Rural Development Rural Utilities Service Telecommunications Program

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Rural DevelopmentRural Utilities
ServiceTelecommunications Program

• Christopher L. Collins General Field
  Representative
• Telecommunications Program
• Rural Utilities Service
• Chris.collins_at_wdc.usda.gov
• [phone]

http//www.rurdev.usda.gov/RUSTelecomPrograms.html
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RUS Telecommunications ProgramHistory

• In the 1930s, the Rural Electrification
  Administration (REA) made financing available for
  electric cooperatives and other entities to bring
  electricity to rural communities that might
  otherwise not receive it.
• In 1949, the REA received authority to finance
  telephone service in recognition of its
  importance to rural communities.
• Funding was provided for basic telephone
  service to ensure that rural residents and
  businesses received the same type of services as
  urban areas.
• Starting in 1995, all telecommunications
  networks financed were required to be
  broadband-capable.
• Rural Utilities Service (RUS) is the successor
  agency to REA.

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RUS Telecommunications ProgramOrganization

• Telecommunications Program Staff
• National Office staff
• Leadership
• Loan and business specialists
• Electronics engineers
• Field staff - General Field Representatives
  (GFRs)
• Rural Development State Office Staff
• Broadband Coordinators in RD state offices

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RUS Telecommunications Program Loan and Grant
Programs

• Telecommunications Infrastructure Loan Program
  Loans to improve and build telecommunications
  service in rural communities (lt5,000 population)
• Newly expanded funding for E911 Service
• Rural Broadband Loan Program (Farm Bill)
  Loans to build and upgrade broadband services in
  rural high cost areas (lt20,000 population)
• Community Connect Grant Program Grants for
  broadband service providers and others who offer
  broadband services in rural and remote areas
  (lt20,000 population)
• Distance Learning/Telemedicine Loan and Grant
  Program Loans and grants for providing Distance
  Learning and Telemedicine services to rural
  residents and anchor institutions
• Public TV Grants grants for rural public TV
  stations for the digital TV transition
• Weather Radio Grants grants for weather radio
  systems in rural communities

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FY 2012 Available Funding
RUS Telecommunications Program
Program 2012 Available Funding
Telecom Infrastructure Loans 690 million
Broadband Loans 736 million
Distance Learning and Telemedicine Grants 16.1 million
Community Connect Grants 14.2 million

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Telecom Infrastructure Loan Program

• Since 1949, the Telecommunications Infrastructure
  Loan Program has provided financing for new and
  improved telecommunications infrastructure in
  rural communities of 5,000 or less.
• Loan funds may be used to finance
  telecommunications services in rural areas for
  new construction improvements expansions
  acquisitions (with restrictions) and refinancing
  (with restrictions).
• Interest rates are set at current U.S. Treasury
  rates, depending on loan maturity at the time of
  each advance.
• RUS accepts applications for the Telecom
  Infrastructure Loan Program on a continual basis.
  
• All infrastructure financed must be broadband
  capable.
• New financial pro-forma required due to FCC
  changes in USF.

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Telecom Infrastructure Loan Program
Financial Information Requirements

• Applicants must submit full 5-year pro-forma
  financial statements
• Income Statements
• Balance Sheets
• Statements of Cash Flow
• Applicants must also submit
• Supporting Schedules covering network access
  revenue
• Supporting Schedules covering debt
• Supporting Schedules covering plant deployment
  and depreciation
• Supporting Schedules for non-operating and
  non-regulated revenue and expenses
• Pro-Forma Statements should be in the same format
  as in RUS Operating Report. New RUS borrowers
  will have initial access to the RUS system to
  help provide data along with required
  spreadsheets and schedules.
• Pro-Forma Statements and Supplemental Schedules
  are available at http//www.rurdev.usda.gov/utp_i
  nfrastructure.html
• Applicants should work closely with local GFR.

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Telecom Infrastructure Loan Program
911 Access Loan Program

• Eligible Applicants
• Entity eligible to borrower from the RUS
• State or Local Governments
• Indian Tribes
• Emergency Communications Equipment Provider
• Application Guide to be available soon.
  Applicants should contact GFR
• Funding Purposes
• Furnish and Improve telephone service in rural
  areas
• Finance facilities and equipment which expands,
  improves, or provides
• 911 access
• Integrated interoperable emergency
  communications, including multiuse networks that
  provide commercial or transportation information
  services in addition to emergency communications
  services
• Homeland security communications
• Transportation safety communications
• Location technologies used outside an urbanized
  area

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Telecom Infrastructure Loan Program
911 Access Loan Program

• Eligible Area
• City, Town, or Incorporated Area with population
  less than 20,000
• Not an Urbanized Area contiguous and adjacent to
  a city or town with population greater than
  50,000
• Applications will be accepted year round
• http//www.rurdev.usda.gov/utp_911.html

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The Broadband Loan Program

• Designed to provide loans for funding, on a
  technology neutral basis, for the costs of
  construction, improvement and acquisition of
  facilities and equipment to provide broadband
  service to eligible rural communities.
• The programs goal is to ensure that rural
  consumers benefit from the same quality and range
  of telecommunications services that are available
  in urban and suburban communities.
• Created under the 2002 Farm Bill and reauthorized
  under the 2008 Farm Bill.
• Applications are accepted year-round.
• 10 matching equity support required.
• http//www.rurdev.usda.gov/utp_farmbill.html

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The Community Connect Grant Program

• The Program provides rural communities
• Broadband to residential and business customers
• Free broadband to Critical Community Facilities
  in the community for at least 2 years
• A Community Center that provides free broadband
  Internet access for at least 2 years.
• Eligible community
• A community recognized in the 2010 U.S. Census or
  in the most recent edition of Rand McNallys
  Commercial Atlas Marketing Guide
• A community in which broadband service is not
  currently available
• A community with population not exceeding 20,000
• Scoring is based on population density, economic
  need of the community as determined by median
  household income, and benefits of the project.
• 15 matching requirement

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The Community Connect Grant Program

• Grant funds may be used to finance
• The construction, acquisition, or leasing of
  facilities, including spectrum, to deploy
  Broadband Transmission Service to all
  participating Critical Community Facilities and
  to offer such services to residential and
  business customers in the community.
• The improvement, expansion, construction, or
  acquisition of a Community Center that furnishes
  free access to broadband Internet service. These
  costs cannot exceed the greater of 5 of the
  grant amount or 100,000.
• End-User Equipment needed to carry out the
  Project.
• Operating expenses incurred in providing
  Broadband Services to Critical Community
  Facilities for 2 years of operation and in
  providing training and instruction. These costs
  cannot exceed 250,000.
• The purchase of land, buildings, or building
  construction needed to carry out the Project.
• http//www.rurdev.usda.gov/utp_commconnect.html

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The Distance Learning and Telemedicine (DLT)
Grant Program

DLT Grants are not just a way to obtain
educational technology or medical equipment. The
focus 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. 1. Distance learning means a curriculum
with measurable results delivered via
telecommunications and stresses the connection of
students and teachers at remote sites. 2.
Telemedicine means the delivery of medicine from
medical professionals at one site to patients at
other sites via telecommunications. Telemedicine
shows benefit to rural residents either in
reduced travel or access to services.
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The DLT Grant Program

• 465 million in DLT grants and loans have been
  awarded total.
• Serving rural communities of 20,000 or less.
• Minimum grant 50,000 maximum grant 500,000.
• 15 required matching contribution.
• Scoring is based on the population at end-user
  sites (those receiving the DLT services), income
  (as measured by participation in the National
  School Lunch Program), leveraging (providing more
  than a 15 match) and benefits of the project.
• http//www.rurdev.usda.gov/UTP_DLT.html

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The DLT Grant Program

• FY 2012 Awards
• 2012 DLT grant awards were announced by Secretary
  Vilsack on June 6, 2012. A total of 52 awards
  were made, for 14.1 million.
• Almost 40 of the awards are serving counties
  where the minority population is gt 30
• More than 15 of the awards are serving counties
  where the tribal population is gt 30
• Almost 40 of the awards are serving persistent
  poverty counties
• Almost 100 of the telemedicine awards are
  serving Medically Underserved Areas (as defined
  by HHS)
• 17 of the awards are serving counties where the
  unemployment rate is gt15

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Broadband Initiatives Program

• RUS received funding under the American Recovery
  and Reinvestment Act of 2009 (ARRA) for broadband
  infrastructure in rural communities (this was a
  one-time program). This program is the Broadband
  Initiatives Program (BIP).
• RUS provided loans and grants for broadband
  infrastructure projects as well as Technical
  Assistance grants.
• RUS is managing the rollout of 259 active
  infrastructure projects, 3.2 billion in
  loan/grant funds.
• The majority of BIP projects are on track with
  comprehensive financial and operational oversight
  from RUS.
• 2 billion of projects is under contract.
  Reimbursements are lagging behind but at 1.1
  billion to date.
• Twenty-seven projects are fully complete and 39
  are substantially complete.
• Field staff are monitoring progress and
  compliance.
• These projects are creating economic activity,
  broadband access and new high wage jobs in rural
  communities.

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RUS Telecommunications Program
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