Rural Telecommunications Loans
Program Funding
Annual program obligations reported to SAM.gov.
Funded Projects
Examples of what this program has supported.
Program Objective
This program provides loans for the construction, maintenance, improvement, and expansion of telecommunications services (telephone and broadband) in rural areas. In facilitating the construction of new and improved infrastructure, the program will fuel long-term rural economic development and opportunities in rural America.
Eligibility
Eligible Applicants
- Federally Recognized Tribal Government
- Municipality/Township Government
- Tribal
- Nonprofit Organization
- Not-for-Profit Organization
- For-Profit Organization
- Tribal Government (other)
- U.S. Territory Government
Telephone companies or cooperatives, nonprofit associations, limited dividend associations, mutual associations or public bodies including those located in the U.S. Territories and countries included in the Compact of Free Association Act of 1985, providing or proposing to provide telecommunications service to meet the needs of rural areas.
How to Apply
Award Procedure
The RUS Administrator, Assistant Administrator, or Deputy Assistant Administrator makes the final decision on approval of the loan or loan guarantee upon a finding that it is economically feasible and serves the purposes of the Rural Electrification Act. Borrowers and Members of Congress are notified of the approval of a loan or loan guarantee directly, and the public is notified through normal media communications.
Decision Timeline
- Approval: From 90 to 120 days
Application are processed on a first-come, first-served basis. Normal loan processing time is from 3 to 4 months.
Program details & compliance
Description
The purpose of this program is to provide loans to rural telecommunications providers for the construction of new and improved telecommunications systems in rural America.
Mission Categories
Primary: Rural Community Development
Other categories:
Economic Development
Use of Funds
Allowed Uses
This program provides long-term direct and guaranteed loans to qualified organizations for the purpose of financing the improvement, expansion, construction, acquisition, and operation of telephone lines, facilities, or systems to furnish and improve Telecommunications, 911 and Emergency Communications services in rural areas. "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 (20,000 for 911 and emergency communications purposes). The population figure is obtained from the Bureau of Census. For purposes of the "rural area" definition, the character of an area is determined at the time the initial loan for the system is made.
Reporting & Compliance
Applicable 2 CFR 200 Subparts
- Subpart B — General Provisions
- Subpart C — Pre-Federal Award Requirements
- Subpart D — Post-Federal Award Requirements
- Subpart E — Cost Principles
- Subpart F — Audit Requirements