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Financing BPL Steven E. Collier Vice President, Emerging Technologies.

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Presentation on theme: "Financing BPL Steven E. Collier Vice President, Emerging Technologies."— Presentation transcript:

1 Financing BPL Steven E. Collier Vice President, Emerging Technologies

2 FINANCING BPL OPTIONS Internal Resources Rural Lenders Commercial Lenders JV Partners

3 Rural Broadband Access Loans and Loan Guarantee Program OBJECTIVE: “... loans and loan guarantees to fund the cost of construction, improvement, or acquisition of facilities and equipment for the provision of broadband service in eligible rural communities.” OBJECTIVE: “... loans and loan guarantees to fund the cost of construction, improvement, or acquisition of facilities and equipment for the provision of broadband service in eligible rural communities.”

4 Rural Broadband Access Loans and Loan Guarantee Program FOCUS: Residential broadband service FOCUS: Residential broadband service

5 Rural Broadband Access Loans and Loan Guarantee Program TECHNOLOGY: Neutral TECHNOLOGY: Neutral

6 Rural Broadband Access Loans and Loan Guarantee Program CONSIDERATIONS: “... not only whether broadband [is] physically available but also the quality of any existing broadband service.” CONSIDERATIONS: “... not only whether broadband [is] physically available but also the quality of any existing broadband service.”

7 FUNDING $1.45 billion designated as “no year money” (available until distributed) including: –$80 million as 4-percent direct loans –$80 million as loan guarantees An additional $196 million proposed for fiscal year 2004 (Oct 1 – Sept 30) FUNDING $1.45 billion designated as “no year money” (available until distributed) including: –$80 million as 4-percent direct loans –$80 million as loan guarantees An additional $196 million proposed for fiscal year 2004 (Oct 1 – Sept 30) Rural Broadband Access Loans and Loan Guarantee Program

8 ELIGIBLE BORROWERS Cooperatives Non-profit organizations Limited dividend or mutual associations Limited liability companies Commercial organizations Indian tribes or tribal organizations ELIGIBLE BORROWERS Cooperatives Non-profit organizations Limited dividend or mutual associations Limited liability companies Commercial organizations Indian tribes or tribal organizations Rural Broadband Access Loans and Loan Guarantee Program

9 DEFINITIONS Broadband: Transmit data enabling send and receive of high-quality voice, data, graphics, and video –FCC standard of 200kbps up and down –May be revised upwards in the future Rural Broadband Access Loans and Loan Guarantee Program

10 DEFINITIONS Eligible Community: – 20,000 inhabitants or fewer For Four-percent Loan program, 2,500 or less –Not in a standard metropolitan statistical area Rural Broadband Access Loans and Loan Guarantee Program

11 PRIORITY Eligible rural communities in which broadband is not available Where no entity is committed to provide such service Rural Broadband Access Loans and Loan Guarantee Program

12 RESTRICTIONS To provide service in the same area as another applicant To acquire stock, facilities or equipment of an applicant affiliate Rural Broadband Access Loans and Loan Guarantee Program

13 RESTRICTIONS Existing RUS borrowers who petition –demonstrate intent to provide broadband service within 2 years –petition within 90 days of a loan application from another potential provider Rural Broadband Access Loans and Loan Guarantee Program

14 RESTRICTIONS For operating expenses, customer terminal equipment (owned by consumer), or vehicles not used primarily in construction Rural Broadband Access Loans and Loan Guarantee Program

15 RESTRICTIONS More requirements than Broadband Pilot Program Rural Broadband Access Loans and Loan Guarantee Program

16 APPLICATION RUS Form 532 Market survey Detailed business plan Certified system design Rural Broadband Access Loans and Loan Guarantee Program

17 APPLICATION Financial statements and forecasts Environmental report Certification of availability of broadband service Evidence of legal notification Rural Broadband Access Loans and Loan Guarantee Program

18 APPLICATION http://www.usda.gov/rus/telecom/broadband.htm Rural Broadband Access Loans and Loan Guarantee Program

19 And then you wait... Rural Broadband Access Loans and Loan Guarantee Program

20 CONTACT Deborah Jackson Broadband Team, Telecommunications Program, Rural Utilities Service Djackson@rus.usda.gov 202-720-8454 CONTACT Deborah Jackson Broadband Team, Telecommunications Program, Rural Utilities Service Djackson@rus.usda.gov 202-720-8454 Rural Broadband Access Loans and Loan Guarantee Program


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