1. 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

2. Telecommunication Programs

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

4. 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.

5. 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.

6. 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

7. 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

8. 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

9. 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:

10. 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:

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

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

13. Questions?

14. Rural Utilities Service Telecommunications Key Contacts
Keith Adams  /
Assistant Administrator
Sami Zarour /
Peter Aimable, Office of Portfolio Management & Risk Assessment  /
Richard Anderson (A), Office of Loan (& Grant) Origination & Approval /
Shawn Arner (A), Office of Policy & Outreach  /
Deputy Assistant Administrators

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