[1st-mile-nm] RUS Takes a New Approach to Broadband Loan Applications

[Richard Lowenberg]

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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