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:

n Offer loan interest rates as low as 2 percent;;

n Waive certain documentation requirements regarding

non-duplication of service;

n Waive the matching funds or credit support requirements for loans;

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

n 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.rurdev.usda.gov/AI_ANHome.html.

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:

n Rural Electrification Direct and Guaranteed Loans;

n High Energy Cost Grants;

n Water and Waste Disposal Direct and Guaranteed

Loans;

n Water and Waste Disposal Grants;

n Broadband Direct and Guaranteed Loans;

n Distance Learning and Telemedicine Grants; and

n 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, nonTribal applicants must provide RUS with documentation

showing that Tribes in the service area agree to the

proposed project.

How Do Applicants Request SUTA

Consideration?

Applicants may determine if they qualify for consideration under the SUTA provisions by contacting their

USDA Rural Development State Office at

www.rurdev.usda.gov/StateOfficeAddresses.html. Each

State has local electric, telecommunications, and

water and sewer specialists who can provide

assistance. Applicants may also contact program

specialists at the National Office at

www.rurdev.usda.gov/Utilities_LP.html for more information.

Applicants may also write to:

USDA Rural Development

Rural Utilities Service

Room 5135-S, Stop 1510

1400 Independence Ave. SW

Washington, DC 20250-1510

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

Fax: (202) 720-1725

Infrastructure Funding for Substantially

Underserved Trust Areas

USDA Rural Development

Rural Utilities Programs

United States

Department of

Agriculture
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:

n A description of the applicant, documenting eligibility;

n A description of the community to be served,

documenting eligibility;

n 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).

n The impact of the specific SUTA authorities requested for the proposed project;

n Documentation substantiating that when the SUTA

authorities are factored into the proposed financing,

the project is financially feasible; and

n 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 include all,

some, or none of the SUTA authorities originally

requested by the applicant.

For More Information

For more information on SUTA, visit

www.rurdev.usda.gov/suta.html. Native American Tribal

groups or Tribal members may also 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

May 2013

The U.S. Department of Agriculture (USDA) prohibits discrimination against its customers, employees, and applicants for

employment on the bases of race, color, national origin, age,

disability, sex, gender identity, religion, reprisal, and where

applicable, political beliefs, marital status, familial or parental

status, sexual orientation, or all or part of an individual’s

income is derived from any public assistance program, or protected genetic information in employment or in any program

or activity conducted or funded by the Department. (Not all

prohibited bases will apply to all programs and/or employment

activities.)

If you wish to file an employment complaint, you must contact

your agency’s EEO Counselor (click the hyperlink for list of

EEO Counselors) within 45 days of the date of the alleged

discriminatory act, event, or in the case of a personnel action.

Additional information can be found online at

www.ascr.usda.gov/complaint_filing_file.html.

If you wish to file a Civil Rights program complaint

of discrimination, complete the USDA Program

Discrimination Complaint Form, found online at

www.ascr.usda.gov/complaint_filing_cust.html, or at any

USDA office, or call (866) 632-9992 to request the form. You

may also write a letter containing all of the information

requested in the form. Send your completed complaint form or

letter to us by mail at U.S. Department of Agriculture, Director,

Office of Adjudication, 1400 Independence Avenue, S.W.,

Washington, D.C. 20250-9410, by fax (202) 690-7442 or

email at program.intake@usda.gov.

Individuals who are deaf, hard of hearing or have speech disabilities and you wish to file either an EEO or program complaint please contact USDA through the Federal Relay

Service at (800) 877-8339 or (800) 845-6136 (in Spanish).

Persons with disabilities who wish to file a program complaint,

please see information above on how to contact us by mail

directly or by email. If you require alternative means of communication for program information (e.g., Braille, large print,

audiotape, etc.) please contact USDA’s TARGET Center at

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