RUS Broadband Loan Program for Rural America

The 2002 Farm Bill was amended by the RE Act adding Section 601 to:

"...provide loans and loan guarantees to provide funds for the costs of the construction, improvement and acquisition of facilities and equipment for broadband service in eligible rural communities."

Who is eligible?

A legal, organized entity providing or proposing to provide service to any eligible rural community and has sufficient authority to enter into a contract with RUS and to carry out the purposes of the loan (by-laws, statue, attorney opinion).

Eligible entities include:

• Cooperatives
• Non-profits
• Limited liability companies
• Limited dividend or mutual associations
• Commercial organizations
• Indian tribes and tribal organizations

State or local governments are currently eligible only if no other eligible entity is already offering or has committed to offer broadband service in the community.

Eligible purposes...

• New construction and improvements to existing facilities
• Broadband facilities leased under the terms of a capital lease (limited to 2 years)
• Facilities that RUS determines are necessary to serve subscribers located in eligible rural Communities that are located outside of SMSA'S acquisitions
• Refinancing existing telecommunications program debt made under the RE Act

Existing Broadband borrowers...

RUS will not approve loans to more than one applicant to provide service in the same community, nor to an applicant proposing to provide service in a community served by an existing broadband borrower, regardless of the definition of broadband at the time of loan approval.

Loan terms and conditions...

• Loans are made for a term equal to the expected compostie useful service life of the facilities financed
• Interest is payable on funds advanced each month as it accrues
• Principal payments are due within 1-year of the date of the first advance
• The minimum amount of a loan that RUS will consider is $100,000
• Maximum loan amounts apply only to the direct 4% loans
• RUS requires a first lien on the borrower's assets

CCS Inc. turnkey broadband solutions consist of...

• Feasibility studies
• Conducting existing CATV Franchise audits — financial & technical
• Preparation of RUS Broadband Loan application
• Conducting market surveys
• Preparation of BER (Borrower's Environmental Report)
• Project management
• Financial advisement & profiles
• Private funding options

If you need information about how you can apply for a RUS Broadband Loan for your rural area
... contact CCS Inc. today.