**Rural Development**

**United States Department of Agriculture**

**RURAL DEVELOPMENT, UTILITIES PROGRAMS (RDUP)**

***RUS Bulletin 1738-1***

***Rural Broadband Access Loan and***

***Loan Guarantee Program Application Guide***

![](media/image1.png){width="3.970138888888889in"
height="3.0631944444444446in"}

**[Submit Applications to Your RDUP General Field Representative or to
Washington Broadband Office at:]{.smallcaps}**

> KENNETH KUCHNO

BROADBAND DIVISION

TELECOMMUNICATIONS PROGRAM

RURAL DEVELOPMENT, UTILITIES PROGRAMS

U.S. DEPARTMENT OF AGRICULTURE

STOP 1599, ROOM 2844-S

1400 INDEPENDENCE AVENUE, SW

WASHINGTON, DC 20250-1599

**For reference see our website**

<http://www.usda.gov/rus/telecom/broadband.htm>

Issue Date June 17, 2004

*According to the Paperwork Reduction Act of 1995, an agency may not
conduct or sponsor, and a person is not required to respond to, a
collection of information unless it displays a valid OMB control number.
The valid OMB control number for this information collection is
0572‑0130. The time required to complete this information collection is
estimated to average 90 hours per response, including the time for
reviewing instructions, searching existing data sources, gathering and
maintaining the data needed, and completing and reviewing the collection
of information.*

**Rural Development, Utilities Programs (RDUP)**

**Rural Broadband Access Loan and Loan Guarantee Program**

The Rural Broadband Access Loan and Loan Guarantee Program is designed
to provide loans for funding, on a technology neutral basis, the costs
of construction, improvement and acquisition of facilities and equipment
to provide broadband services to eligible rural communities. The
Programs' goal is to ensure that rural consumers enjoy the same quality
and range of telecommunications services that are available in urban and
suburban communities.

**Application Guide Table of Contents**

**General Information**

[**Eligible Purposes Of The Loan 4**](#__RefHeading___Toc75315607)

[**Ineligible Purposes Of The Loan 4**](#__RefHeading___Toc75315608)

[**Types Of Broadband Loans 5**](#__RefHeading___Toc75315609)

[**Minimum And Maximum Loan Amounts 5**](#__RefHeading___Toc75315610)

[**Priority Consideration 6**](#__RefHeading___Toc75315611)

[**Broadband Service 6**](#__RefHeading___Toc75315612)

[**Eligible Rural Community 6**](#__RefHeading___Toc75315613)

[**Applicant Eligibility 6**](#__RefHeading___Toc75315614)

[**Credit Support Requirement 7**](#__RefHeading___Toc75315615)

[**Preapplication Stage 8**](#__RefHeading___Toc75315616)

[**Application Submission 9**](#__RefHeading___Toc75315617)

[**Contact Information: 9**](#__RefHeading___Toc75315618)

[**Instructions For Completing The RUS Form 532
10**](#__RefHeading___Toc75315619)

[**Instructions For Preparing Schedules A Through U
12**](#__RefHeading___Toc75315620)

[**Congressional Districts (Schedule A)
12**](#__RefHeading___Toc75315621)

[**Legal Opinion & Property Schedule (Schedules B-1 And B-2)
12**](#__RefHeading___Toc75315622)

[**Compliance Certificates (Schedules C-1 Through C-8)
12**](#__RefHeading___Toc75315623)

[**Communities (Schedules D-1 Through D-3)
13**](#__RefHeading___Toc75315624)

[**Certification Of Broadband Availability (Schedule E)
13**](#__RefHeading___Toc75315625)

[**Notice Of Proposed Service (Schedules F-1 And F-2)
13**](#__RefHeading___Toc75315626)

[**Corporate Structure (Schedules G-1 Through G-5)
15**](#__RefHeading___Toc75315627)

[**Executive Summary (Schedule H) 15**](#__RefHeading___Toc75315628)

[**Credit Support (Schedule I) 15**](#__RefHeading___Toc75315629)

[**Board Resolution (Schedule J) 16**](#__RefHeading___Toc75315630)

[**Research Data And Market Analysis (Schedules K-1 And K-2)
16**](#__RefHeading___Toc75315631)

[**Business Plan (Schedule L) 18**](#__RefHeading___Toc75315632)

[**Management And Compensation (Schedule M)
20**](#__RefHeading___Toc75315633)

[**Financial Position (Schedules N-1 Through N-5)
20**](#__RefHeading___Toc75315634)

[**System Design (Schedule O) 23**](#__RefHeading___Toc75315635)

[**Network Diagrams (Schedule P) 24**](#__RefHeading___Toc75315636)

[**Project Costs (Schedules Q1 Through Q-11)
24**](#__RefHeading___Toc75315637)

[**Environmental Report (Schedule R) 25**](#__RefHeading___Toc75315638)

[**Tower, Equipment And Building Leases (Schedule S)
26**](#__RefHeading___Toc75315639)

[**Licenses And Agreements (Schedules T-1 Through T-7)
26**](#__RefHeading___Toc75315640)

[**Guaranteed Loans (Schedules U-1 And U-2)
26**](#__RefHeading___Toc75315641)

**Attachement 1 - [Sample Assumptions For Pro Forma Financial Statements
27](#__RefHeading___Toc75315642)**

**Attachement 2a - [Sample Network Diagrams - Wirelineattachment 2b
31](#refheading___toc75315643)**

**Attachement 2b - [Sample Network Diagrams - Wireless
32](#__RefHeading___Toc75315645)**

**Attachement 3 - [Points Of Contact - Broadband Team
33](#__RefHeading___Toc75315646)**

**Attachement 4 -** [**General Field Representatives** Error! Bookmark
not defined.](#__RefHeading___Toc75315647)

**General Information**

-   []{#__RefHeading___Toc75315607 .anchor}***Eligible Purposes of the
    Loan:***

    RDUP makes broadband loans and loan guarantees to:

```{=html}
<!-- -->
```
-   Finance the construction, improvement, and acquisition of facilities
    and equipment to provide broadband service in eligible rural
    communities;

-   Finance broadband facilities leased under the terms of a capital
    lease, as defined in generally accepted accounting principles;
    financing will be limited to 5 years of lease costs;

-   Finance the acquisition by an eligible entity of another system,
    lines or facilities to furnish or improve rural broadband service
    (cannot exceed 50 percent of requested loan amount); and

-   Refinance an outstanding obligation on another telecommunications
    loan made under the RE Act. The refinancing cannot exceed 40 percent
    of the loan amount.

```{=html}
<!-- -->
```
-   []{#__RefHeading___Toc75315608 .anchor}***Ineligible Purposes of the
    Loan:***

> RDUP will [not]{.underline} make a broadband loan or loan guarantee
> for the following items:

-   Acquisition of any stock, facilities or equipment of an affiliate of
    the applicant;

-   Customer terminal equipment (including modems) and any associated
    inside wiring not owned by the applicant during its economic life;

-   Vehicles not used primarily in construction;

-   Broadband facilities leased under the terms of an operating lease;

-   Merger or consolidation of entities; and

-   Operating expenses of the project.

```{=html}
<!-- -->
```
-   []{#__RefHeading___Toc75315609 .anchor}***Types of Broadband
    Loans***

1\. **[Direct Cost-of-Money Loan]{.underline}**-- This loan will bear
interest at a rate (the "Cost-of-Money Interest Rate") equal to the cost
of borrowing to the Department of Treasury for obligations of comparable
maturity. Department of Treasury interest rates are released daily and
can be found in Release H.15 at
<http://www.federalreserve.gov/releases/h15/update/> .

2\. **[Private Loan Guarantee]{.underline}** -- This loan is a third
party loan (Not funded by RDUP). This loan shall bear interest at a rate
set by the lender consistent with the current applicable market rate for
a loan of comparable maturity. RDUP will guarantee up to eighty percent
(80%) of the principal amount of the loan.

3\. **[Direct 4 Percent Loan]{.underline}** -- To be eligible for this
loan bearing an interest rate of

4-percent, the applicant must be proposing to serve:

A). A rural community that:

i\) Has a population of less than 2,500 inhabitants;

ii\) Is not currently receiving broadband service; and

iii\) Is located in a county with per capita personal income that is
less than or equal to

that percent of the national average per capita personal income which
RDUP will

publish in the Federal Register at the beginning of each fiscal year
(FY). County

per capita personal income, as a percent of the national average per
capita

personal income, is published by the Bureau of Economic Analysis, U.S.

Department of Commerce at
[www.bea.doc.gov/bea/regional/reis](http://www.bea.doc.gov/bea/regional/reis).
RDUP will use

the most recent statistics published on October 1 of the FY in which

the application is deemed complete by RDUP.

B). A service area with a certain maximum population density, calculated
as the total

number of persons in the service area divided by the square miles of the
service

area. The maximum population density will be published by RDUP in the
Federal

Register at the beginning of each FY.

The total amount of financing made available by RDUP, in each FY, for
Private Loan Guarantees and Direct 4 Percent Loans and the maximum
amount for any one Direct 4 Percent Loan will be published by RDUP in
the Federal Register, at the beginning of each FY.

Direct 4 Percent Loans can be made simultaneously with a Direct
Cost-of-Money Loan.

-   []{#__RefHeading___Toc75315610 .anchor}***Minimum and Maximum Loan
    Amounts***

RDUP will not consider applications for loans or loan guarantees of less
than \$100,000. Maximum loan amounts apply only to an applicant for a
direct 4-percent broadband loan (explained in the regulation). These
limitations will be published in the Federal Register at the beginning
of each FY.

-   []{#__RefHeading___Toc75315611 .anchor}***Priority Consideration***

The Farm Security and Rural Investment Act of 2002, Title VI --Rural
Broadband Access, Section 601 (c)(2), requires that in making and
guaranteeing loans under this section, priority must be given to
eligible rural communities in which broadband service is not available.

Completed loan applications proposing to provide broadband service in an
area where none is available will receive [FIRST]{.underline} priority
for funding.

**Note: To be eligible for this "First" priority, the
[entire]{.underline} application must be for areas with [no]{.underline}
broadband service available.**

-   []{#__RefHeading___Toc75315612 .anchor}***Broadband Service***

Broadband Service means any technology identified by the Administrator
as having the capacity to transmit data to enable a subscriber to
originate and receive high-quality voice, data, graphics, and video. For
funding under 7 CFR 1738, projects must offer data transmission
services, and may provide voice, graphics, and video. At the beginning
of each fiscal year, RDUP will publish, in the Federal Register, the
transmission data rate criteria to be utilized for purposes of the
identification of broadband service technologies during that fiscal
year's funding period.

-   []{#__RefHeading___Toc75315613 .anchor}***Eligible Rural
    Community***

An eligible rural community, defined under this Program means any
incorporated or unincorporated place in the United States, its
territories and insular possessions (including any area within the
Federated States of Micronesia, the Republic of the Marshall Islands,
and the Republic of Palau) that has no more than 20,000 inhabitants
based on the most recent available population statistics from the U. S.
Census Bureau. For purposes of this program, place may include any area
located outside the boundaries of any incorporated or unincorporated
city, village or borough having a population exceeding 20,000.

-   []{#__RefHeading___Toc75315614 .anchor}***Applicant Eligibility***

    RDUP makes broadband loans and loan guarantees to legally organized
    entities providing, or proposing to provide, broadband services in
    eligible rural communities.

    Types of eligible entities include: cooperatives, municipalities,
    nonprofit, limited dividend or mutual associations, limited
    liability companies, Indian tribes and tribal organizations as
    defined in 25 U.S.C. 450(b) and (c) and commercial organizations.
    Individuals or partnerships of individuals are not eligible
    entities.

    ***[Applicant Eligibility Continued]{.underline}***

    To be eligible to receive a loan under this program, the entity:

```{=html}
<!-- -->
```
-   Cannot be serving more than 2 percent of the telephone subscriber
    lines installed in the United States; and

-   Must have sufficient authority to enter into a contract with RDUP
    and to carry out the purposes of the proposed loan.

```{=html}
<!-- -->
```
-   []{#__RefHeading___Toc75315615 .anchor}***Credit Support
    Requirement***

    A.  To be eligible for a loan, RDUP will require, as a condition to
        RDUP financing, that an applicant provide credit support in an
        amount equal to 20 percent of the requested loan amount. There
        are four ways that this requirement can be met:

1.  **[Cash]{.underline}**

2.  **[Net Tangible Assets]{.underline}** -- These assets must be in the
    name of the applicant. They are valued at net book value less any
    liens and payment obligations against them. These tangible assets
    must be assets that would normally be funded by RDUP as part of the
    loan.

3.  **[Licenses]{.underline}** -- The licenses are valued at the lower
    of cost or market value net of liens or other obligations.

> 4\. **[Letters of Credit (LOC)]{.underline}** -- LOCs for this
> requirement must meet the following
>
> terms:
>
> *[Terms for the Bank]{.underline}*

-   Investor to enter into LOC to benefit the Broadband Borrower and
    Government. The LOC must be secured by assets other than those of
    the Broadband Borrower.

-   LOC to be irrevocable permitting unconditional draws by the
    Broadband Borrower and the Government.

-   LOC to be in effect for five (5) years.

> *[Terms for the Borrower]{.underline}* *(Will be included as a
> condition to the Loan Agreement)*

-   LOC must be in effect for the shorter of five (5) years or until the
    Borrower achieves an equity level of 20 percent.

-   Borrower agrees to draw on the LOC if the quarterly financials show
    a negative cash flow.

-   Borrower agrees to draw on LOC when directed by RDUP.

-   Failure to maintain the LOC will be an Event of Default

> ***[Credit Support Requirement Continued]{.underline}***

B.  If the applicant is a start-up company or an existing
    telecommunications company that does not have positive cash flow for
    the previous two calendar years preceding the submission date of the
    application to RDUP, the applicant must have, as part of the minimum
    20 percent requirement, cash in an amount equal to cover the
    operating expenses for the first full year of providing service.
    *This amount is the "Total Operating Expenses" shown on the
    Forecasted Year 2 column of the Income Statement (Schedule
    N-3[b]{.smallcaps}).*

> **Note**: Cash Flow is defined as Cash Provided (Used) By Operating
> Activities shown in the "Statement of Cash Flows" as required under
> Generally Accepted Accounting Principles. Cash Flow should be
> calculated using the "Statement of Cash Flows" (Schedule
> N[-3C]{.smallcaps}) described as line item "Net Cash Provided (Used)
> By Operating Activities".

1.  If the amount needed to cover operating expenses exceeds the minimum
    20 percent amount, then applicants will be required to provide the
    larger of the two amounts.

2.  If the amount needed to cover operating expenses is less than the 20
    percent amount, then the remainder of the 20 percent amount can be
    met by any of the other 3 items listed under "A".

3.  Accounts Receivable cannot be used to satisfy this requirement.

Applicants must provide evidence in the form of bank or financial
statements that clearly demonstrate how the applicant will meet the
Credit Support requirement. This evidence needs to be included as
Schedule N-1 in the Financial Position section of the application. At
the time when a loan proposal is offered by RDUP, the cash amount
required to meet the credit support requirement must be deposited into
the applicant's bank account.

-   []{#__RefHeading___Toc75315616 .anchor}***Preapplication Stage***

Initial prospective applicants and their attorneys should review the
terms and conditions set forth in the standard RDUP broadband loan
documents. Please note, additional terms and conditions may apply once
feasibility has been determined. Copies of these documents can be
obtained from the RDUP web site.

-   []{#__RefHeading___Toc75315617 .anchor}***Application Submission***

Applications can be submitted throughout the year and will be reviewed
and processed on a first-come, first-served basis. Submit an original
and two copies of a completed application to your RDUP General Field
Representative (GFR) or to the Washington Broadband Office at the
following address:

KENNETH KUCHNO

BROADBAND DIVISION

TELECOMMUNICATIONS PROGRAM

RURAL DEVELOPMENT, UTILITIES PROGRAMS

U.S. DEPARTMENT OF AGRICULTURE

STOP 1599, ROOM 2844-S

1400 INDEPENDENCE AVENUE, SW

WASHINGTON, DC 20250-1599

Applications delivered by hand will be accepted daily between 8:00 a.m.
and 4:30 p.m. (Eastern Standard Time), except Saturdays, Sundays and
Federal holidays. Individuals delivering applications must provide
proper identification (with picture ID) to enter the building.

-   []{#__RefHeading___Toc75315618 .anchor}***Contact Information:***

For additional information concerning this loan program, please contact
the RDUP General Field Representative for the respective state and/or
any member of the Broadband Team. The contact information for the
Broadband Team and the GFRs are listed as Attachments 3 and 4
respectively at the end of this guide. Information about RDUP and this
application guide can also be retrieved electronically ***via the
internet*** at:

**<http://www.usda.gov/rus/telecom/broadband.htm>**

[]{#__RefHeading___Toc75315619 .anchor}**Instructions for Completing the
RUS Form 532**

The RUS Form 532, Application for Broadband Loan or Loan Guarantee, is a
three-page form that must be completed and certified by an authorized
official of the entity applying for the loan. The applicant's name
should be inserted in the footers for identification purposes.

1.  NAME & ADDRESS OF APPLICANT -- Enter the legal name and address of
    the entity requesting the loan.

2.  REGISTERED AGENT (Address, Telephone and Fax) -- Enter the name,
    address, phone and fax numbers of the registered agent of the
    applicant.

3.  PHONE NUMBER -- Enter the phone number of the applicant.

4.  FAX NUMBER -- Enter the fax number of the applicant.

5.  E-MAIL ADDRESS -- Enter the e-mail address of the person responsible
    for answering questions about this application.

6.  CONTACT PERSON -- Enter the name of the person responsible for
    answering questions about this application.

7.  TYPE OF ORGANIZATION - Check the appropriate box that describes the
    legal structure of the applicant.

8.  TYPE OF LOAN -- Check the type of loan requested. (See Types of
    Loans under the "General Information" section for additional
    information on each type of loan).

9.  REFINANCING/ACQUISITION -- Check appropriate box(es) if loan funds
    are requested for refinancing and/or acquisition; otherwise check
    Not Applicable.

10. PURPOSE OF LOAN - Briefly explain the purposes for which loan funds
    are requested and the respective amount. (See Loan Purposes under
    the "General Information" section of this guide for additional
    information on eligible/ineligible purposes of the loan.)

11. LOAN MATURITY REQUESTED -- Check the appropriate box to select the
    loan maturity requested. The maximum loan maturity is based on the
    composite economic life of facilities financed. This calculation
    uses a weighted average of the useful lives of all equipment being
    funded. A shorter maturity period can be requested by checking the
    second box and inserting the number of years for the maturity
    period.

12. AMOUNT OF LOAN APPLIED FOR -- The total amount of loan funds
    requested from RDUP in this loan application.

13. EMPLOYER TAX IDENTIFICATION NO. (TIN) -- Enter the applicant's Tax
    Identification Number or the Federal Employer Identification Number
    (FEIN).

14. ORGANIZATIONAL NUMBER -- Enter the organizational number of the
    applicant issued by the state in which the corporation was formed or
    the LLC was organized. Refer to state registration approval for the
    type of entity. <http://www.uccdirect.com/resource_chart.htm>

    ***[Instructions Continued]{.underline}***

15. CONGRESSIONAL DISTRICTS -- Include the information required on the
    congressional districts as Schedule A.

16. LEGAL OPINION & PROPERTY SCHEDULES -- Include the legal opinion and
    the real property schedule. The legal opinion and the real property
    schedule should be included in the application as Schedules B-1 and
    B-2, respectively.

17. COMPLIANCE CERTIFICATES -- Include certified copies of these forms
    in the application as Schedules C-1 to C-8.

18. COMMUNITIES -- Include the tables on the existing and proposed
    communities, respective service providers, and service area maps as
    Schedules D-1, D-2, and D-3, respectively.

19. CERTIFICATION OF BROADBAND AVAILABILITY -- Include this
    certification as Schedule E.

20. NOTICE OF PROPOSED SERVICE -- Include the legal notice(s) and the
    sufficiency of legal notice as Schedules F-1 and F-2.

21. CORPORATE STRUCTURE -- Include information on the legal structure of
    the applicant, its Board of Directors or Managing Members, the
    organizational chart, parent/subsidiary relationships, and the State
    LLC Statute as Schedules G-1 through G-5.

22. EXECUTIVE SUMMARY -- Include the information required on the
    Executive Summary as Schedule H.

23. CREDIT SUPPORT -- Include the Credit Support Form as Schedule I.

24. BOARD RESOLUTION -- Include the Board of Director's resolution
    authorizing the funding request as Schedule J.

25. RESEARCH DATA & MARKET ANALYSIS-- Include the information required
    as part of the Research Data as Schedule K-1 and Market Analysis as
    Schedule K-2.

26. BUSINESS PLAN -- Include the information required on Business Plan
    as Schedule L.

27. MANAGEMENT AND COMPENSATION -- Include this information as Schedule
    M.

28. FINANCIAL POSITION -- Include the information required on Financial
    Position of the applicant as Schedules N-1 through N-5.

29. SYSTEM DESIGN -- Include the information required on the System
    Design as Schedule O.

30. NETWORK DIAGRAMS -- Include the existing and proposed Network
    Diagrams as Schedule P.

31. SUMMARY OF PROJECT COSTS -- Include this summary as Schedule Q-1 and
    enter the respective amounts for each budget category on the form.

32. ENVIRONMENTAL REPORT -- Include the Environmental Report for the
    proposed project as Schedule R.

33. TOWER, EQUIPMENT, AND BUILDING LEASES -- Include these leases as
    Schedule S.

    ***[Instructions Continued]{.underline}***

34. LICENSES AND AGREEMENTS -- Include copies of FCC and CLEC licenses,
    franchise agreements, interconnection agreements, management/service
    agreements, By-laws and LLC Operating Agreements and other major
    agreements as Schedules T-1 through T-7.

35. GUARANTEED LOANS -- Include information on private guarantee loans
    as Schedules U-1 and U-2.

36. IS THE BORROWER DELINQUENT ON ANY FEDERAL DEBT -- Check appropriate
    box.

    []{#__RefHeading___Toc75315620 .anchor}**Instructions for Preparing
    Schedules A through U**

    []{#__RefHeading___Toc75315621 .anchor}[***CONGRESSIONAL DISTRICTS
    (Schedule A***)]{.underline}

Schedule A shall contain information on the congressional districts.
This information shall include both the districts where the applicant's
headquarters are located and the ones that cover the service territory
proposed by this project.

[]{#__RefHeading___Toc75315622 .anchor}***[LEGAL OPINION & PROPERTY
SCHEDULE (Schedules B-1 and B-2)]{.underline}***

A.  [Legal Opinion]{.underline} -- A legal opinion shall be prepared in
    accordance with the sample format as shown on Schedule B-1.

B.  [Real Property Schedule]{.underline} - Schedule B-2 is the real
    property schedule that includes the legal descriptions of all the
    real property owned by the applicant. It should be categorized into
    real property, leased-property, easements, and rights-of-way.

    []{#__RefHeading___Toc75315623 .anchor}***[COMPLIANCE CERTIFICATES
    (Schedules C-1 through C-8)]{.underline}***

Schedules C1 -- C7 are forms that need to be certified by the applicant
to ensure compliance with Federal statutes and regulations. Schedule C-8
is the System Design Certification. Refer to the System Design section
of this guide before certifying on this form. All forms must be used
without any modification and certified with original signatures.

A.  Equal Opportunity and Nondiscrimination Certification (Schedule C-1)

B.  Certification Regarding Architectural Barriers (Schedule C-2)

C.  Certification Regarding Flood Hazard Area Precautions (Schedule C-3)

D.  Uniform Relocation Assistance and Real Property Acquisition Policies
    Act of 1970 Certification (Schedule C-4)

E.  Certification Regarding Debarment, Suspension, and other
    Responsibility Matters -- Primary Covered Transactions (Schedule
    C-5)

F.  Certification Regarding Lobbying for Contracts, Grants, Loans, and
    Cooperative Agreements (Schedule C-6)

G.  Environmental Impact Certification (Schedule C-7)

H.  System Design Certification (Schedule C-8)

    []{#__RefHeading___Toc75315624 .anchor}***[COMMUNITIES (Schedules
    D-1 through D-3)]{.underline}***

```{=html}
<!-- -->
```
A.  [Existing & Proposed Communities]{.underline} - Schedule D-1 is a
    table that needs to be completed for all the existing communities
    (if any) served by the applicant and the proposed communities. The
    existing communities should be indicated by an "E" and the proposed
    with a "P". The proposed communities should be inclusive of all the
    communities that the applicant plans to serve over the 5-year loan
    forecast period.

> For each community, indicate the name of the County and the respective
> State; the population data; the number of Households (HH) in the town
> area; and the number of Businesses (Bus). These statistics should be
> based on the most recent available data provided by the U. S. Census
> Bureau. The website address is <http://www.census.gov/>. In addition,
> if the project will serve areas outside the town area of a particular
> community, then the number of households located in the outlying rural
> area should be stated in this column.

B.  [Existing Service Providers]{.underline} - Schedule D-2 contains
    details of current or known proposed service providers serving in
    the communities listed on Schedule D-1 above. For each community,
    list the name of each telecommunications service provider (including
    cable TV operators), the different types of service offerings and
    the respective rate plan for each service offering.

C.  [Service Area Maps]{.underline} -- Service area maps should be
    included as Schedule D-3 and should be no larger than 8 ½ inches by
    11 inches. If the application proposes to serve communities located
    in multiple states, then a service area map should be included for
    each state. The map(s) should clearly indicate all the communities
    listed on Schedule D-1 and clearly distinguish the existing
    communities from the proposed communities.

    []{#__RefHeading___Toc75315625 .anchor}***[CERTIFICATION OF
    BROADBAND AVAILABILITY (Schedule E)]{.underline}***

In accordance with the Farm Security and Rural Investment Act of 2002,
Title VI -- Rural Broadband Access, Section 601\[c\](2), RDUP, in making
or guaranteeing broadband loans, must give priority to eligible rural
communities in which broadband service is not available to residential
customers. All applicants applying for a loan or loan guarantee under
the Rural Broadband Access Loan and Loan Guarantee Program must certify
the extent to which broadband service is available to residential
customers in the proposed service area. Schedule E, *Certification
Regarding the Availability of Broadband Service in Eligible Rural
Communities*, should be completed and certified.

[]{#__RefHeading___Toc75315626 .anchor}***[NOTICE OF PROPOSED SERVICE
(Schedules F-1 and F-2)]{.underline}***

A.  [Proof of Legal Notice]{.underline} - All applicants under the Rural
    Broadband Access Loan and Loan Guarantee Program must publish a
    legal notice in each community that the applicant intends to offer
    broadband services. The legal notice must set forth the applicant's
    proposed service area and request that any incumbent broadband
    service provider submit to RDUP, within 30 days, the number of
    residential customers receiving broadband service in the applicant's
    proposed service area, the rates of data transmission and the cost
    of each level of service or proof of commitment to provide service
    in the proposed service area. The response form to be used by the
    incumbent service provider is available on RDUP's web site.

    ***[Notice of Proposed Service (Schedules F-1 and F-2)
    Continued]{.underline}***

> In addition, the legal notice should also request that the incumbent
> broadband service providers supply RDUP with a map of their service
> territory. A sample for the legal notice form that can be used is
> shown below. This should be the minimum language provided and it is
> the responsibility of each applicant to make sure all requirements
> that constitute the legal notice within the proposed areas have been
> satisfied. The proof of all the published legal notices should be
> included in the application as Schedule F-1.
>
> **LEGAL NOTICE**
>
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> (Company Name)
>
> We are a prospective applicant under the Rural Broadband Access Loan
> and Loan Guarantee Program being administered by the Rural
> Development, Utilities Programs (RDUP), United States Department of
> Agriculture. We are required, as a prospective applicant, to announce
> our intent to provide broadband services (200 kilobits upstream and
> downstream) in the State of \_\_\_\_\_\_\_\_\_\_\_\_ in the following
> communities/counties:
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> Incumbent broadband service providers have **[30 days]{.underline}**
> from the date of this Legal Notice to inform RDUP if they are
> currently providing broadband service in these areas or if they have a
> commitment to provide service in these areas. Incumbent broadband
> service providers should submit to RDUP, on a form prescribed by RDUP,
> the number of residential customers receiving broadband service in the
> proposed service area, the rates of data transmission, and the cost of
> each level of service or proof of commitment to provide service in the
> proposed service area. A map should also be provided showing the
> boundaries of your service area in relation to the communities above.
>
> A Legal Notice Response Form can be obtained from RDUP's website at
> [www.usda.gov/rus/telecom](http://www.usda.gov/rus/telecom).

B.  [Sufficiency of Legal Notice]{.underline} - If not already required
    by state statutes, the legal notice must be published in state and
    local newspapers covering the applicant's proposed service area.
    Schedule F-2 is a legal opinion to be provided by the applicant's
    legal counsel stating that the notifications are all in compliance
    with local statutes and should include the list of publications and
    the respective dates where the legal notice was published.

    []{#__RefHeading___Toc75315627 .anchor}***[CORPORATE STRUCTURE
    (Schedules G-1 through G-5)]{.underline}***

```{=html}
<!-- -->
```
A.  [Articles of Incorporation or Organization]{.underline} -- Include a
    registered copy of the Articles of Incorporation or Organization
    (LLC) of the applicant as Schedule G-1.

B.  [Copy of the State LLC Statute]{.underline} -- If the applicant is a
    Limited Liability Company (LLC), a copy of the most recent LLC state
    statute where the applicant was organized / registered shall be
    included as Schedule G-2.

C.  [Board of Directors or Managing Members]{.underline} -- Schedule G-3
    shall include a list of your board members and a brief biography to
    highlight their experience within your industry and community.

D.  [Organizational Chart and Statement of Experience]{.underline} -
    Schedule G-4 shall include an organizational chart showing the key
    personnel who manage or will manage the company and/or this project.
    This schedule shall also include a narrative that describes how the
    previous work experience of each key manager directly relates to
    each manager's ability to perform their duties and responsibilities
    as outlined in Schedule M of the application.

E.  [Parent and Subsidiaries]{.underline} -- Schedule G-5 should include
    all the other entities (parent/subsidiaries) that are affiliated
    with the applicant and clearly indicate the relationships between
    these entities and the applicant.

    []{#__RefHeading___Toc75315628 .anchor}***[EXECUTIVE SUMMARY
    (Schedule H)]{.underline}***

The executive summary should be a high level explanation of the proposed
project.

It should include the reason why the system is needed and the
qualifications of the applicant that demonstrate the ability to
construct and operate a broadband system.

It should also detail the number and names of the communities to be
served, the proposed type of broadband system that will be deployed and
the overall cost of the broadband system.

[]{#__RefHeading___Toc75315629 .anchor}***[CREDIT SUPPORT
(Schedule]{.underline} I)***

Indicate on this schedule all the appropriate categories that will be
used to satisfy the credit support requirement. For each category that
is used, indicate the dollar amount for that category.

In addition, if the applicant is an existing telecommunications company,
indicate if the company has had a positive cash flow from operations for
the previous two calendar years preceding the date of the application.
Cash Flow is defined as Cash Provided (Used) By Operating Activities
shown in the "Statement of Cash Flows" as required under Generally
Accepted Accounting Principles. Cash Flow should be calculated using the
"Statement of Cash Flows" included in the Schedule N-3c described as
line item "Net Cash Provided (Used) By Operating Activities" for last
two preceding calendar years from the submission date of the
application.

[]{#__RefHeading___Toc75315630 .anchor}***[BOARD RESOLUTION (Schedule
J)]{.underline}***

A Board of Directors' resolution or other document authorizing the
funding request should be included as Schedule J.

[]{#__RefHeading___Toc75315631 .anchor}***[RESEARCH DATA AND MARKET
ANALYSIS (Schedules K-1 and K-2)]{.underline}***

Market research is critical in determining the interest and demands of
the targeted communities for the services offered. This research
provides the applicant with knowledge of market potential, an
understanding of competition, and knowledge of the needs/demands of the
potential customer base. But most important market research supports
feasibility studies and strategic planning goals.

Therefore, a market survey, satisfactory to RDUP, shall be conducted by
the applicant in ***each*** community proposed to be served over the
5-year forecast period. The market survey will collect data from
potential subscribers (both residential and business) on the existing
service offerings and the respective rates to determine the levels of
interest in the services and rate plans to be offered by the applicant.

>  

Market surveys can be conducted through the following mediums:

>  
>
> 1.      Direct mail;
>
> 2.      Telephone;
>
> 3.      Door-to-door interviews; and
>
> 4.      Town Meetings
>
> i)     Coordination with local government officials
>
> ii)    Coordination with local Chamber of Commerce

iii\) Announcements by local TV, radio, and newspapers

The applicant must capture a representative sample of both the
residential and business sectors of each community proposed to be served
over the 5-year loan forecast period regardless of whether the
communities are being funded by loan funds or other sources.

The survey questionnaire used for conducting the market survey should,
at a minimum, capture the following information:

>  
>
> 1\. Ownership of computers and Internet usage (including time online);
>
> 2\. Existing service provider, rate plans (both price and transmission
> rate), satisfaction with current provider;
>
> 3\. Proposed services offered by applicant, the respective rate plans
> (including any one-time fees), and the timeline for providing those
> services;
>
> 4\. Incentive/introductory packages offered by the applicant;
>
> 5\. Interest in switching service providers and reasons for switching
> (price, service level, customer service/local presence); and
>
> 6\. Economic and social demographics including age, income level, and
> family/household members.

+-----------------------------------------------------------------------+
| Market surveys will only be accepted if they were conducted within    |
|                                                                       |
| 6 months preceding the date of submission of the application to RDUP. |
+-----------------------------------------------------------------------+

***[Research Data and Market Analysis (Schedule K-1 and K-2)
Continued]{.underline}***

**[A. Research Data (Schedule K-1)]{.underline}**

Schedule K-1 shall contain the methodology for conducting the market
survey and the tabulated results for each community.

The results shall include:

1.  Total number of surveys sent;

2.  Total number of respondents;

3.  Number and percent of responses to each question; and

4.  Cross-tabulations for income levels, computer ownership, Internet
    usage.

The applicant shall include a copy of the questionnaire used in the
market survey.

**[B. Market Analysis (Schedule K-2)]{.underline}**

Schedule K-2 shall contain an analysis of the research data.

The applicant will draw conclusions regarding projected subscriber
levels across the different service levels/rates for each community for
each year of the financial forecast. The results will clearly
differentiate business subscribers from residential subscribers. The
results will be based on the tabulated data from the market survey, as
well as other market data gathered with respect to existing and
potential competition, and demographics of each community.

The results shall be for each community taking into account each
community's individual circumstances and shall be based on the number of
households/businesses in each community and not the population of the
community.

The applicant must clearly explain the methodology behind the final
subscriber projections. Subscriber projections based on population
numbers and national/state statistics are not acceptable on their own.
Projections must be supported from the research data provided in this
section.

[]{#__RefHeading___Toc75315632 .anchor}***[BUSINESS PLAN (Schedule
L)]{.underline}***

**It is management's responsibility to present the business plan of the
project. The discussions below provide only a guide to indicate some of
the information RDUP can require in order to make a loan
determination.**

**The business plan should include:**

A. General Overview

> 1\. How loan funds will be used -- This section should describe the
> use of the funding request and support how the broadband investment
> will provide services that will meet the needs of the RDUP program and
> the targeted rural communities.
>
> 2\. Detail of sufficient working capital -- The business plan must
> detail the working capital requirements of the business throughout the
> construction and the five-year project period. It must be clearly
> substantiated that the business will meet its projections, supported
> by the market analysis, meet its operating expenses through the
> ramp-up periods and maintain profitability.
>
> 3\. Investments in the company -- This section should describe the
> investments made for the proposed project. In conjunction with the
> above two narratives, the capital investment in the project must
> support the total capital required including the investments in the
> project, working capital, and the complete financial needs of the
> proposed project.
>
> 4\. Management -- This section should include management's narrative
> of its past performance and the company's ability to meet the
> oversight and management of the additional business in the proposal.

B. A statement of the business purposes

> 1\. Services/goods the company intends to offer -- This section should
> include the details of the goods and services the proposal will
> provide to the rural communities. Include all package programs,
> pricing objectives and service strategies. This section should
> describe highlights or features that will attract rural community
> customers to subscribe to your offerings.
>
> 2\. Current state of development of goods and services -- This section
> should detail the current state of your offerings and any necessary
> plans, investments and developments required to bring the proposed
> project to the market.
>
> 3\. Status of licenses/regulatory approvals required to conduct
> business must be described including all terms and conditions that
> support your offerings. All supporting documentation and agreements
> must be provided in Schedules T-1 through T-7.

***[Business Plan (Schedule L) Continued]{.underline}***

C. Evaluation of main competitors

> Detail the companies competing in your target markets, provide
> comparisons of service offerings and pricing, and describe the quality
> of services. Any details on the investments competitors have made will
> be important.

D. An analysis of the market for the applicant's business

> 1\. A description of the primary market
>
> a\. Geographic area to be served should agree with the rural
> communities detailed in Schedule D-2.
>
> b\. Factors affecting market growth should be described including how
> they will impact your plans, and how you will mitigate risks and
> penetrate the current markets.
>
> 2\. Include in this section the current status, prospects, and trends
> influencing the industry that your target communities should consider.
>
> 3\. The customers you are targeting should be detailed including the
> key factors that influence their service selection decisions. This
> should be substantiated from your market analysis.
>
> 4\. Product pricing -- This section should describe your pricing
> strategy and your pricing goals for the short- and long-term. This
> section should show your ramp-up and your market share.
>
> 5\. Advertisement and Promotion (How your business will reach the most
> customers and deter competitors) -- This section should describe your
> approach to advertisement and promotion of services. It should include
> a description of your advertisement and promotions strategy, your
> marketing plan, the cost to execute your marketing plan, and the
> messages you will provide to your target markets. It should compare
> your marketing approach to the current marketing programs competitors
> are pursuing or are likely to pursue.

E. Detailed Financial Information in Schedules N-1 through N-5 -- This
section should include management's narrative presentation of the
financial position of the company (include its parent and subsidiary
financial considerations when applicable). This section should include
financial ratio analysis and management's review and understanding of
its financial commitments.

> 1\. Refinancing: For broadband loans that include funds to refinance
> an outstanding telecommunications loan made under the RE Act, the
> applicant must provide satisfactory

***[Business Plan (Schedule L) Continued]{.underline}***

> evidence for RDUP to determine that the benefits realized from the
> refinancing will further enhance broadband service in rural areas. The
> amount requested for refinancing cannot exceed 40% of the requested
> loan amount. The applicant should also include the details of the
> notes that are being proposed to be refinanced.
>
> 2\. Acquisitions: For broadband loans that include funds to acquire
> facilities, the applicant must provide satisfactory evidence for RDUP
> to determine that the acquisition is necessary and incidental to
> furnishing or improving broadband service in rural areas. Applicants
> must submit an appraisal, for the facilities to be acquired, from a
> qualified entity to determine the reasonableness of the acquisition
> price. This appraisal should be attached to Schedule Q-11, Breakdown
> of Acquisition Cost.

[]{#__RefHeading___Toc75315633 .anchor}***[MANAGEMENT AND COMPENSATION
(Schedule M)]{.underline}***

This schedule should include information on the management or key
personnel that will be in charge of the project. At a minimum, the
following information should be provided:

-   Duties and responsibilities

-   Experience

-   Salaries

-   Stock Ownership

-   Bonus Plans

-   Individual Equity Investments

In addition, the following two questions should also be addressed in
this Schedule:

-   Has management worked together?

-   How do management skills complement each other?

    []{#__RefHeading___Toc75315634 .anchor}***[FINANCIAL POSITION
    (Schedules N-1 through N-5)]{.underline}***

RDUP will approve a loan only if, in RDUP's sole judgment, the loan will
be repaid according to its terms and within the time agreed upon. It is
the applicant's responsibility to provide RDUP with sufficient financial
information to determine that the loan will be feasible and adequately
secured. Long-term forecast analysis should be based on knowledge of the
external and internal factors that affect a company's operations.
Historical and projected financial statements should be prepared by a
consultant, accountant or individual familiar with preparing these types
of financial statements. If

***[Financial Position (Schedules N-1 through N-5)
Continued]{.underline}***

your organization chooses someone outside of a consultant or accountant,
that individual's qualifications, indicating their ability to prepare
such financial statements, should be included with the application.

A.  [Historical Financial Statements (Schedule N-1)]{.underline}

> Certified financial statements of the applicant for the last three (3)
> years, or for as long as the applicant has been in business if less
> than three (3) years, must be provided. The financial statements must
> include the balance sheet, income statement and statement of cash
> flow. If at all possible, please include audited financial statements.
>
> The historical financial statements of the parent company and/or
> subsidiary company are also required. If another affiliated or
> unaffiliated company is providing operations and management services
> to the applicant, that company's historical financial statements
> should also be included.
>
> In this section, you should also provide evidence of the credit
> support and/or cash requirement that was addressed in Schedule I.
> Evidence of existing assets can be obtained from the historical
> balance sheet. Evidence of the cash requirement can be in the form of
> firm commitments from entities providing the cash (along with
> financial statements indicating their ability to meet the requirement)
> or bank statements indicating that the cash is available.

B.  [Subscriber Projection Tables (Schedule N-2A to N-2C)]{.underline}

> Subscriber projections shall be provided on a yearly basis for five
> (5) years. The subscriber projections must be broken down by community
> (both existing and proposed as shown on Schedule D-1) and by the type
> of services offered. THE PROJECTIONS MUST CORRESPOND WITH THE RESULTS
> OBTAINED FROM THE MARKET ANALYSIS. If broadband service is proposed to
> be offered in a "green field" area, the application must include
> information that justifies the subscriber penetration rates since no
> market information is available.
>
> Sample tables have been provided to serve as a guide for the type of
> information that is required. Feel free to add additional lines,
> columns, etc. as needed. A separate table shall be included in
> Schedule N-2 for each type of service proposed (data, voice, and
> video).

C.  [Pro Forma 5-Year Financial Forecast (Schedule N-3A to
    N-3D)]{.underline}

> This forecast must cover at least 5 years and be inclusive of
> **[ALL]{.underline}** operations of the applicant, existing and
> proposed. It should be detailed, taking into account your best
> estimates for start-up costs (if any), revenues, expenses, ability to
> make a profit and all financial data related to any subsidiaries. The
> financial forecast must include a balance sheet, income statement,
> statement of cash flow and detailed assumptions.
>
> Samples of each statement have been provided as a guide for format as
> well as content. The account categories shown on the samples were
> based on the Uniform System of Accounts (USOA) which is required for
> use by existing RDUP Telecommunications Borrowers. At the

***[Financial Position (Schedules N-1 through N-5)
Continued]{.underline}***

> time of application, it is not required for applicants to follow the
> USOA; however, it would be very helpful if the historical and
> projected financial information is presented in similar fashion.

+--------------------------------+-------------------------------------+
| [Revenues to                   | [Expenses to Consider:]{.underline} |
| Consider:]{.underline}         |                                     |
|                                | ♦ Cost of Goods Sold                |
| ♦ Broadband Revenues           |                                     |
|                                | ♦ Access Fees                       |
| \- cable modem                 |                                     |
|                                | ♦ Programming Expenses              |
| \- DSL                         |                                     |
|                                | ♦ Cable and Spectrum Leases         |
| \- Wireless                    |                                     |
|                                | ♦ Connecting Company Fees           |
| ♦ Sales Revenues               |                                     |
|                                | ♦ Depreciation Expense              |
| ♦ Cablevision Revenues         |                                     |
|                                | ♦ Interest Expense                  |
| ♦ Telecom Revenues             |                                     |
|                                | ♦ Salaries/Payroll Expenses         |
| \- Local and Long Distance     |                                     |
|                                | ♦ Rent/Leases                       |
| ♦ Dial-Up Internet Revenues    |                                     |
|                                | ♦ Miscellaneous                     |
| ♦ Access/Connecting Company    |                                     |
| Revenues                       | \- Utilities - Advertising          |
|                                |                                     |
| ♦ Web Hosting/Storage Revenues | \- Supplies - Maintenance           |
|                                |                                     |
| ♦ Any Other Related and        | \- Insurance - Professional Fees    |
| Non-Related                    |                                     |
|                                | \- Taxes                            |
| Revenues                       |                                     |
|                                | ♦ Management Agreement Expenses     |
|                                |                                     |
|                                | ♦ Any Other Related and Non-Related |
|                                |                                     |
|                                | Expenses                            |
+--------------------------------+-------------------------------------+

> The detailed assumptions must be in narrative format. They must
> clearly address each revenue and expense line item. When reviewing the
> assumptions, RDUP must have a clear picture of exactly how the figures
> were derived. We must be able to use your assumptions and recreate
> your projected revenues and expenses through the 5-year forecast
> period. Sample assumptions are provided in Attachment 1 to this guide.
>
> **NOTE:** In order to determine feasibility, RDUP will require the
> applicant to achieve a projected TIER of at least 1.25 by the end of
> the forecast period. *TIER* is defined in the regulation and means
> Times Interest Earned Ratio. TIER is the ratio of an applicant's net
> income (after taxes) plus interest expense, all divided by interest
> expense. For the purpose of this calculation, all amounts will be
> annual figures and interest expense will include only interest on debt
> with a maturity greater than one year.

D.  [Depreciation Schedule (Schedule N-4)]{.underline}

> A depreciation schedule should be provided as Schedule N-4. This
> schedule should list all the different categories of equipment and
> facilities in the "Total Project Cost" column on schedule Q-1, Summary
> of Project Costs, and the expected useful life. The useful life should
> be based on the manufacturers' recommended useful life.

***[Financial Position (Schedules N-1 through N-5)
Continued]{.underline}***

E.  [Total Outstanding Indebtedness (Schedule N-5)]{.underline}

> [Existing RDUP Indebtedness]{.underline}
>
> Include a listing of all outstanding RDUP indebtedness, including loan
> maturity and interest rates.
>
> [Existing Non-RDUP Indebtedness]{.underline}
>
> Include a listing of outstanding non-RDUP indebtedness, including loan
> maturity, interest rates and conditions. Also, include as part of this
> schedule a copy of all loan documents related to non-RDUP indebtedness
> (notes, loan contracts, mortgages, etc.).

[]{#__RefHeading___Toc75315635 .anchor}***[SYSTEM DESIGN (Schedule
O)]{.underline}***

> The System Design of the application shall include all the technical
> information on the applicant's existing and proposed systems. The
> following information shall be included in this schedule:

1.  A description of the applicant's existing service area (if any) and
    the proposed service area.

2.  A description of the types of services to be provided (data, voice,
    video, etc.) and the number of subscribers projected for each type
    of service over the 5-year forecast period.

3.  A detailed description of the type of technology to be used to
    deliver the broadband services. If more than one technology is
    proposed in the application, then this description should clearly
    state which technologies will be used in each community. This
    description should also address distance or coverage limitations
    with the proposed technology.

4.  A detailed description of the applicant's existing system (if any).
    This description should be inclusive of the applicant's entire
    system and not just the broadband portion. The "Existing Network
    Diagram" provided in Schedule P should correlate with this
    description.

5.  A detailed description of the proposed system to be built over the
    5-year forecast period with loan funds and other sources of funding.
    This description should correlate with the "Proposed Network
    Diagram" provided in Schedule P.

6.  A description of all the licenses/agreements required to operate the
    proposed system. These licenses/agreements shall be included as
    Schedules S and T.

7.  A proposed build-out schedule on an annual basis.

    ***[System Design (Schedule O) Continued]{.underline}***

> Systems Design Certification - The System Design may be prepared by
> qualified personnel on the applicant's staff or by consultants. If the
> applicant chooses a consultant that is not a registered engineer
> licensed in the state in which the facilities will be constructed, the
> applicant will need to have a registered engineer, licensed in the
> state, certify that the proposed System Design will be capable of
> delivering the proposed broadband services. Also, consulting services
> shall be obtained only from persons or firms who are not affiliated
> with, and have not represented, a contractor, vendor or manufacturer
> who may provide labor, materials, or equipment to the applicant for
> projects included in the loan application. If the applicant has
> qualified personnel on staff to complete the preloan services, copies
> of the staff's qualifications must be included as part of the
> application and must clearly demonstrate the staff's ability to
> complete the System Design.

[]{#__RefHeading___Toc75315636 .anchor}***[NETWORK DIAGRAMS (Schedule
P)]{.underline}***

Existing and proposed network diagrams shall be included in the
application as Schedule P. The network diagrams shall be block diagrams
that clearly show how the traffic flows through the network from the
interconnection points with the backbone service providers to the end
user. The diagram must clearly show all the network elements, the route
miles between each network element, the types of facilities used in
connecting all the network elements together (fiber, copper, microwave,
etc.), and the points-of-connection with the backbone service providers.
For wireless systems, the network diagram shall also show the
approximate coverage area for each access point. Sample network diagrams
are provided as Attachment 2 at the end of this guide.

[]{#__RefHeading___Toc75315637 .anchor}***[PROJECT COSTS (Schedules Q1
through Q-11)]{.underline}***

1.  Schedule Q-1 shall be a summary of the total cost of the project. It
    shall be based on the total amounts from Schedules Q-2 through Q-11.

```{=html}
<!-- -->
```
4.  Schedule Q-1A shall be a summary of the total project cost
    (excluding refinancing and acquisition) broken down on an annual
    basis.

5.  Schedule Q-2 shall be a detailed breakdown of the Network & Access
    Equipment Cost. Examples of the items to be included on this
    schedule are next-generation switches, video headends, optical
    equipment, digital line concentrators, digital subscriber line
    access multiplexers, middleware, video-on-demand equipment, radio
    equipment, data routing equipment, etc.

6.  Schedule Q-3 shall be a detailed breakdown of the Outside Plant
    Costs. Examples of the items to be included on this schedule are
    cable (aerial, buried, underground, and submarine), conduit systems,
    poles, network interface devices (NIDs), miscellaneous construction
    units, make-ready costs for aerial plant, etc.

7.  Schedule Q-4 shall be a detailed breakdown of Building Costs. This
    schedule shall include the cost of constructing new buildings,
    renovating existing buildings, and any site preparation cost
    involved with installing pad-mounted equipment.

    ***[Project Costs (Schedule Q-1 through Q-11)
    Continued]{.underline}***

8.  Schedule Q-5 shall be a detailed breakdown of the Land Costs. This
    schedule shall only include those sites that will be purchased by
    the applicant.

9.  Schedule Q-6 shall be a detailed breakdown of the Tower Costs. This
    schedule shall include the cost for the construction of new towers
    and any costs involved with structural changes to existing towers.
    Site engineering and project management costs should not be included
    in this schedule; they should be included on Schedule Q-9, Breakdown
    of Engineering Costs.

10. Schedule Q-7 shall be a detailed breakdown of Customer Premise
    Equipment. Examples of the items to be included in this section are
    wireless subscriber units, modems, set-top boxes, etc.

11. Schedule Q-8 shall be a detailed breakdown of the Operating
    Equipment cost. This shall be broken down into different categories
    (Office Equipment, Office Furniture, Work Equipment, and Vehicles).

12. Schedule Q-9 shall be a breakdown of all the different engineering
    costs (site engineering, Radio Frequency engineering, network
    engineering, project management, etc.) involved in designing and
    constructing the proposed project.

13. Schedule Q-10 shall be a breakdown of the notes that are requested
    to be refinanced in the loan.

14. Schedule Q-11 shall be a breakdown of the acquisition cost.

**Note:** Schedules Q-2 through Q-7 shall be provided on a community
basis for wireline systems and site basis for wireless systems.

[]{#__RefHeading___Toc75315638 .anchor}***[ENVIRONMENTAL REPORT
(Schedule R)]{.underline}***

RDUP is responsible for implementing the requirements of the National
Environmental Policy Act of 1969 (NEPA), as amended; the Council on
Environmental Quality Regulations for Implementing the Procedural
Provisions of NEPA and certain related Federal environmental laws,
statutes, regulations, and Executive Orders (EO) that apply to RDUP
programs. The policies and procedures set forth in 7 CFR Part 1794 --
Environmental Policies and Procedures, assist RDUP with making decisions
that are based on an understanding of environmental consequences, and
taking action that protects, restores and enhances the environment.

Applicants are responsible for ensuring that proposed actions are in
compliance with all appropriate RDUP requirements. Therefore, applicants
must prepare an environmental report in accordance with 7 CFR Part 1794,
for any facilities that will be constructed with RDUP broadband loan
funds. A copy of 7 CFR Part 1794 can be retrieved from RDUP's web site.

***[Environmental Report (Schedule R) Continued]{.underline}***

The link for this regulation is
<http://www.usda.gov/rus/water/ees/pdf/1794.pdf> . In addition,
applicants can also retrieve the *Guide for Preparing an Environmental
Report for Categorically Excluded Projects* to assist in the preparation
of the Environmental Report. The link for this guide is
<http://www.usda.gov/rus/telecom/publications/word_files/1794a600.doc>.

[]{#__RefHeading___Toc75315639 .anchor}**[TOWER, EQUIPMENT AND BUILDING
LEASES (Schedule S)]{.underline}**

Executed copies of all tower, equipment, and building leases shall be
included as Schedule S.

[]{#__RefHeading___Toc75315640 .anchor}***[LICENSES AND AGREEMENTS
(Schedules T-1 through T-7)]{.underline}***

> A. FCC LICENSES: (Attach as Schedule T-1)
>
> B. CLEC LICENSES: (Attach as Schedule T-2)
>
> C. FRANCHISE AGREEMENTS: (Attach as Schedule T-3)
>
> D. INTERCONNECTION AGREEMENTS: (Attach as Schedule T-4)
>
> E. MANAGEMENT / SERVICE AGREEMENTS: (Attach as Schedule T-5)
>
> F. BYLAWS or OPERATING AGREEMENTS: (Attach as Schedule T-6)
>
> G. OTHER MAJOR AGREEMENTS: (Attach as Schedule T-7)
>
> As part of F above - Bylaws or Operating Agreements. If an applicant
> is an LLC, and any of the applicant's members are also LLCs, the
> applicant must submit either of the following:

1.  LLC agreements for all members of the applicant's LLC, or

2.  An opinion of counsel which certifies that the applicant's agreement
    does not conflict with any of the LLC agreements of the applicant's
    members.

    []{#__RefHeading___Toc75315641 .anchor}***[GUARANTEED LOANS
    (Schedules U-1 and U-2)]{.underline}***

For Guaranteed Loan Applications, complete the following as Schedule
U-1:

1\. Name of Financial Institution providing the Loan

2\. Address

3\. Financial Institution Contact Person's Name, Phone Number and Email
Address

The loan contract should be included as Schedule U-2.

**[ATTACHMENT 1]{.underline}**

[]{#__RefHeading___Toc75315642 .anchor}**[SAMPLE ASSUMPTIONS FOR PRO
FORMA FINANCIAL STATEMENTS]{.underline}**

**[PLEASE NOTE: This is just a sample method of providing an explanation
of all revenue and expense items shown on the pro forma financial
statements. This sample format will not "fit" for all entities -- it is
only provided as guidance. Feel free to deviate from this sample as
required, ensuring that detailed explanations are included as to how the
projected revenues and expenses were derived.]{.underline}**

**[Revenues]{.underline}:**

1.  **Local Network Access Revenues** are derived from the provision of
    service entirely within the basic service area. Local revenues also
    include optional calling features such as call waiting. The
    following information supports the local network access revenues
    that are included in this pro forma:

> Average \$10.00/month per access line x 100 average residential
> subscribers x 12 months
>
> Average \$20.00/month per access line x 50 average business
> subscribers x 12 months
>
> The access lines reflect an estimated growth rate of 1.0% per year.
>
> Optional features were also included in the local network access
> revenues as follows:
>
> Residence Package -- 40% of access lines @ \$8.00 per access line per
> month
>
> Business Package -- 50% of access lines @ \$15.00 per access line per
> month

2.  **Network Access Revenues** are derived from the provision of
    exchange service to an interexchange carrier beyond the exchange
    carrier's network. These revenues are generated based on the
    interexchange carrier's Access Minutes of Use (AMOU) with ABC
    Telcom's access tariff rates applied to these minutes. The following
    information supports the network access revenues that are included
    in this pro forma:

> Network Access Revenues were based on the assumption that ABC Telcom's
> Intrastate and Interstate access tariff rates will mirror the RBOC's
> Intrastate and Interstate access tariff rates. Assuming the calling
> patterns of these proposed communities will be similar to the calling
> patterns of a company with similar characteristics, the actual AMOU
> per access line data from a similar company is applied to the access
> lines projected in this application to calculate the total AMOU. The
> total AMOU split between intrastate and interstate is based upon the
> jurisdictional split between intrastate and interstate of a similar
> company. ABC Telcom's intrastate and interstate tariff rates are
> applied to all originating and terminating AMOU. An annual growth
> factor of 1% is applied to the AMOU.

***[Attachment 1 Sample Assumptions Continued]{.underline}***

> Network access revenues also include end user charges of \$5.38 for
> residence and single line business subscribers and \$5.90 for
> multi-line subscribers. These rates were increased each year until
> they reached a cap of \$6.50 for residence and single line business in
> Year 3 and a cap of \$9.20 for multi-line business in Year 5. It was
> assumed that one-half of the business access lines were multi-line
> subscribers.

3.  **High Speed Internet Service Revenues** are derived from offering
    Digital Subscriber Line (DSL) technology. The service rates for DSL
    service are included in this pro forma as follows:

> Residential Subscribers - \$39.99 per subscriber per month
>
> Business Subscribers - \$59.99 per subscriber per month
>
> Dial-Up Internet Service revenues are also included in this pro forma.
> The service rates are included as follows:
>
> Residential Subscribers - \$15.00 per subscriber per month
>
> Business Subscribers - \$15.00 per subscriber per month

4.  **Miscellaneous Revenues** include other operating revenues derived
    from activities performed incident to the company's tariffed
    operations which are included in the regulatory process such as
    inside wire maintenance revenues.

5.  **Uncollectible Revenues** reflect an uncollectible factor of 3% of
    all revenues for each year of the pro forma.

**[Expenses:]{.underline}**

1.  **Plant Specific Operations Expense** includes the cost of
    inspecting, testing, reporting on the condition of plant, performing
    routine work to prevent trouble, replacing items of plant, repairing
    materials, receiving training to perform these kinds of work,
    supervising costs, etc. The following information supports the plant
    specific operations expenses included in this pro forma:

> Beginning in Year 1, the Plant Specific Operations Expense includes 1
> new outside plant technician at \$35,000 each annually, 1 new
> electronics technician at \$45,000 each annually, excluding benefits.
> Benefits are added for plant personnel at 25% of the annual salary.
>
> In subsequent years, 1 outside plant tech is assumed per 2,000 access
> lines, and 1 electronics tech is assumed per 4,000 access lines.
> Vehicle costs are estimated at \$400 per month, and 1 vehicle is
> estimated per outside plant tech. Wage related expense growth is
> estimated at 3.0% annually.

***[Attachment 1 Sample Assumptions Continued]{.underline}***

> In addition to the labor related plant specific operations expenses
> listed above, there are expenses included for facilities being leased.
> Dark fiber, wholesale internet access, internet addressing services,
> office equipment, collocation and interconnection will be leased.
>
> Dark fiber leasing is estimated to have initial setup costs of
> \$2,000.00 per strand of fiber and monthly recurring costs of \$425.00
> per strand.
>
> Wholesale access to the internet will be leased at a DS-3 rate for an
> estimated \$4,000 per month, and internet addressing services will be
> estimated at \$3,000 per year.
>
> Office Equipment leasing is included at \$500 per month.
>
> Collocation expense is included at \$900.00 per month.

2.  **Plant Nonspecific Operations Expense** includes provisioning
    expense, network operations expenses and cost of supervision for
    these activities. The following information supports the plant
    nonspecific operations expenses that are included in the pro forma:

> Power expense is estimated at \$300/month = \$3,600 per year

3.  **Depreciation and Amortization Expenses** are based upon the
    following annual rates:

> Vehicles -- 20.0%
>
> Buildings -- 3.0%
>
> Central Office Equipment -- 15.0%
>
> Cable Plant -- 4.5%
>
> Organization -- 10.0%

4.  **Customer Operations Expense** includes the cost of performing
    customer related marketing and services, and the cost of supervision
    for these activities are also included. The following information
    supports the customer operation expenses that are included in the
    pro forma.

> Beginning in Year 1, labor expense includes 1 new customer service
> representative at \$32,000 annually, excluding benefits. Benefits are
> added for personnel at 35% of the annual salary. In subsequent years,
> it is assumed that 1 customer service rep will be needed for each
> 2,500 access lines.
>
> Other Customer Services Expense -- Estimated rate per access line per
> month = \$1.50
>
> Marketing and Advertising Costs -- Initial per access line per year
> (Years 1 & 2) = \$25.00
>
> Marketing and Advertising Costs are reduced 50% at Year 3 and
> increased
>
> by 3% thereafter
>
> Wage Related Expense Growth = 3.0% annually
>
> This study assumes that the applicant will be paying for billing and
> collection services.

***[Attachment 1 Sample Assumptions Continued]{.underline}***

5.  **Corporate Operations Expense** includes the cost of performing
    executive and planning activities and general and administrative
    activities, and the cost of supervision for these activities are
    also included. The following information supports the corporate
    operations expenses included in the pro forma:

> Labor expense includes 0.50 new accountants at \$50,000 each annually,
> 1 President at \$80,000 annually, 1 Manager of Operations at \$60,000
> annually, excluding benefits. Benefits are added for personnel at 35%
> of the annual salary. Professional services include legal, accounting,
> and consulting costs. Miscellaneous corporate operations expense is
> estimated at \$400 per month, and include professional memberships,
> corporate travel, office supplies, etc.
>
> Vehicle costs are estimated at \$350 per month. It is assumed that 1
> vehicle will be needed for the President.
>
> Wage related expense growth = 3.0% annually

6.  **Property Tax and Federal Income Tax Expenses** are included in the
    pro forma. Property taxes are estimated at 2.5% of the net property.

7.  **Interest Expense** has been calculated at 5.50% over a loan term
    of 17 years.

**[ATTACHMENT 2a]{.underline}**

![](media/image2.wmf)Sample Network Diagrams - Wireline

[]{#refheading___toc75315643 .anchor}**[ATTACHMENT 2b]{.underline}**

[]{#__RefHeading___Toc75315645 .anchor}![](media/image3.wmf)Sample
Network Diagrams - Wireless

**[ATTACHMENT 3]{.underline}**

[]{#__RefHeading___Toc75315646 .anchor}**POINTS OF CONTACT - BROADBAND
TEAM**

**Phone: (202) 690-4673**

**Fax: (202) 690-4389**

> *[DIRECTOR:]{.underline}*
>
> Kenneth Kuchno
>
> [kenneth.kuchno@usda.gov]{.underline}
>
> *[OPERATIONS/FINANCIAL:]{.underline}*
>
> Wanda Lloyd
>
> <wanda.lloyd@usda.gov>
>
> Deb Jackson
>
> <deborah.jackson@usda.gov>
>
> Pamela Bennett
>
> <pamela.bennett@usda.gov>
>
> *[ENGINEERING:]{.underline}*
>
> Farwa Naqvi
>
> <farwa.naqvi@usda.gov>
>
> Melanie Umstead
>
> <melanie.umstead@usda.gov>

**[ATTACHMENT 4]{.underline}**

**GENERAL FIELD REPRESENTATIVES**

**TELECOMMUNICATIONS PROGRAM**

**[NORTHERN DIVISION]{.underline} [STATES COVERED]{.underline}**

+---------------------------------------+------------------------------+
| Wayne A. Ahlgren                      | North Dakota, Western South  |
|                                       | Dakota                       |
| 4825 East Roundup Road                |                              |
|                                       |                              |
| Bismarck, ND 58503-8923               |                              |
|                                       |                              |
| \(701\) 258-7508                      |                              |
|                                       |                              |
| wayne.ahlgren@usda.gov                |                              |
+---------------------------------------+------------------------------+
| Kim Anderson                          | Eastern South Dakota &       |
|                                       | Northwest Iowa               |
| P.O. 914                              |                              |
|                                       |                              |
| Brandon, SD 57005                     |                              |
|                                       |                              |
| \(605\) 582-2065                      |                              |
|                                       |                              |
| kim.anderson@usda.gov                 |                              |
+---------------------------------------+------------------------------+
| Jock S. Aplin                         | Iowa, excluding Northwest    |
|                                       | Iowa                         |
| 7 Sandpiper Drive,                    |                              |
|                                       |                              |
| Blue grass, IA 52726                  |                              |
|                                       |                              |
| \(563\) 381-2638                      |                              |
|                                       |                              |
| jock.aplin@usda.gov                   |                              |
+---------------------------------------+------------------------------+
| Donald Couzens                        | Michigan                     |
|                                       |                              |
| P.O. Box 635                          |                              |
|                                       |                              |
| Holt, MI 48842                        |                              |
|                                       |                              |
| \(517\) 676-9031                      |                              |
|                                       |                              |
| donald.couzens@usda.gov               |                              |
+---------------------------------------+------------------------------+
| Steve G. Coyner                       | Northern Wisconsin           |
|                                       |                              |
| P.O. Box 8065                         |                              |
|                                       |                              |
| Eau Claire, WI 54702-8065             |                              |
|                                       |                              |
| \(715\) 833-2415                      |                              |
|                                       |                              |
| steve.coyner@usda.gov                 |                              |
+---------------------------------------+------------------------------+
| Allen D. DeForest                     | Illinois and Indiana         |
|                                       |                              |
| 5523 South Cardwell Road              |                              |
|                                       |                              |
| Bloomington, IN 47403                 |                              |
|                                       |                              |
| \(812\) 825-3727                      |                              |
|                                       |                              |
| allen.deforest@usda.gov               |                              |
+---------------------------------------+------------------------------+
|                                       |                              |
+---------------------------------------+------------------------------+
|                                       |                              |
+---------------------------------------+------------------------------+
|                                       |                              |
+---------------------------------------+------------------------------+
|                                       |                              |
+---------------------------------------+------------------------------+
| ***[Attachment 4 General Field        |                              |
| Representatives                       |                              |
| Continued]{.underline}***             |                              |
+---------------------------------------+------------------------------+
| **[NORTHERN DIVISION                  | **[STATES                    |
| CONT'D]{.underline}**                 | COVERED]{.underline}**       |
+---------------------------------------+------------------------------+
|                                       |                              |
+---------------------------------------+------------------------------+
| Mike Dolezal                          | Idaho, Eastern Oregon and    |
|                                       | Eastern Washington           |
| PO Box 14                             |                              |
|                                       |                              |
| Chester, ID 83421                     |                              |
|                                       |                              |
| \(208\) 624-1401                      |                              |
|                                       |                              |
| mike.dolezal@usda.gov                 |                              |
+---------------------------------------+------------------------------+
| P. Greg Fritts                        | Missouri                     |
|                                       |                              |
| P.O. Box 1058                         |                              |
|                                       |                              |
| Columbia, MO 65205-1058               |                              |
|                                       |                              |
| \(573\) 449-0007                      |                              |
|                                       |                              |
| greg.fritts@usda.gov                  |                              |
+---------------------------------------+------------------------------+
| Dominic A. Henderson                  | Northern Minnesota           |
|                                       |                              |
| 29367 Surfland Road                   |                              |
|                                       |                              |
| Merrifield, MN 56465-4371             |                              |
|                                       |                              |
| \(218\) 765-3854                      |                              |
|                                       |                              |
| dominic.henderson@usda.gov            |                              |
+---------------------------------------+------------------------------+
| Gary Honis                            | Delaware, Maryland, New      |
|                                       | Jersey, New York, Eastern    |
| P.O. Box 861                          | Pennsylvania                 |
|                                       |                              |
| Conyngham, PA 18219                   |                              |
|                                       |                              |
| \(570\) 788-0908                      |                              |
|                                       |                              |
| gary.honis@usda.gov                   |                              |
+---------------------------------------+------------------------------+
| Kim Jacobs                            | Wyoming, Montana             |
|                                       |                              |
| 1149 Road 8                           |                              |
|                                       |                              |
| Powell, WY 82435-8556                 |                              |
|                                       |                              |
| (307)-754-9000                        |                              |
|                                       |                              |
| kim.jacobs@usda.gov                   |                              |
+---------------------------------------+------------------------------+
| Wayne Jorewicz                        | Southern Wisconsin           |
|                                       |                              |
| P.O. Box 519                          |                              |
|                                       |                              |
| Baraboo, WI 53913                     |                              |
|                                       |                              |
| \(608\) 356-4151                      |                              |
|                                       |                              |
| wayne.jorewicz@usda.gov               |                              |
+---------------------------------------+------------------------------+
| Stephen M. McKenzie                   | Connecticut, Maine,          |
|                                       | Massachusetts, New           |
| P.O. Box 474                          | Hampshire, Rhode Island,     |
|                                       | Vermont                      |
| Exeter, NH 03833                      |                              |
|                                       |                              |
| \(603\) 895-8433                      |                              |
|                                       |                              |
| steve.mckenzie@usda.gov               |                              |
+---------------------------------------+------------------------------+
|                                       |                              |
+---------------------------------------+------------------------------+
|                                       |                              |
+---------------------------------------+------------------------------+
| ***[Attachment 4 General Field        |                              |
| Representatives                       |                              |
| Continued]{.underline}***             |                              |
+---------------------------------------+------------------------------+
|                                       |                              |
+---------------------------------------+------------------------------+
| **[NORTHERN DIVISION                  | **[STATES                    |
| CONT'D]{.underline}**                 | COVERED]{.underline}**       |
+---------------------------------------+------------------------------+
|                                       |                              |
+---------------------------------------+------------------------------+
| Anthony Tindall                       | Southern Minnesota           |
|                                       |                              |
| 10320 Devonshire Circle, #211         |                              |
|                                       |                              |
| Bloomington, MN 55431                 |                              |
|                                       |                              |
| \(952\) 888-4456                      |                              |
|                                       |                              |
| anthony.tindall@usda.gov              |                              |
+---------------------------------------+------------------------------+
| Wesley Lannen                         | Alaska, Western Washington,  |
|                                       | & Western Oregon             |
| P.O. Box 2497                         |                              |
|                                       |                              |
| Battle Ground, WA 98604               |                              |
|                                       |                              |
| \(360\) 666-2741                      |                              |
|                                       |                              |
| wes.lannen@usda.gov                   |                              |
+---------------------------------------+------------------------------+
| Ronald Mellon                         | Ohio, Western Pennsylvania,  |
|                                       | and                          |
| 26 Tallman St., Unit 6                |                              |
|                                       | West Virginia                |
| North Lewisburg, OH 43060             |                              |
|                                       |                              |
| \(937\) 747-9441                      |                              |
|                                       |                              |
| ronald.mellon@usda.gov                |                              |
+---------------------------------------+------------------------------+
|                                       |                              |
+---------------------------------------+------------------------------+
|                                       |                              |
+---------------------------------------+------------------------------+
|                                       |                              |
+---------------------------------------+------------------------------+

***[Attachment 4 General Field Representatives Continued]{.underline}***

**[SOUTHERN DIVISION]{.underline} [STATES COVERED]{.underline}**

+-----------------------------------+-----------------------------------+
| Teri N. Baird                     | New Mexico, Colorado, Utah        |
|                                   |                                   |
| P.O. Box 547                      |                                   |
|                                   |                                   |
| Franktown, CO 80116               |                                   |
|                                   |                                   |
| \(303\) 646-5856                  |                                   |
|                                   |                                   |
| teri.baird@usda.gov               |                                   |
+-----------------------------------+-----------------------------------+
| Michael L. Becker                 | Southern Oklahoma                 |
|                                   |                                   |
| P.O. Box 1629                     | Northern Texas                    |
|                                   |                                   |
| Cedar Hill, TX 75106-1629         |                                   |
|                                   |                                   |
| \(972\) 780-7832                  |                                   |
|                                   |                                   |
| michael.becker@usda.gov           |                                   |
+-----------------------------------+-----------------------------------+
| Andre M. Boening                  | Nebraska, Northern Kansas         |
|                                   |                                   |
| 2351 Road 43                      |                                   |
|                                   |                                   |
| Linwood, NE 68036                 |                                   |
|                                   |                                   |
| \(402\) 543-2129                  |                                   |
|                                   |                                   |
| andre.boening@usda.gov            |                                   |
+-----------------------------------+-----------------------------------+
| Randall W. Brummitt               | South Carolina, Puerto Rico,      |
|                                   |                                   |
| P.O. Box 100                      | and U.S. Virgin Islands           |
|                                   |                                   |
| Wedgefield, SC 29168-0100         |                                   |
|                                   |                                   |
| \(803\) 481-7441                  |                                   |
|                                   |                                   |
| randall.brummitt@usda.gov         |                                   |
+-----------------------------------+-----------------------------------+
| Patrick D. Carey                  | North Carolina, Virginia          |
|                                   |                                   |
| P.O. Box 5347                     |                                   |
|                                   |                                   |
| Mooresville, NC 28117             |                                   |
|                                   |                                   |
| \(704\) 896-8402                  |                                   |
|                                   |                                   |
| patrick.carey@usda.gov            |                                   |
+-----------------------------------+-----------------------------------+
| Jose P. De Leon                   | Southern Texas                    |
|                                   |                                   |
| P.O. Box 151630                   |                                   |
|                                   |                                   |
| Austin, TX 78715                  |                                   |
|                                   |                                   |
| \(512\) 288-5820                  |                                   |
|                                   |                                   |
| jose.deleon@usda.gov              |                                   |
+-----------------------------------+-----------------------------------+
| Andrew E. Hayes                   | Florida and Georgia               |
|                                   |                                   |
| 50 Jim Alexander Road             |                                   |
|                                   |                                   |
| McDonough, GA 30253               |                                   |
|                                   |                                   |
| \(770\) 914-8643                  |                                   |
|                                   |                                   |
| andrew.hayes@usda.gov             |                                   |
+-----------------------------------+-----------------------------------+
|                                   |                                   |
+-----------------------------------+-----------------------------------+
|                                   |                                   |
+-----------------------------------+-----------------------------------+
| ***[Attachment 4 General Field    |                                   |
| Representatives                   |                                   |
| Continued]{.underline}***         |                                   |
+-----------------------------------+-----------------------------------+
|                                   |                                   |
+-----------------------------------+-----------------------------------+
| **[SOUTHERN DIVISION              | **[STATES COVERED]{.underline}**  |
| CONT'D]{.underline}**             |                                   |
+-----------------------------------+-----------------------------------+
|                                   |                                   |
+-----------------------------------+-----------------------------------+
| Harry M. Hutson                   | California, Arizona, Nevada       |
|                                   |                                   |
| P.O. Box 519                      |                                   |
|                                   |                                   |
| Litchfield Park, AZ 85340         |                                   |
|                                   |                                   |
| \(623\) 535-5450                  |                                   |
|                                   |                                   |
| harry.hutson@usda.gov             |                                   |
+-----------------------------------+-----------------------------------+
| Randy H. Jenkins                  | Southern Kansas, Northern         |
|                                   | Oklahoma, Federated States of     |
| 200 Montbella Circle              | Micronesia, Guam, Hawaii, CNMI,   |
|                                   | Republic of the Marshall Is.,     |
| Wichita, KS 67230                 | Republic of Palau                 |
|                                   |                                   |
| \(316\) 733-7604                  |                                   |
|                                   |                                   |
| randy.jenkins@usda.gov            |                                   |
+-----------------------------------+-----------------------------------+
| (Vacant)                          | Tennessee, Northwest Georgia      |
|                                   |                                   |
| Contact Ken B. Chandler           |                                   |
|                                   |                                   |
| Director, Southern Division       |                                   |
|                                   |                                   |
| \(202\) 720-0800                  |                                   |
+-----------------------------------+-----------------------------------+
| James E. Wilson                   | Kentucky                          |
|                                   |                                   |
| 3413 Montavesta Rd                |                                   |
|                                   |                                   |
| Lexington, KY 40502               |                                   |
|                                   |                                   |
| \(859\) 335-5483                  |                                   |
|                                   |                                   |
| james.wilson@usda.gov             |                                   |
+-----------------------------------+-----------------------------------+
| Joe D. Bradley                    | Alabama                           |
|                                   |                                   |
| P.O. Box 940                      | Mississippi                       |
|                                   |                                   |
| Cottondale, AL 35453              |                                   |
|                                   |                                   |
| \(205\) 553-5658                  |                                   |
|                                   |                                   |
| joe.bradley@usda.gov              |                                   |
+-----------------------------------+-----------------------------------+
| William H. Vogt                   | Louisiana                         |
|                                   |                                   |
| P.O. Box 979                      | Arkansas                          |
|                                   |                                   |
| Ball, LA 71405-0979               |                                   |
|                                   |                                   |
| \(318\) 640-1407                  |                                   |
|                                   |                                   |
| william.vogt@usda.gov             |                                   |
+-----------------------------------+-----------------------------------+
|                                   |                                   |
+-----------------------------------+-----------------------------------+