Infrastructure Funding for 

Substantially Underserved Trust Areas

What does this program do? 

The Rural Utilities Service (RUS), an agency within USDA Rural Development, was given new tools through the 2008 Farm Bill 

(the Food, Conservation, and Energy Act of 2008) to finance improvements in electric, telecommunications, and water and 

sewer infrastructure in substantially underserved trust areas — land held in trust by the United States for Native Americans. 

This part of the 2008 Farm Bill is known as the “Substantially Underserved Trust Area (SUTA)provisions.” The provisions are 

designed to make RUS infrastructure financing more accessible to, and affordable for, Native Americans in trust areas because 

those areas, historically, have had difficulty receiving Federal assistance.

Benefits of the SUTA Provisions

Under the SUTA provisions, USDA has the flexibility to:

• Offer loan interest rates as low as 2 percent;

• Waive certain documentation requirements regarding 

non-duplication of service;

• Waive the matching funds or credit support requirements 

for loans;

• Extend the time period in which loans are repaid; and

• Provide the highest priority for funding to eligible 

projects that will serve trust areas.

RUS published a final rule in the Federal Register in June 

2012 that provides detailed information about how it is 

implementing the SUTA provisions. Additional 

SUTA resources, including the final rule and a questions 

and answers document, are available online at 

www.rd.usda.gov/about-rd/initiatives/substantiallyunderserved-trust-area-suta.

What Does “Substantially 

Underserved” Mean?

A “substantially underserved” trust area is a community in a 

trust area that the Secretary of Agriculture determines has 

a high need for assistance. “Underserved” is defined as an 

area or community lacking an adequate level or quality of 

service. This can include areas where an existing provider 

has not, or will not, offer an adequate level or quality of 

service (normally, USDA cannot fund projects that are 

considered to duplicate existing services through another 

provider in the same area).

Which Programs are Included?

The following USDA programs can offer benefits through 

SUTA to qualified applicants:

• Rural Electrification Direct and Guaranteed Loans;

• High Energy Cost Grants;

• Water and Waste Disposal Direct and Guaranteed Loans;

• Water and Waste Disposal Grants;

• Broadband Direct and Guaranteed Loans; and

• Telecommunications Infrastructure Direct and 

Guaranteed Loans

Can Non-Tribal Applicants Request 

SUTA Consideration?

Yes. Applicants who are eligible under RUS’s regular loan and 

grant program authorities may request consideration under 

the SUTA provisions. However, to ensure the feasibility of any 

project that will be carried out, non-tribal applicants must 

provide RUS with documentation showing that Tribes in the 

service area agree to the proposed project.
Infrastructure Funding for 

Substantially Underserved Trust Areas

How Do Applicants Request 

SUTA Consideration?

Applicants may determine if they qualify for considera-tion 

under the SUTA provisions by contacting an RUS General 

Filed Representative (www.rd.usda.gov/contact-us/

electric-gfr or www.rd.usda.gov/contact-us/telecomgfr), RUS National Office Staff (www.rd.usda.gov/contactus/national-office/rus) or the USDA Rural Development 

State Office (www.rd.usda.gov/browse-state).

Applicants may also write to:

USDA Rural Development 

Rural Utilities Service 

Room 5135-S, Stop 1510

1400 Independence Ave. SW

Washington, DC20250-1510

Phone: (800) 670-6553 (Toll Free) 

Fax: (202) 720-1725

Written Materials Required to Apply

Applicants must submit a completed application to USDA 

that meets all the requirements under the loan or grant 

program through which they are requesting funding. 

Applicants must also notify USDA, in writing, that they are 

seeking SUTA consideration, and include the discretionary 

SUTA authorities (for example, a 2 percent interest loan) 

that they would like to have applied to their proposal.

Written requests may be memoranda or letters, and must 

include the following:

• A description of the applicant, documenting eligibility;

• A description of the community to be served, 

documenting eligibility;

• An explanation and documentation of the high need for 

the benefits of the program, which may include but is not 

limited to:

° Data documenting a lack of service or inadequate 

service in the affected community;

° Data documenting significant health risks to community 

residents due to a lack of access to, or service by, an 

adequate, affordable service; and

° Data documenting economic need in the community 

(for the types of data suggested to document high 

need, see the “Application Requirements” section of the 

final rule).

• The impact of the specific SUTA authorities requested for 

the proposed project;

• Documentation substantiating that when the SUTA 

authorities are factored into the proposed financing, the 

project is financially feasible; and

• Any additional information RUS may consider relevant to 

the application which is necessary to adequately evaluate 

the application.

RUS may also request modifications or changes, including 

changes to the amount of funds requested, in any proposal 

outlined in applications for consideration.

Consideration of Applications

Applicants are welcome and encouraged to provide 

additional information that demonstrates high need for 

the benefits of the desired loan or grant program.

Once a complete application and SUTA request have been 

received, USDA staff will conduct a review to determine 

if the applicant is eligible to receive SUTA consideration. 

Applicants will be notified if SUTA consideration has been 

approved or denied. Next, USDA will evaluate requests 

for specific SUTA authorities to determine if the proposal 

is financially feasible at the special rates or terms. USDA 

will then determine which of the SUTA provisions will be 

granted. USDA may grant all, some, or none of the SUTA 

authorities originally requested by the applicant.
NOTE: Because citations and other information may be subject to change please always consult 

the program instructions listed in the section above titled “What Governs this Program?” You 

may also contact your General Field Representative for assistance. You will find additional 

forms, resources, and program information at www.rd.usda.gov. USDA is an equal opportunity 

provider, employer, and lender. Last Updated December 2018

To file a program discrimination complaint, complete the 

USDA Program Discrimination Complaint Form, AD-3027, 

found online at www.ascr.usda.gov/filing-programdiscrimination-complaint-usda-customer and at any 

USDA office or write a letter addressed to USDA and 

provide in the letter all of the information requested in the 

form. To request a copy of the complaint form, call (866) 

632-9992. Submit your completed form or letter to USDA 

by: (1) mail: U.S. Department of Agriculture, Office of the 

Assistant Secretary for Civil Rights, 1400 Independence 

Avenue, SW, Washington, D.C. 20250-9410; (2) fax: (202) 

690-7442; or (3) email: program.intake@usda.gov (link 

sends e-mail).

For More Information

For more information on SUTA, visit www.rd.usda.gov/

about-rd/initiatives/substantially-underserved-trustarea-suta or contact Rural Development’s Native American 

Coordinator by e-mail at AIAN@wdc.usda.gov or by phone 

at (720) 544-2911.

Program Aid 2137

December 2017

In accordance with Federal civil rights law and 

U.S. Department of Agriculture (USDA) civil rights 

regulations and policies, the USDA, its Agencies, 

offices, and employees, and institutions participating 

in or administering USDA programs are prohibited 

from discriminating based on race, color, national 

origin, religion, sex, gender identity (including gender 

expression), sexual orientation, disability, age, marital 

status, family/parental status, income derived from a 

public assistance program, political beliefs, or reprisal or 

retaliation for prior civil rights activity, in any program or 

activity conducted or funded by USDA (not all bases apply 

to all programs). Remedies and complaint filing deadlines 

vary by program or incident. 

Persons with disabilities who require alternative means of 

communication for program information (e.g., Braille, large 

print, audiotape, American Sign Language, etc.) should 

contact the responsible Agency or USDA’s TARGET Center 

at (202) 720-2600 (voice and TTY) or contact USDA through 

the Federal Relay Service at (800) 877-8339. Additionally, 

program information may be made available in languages 

other than English. 

Infrastructure Funding for 

Substantially Underserved Trust Areas