Introduction to the USDA and Overview of Presented by: Andrew Hayes Introduction to the USDA and Overview of Rural Utilities Service Programs Advancing Georgia’s Counties – Federal Policy Committee Meeting Macon, Georgia August 15, 2017

Telecommunication Programs

Rural Utilities Telecommunications Programs Telecommunications (Infrastructure) Direct Loans Rural Broadband (Farm Bill) Direct Loans Distance Learning and Telemedicine Grants Community Connect Grants

Telecommunications Infrastructure Program Available Funding Program Updates FY 2016 $690 million available in FY 2016 FY 2017 $690 million available in FY 2017 Loans finance new & improved telecommunications infrastructure, primarily for the benefit of rural populations of 5,000 or less <Typically> Loans may serve non-rural subscribers in some cases For additional detail, see the Code of Federal Regulations; 7 CFR 1735 14 loans approved: $194 million 20 loans in process: $351.8 million 9 loans approved: $152.8 million Applications are accepted year round RD Apply online application system "Rural area" is defined as any area of the United States, its territories and insular possessions (including any areas within the Federated States of Micronesia, the Republic of the Marshall Islands, and the Republic of Palau) not included within the boundaries of any incorporated or unincorporated city, village, or borough having a population exceeding 5,000 inhabitants. RUS loan funds may be approved for facilities to serve non-rural subscribers only if: 1. The principal purpose of the loan is to furnish and improve rural service; and 2. The use of loan funds to serve non-rural subscribers is necessary and incidental to the principal purpose of the loan.

Telecommunications Infrastructure Program -- Did You Know? Standard Loan Terms include: 2 Year Principal Deferral Interest Rate at the Cost-Of-Money Loan Maturity - Life of the Facilities Financed Plus 3 Years Staff can assist and review loan applications before submission.

Telecommunications Farm Bill Broadband Program Available Funding Program Updates FY 2016 $64 million available in FY 2016 FY 2017 $115.2 available in FY 2017 Loans finance the costs of constructing a broadband network Serving rural communities of 20,000 or less 15% unserved area Cannot have 3 or more incumbent service providers Service area cannot be in a RUS previously funded area 1 loan approved: $4.1 million 2 applications in process from Window 1 Notice of Solicitation of Application (NOSA) published on July 25, 2017 for Window 2 $60 million expected to be available for Window 2. RD Apply online application system Window 1 Window 2 Pre Application Window Jan 9, 2017 to Mar 24, 2017 [Closed] Jul 1, 2017 to Sep 22, 2017 Application Window Mar 1, 2017 to Mar 31, 2017 Sep 1, 2017 to Sep 30, 2017

Telecommunications Farm Bill Broadband Program – FY17 - Did You Know? Loan Amounts between $100,000 & $20 Million Unserved areas lacking access to Broadband Service of downstream capacity of 25 megabits per second (Mbps) and an upstream capacity of 3 Mbps for both fixed and mobile service. Applicant Priority the greatest proportion of unserved households. Broadband Lending Speed: Applicants must propose to offer new broadband service at a minimum bandwidth of 25 Mbps downstream and 3 Mbps upstream for both fixed and mobile service to the customer. Special Terms and Conditions may apply if more than 50% of the households are unserved: up to 4 year principal deferral 25% extension to the amortization period of the loan up to 35 years Standard Loan Terms include: 2 Year Principal Deferral Interest Rate at the Cost-Of-Money Loan Maturity - Life of the Facilities Financed Plus 3 Years

Telecommunication Grant Programs Special Consideration provided under both grant programs for tribes, Strikeforce, and Promise Zones. 15 additional points in FY 2016 and FY 2017

Community Connect Program Available Funding Program Updates FY 2016 $11.74 million available in FY 2016 FY 2017 $34.5 million available in FY 2017 Grant funds for Broadband Service deployment Population of 20,000 or less Amounts from $100,000 to $3 million Service Area must be entirely unserved Minimum Broadband Service is defined as 4 Mbps (download) and 1 Mbps (upload) 15% Matching Requirement Over 70 applications received: $120 million 8 applications approved: $13.7 million NOSA released on January 10, 2017 Applications were accepted until March 13, 2017 50 Applications received for 92.6 million 28 applications for $63.2 million in process Awards announced by September 30 Link: http://www.rd.usda.gov/programs-services/community-connect-grants.

Distance Learning and Telemedicine (DLT) Program Available Funding Program Updates FY 2016 $23.4 million available in FY 2016 FY 2017 $23.6 million available in FY 2017 Grants for equipment needed to provide Distance Learning and Telemedicine services 15% Matching Requirement Minimum Grant amount: $50,000 Maximum Grant Amount: $500,000 Only grants are available-no loans or combo loan/grants 182 applications received for $55 million 98 applications approved: $27.7 million 56 distance learning & 42 telemedicine projects 5 Promise Zones 29 of 98 (30%) include a tribal coverage component NOSA released May 16, 2017 Responses due July 17, 2017 Applications currently being scored Link: http://www.rd.usda.gov/programs-services/distance-learning-telemedicine-grants.

Telecommunications Programs – All State Investments Since FY2010, RUS has invested over $5.8 Billion in projects serving rural residents in the United States:

Telecommunications Programs –Georgia Investments Since 2010, RUS has invested $124,737,478 million in projects serving GEORGIA rural residents:

Questions?

Rural Utilities Service Telecommunications Key Contacts Keith Adams  keith.adams@wdc.usda.gov / 202.720.9556 Assistant Administrator Sami Zarour sami.zarour@wdc.usda.gov / 202.720.9556 Peter Aimable, Office of Portfolio Management & Risk Assessment  peter.aimable@wdc.usda.gov / 202.720.1025 Richard Anderson (A), Office of Loan (& Grant) Origination & Approval richard.anderson.1@usda.gov / 202.720.8818 Shawn Arner (A), Office of Policy & Outreach  Shawn.Arner@wdc.usda.gov / 202.720.0711 Deputy Assistant Administrators

Andrew.Hayes@wdc.usda.gov | Office: 770-312-7073 Richard.Jenkins@wdc.usda.gov | Office: 681-318-3236 Rural Development | Telecommunications Program Rural Utilities Service | U.S. Department of Agriculture 1400 Independence Ave., S.W. | Washington, D.C. 20250 www.rd.usda.gov USDA is an equal opportunity provider, employer, and lender.