Expansion of modern broadband service is essential for

rural America to be able to access Web-based information and services that will allow rural communities to

compete in the global economy and offer the quality of

life necessary to attract and retain residents and businesses.

The U.S. Department of Agriculture’s (USDA) Rural

Broadband Loan Program is administered by the Rural

Utilities Service (RUS) of USDA Rural Development.

The program funds the costs of construction, improvement, and acquisition of facilities and equipment to provide broadband service to eligible rural areas on a technology-neutral basis. Direct loans are in the form of a

cost-of-money loan, a 4-percent loan, or a combination

of the two. In March 2011, Rural Development published an interim rule in the Federal Register proposing

changes required due to program modifications under

the 2008 Farm Bill. The interim rule is online at:

www.rurdev.usda.gov/utp_farmbill.html.

Eligible Rural Areas

Rural area means any area, as confirmed by the latest

decennial census by the U.S. Census Bureau, which is

not located within: (a) A city, town, or incorporated area

that has a population of more than 20,000 people; or (b)

An urbanized area contiguous and adjacent to a city or

town with a population of more than 50,000 people. An

urbanized area means a densely populated territory as

defined in the latest decennial census.

Eligible Applicants

To be eligible for a broadband loan, an applicant may

be either a nonprofit or for-profit organization, and must

take one of the following forms: (1) Corporation; (2)

Limited liability company (LLC); (3) Cooperative or

mutual organization; (4) Federally recognized Indian

tribe or tribal organization; or (5) State or local government, including any agency, subdivision, or one of their

units.

Eligible Service Areas

A service area may be eligible for a broadband loan if

all of the following are true: (1) The service area is completely contained within a rural area; (2) At least 25 percent of the households in the service area are underserved households; (3) No part of the service area has

Rural Broadband Loan Program

three or more incumbent service providers; (4) No part

of the funded service area overlaps with the service

area of current RUS borrowers and grantees; (5) No

part of the funded service area is included in a pending

application before RUS seeking funding to provide

broadband service.

Eligible Loan Purposes

Broadband loans provide funding for: The construction,

improvement, and acquisition of all facilities required to

provide service at the broadband lending speed to rural

areas, including facilities required for providing other

services over the same facilities; The cost of leasing

facilities required to provide service at the broadband

lending speed if such lease qualifies as a capital lease

under GAAP (Generally Accepted Accounting

Principles); An acquisition, under certain circumstances

and with restrictions (see the interim rule for more

details).

To Learn More

For more information, including regulations and Federal

Register notices, the application guide, how to apply,

available funding levels, frequently asked questions,

program updates, and other vital information, visit the

Rural Broadband Loan Program website at: www.rurdev.usda.gov/utp_farmbill.html.

For information on other Rural Development programs,

visit: www.rurdev.usda.gov, or call your USDA Rural

Development State office toll free at: 1-800-670-6553

(press 1 and follow the prompts to be connected).

Program Aid 2092

August 2011

The U.S. Department of Agriculture (USDA) prohibits discrimination in all of its

programs and activities on the basis of race, color, national origin, age, disability, and where applicable, sex, marital status, familial status, parental status, religion, sexual orientation, political beliefs, genetic information, reprisal, or

because all or part of an individual's income is derived from any public assistance program. (Not all prohibited bases apply to all programs.) Persons with

disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USDA's TARGET

Center at (202) 720-2600 (voice and TDD).

To file a complaint of discrimination, write to USDA, Assistant Secretary for Civil

Rights, Office of the Assistant Secretary for Civil Rights, 1400 Independence

Avenue, S.W., Stop 9410, Washington, DC 20250-9410, or call toll-free at (866)

632-9992 (English) or (800) 877-8339 (TDD) or (866) 377-8642 (English

Federal-relay) or (800) 845-6136 (Spanish Federal-relay). USDA is an equal

opportunity provider and employer.

Rural Utilities Service