities, including spectrum, land or
buildings, used to deploy service at the Broadband Grant Speed to all
residential and business customers located with the Proposed Funded Service
Area and all participating Critical Community Facilities, including funding for up
to ten Computer Access Points to be used in the Community Center.
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The improvement, expansion, construction, or acquisition of a Community
Center and provision of Computer Access Points.
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The cost of providing the necessary bandwidth for service free of charge to the
Critical Community Facilities for 2 years.
Rural Development
Community Connect Grants
Program revised and simplified in 2013
• Proposed Funded Service Territory is now defined by the
applicant
• Matching Funds are now limited to cash contributions for
operational costs
• Scoring Simplification - applications are now scored based on the
community connectivity benefits of the project to the proposed
funded service area
• Broadband Service Definition is now specified in the annual
Notice of Funding Availability (NOFA)
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FY2013 NOFA established the following:
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Broadband Service speed (for determining eligibility): 3 megabits per
second combined up and down
Broadband Grant speed: 5 megabits per second combined up and down
Rural Development
Community Connect Grants
Scoring of Grant Applications (up to100 Points):
• An analysis of the challenges of the following criteria, laid out on a community-wide
basis, and how the Project proposes to address these issues (up to 50 points)
• The economic characteristics;
• Educational challenges;
• Health care needs; and
• Public safety issues;
• The extent of the Project’s planning, development, and support by local residents,
institutions, and Critical Community Facilities (up to 40 points);
• The level of experience and past success of operating broadband systems for the
management team (up to 10 points).
• The RUS Administrator may take into consideration the characteristics of the PFSA,
provided by the applicant in the application, such as:
• Persistent poverty counties that will be served within the PFSA;
• Out-migration Communities that will be served within the PFSA:
• The rurality of the PFSA;
• The speed of service provided by the Project;
• Community members with disabilities that will be served within the PFSA; and
• Any other additional factors that may be outlined in the NOFA.
Rural Development
Rural Communities Broadband Roundtable
RUS Broadband Loan and Grant Programs
Rob O’Hara – Telecom Program GFR
Phone - 413-253-4333
rob.ohara@wdc.usda.gov