Federal Register / Vol. 83, No. 240 / Friday, December 14, 2018 / Notices 64315 

• Phytosanitary treatment (cold 

treatment or irradiation), 

• Pre-export inspection by the NPPO 

and issuance of a phytosanitary 

certificate with an additional 

declaration, and 

• Port of entry inspections. 

Each of the pest risk mitigation 

measures that would be required, along 

with evidence of their efficacy in 

removing pests of concern from the 

pathway, are described in detail in the 

RMD. 

Therefore, in accordance with 

§ 319.56–4(c)(3), we are announcing the 

availability of our PRA and RMD for 

public review and comment. Those 

documents, as well as a description of 

the economic considerations associated 

with the importation of fresh guava fruit 

from Taiwan and a treatment evaluation 

document that supports the addition of 

new cold treatment schedules for 

Bactrocera spp. fruit flies in guava from 

Taiwan, may be viewed on the 

Regulations.gov website or in our 

reading room (see ADDRESSES above for 

a link to Regulations.gov and 

information on the location and hours of 

the reading room). You may request 

paper copies of these documents by 

calling or writing to the person listed 

under FOR FURTHER INFORMATION

CONTACT. Please refer to the subject of 

the analysis you wish to review when 

requesting copies. 

After reviewing any comments we 

receive, we will announce our decision 

regarding the import status of fresh 

guava fruit from Taiwan in a subsequent 

notice. If the overall conclusions of our 

analysis and the Administrator’s 

determination of risk remain unchanged 

following our consideration of the 

comments, then we will authorize the 

importation of fresh guava fruit from 

Taiwan into the continental United 

States subject to the requirements 

specified in the RMD. 

Authority: 7 U.S.C. 1633, 7701–7772, and 

7781–7786; 21 U.S.C. 136 and 136a; 7 CFR 

2.22, 2.80, and 371.3. 

Done in Washington, DC, this 10th day of 

December 2018. 

Kevin Shea, 

Administrator, Animal and Plant Health 

Inspection Service. 

[FR Doc. 2018–27053 Filed 12–13–18; 8:45 am] 

BILLING CODE 3410–34–P 

DEPARTMENT OF AGRICULTURE 

Rural Utilities Service 

Broadband Pilot Program 

AGENCY: Rural Utilities Service, 

Department of Agriculture. 

ACTION: Funding Opportunity 

Announcement (FOA) and solicitation 

of applications. 

SUMMARY: The Rural Utilities Service 

(RUS) announces its general policy and 

application procedures for funding 

under the broadband pilot program 

established pursuant to the 

Consolidated Appropriations Act, 2018 

which provides loans, grants, and loan/ 

grant combinations to facilitate 

broadband deployment in rural areas. In 

facilitating the expansion of broadband 

services and infrastructure, the pilot 

will fuel long-term rural economic 

development and opportunities in rural 

America. One of those opportunities is 

precision agriculture. The use of this 

technology requires a robust broadband 

connection. The awards made under 

this program will bring high speed 

broadband to the farms which will 

allow them to increase productivity. 

Please note that the application 

process is designed so that an applicant 

must demonstrate financial and 

technical feasibility of the project and 

the entire operation of the applicant. 

Applicants that do not demonstrate 

financial or technical feasibility will not 

be considered for an award. 

DATES: The Agency will finalize the 

application window by notice in the 

Federal Register and Grants.gov on 

February 22, 2019. Please note there are 

three funding categories with each 

category having different application 

windows. Please refer to the specific 

funding category for the appropriate 

application deadline. 

ADDRESSES: Application Submission: 

The application system for electronic 

submissions will be available at https:// 

reconnect.usda.gov. 

Electronic submissions: Electronic 

submissions of applications will allow 

for the expeditious review of an 

Applicant’s proposal. As a result, all 

Applicants must file their application 

electronically. 

FOR FURTHER INFORMATION CONTACT: For 

general inquiries, contact Chad Parker, 

Assistant Administrator 

Telecommunications Program, Rural 

Utilities Service, U.S. Department of 

Agriculture (USDA), email: 

chad.parker@wdc.usda.gov, telephone 

(202) 720–9554. You may obtain 

additional information regarding 

applications at https://

reconnect.usda.gov. 

SUPPLEMENTARY INFORMATION: 

Authority: This solicitation is issued 

pursuant to the Consolidated Appropriations 

Act, 2018, Pub. L. 115–141, and the Rural 

Electrification Act of 1936, 7 U.S.C. 901 et 

seq. 

Overview 

Federal Agency: Rural Utilities 

Service, USDA. 

Funding Opportunity Title: Rural 

eConnectivity Pilot Program (ReConnect 

Program). 

Announcement Type: Funding 

Opportunity Announcement (FOA) and 

solicitation of applications. 

Catalog of Federal Domestic 

Assistance (CFDA) Number: Rural 

eConnectivity Pilot Program (ReConnect 

Program)—10.752. 

Items in Supplementary Information 

I. Overview 

II. Definitions 

III. Substantially Underserved Trust Areas 

IV. Funding Opportunity Description 

V. Eligibility Information 

VI. Application and Submission Information 

VII. Application Evaluation Criteria 

VIII. Notice of Proposed Funded Service 

Areas 

IX. Evaluation and Processing Procedures 

X. Award Administration Information 

XI. Other Information 

I. Overview 

On March 23, 2018, Congress passed 

the Consolidated Appropriations Act 

2018 (the FY2018 Appropriations), 

which established a broadband loan and 

grant pilot program, the Rural 

eConnectivity Pilot Program (hereinafter 

the ReConnect Program). One of the 

essential goals of the ReConnect 

Program is to expand broadband service 

to rural areas without sufficient access 

to broadband, defined as 10 megabits 

per second (Mbps) downstream and 1 

Mbps upstream. For this purpose, 

Congress provided RUS with $600 

million and expanded its existing 

authority to make loans and grants. 

Additionally, the FY2018 

Appropriations specifically authorized 

technical assistance to assist the Agency 

in expanding needed service to the most 

rural communities where 90 percent of 

the households are without sufficient 

access to broadband service. 

To promote broadband in rural 

America, RUS encourages state and 

local jurisdictions to waive any fees 

associated with granting rights-of-ways 

and to assist applicants and awardees 

with satisfying any environmental 

requirements such as approval from the 

State Historical Preservation Office. 

II. Definitions 

The terms and conditions provided in 

this FOA are applicable to and for 

purposes of this FOA only. Unless 

otherwise provided in the award 

documents, all financial terms not 

defined herein shall have the meaning 

as defined by Generally Accepted 

Accounting Principles. 


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Administrator means the RUS 

Administrator, or the Administrator’s 

designee. 

Applicant means an entity requesting 

funding under this FOA. 

Application means the Applicant’s 

request for federal funding, which may 

be approved in whole or part by RUS. 

Award documents mean, as 

applicable, all associated grant 

agreements, loan agreements, or loan/ 

grant agreements. 

Award means a grant, loan, or loan/ 

grant combination made under this 

FOA. 

Awardee means a grantee, borrower, 

or borrower/grantee that has applied 

and been awarded federal assistance 

under this FOA. 

Broadband loan means, for purposes 

of this FOA, a loan that has been 

approved or is currently under review 

by RUS after the beginning of Fiscal 

Year 2000 in the Telecommunications 

Infrastructure Program, Farm Bill 

Broadband Program, or the Broadband 

Initiatives Program. Loans that were 

approved and then subsequently fully 

de-obligated are not included in this 

definition. 

Broadband service means any 

technology as having the capacity to 

transmit data to enable a subscriber to 

the service to originate and receive highquality voice, data, graphics and video. 

Business means a commercial or 

mercantile activity engaged in as a 

means of livelihood. For purposes of 

this FOA, farms will not be counted as 

businesses for scoring purposes. 

CALEA means the Communications 

Assistance for Law Enforcement Act, 47 

U.S.C. 1001 et seq. 

Composite economic life means the 

weighted (by dollar amount of each 

class of facility) average economic life of 

all classes of facilities necessary to 

complete construction of the broadband 

facilities in the proposed funded service 

area. 

Critical community facilities means 

public facilities that provide community 

services essential for supporting the 

safety, health, and well-being of 

residents, including, but not limited to, 

emergency response and other public 

safety activities, hospitals and clinics, 

libraries and schools. 

Current ratio means the current assets 

divided by the current liabilities. 

Debt service coverage ratio (DSCR) 

means (Total Net Income or Margins + 

Interest Expense¥Allowance for Funds 

Used during Construction + 

Depreciation + Amortization)/(Interest 

on Funded Debt + Other Interest + 

Principal Payment on Debt and Capital 

Leases). 

Economic life means the estimated 

useful service life of an asset as 

determined by RUS. 

Eligible service area means any 

proposed funded service area where 90 

percent of the households to be served 

do not have sufficient access to 

broadband. For eligibility purposes, if 

an applicant is applying for multiple 

proposed funded service areas, each 

service area will be evaluated on a 

stand-alone basis. 

Equity means total assets minus total 

liabilities as reflected on the Applicant’s 

balance sheet. 

Farm means any establishment from 

which $1,000 or more of agricultural 

products were sold or would normally 

be sold during the year. 

Forecast period means the five-year 

period of projections in an application, 

which shall be used by RUS to 

determine financial and technical 

feasibility of the application. 

GAAP means accounting principles 

generally accepted in the United States 

of America. 

Grant means any federal assistance in 

the form of a grant made under this 

FOA. 

Grant agreement means the grant 

contract and security agreement 

between RUS and the Awardee securing 

the Grant awarded under this FOA, 

including any amendments thereto, 

available for review at https://

reconnect.usda.gov. 

Loan means any federal assistance in 

the form of a loan made under this FOA. 

Loan agreement means the loan 

contract and security agreement 

between RUS and the Awardee securing 

the Loan, including all amendments 

thereto, available for review at https:// 

reconnect.usda.gov. 

Loan/grant means any federal 

assistance in the form of a loan/grant 

combination made under this FOA. 

Loan/grant agreement means the 

loan/grant contract and security 

agreement between RUS and the 

Awardee securing the Loan/grant, 

including all amendments thereto 

available at https://reconnect.usda.gov. 

Non-funded service area means any 

area in which the applicant offers 

service or intends to offer service during 

the forecast period but is not a part of 

its proposed funded service area. 

Pre-application expenses means any 

reasonable expenses, as determined by 

RUS, incurred after the release of this 

FOA to prepare an Application or to 

respond to RUS inquiries about the 

Application. 

Premises means households, farms 

and businesses. 

Project means all of the work to be 

performed to bring broadband service to 

all premises in the proposed funded 

service area under the Application, 

including construction, the purchase 

and installation of equipment, and 

professional services including 

engineering and accountant/consultant 

fees, whether funded by federal 

assistance, matching, or other funds. 

Proposed funded service area (PFSA) 

means the area (whether all or part of an 

existing or new service area) where the 

applicant is requesting funds to provide 

broadband service. Multiple service 

areas will be treated as separate standalone service areas for the purpose of 

determining how much of the proposed 

funded service area does not have 

sufficient access to broadband. Each 

service area must meet the minimum 

requirements for the appropriate 

funding category to be an eligible area. 

RE Act means the ‘‘Rural 

Electrification Act of 1936,’’ as amended 

(7 U.S.C. 901 et seq.). 

Rural area means any area which is 

not located within: (1) A city, town, or 

incorporated area that has a population 

of greater than 20,000 inhabitants; or (2) 

an urbanized area contiguous and 

adjacent to a city or town that has a 

population of greater than 50,000 

inhabitants. 

RUS Accounting Requirements shall 

mean compliance with U.S. GAAP, 

acceptable to RUS, the system of 

accounting prescribed by RUS Bulletin 

1770B–1, and the Uniform 

Administrative Requirements, Cost 

Principles, and Audit Requirements for 

Federal Awards, found at 2 CFR part 

200. For all Awardees the term ‘‘grant 

recipient’’ in 2 CFR 200 shall also be 

read to encompass ‘‘loan recipient’’ and 

‘‘loan/grant recipient’’, such that 2 CFR 

200 shall be applicable to all Awardees 

under this FOA. 

Sufficient access to broadband means 

any rural area that has fixed, terrestrial 

broadband service delivering at least 10 

Mbps downstream and 1 Mbps 

upstream. Mobile and satellite services 

will not be considered in making the 

determination that households in the 

proposed funded service area do not 

have sufficient access to broadband. 

Tangible equity means a measure of a 

company’s capital, which is used by 

financial institutions to evaluate 

potential losses by eliminating 

intangible assets, goodwill and preferred 

stock from total equity. 

Tangible equity to total assets means 

tangible equity divided by total assets. 

Times interest earned ratio (TIER) 

means (Total Net Income or Margins + 

Total Interest Expense¥Allowance for 

Funds Used during Construction) 

divided by (Total Interest 


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Expense¥Allowance for Funds Used 

during Construction). 

III. Substantially Underserved Trust 

Areas 

A. If the Administrator determines 

that a community within ‘‘trust land’’ 

(as defined in 38 U.S.C. 3765) has a high 

need for the benefits of the ReConnect 

Program, the Administrator may 

designate the community as a 

‘‘substantially underserved trust area’’ 

(as defined in section 306F of the RE 

Act). 

B. To receive consideration as a 

substantially underserved trust area, the 

applicant must submit to the Agency a 

completed application that includes all 

of the information requested in 7 CFR 

part 1700, subpart D. In addition, the 

application must identify the 

discretionary authorities within subpart 

D that it seeks to have applied to its 

application. Note, however, that given 

the prohibition on funding operating 

expenses in the ReConnect Program, 

requests for waiver of the equity 

requirements cannot be considered. In 

addition, due to the statutory 

requirements that established the 

ReConnect Program, waiver of the nonduplication requirements also cannot be 

considered. 

IV. Funding Opportunity Descriptions 

A. Funding Categories 

1. 100 Percent Loan 

The interest rate for a 100 percent 

loan will be set at a fixed 2 percent. The 

proposed funded service area for this 

category must be in an area where 90 

percent of the households do not have 

sufficient access to broadband. 

Applicants must propose to build a 

network that is capable of providing 

service to every premise in the proposed 

funded service area at a speed of 25 

Mbps downstream and 3 Mbps 

upstream. Tangible equity to total assets 

must be at least 20 percent at the end 

of the calendar year starting in the third 

year of the forecast period through the 

remainder of the forecast period. 

The Agency anticipates that 

applications will be accepted on a 

rolling basis ending June 28, 2019. In 

the event two loan applications are 

received for the same proposed funded 

service area the application to arrive 

first will be considered first. The agency 

reserves the right to make funding offers 

or seek consultations to resolve partially 

overlapping applications. RUS may 

contact the applicant for additional 

information during the review process. 

If additional information is requested, 

the applicant will have up to 30 

calendar days to submit the information. 

If such information is not timely 

submitted, RUS may reject the 

application. Once all funds for this 

category have been expended for the 

ReConnect program, all remaining 

applications will be returned. 

2. 50 Percent Loan/50 Percent Grant 

Combination 

The interest rate for the 50 percent 

loan component will be set at the 

Treasury rate for the remaining 

amortization period at the time of each 

advance of funds. The proposed funded 

service area for this category must be in 

an area where 90 percent of the 

households do not have sufficient 

access to broadband. Applicants must 

propose to build a network that is 

capable of providing service to every 

premises in the proposed funded service 

area at a speed of 25 Mbps downstream 

and 3 Mbps upstream. Applicants may 

propose substituting cash for the loan 

component at the time of application. 

The Agency anticipates that 

applications will be accepted ending 

May 29, 2019. All eligible applications 

will be scored and, subject to Section 

V(C)(5)(b)(i) (overlapping applications) 

applications with the highest score will 

receive an award offer until all funds are 

expended for this category. RUS 

reserves the right to request additional 

information which would not affect 

scoring. If RUS requests additional 

information the applicant will have 30 

calendar days to submit such 

information. If the information is not 

submitted, RUS may reject the 

application. 

3. 100 Percent Grant 

The proposed funded service area for 

this category must be in an area where 

100 percent of the households do not 

have sufficient access to broadband. 

Applicants must propose to build a 

network that is capable of providing 

service to every premise in the proposed 

funded service area at a speed of 25 

Mbps downstream and 3 Mbps 

upstream. Applicants must provide a 

matching contribution equal to 25 

percent of the cost of the overall project. 

The matching contribution can only be 

used for eligible purposes. 

The Agency anticipates that 

applications will be accepted ending 

April 29, 2019. All eligible applications 

will be scored, and subject to Section 

V(C)(5)(b)(i) (overlapping applications) 

applications with the highest score will 

receive an award offer until all funds are 

expended for this category. RUS 

reserves the right to request additional 

information which would not affect 

scoring. If RUS requests additional 

information the applicant will have 30 

calendar days to submit such 

information. If the information is not 

submitted, RUS may reject the 

application. 

B. Available Funds 

1. General 

Approximately $560,000,000 in 

funding has been set aside for funding 

opportunities under this FOA. 

2. Funding Limits 

Award amounts under this FOA will 

be limited as follows: 

a. 100 Percent Loan. Up to 

$200,000,000 is available for loans. The 

maximum amount that can be requested 

in an application is $50,000,000. 

b. 50 Percent Loan—50 Percent Grant. 

Up to $200,000,000 is available for loan/ 

grant combinations. The maximum 

amount that can be requested in an 

application is $25,000,000 for the loan 

and $25,000,000 for the grant. Loan and 

grant amounts will always be equal. 

c. 100 Percent Grant. Up to 

$200,000,000 is available for grants. The 

maximum amount that can be requested 

in an application is $25,000,000. 

d. Reserve. Additional budget 

authority is available for a reserve, 

which may be used for loans or grants 

under this FOA, or may be included in 

additional FOAs. The agency reserves 

the right to increase funding utilizing 

the application queue under this FOA 

should additional appropriations 

become available for the same purposes. 

3. Repooling 

RUS retains the discretion to divert 

funds from one funding category to 

another. 

4. Award Period 

Awards can be made until all funds 

have been expended in any given 

funding category. While the completion 

time will vary depending on the 

complexity of the project, award 

recipients must complete their projects 

within 5 years from the date funds are 

first made available. 

5. Type of Funding Instrument 

The funding instruments will be 

grants, loans, and loan/grant 

combinations. 

V. Eligibility Information 

A. General 

Applicants must satisfy the following 

eligibility requirements to qualify for 

funding. 

B. Eligible Entities 

The following entities are eligible to 

apply for assistance: 


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1. States, local governments, or any 

agency, subdivision, instrumentality, or 

political subdivision thereof; 

2. A territory or possession of the 

United States; 

3. An Indian tribe (as defined in 

section 4 of the Indian SelfDetermination and Education 

Assistance Act (25 U.S.C. 450b)); 

4. Non-profit entities; 

5. For-profit corporations; 

6. Limited liability companies; and 

7. Cooperative or mutual 

organizations. 

C. Application Eligibility Factors 

The following requirements must be 

met by all applications to be eligible for 

an award. Applications failing to 

comply with these requirements will be 

rejected. 

1. Audited Financial Statement 

Applicants must submit unqualified, 

audited financial statements for the two 

previous years from the date the 

application is submitted. If an 

application is submitted in the first 

quarter of the calendar year and the 

most recent yearend audit has not been 

completed, the applicant can submit the 

two previous unqualified audits that 

have been completed. If qualified audits 

or audits containing a disclaimer or 

adverse opinion are submitted, the 

application will not be considered; 

2. Fully Completed Application 

Applicants must submit a complete 

application and provide all supporting 

documentation required for the 

application. 

3. Timely Buildout Completion 

A project is eligible only if the 

application demonstrates that the 

project can be completely built out 

within 5 years from the date funds are 

first made available. 

4. Technical Feasibility 

Only projects that RUS determines to 

be technically feasible will be eligible 

for an award. Applicants will be 

required to submit a network design, 

network diagram, project costs and a 

buildout timeline, all certified by a 

professional engineer. The certification 

from the professional engineer must 

state that the proposed network can 

deliver broadband service at the 

required level of service to all premises 

in the proposed funded service area. 

5. Service Areas 

a. Eligible Service Areas 

i. Applicants must propose to provide 

broadband service directly to the 

premises in the proposed funded service 

area that do not have sufficient access 

to broadband. 

ii. If part or parts of the applicant’s 

proposed funded service area are 

ineligible, RUS, in its sole discretion, 

may request that an applicant modify its 

application, if RUS believes the 

modification is feasible. Otherwise, RUS 

will reject the application. 

b. Ineligible Service Areas 

i. Overlapping Service Areas 

RUS will not fund more than one 

project that serves any one given 

geographic area. Invariably, however, 

applicants will propose service areas 

that overlap, varying from small de 

minimus areas of the territory, but 

which may be significant with respect to 

households involved, to larger areas of 

the service territory, but which may 

contain few households or businesses, if 

any. As a result, devising a procedure 

which will cover every overlap 

circumstance cannot be done. 

Nevertheless, it is the agency’s intent to 

make as many eligible applications 

viable for consideration as possible. 

That may mean the agency may: (1) 

Determine the overlap to be so 

insignificant that no agency action is 

necessary; (2) request one or more 

applications to be revised to eliminate 

the overlapping territory; (3) choose one 

application over another given the 

amount of assistance requested, the 

number of awards already chosen in the 

area or State, or the need for the project 

in the specific area due to other factors; 

or (4) simply choose the project that 

scores higher or in the judgement of the 

agency is more financially feasible. 

ii. Prior Funded Service Areas 

(A) RUS Broadband Loans. Service 

areas of borrowers that have RUS 

broadband loans, as defined in this 

FOA, are ineligible for all other 

applicants, and can be found at https:// 

reconnect.usda.gov. However, RUS 

broadband borrowers that received 

funding to provide service in an area 

where the borrower is not currently 

providing sufficient access to broadband 

pursuant to this FOA would be eligible 

to apply for funding for these service 

areas if they have not defaulted on, and 

have materially complied with, in the 

sole discretion of RUS, their prior 

broadband loan requirements. 

(B) RUS Community Connect Grants. 

Service areas that received grants under 

the RUS Community Connect Grant 

Program are eligible if they do not have 

sufficient access to broadband, except 

for those grants still under construction. 

Service areas still under construction 

can be found at https://

reconnect.usda.gov. 

(C) RUS BIP Grants. Service areas that 

received a 100 percent grant under the 

RUS Broadband Initiatives Program 

(BIP) are eligible if they do not have 

sufficient access to broadband. 

However, if the applicant is the same 

BIP grantee, then the applicant may 

only request a 100 percent loan. 

(D) State-funded Areas. Areas that 

received State funding to deploy 

broadband at a speed of at least 10 Mbps 

downstream and 1 Mbps upstream are 

ineligible areas under this FOA. 

Applicants must provide a map of the 

proposed funded service area to the 

appropriate State government office and 

the State government office must certify 

that either funds have or have not been 

allotted for the area. Applicants must 

submit the map and the State 

certification as part of the application 

for funding. For applications that are 

proposing to provide service in multiple 

States, a map and certification will be 

required for each State. If the map(s) 

and certification(s) are not submitted, 

RUS may reject the application. 

(E) Connect America Fund Phase II 

Auction—Auction 903 (CAF II). 

Funding for service areas of CAF II 

recipients can only be requested by the 

entity that is receiving the CAF II 

support, and such funding is limited to 

a 100% loan. The CAF II service areas 

can be found at https://

reconnect.usda.gov and may also be 

found on the FCC web page. 

6. Fully Funded 

A project is eligible only if, all project 

costs can be fully funded or accounted 

for in the application. To demonstrate 

this, applications must include evidence 

of all funding, other than the RUS 

award, necessary to support the project, 

such as bank account statements, firm 

letters of commitment from equity 

participants, or outside loans, which 

must evidence the timely availability of 

funds. If outside loans are used, they 

may only be secured by assets other 

than those used for collateral under this 

FOA. Equity partners that are not 

specifically identified by name will not 

be considered in the financial analysis 

of the application. 

7. Financial Feasibility and 

Sustainability 

Only projects that RUS determines to 

be financially feasible and sustainable 

will be eligible for an award under this 

FOA. A project is financially feasible 

when the applicant demonstrates to the 

satisfaction of RUS that it will be able 

to generate sufficient revenues to cover 

expenses; will have sufficient cash flow 


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to service all debts and obligations as 

they come due; will have a positive 

ending cash balance as reflected on the 

cash flow statement for each year of the 

forecast period; and, by the end of the 

forecast period, will meet at least two of 

the following requirements: A minimum 

TIER requirement of 1.2, a minimum 

DSCR requirement of 1.2, and a 

minimum current ratio of 1.2. In 

addition, applicants must demonstrate 

positive cash flow from operations at 

the end of the forecast period. 

If an applicant has no existing debt, 

is not proposing to borrow funds during 

the forecast period, and is applying only 

for grant funds, only the current ratio 

will be applied and not the TIER or 

DSCR. For this situation, applicants 

must meet the minimum current ratio 

requirement. 

8. Service Requirements 

Facilities funded with grant funds 

must provide broadband service 

proposed in the application for the 

composite economic life of the facilities, 

as approved by RUS, or as provided in 

the Award Documents. 

9. Application Transparency 

a. Pre-award Public Notice. To ensure 

transparency for the ReConnect 

Program, the Agency’s mapping tool 

will include the following information 

from each application and be displayed 

for the public: (i) The identity of the 

applicant; (ii) the areas to be served; (iii) 

the type of funding requested; (iv) the 

status of the application; (v) the number 

of households without sufficient access 

to broadband; and (vi) a list of the 

census blocks to be served. 

b. Post-award Public Notice. For all 

approved applications, the agency will 

post on its website: The name of the 

company receiving funding, the type of 

funding received, the location of the 

proposed funded service area and the 

purposes of the funding. 

c. Post-award Reporting. Awardees 

will be required to submit semi-annual 

reports for three years after the 

completion of construction on the 

following information: 

(i) The number and location of 

residences and businesses that will 

receive service at or greater than the 

requirement for the appropriate funding 

category. 

(ii) the types of facilities constructed 

and installed; 

(iii) the speed of the data services 

being delivered; 

(iv) the average price of the data 

services being delivered in each 

proposed service area; and 

(v) the broadband adoption rate for 

each proposed service territory, 

including the number of new 

subscribers generated from the facilities 

funded. 

This information will be used to 

analyze the effectiveness of the funding 

provided and will allow the Agency to 

track adoption rates as new and 

improved broadband services are being 

provided. 

D. Eligible Cost Purposes 

1. General 

Award and matching funds must be 

used only to pay for eligible costs 

incurred post award, except for 

approved pre-application expenses. 

Eligible costs must be consistent with 

the cost principles identified in 2 CFR 

200, Subpart E, Cost Principles. In 

addition, costs must be reasonable, 

allocable, and necessary to the project. 

Any application that proposes to use 

any portion of the award or matching 

funds for any ineligible cost may be 

rejected. 

2. Eligible and Ineligible Costs 

a. Eligible Award Costs 

Award funds may be used to pay for 

the following costs: 

(i) To fund the construction or 

improvement of facilities, including 

buildings and land, required to provide 

broadband service, including facilities 

required for providing other services 

over the same facilities, such as 

equipment required to comply with 

CALEA; 

(ii) To fund reasonable preapplication expenses in an amount not 

to exceed five percent of the award. Preapplication expenses may be 

reimbursed only if they are incurred 

after the publication date of this FOA, 

and properly documented. Preapplication expenses must be included 

in the first request for award funds, and 

will be funded with either grant or loan 

funds. If the funding category applied 

for has a grant component, then grant 

funds will be used for this purpose; 

(iii) To fund the acquisition of an 

existing system that does not currently 

provide sufficient access to broadband 

for upgrading that system to meet the 

requirements of this FOA. The cost of 

the acquisition is limited to 40 percent 

of the amount requested. Acquisitions 

can only be considered in the 100 

percent loan category; and 

(iv) To fund terrestrial-based facilities 

for satellite broadband service, provided 

the applicant clearly identifies the 

PFSA, demonstrates the ability to 

provide 25 Mbps downstream and 3 

Mbps upstream simultaneously to every 

premise in the PFSA, and offers 

subscribers reasonable service plans that 

do not cap bandwidth usage. 

(b) Ineligible Award Costs 

Award funds may not be used for any 

of the following purposes: 

(i) To fund operating expenses of the 

Awardee; 

(ii) To fund costs incurred prior to the 

date on which the application was 

submitted, and with respect to eligible 

pre-application expenses, those costs 

incurred prior to the date of the 

publication date of this FOA; 

(iii) To fund an acquisition of an 

affiliate, or the purchase or acquisition 

of any facilities or equipment of an 

affiliate. Note that if affiliated 

transactions are contemplated in the 

application, approval of the application 

does not constitute approval to enter 

into affiliated transactions, nor 

acceptance of the affiliated 

arrangements that conflict with the 

obligations under the award documents; 

(iv) To fund the acquisition of a 

system previously funded by RUS; 

(v) To fund the purchase or lease of 

any vehicle other than those used 

primarily in construction or system 

improvements; 

(vi) To fund broadband facilities 

leased under the terms of an operating 

lease or an indefeasible right of use 

(IRU) agreement; 

(vii) To fund the merger or 

consolidation of entities; 

(viii) To fund costs incurred in 

acquiring spectrum as part of an FCC 

auction or in a secondary market 

acquisition. Spectrum that is part of an 

acquisition may be considered for loan 

funding; 

(ix) To fund facilities that provide 

mobile services; 

(x) To fund the acquisition of a system 

that is providing sufficient access to 

broadband; nor 

(x) To refinance outstanding debt. 

VI. Application and Submission 

Information 

A. Online Application System 

All applications under this FOA must 

be submitted through the RUS Online 

Application System to be located 

through https://reconnect.usda.gov. 

Additional information can be found in 

the Application Guidelines found at the 

above location. This website will be 

updated regularly. 

B. Registration 

1. Dun and Bradstreet Universal 

Numbering System (DUNS) Number 

All applicants must register for a 

DUNS number as part of the 

application. The applicant can obtain 


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the DUNS number free of charge by 

calling Dun and Bradstreet. Go to http:// 

fedgov.dnb.com/webform for more 

information on assignment of a DUNS 

number or confirmation. 

2. System for Award Management 

(SAM) 

Prior to submitting an application, the 

applicant must also register in SAM at 

https://www.sam.gov/portal/SAM/#1 

and supply a Commercial and 

Government Entity (CAGE) Code 

number as part of the application. SAM 

registration must be active with current 

data at all times, from the application 

review throughout the active Federal 

award funding period. To maintain 

active SAM registration, the applicant 

must review and update the information 

in the SAM database annually from the 

date of initial registration or from the 

date of the last update. The applicant 

must ensure that the information in the 

database is current, accurate, and 

complete. 

C. Contents of the Application 

1. Requirements for the Applications 

Given the varying expected closing 

dates for each funding type, and the 

inability of the agency to announce 

awards for a funding window while 

applicants have other applications in 

more than one funding type, applicants 

will be limited to ONE application for 

this FOA. A complete application will 

include the following information as 

requested in the RUS Online 

Application System: 

a. General information on the 

applicant and the project including: 

(i) A description of the project that 

will be made public consistent with the 

requirements herein and 

(ii) The estimated dollar amount of 

the funding request. 

b. An executive summary of the 

proposed project. This summary shall 

include, but not be limited to, a detailed 

description of existing operations, 

discussion about key management, 

description of the workforce, 

description of interactions between any 

parent, affiliated or subsidiary operation 

and a detailed description of the 

proposed project. 

c. A description of the proposed 

funded service area including the 

number of premises passed. 

d. Subscriber projections including 

the number of subscribers for 

broadband, video and voice services and 

any other service that may be offered; A 

description of the proposed service 

offerings, and the associated pricing 

plan that the applicant proposes to offer; 

and an explanation of how the proposed 

service offerings are affordable. 

e. A map, utilizing the RUS mapping 

tool located at https://

reconnect.usda.gov of the proposed 

funded service areas identifying the 

areas without sufficient access to 

broadband and any non-funded service 

areas of the applicant. 

f. A description of the advertised 

prices of service offerings by 

competitors in the same area. 

g. A network design which includes a 

description of the proposed technology 

used to deliver the broadband service 

demonstrating that all premises in the 

proposed funded service area can be 

offered broadband service, a network 

diagram, a buildout timeline and 

milestones for implementation of the 

project, and a capital investment 

schedule showing that the system can 

be built within 5 years, all of which 

must be certified by a professional 

engineer who is certified in at least one 

of the states where there is project 

construction. The certification from the 

professional engineer must clearly state 

that the proposed network can deliver 

the broadband service to all premises in 

the proposed funded service area at the 

minimum required service level. In 

addition, if the applicant is requesting 

the points for providing a 100 Mbps 

upstream and 100 Mbps downstream, 

the certification must also state that the 

proposed system is capable of delivering 

this service to all premises; a list of all 

required licenses and regulatory 

approvals needed for the proposed 

project and how much the applicant 

will rely on contractors or vendors to 

deploy the network facilities. Note that 

in preparing budget costs for equipment 

and materials, RUS’ Buy American 

requirements apply. 

h. Resumes of key management 

personnel, a description of the 

organization’s readiness to manage a 

broadband services network, and an 

organizational chart showing all parent 

organizations and/or holding companies 

(including parents of parents, etc.), and 

all subsidiaries and affiliates. 

i. A legal opinion that: (1) Addresses 

the applicant’s ability to enter into the 

award documents; (2) describes all 

material pending litigation matters; (3) 

addresses the applicant’s ability to 

pledge security as required by the award 

documents and (4) addresses the 

applicant’s ability to provide broadband 

service under state law. 

j. Summary and itemized budgets of 

the infrastructure costs of the proposed 

project, including if applicable, the ratio 

of loans to grants, and any other sources 

of outside funding. 

k. A detailed description of working 

capital requirements and the source of 

these funds. 

l. Historical financial statements for 

the last four years consisting of a 

balance sheet, income statement, and 

cash flow statement. If an entity has not 

been operating for four years, historical 

statements for the period of time the 

entity has been operating. 

m. Audited financial statements for 

the previous two calendar years. For 

governmental entities financial 

statements must be accompanied with 

certifications as to unrestricted cash that 

may be available on a yearly basis to the 

applicant. For startup operations formed 

from partnerships of existing utility 

providers, audited financial statements 

are required for the two previous years 

from each of the partners. In addition, 

the partners must guarantee any loan 

component of the requested funding. 

n. Pro Forma financial analysis, 

prepared in conformity with U.S. GAAP 

and the Agency’s guidance on grant 

accounting found at https://

www.rd.usda.gov/files/Accounting

Guidance10.pdf. The Pro Forma should 

validate the sustainability of the project 

by including subscriber estimates 

related to all proposed service offerings; 

annual financial projections with 

balance sheets, income statements, and 

cash flow statements; supporting 

assumptions for a five-year forecast 

period and a depreciation schedule for 

existing facilities and those funded with 

federal assistance, matching, and other 

funds. This pro forma should indicate 

the committed sources of capital 

funding and include a bridge year prior 

to the start of the forecast period. This 

bridge year shall be used as a buffer 

between the historical financial 

information and the forecast period and 

is the year in which the application is 

submitted. 

o. All attachments required in the 

RUS Online application system; 

p. A scoring sheet, analyzing the 

scoring criteria set forth in this FOA; 

q. A list of all the applicant’s 

outstanding and contingent obligations, 

including copies of existing notes, loan 

and security agreements, guarantees, 

any existing management or service 

agreements, and any other agreements 

with parents, subsidiaries and affiliates, 

including but not limited to debt 

instruments that use the applicant’s 

assets, revenues or stock as collateral; 

r. All environmental information 

required to certify that the proposed 

construction meets the requirements of 

the National Environmental Policy Act 

of 1969, as amended (42 U.S.C. 4321 et 

seq.) (NEPA), the National Historic 

Preservation Act of 1966, as amended 

(16 U.S.C. 470 et seq.) (NHPA), and the 

Endangered Species Act of 1973, as 

amended (16 U.S.C. 1534 et seq.) (ESA) 


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as applicable and any other information 

requested by the Agency. Information 

will be submitted in two parts. 

Applicants must submit all information 

that is requested in the Agency’s on-line 

applications system as well as provide 

any information requested by the 

Agency after applications are submitted. 

s. Certification from the applicant that 

agreements with, or obligations to, 

investors do not breach the obligations 

to the government under the draft 

Award Documents, especially 

distribution requirements, and that any 

such agreements will be amended so 

that such obligations are made 

contingent to compliance with the 

Award Documents. Such certification 

should also specifically identify which, 

if any, provisions would need to be 

amended; and 

t. If service is being proposed on tribal 

land, a certification from the proper 

tribal official that they are in support of 

the project and will allow construction 

to take place on tribal land. The 

certification must: (1) Include a 

description of the land proposed for use 

as part of the proposed project; (2) 

identify whether the land is owned, 

held in Trust, land held in fee simple by 

the Tribe, or land under a long-term 

lease by the Tribe; (3) if owned, identify 

the land owner; and (4) provide a 

commitment in writing from the land 

owner authorizing the applicant’s use of 

that land for the proposed project. If no 

certification is provided, then this area 

will be ineligible for funding. 

u. Any other information requested in 

the online application system. 

D. Material Representations 

The application, including 

certifications, and all forms submitted 

as part of the application will be treated 

as material representations upon which 

RUS will rely in awarding grants and 

loans. 

VII. Application Evaluation Criteria 

A. Evaluation Criteria 

Applications in the same funding 

category will be scored and ranked 

against the following criteria, and not 

against each other. However, 

applications for 50/50 loan/grant 

combos and 100 percent grants that 

cover the same proposed service area 

will be evaluated as described in 

Section V(C)(5)(b)(i) above. 

1. Rurality of Proposed Funded Service 

Area (25 Points) 

Points will be awarded for serving the 

least dense rural areas as measured by 

the population of the area per square 

mile. If multiple service areas are 

proposed, the density calculation will 

be made on the combined areas as if 

they were a single area, and not the 

average densities. For population 

densities of 6 or less, 25 points will be 

awarded. 

2. Farms Served (20 Points) 

Applicants will receive 1 point for 

each farm that pre-subscribes for 

broadband service up to a maximum of 

20 points. Applicants must have the 

head of the farm sign the presubscription form provided in the 

application system and submit them as 

part of their application. 

3. Performance of the Offered Service 

(20 Points) 

For projects that are proposing to 

build a network that is capable of 

providing at least 100 Mbps 

symmetrical service to all premises, 20 

points will be awarded. The 

certification from the Professional 

Engineer must certify that the proposed 

system can deliver these speeds to every 

premises in the proposed funded service 

area. 

4. Businesses (15 Points) 

Applicants will receive 1 point for 

each business that pre-subscribes for 

broadband service up to a maximum of 

15 points. Applicants must have the 

owner of the business sign the presubscription form provided in the 

application system and submit them as 

part of their application. 

5. Healthcare Centers (15 Points) 

For every healthcare center served 1 

point will be awarded up to a maximum 

of 15 points. Healthcare centers will be 

counted using the GIS layer located in 

the RUS mapping tool at https://

reconnect.usda.gov. 

6. Educational Facilities (15 Points) 

For every school served 1 point will 

be awarded up to a maximum of 15 

points. Schools will be counted using 

the GIS layer provided in the RUS 

mapping tool located at https://

reconnect.usda.gov. 

7. Critical Community Facilities (15 

Points) 

For every critical community facility 

served 1 point will be awarded up to a 

maximum of 15 points. Critical 

community facilities will be counted 

using the GIS layer located in the RUS 

mapping tool at https://

reconnect.usda.gov. 

8. Tribal Lands (5 Points) 

For applications where, at a 

minimum, 50 percent of the 

geographical area of the proposed 

funded service area(s) is to provide 

service on tribal lands, 5 points shall be 

awarded. Tribal lands will be analyzed 

using the GIS layer located at https://

www.census.gov/geo/maps-data/data/ 

cbf/cbf_aiannh.html. This layer is 

included in the RUS mapping tool. 

9. State Broadband Activity (20 Points) 

For projects that are in a State that has 

a broadband plan that has been updated 

within five years of the date of 

publication of this FOA, 10 points will 

be awarded. An additional 5 points will 

be awarded for projects located in states 

that do not restrict utilities from 

delivering broadband service, and 5 

more points for projects located in states 

that expedite right-of-way and 

environmental requirements. 

Applicants will be required to submit 

evidence from the appropriate State 

official that a broadband plan has been 

implemented and updated, that there 

are no restrictions on utilities providing 

broadband service, and that procedures 

are in place for expediting right-of-way 

and environmental requirements. If 

service is proposed in multiple states, 

then evidence must be submitted from 

each state to get the appropriate points. 

VIII. Notice of Proposed Funded 

Service Areas 

A. The Agency Will Publish a Public 

Notice of Each Application 

The application must provide a 

summary of the information required for 

such public notice including the 

following: 

1. The identity of the applicant; 

2. A map of each proposed funded 

service area showing the rural area 

boundaries and the areas without 

sufficient access to broadband using the 

Agency’s Mapping Tool; 

3. The amount and type of support 

requested; 

4. The status of the review of the 

application; 

5. The estimated number of 

households without sufficient access to 

broadband in each service area 

exclusive of satellite and mobile 

broadband service; and 

6. A description of all the types of 

services that the applicant proposes to 

offer in each service area. 

B. Notification After the Application 

Has Been Received 

The Agency will publish the public 

notice on an Agency web page after the 

application has been submitted through 

the online application system and will 

remain on the web page for a period of 

30 calendar days. 


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The notice will ask existing service 

providers to submit to the Agency, 

within this notice period, the following 

information: 

1. The number of residential and 

business customers within the 

applicant’s service area currently 

purchasing broadband service, defined 

as at a minimum speed of 10 Mbps 

downstream and 1 Mbps upstream, the 

rates of data transmission being offered, 

and the cost of each level of broadband 

service charged by the existing service 

provider; 

2. The number of residential and 

business customers within the 

applicant’s service area receiving voice 

and video services and the associated 

rates for these other services; and 

3. A map showing where the existing 

service provider’s services coincide 

with the applicant’s service area using 

the Agency’s Mapping Tool. 

C. Agency Determination of Sufficient 

Access to Broadband in Proposed 

Funded Service Area 

The Agency will use the information 

submitted to determine if there is 

sufficient access to broadband in any 

part of the proposed funded service 

area. Notwithstanding non-responses by 

actual and potential providers, the 

Agency will use all information 

available in evaluating the feasibility of 

the project. 

D. Treatment of Submitted Information 

The information submitted by an 

existing service provider will be treated 

as proprietary and confidential to the 

extent permitted under applicable law. 

E. Notice of Application Is Approved 

If an application is approved, an 

additional notice will be published on 

the agency’s website that will include 

the following information: 

1. The name of the entity receiving 

the financial assistance; 

2. The type of assistance being 

received; 

3. The purpose of the assistance and 

the location of the proposed funded 

service area; and 

4. The semiannual reports submitted 

under Section X(B)(6)e of this FOA. 

IX. Evaluation and Processing 

Procedures 

A. Review of Application 

Applications will be evaluated using 

the criteria stated in Section V.C of this 

FOA. Public comments received with 

respect to an application’s proposed 

funded service area will be reviewed 

and evaluated. Eligibility of proposed 

funded service areas will be verified by 

the Agency. 

RUS also reserves the right to ask 

applicants for clarifying information 

and additional verification of assertions 

in the application. For those 

applications that RUS has selected for 

funding, RUS will send award 

documents. 

B. Review of Awardee Operations 

1. Entities That Receive Funding Under 

This FOA 

For all entities that receive funding 

under this FOA, RUS may send a team 

to the awardee’s facilities to complete a 

Management Analysis Profile (MAP) of 

the entire operation. MAPs are used by 

RUS as a means of evaluating an 

Awardee’s strengths and weaknesses 

and ensuring that awardees are prepared 

to fulfil the terms of the award. Once an 

applicant accepts an award offer, RUS 

may schedule a site visit as soon as 

possible. 

2. Agency Right Not To Advance Funds 

RUS reserves the right not to advance 

funds until the MAP has been 

completed. If the MAP identifies issues 

that can affect the operation and 

completion of the project, those issues 

must be addressed to the satisfaction of 

RUS before funds can be advanced. 

Funding may be rescinded if following 

a MAP the agency determines that the 

awardee will be unable to meet the 

requirements of the award. 

X. Award Administration Information 

A. Award Notices 

Successful applicants will receive an 

offer letter and award documents from 

RUS following award notification. 

Applicants may view sample award 

documents at https://

reconnect.usda.gov. 

B. Administrative Requirements 

1. Pre-Award Conditions 

No funds will be disbursed under this 

program until all other sources of 

funding have been obtained and any 

other pre-award conditions have been 

met. Failure to obtain one or more 

sources of funding committed to in the 

Application or to fulfill any other preaward condition within 90 days of 

award announcement may result in 

withdrawal of the award. 

2. Failure To Comply With Award 

Requirements 

If an Awardee fails to comply with the 

terms of the award as specified in the 

award documents, RUS may exercise 

rights and remedies. 

3. Advance Procedures 

RUS loan and grant advances are 

made at the request of the Awardee 

according to the procedures stipulated 

in the Award Documents. ALL 

MATCHING FUNDS OR CASH 

PROVIDED IN LIEU OF LOAN FUNDS 

MUST BE EXPENDED FIRST, 

FOLLOWED BY LOAN FUNDS, AND 

THEN BY GRANT FUNDS, EXCEPT 

FOR RUS APPROVED PRE– 

APPLICATION EXPENSES. Grant funds, 

if any, will be used for eligible preapplication expenses only on the first 

advance request. Accordingly, 

applications that do not account for 

such advance procedures in the Pro 

Forma five-year forecast may be 

rejected. 

4. Construction 

a. All project assets must comply with 

7 CFR part 1788, and 7 CFR part 1970 

located at https://www.rd.usda.gov/ 

publications/regulations-guidelines/ 

regulations, the ReConnect Program 

Construction Procedures located at 

https://reconnect.usda.gov, any 

successor regulations found on the 

agency’s website, and any other 

guidance from the Agency. 

b. The build-out of the project must be 

completed within five years from the 

date funds are made available. Build-out 

is considered complete when the 

network design has been fully 

implemented, the service operations 

and management systems infrastructure 

is operational, and the awardee is ready 

to support the activation and 

commissioning of individual customers 

to the new system. 

5. Servicing 

a. Awardees must make payments on 

the loan as required in the note and 

Award Documents. 

b. Awardees must comply with all 

terms, conditions, affirmative 

covenants, and negative covenants 

contained in the Award Documents. 

c. In the event of default of the Award 

Documents: 

(i) A late charge may be charged on 

any payment not made in accordance 

with the terms of the loan. 

(ii) The Agency may exercise any and 

all remedies provided in the Award 

Documents. 

6. Accounting, Monitoring, and 

Reporting Requirements 

a. Awardees must adopt a system of 

accounts for maintaining financial 

records acceptable to the Agency, as 

described in 7 CFR part 1770, subpart B. 

b. Awardees must submit annual 

comparable audited financial statements 

along with a report on compliance and 


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on internal control over financial 

reporting, and management letter in 

accordance with the requirements of 7 

CFR part 1773. The Certified Public 

Accountant (CPA) conducting the 

annual audit is selected by the borrower 

and must be satisfactory to RUS as set 

forth in 7 CFR 1773 Subpart B—RUS 

Audit Requirements. 

c. Awardees must comply with all 

reasonable Agency requests to support 

ongoing monitoring efforts. The 

Awardee shall afford RUS, through its 

representatives, reasonable opportunity, 

at all times during business hours and 

upon prior notice, to have access to and 

the right to inspect: The Broadband 

System, any other property encumbered 

by the Award Documents, any and all 

books, records, accounts, invoices, 

contracts, leases, payrolls, timesheets, 

cancelled checks, statements, and other 

documents, electronic or paper of every 

kind belonging to or in the possession 

of the Awardee or in any way pertaining 

to its property or business, including its 

subsidiaries, if any, and to make copies 

or extracts therefore. 

d. Awardee records shall be retained 

and preserved in accordance with the 

provisions of 7 CFR part 1770, subpart 

A. 

e. Awardees must submit semiannual 

reports for 3 years after completion of 

the project, which must include the 

following: 

(1) The purpose of the financing, 

including new equipment and capacity 

enhancements that support high-speed 

broadband access for educational 

institutions, health care providers, and 

public safety service providers 

(including the estimated number of end 

users who are currently using or 

forecasted to use the new or upgraded 

infrastructure); 

(2) The progress towards fulfilling the 

objectives for which the assistance was 

granted, including: 

(i) The number of residences and 

businesses that will receive service 

equal to or greater than the speed 

required for the appropriate funding 

category; 

(ii) The types of facilities constructed 

and installed; 

(iii) The speed of the broadband 

services being delivered; 

(iv) The average price of the 

broadband services being delivered in 

each proposed service area; 

(v) The broadband adoption rate for 

each proposed service territory, 

including the number of new 

subscribers generated from the facilities 

funded; and 

7. Assistance Instruments 

a. Terms and conditions of loans, 

grants, or loan/grant combinations are 

set forth in the non-negotiable standard 

loan, grant, or loan/grant agreements 

and the corresponding note, and/or 

mortgage, if applicable, which may be 

found at https://reconnect.usda.gov. 

b. Award Documents must be 

executed prior to any advance of funds. 

c. Sample Award Documents can be 

found at https://reconnect.usda.gov. 

8. Loan and Loan/Grant Terms and 

Conditions 

Among others, the following terms 

shall apply to the loans: 

a. Interest Rate 

If an applicant is applying for a 100% 

loan, the interest rate shall be fixed at 

2%. If an applicant is applying for a 50/ 

50 loan/grant combination, the loan 

shall bear interest at a rate equal to the 

cost of borrowing to the Department of 

Treasury for obligations, as determined 

by the government, of comparable 

maturity. The applicable interest rate 

will be set at the time of each advance. 

b. Repayment Period 

Unless the Applicant requests a 

shorter repayment period, loans must be 

repaid with interest within a period 

that, rounded to the nearest whole year, 

is equal to the expected Composite 

Economic Life of the project assets, as 

determined by RUS based upon 

acceptable depreciation rates, plus three 

years. Acceptable depreciation rates can 

be found in the ReConnect Program 

Constructions Procedures found at 

https://reconnect.usda.gov. 

c. Amortization Period 

Interest begins accruing on the date of 

each loan advance. All interest and 

principle payments will be deferred for 

a three-year period starting when funds 

are made available to be drawn by the 

Awardee. At the end of the three-year 

deferral period, accrued interest will be 

capitalized and added to the 

outstanding principal, and monthly 

payments will be established in an 

amount that amortizes the outstanding 

balance in equal payments over the 

remaining term of the loan. 

d. Build-out Period 

All proposed construction (including 

construction with matching and other 

funds) and all advance of funds must be 

completed no later than five years from 

the time funds are made available. 

e. Fidelity Bonding 

Applicants must agree to obtain a 

fidelity bond for 15 percent of the award 

amount. The fidelity bond must be 

obtained as a condition of award 

closing. RUS may reduce the percentage 

required if it determines that 15 percent 

is not commensurate with the risk 

involved. 

f. Loan Security. The loan portion of 

the award must be adequately secured, 

as determined by RUS. 

(i) For Corporations and LLC’s, the 

loan and loan/grant combinations must 

be secured by all assets of the Awardee. 

RUS must be given an exclusive first 

lien, in form and substance satisfactory 

to RUS, on all assets of the Awardee, 

including all revenues. RUS may share 

its first lien position with one or more 

lenders on a pari passu basis, except 

with respect to grant funds, if security 

arrangements are acceptable to RUS. 

Applicants must submit a certification 

that their prior lender or lienholder on 

any Awardee assets has already agreed 

to sign the RUS’ standard intercreditor 

agreement or co-mortgage found at 

https://reconnect.usda.gov. Note that 

RUS will not consider sharing assets 

with any related party or affiliate of the 

Awardee. Moreover, given that RUS 

cannot renegotiate these standard 

agreements, Awardees that are unable to 

obtain sign-off on the security 

arrangements may have their awards 

rescinded within 60 days of the date the 

Awardee is made aware of the approval 

of its application. 

(ii) For Tribal entities and 

municipalities, RUS will develop 

appropriate security arrangements. 

(iii) Unless otherwise approved by 

RUS in writing, all property and 

facilities purchased with award funds 

must be owned by the Awardee. 

g. Grant Security. The grant portion of 

the award must also be adequately 

secured, as determined by RUS. 

(i) The government must be provided 

an exclusive first lien on all grant assets 

during the service obligation of the 

grant, and thereafter any sale or 

disposition of grant assets must comply 

with the Uniform Administrative 

Requirements, Cost Principles, and 

Audit Requirements for Federal Awards, 

codified in 2 CFR part 200. Note that 

this part will apply to ALL grant funds 

of an Awardee, regardless of the entity 

status or type of organization. 

(ii) All Awardees must repay the grant 

if the project is sold or transferred 

without RUS approval during the 

service obligation of the grant. 

9. Award Terms and Conditions 

a. Scope 

Awardees are required to comply with 

the requirements established herein. 

Any obligation that applies to the 

Awardee shall extend for the life of the 

award-funded facilities. 

b. Sale or Lease of Project Assets 


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The sale or lease of any portion of the 

Awardee’s facilities must be approved 

in writing by RUS. 

c. Certifications 

(i) The Applicant must certify that it 

is authorized to submit the application 

on behalf of the eligible entity(ies) listed 

in the Application; that the Applicant 

has examined the Application; that all 

information in the Application, 

including certifications and forms 

submitted, are, at the time furnished, 

true and correct in all material respects; 

that the entity requesting funding will 

comply with the terms, conditions, 

purposes, and federal requirements of 

the program; that no kickbacks were 

paid; and that a false, fictitious, or 

fradulent statement or claim on the 

Application is grounds for denial or 

termination of an award, and/or 

possible punishment by a fine or 

imprisonment as provided in 18 U.S.C. 

§ 1001 and civil violations of the False 

Claims Act (31 U.S.C. 3729 et seq.); 

(ii) The Applicant must certify that it 

will comply with all applicable federal, 

tribal, state, and local laws, rules, 

regulations, ordinances, codes, orders, 

and programmatic rules and 

requirements relating to the project, and 

acknowledges that failure to do so may 

result in rejection or de-obligation of the 

award, as well as civil or criminal 

prosecution, if applicable, by the 

appropriate law enforcement 

authorities. 

10. Financial and Compliance Reporting 

Requirements 

Awardees must submit to RUS 30 

calendar days after the end of each 

calendar year quarter, balance sheets, 

income statements, statements of cash 

flow, rate package summaries, and the 

number of customers taking broadband 

service on a per community basis 

utilizing RUS’ on-line reporting system. 

These reports must be submitted 

throughout the loan amortization period 

or for the economic life of the facilities 

funded with a 100 percent grant. 

In addition, Awardees will be 

required to submit annually updated 

service area maps through the RUS 

mapping tool showing the areas where 

construction has been completed and 

premises are receiving service until the 

entire proposed funded service area can 

receive the broadband service. 

At the end of the project, Awardees 

must submit a service area map 

indicating that all construction has been 

completed as proposed in the 

application. If parts of the proposed 

funded service area have not been 

constructed, RUS may require a portion 

of the award to be rescinded or paid 

back. 

XI. Other Information 

A. Discretionary Awards 

The government is not obligated to 

make any award as a result of this 

announcement and will fund only 

projects that are deemed likely to 

achieve the program’s goals and for 

which funds are available. 

B. Environmental and National Historic 

Preservation Requirements 

Federal Agencies are required to 

analyze the potential environmental 

impacts, as required by the NEPA and 

the NHPA for Applicant projects or 

proposals seeking funding. All 

Applicants are required to complete an 

Environmental Questionnaire, provide a 

description of program activities and to 

submit all other required environmental 

documentation as requested in the 

application system or by the Agency 

after the application is submitted. 

It is the Applicant’s responsibility to 

obtain all necessary federal, tribal, state, 

and local governmental permits and 

approvals necessary for the proposed 

work to be conducted. Applicants are 

expected to design their projects so that 

they minimize the potential for adverse 

impacts to the environment. Applicants 

also will be required to cooperate with 

the granting agencies in identifying 

feasible measures to reduce or avoid any 

identified adverse environmental 

impacts of their proposed projects. The 

failure to do so may be grounds for not 

making an award. 

Applications will be reviewed to 

ensure that they contain sufficient 

information to allow Agency staff to 

conduct a NEPA analysis so that 

appropriate NEPA documentation can 

be submitted to the appropriate federal 

and state agencies, along with the 

recommendation that the proposal is in 

compliance with applicable 

environmental and historic 

preservations laws. Applicants 

proposing activities that cannot be 

covered by existing environmental 

compliance procedures will be informed 

after the technical review stage whether 

NEPA compliance and other 

environmental requirements can 

otherwise be expeditiously met so that 

a project can proceed within the 

timeframes anticipated under the 

ReConnect Program. 

If additional information is required 

after an application is accepted for 

funding, funds can be withheld by the 

agency under a special award condition 

requiring the Awardee to submit 

additional environmental compliance 

information sufficient for the Agency to 

assess any impacts that a project may 

have on the environment. 

C. De-Obligation 

The RUS reserves the right to deobligate awards to Awardees under this 

FOA that demonstrate an insufficient 

level of performance, wasteful or 

fraudulent spending, or noncompliance 

with environmental and historic 

preservation requirements. 

D. Confidentiality of Applicant 

Information 

Applicants are encouraged to identify 

and label any confidential and 

proprietary information contained in 

their applications. The Agency will 

protect confidential and proprietary 

information from public disclosure to 

the fullest extent authorized by 

applicable law, including the Freedom 

of Information Act, as amended (5 

U.S.C. 552), the Trade Secrets Act, as 

amended (18 U.S.C. 1905), the 

Economic Espionage Act of 1996 (18 

U.S.C. 1831 et seq.), and CALEA (47 

U.S.C. 1001 et seq.). Applicants should 

be aware, however, that the 

Consolidated Appropriations Act 

requires substantial transparency. For 

example, RUS is required to make 

publicly available on the internet a list 

of each entity that has applied for a loan 

or grant, a description of each 

application, the status of each 

application, the name of each entity 

receiving funds, and the purpose for 

which the entity is receiving the funds. 

E. Compliance With Applicable Laws 

Any recipient of funds under this 

FOA shall be required to comply with 

all applicable federal, tribal and state 

laws, including but not limited to: 

1. The nondiscrimination and equal 

employment opportunity requirements 

of Title VI of the Civil Rights Act of 

1964, as amended (42 U.S.C. 2000e et 

seq., 7 CFR pt. 15); 

2. Section 504 of the Rehabilitation 

Act (29 U.S.C. 794 et seq.; 7 CFR pt. 

15b); 

3. The Age Discrimination Act of 

1975, as amended (42 U.S.C. 6101 et 

seq.; 45 CFR pt. 90); 

4. Executive Order 11375, amending 

Executive Order 11246, Relating to 

Equal Employment Opportunity (3 CFR 

pt. 102). See 7 CFR pts. 15 and 15b and 

45 CFR pt. 90, RUS Bulletin 1790–1 

(‘‘Nondiscrimination among 

Beneficiaries of RUS Programs’’), and 

RUS Bulletin 20–15:320–15 (‘‘Equal 

Employment Opportunity in 

Construction Financed with RUS 

Loans’’); 

5. The Architectural Barriers Act of 

1968, as amended (42 U.S.C. 4151 et 

seq.); 


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6. The Uniform Federal Accessibility 

Standards (UFAS) (Appendix A to 41 

CFR subpart 101–19.6); and 

7. The Council on Environmental 

Quality Regulations for Implementing 

the Procedural Provisions of NEPA and 

certain related federal environmental 

laws, statutes, regulations, and 

Executive Orders found in 7 CFR 1970. 

A more complete list of such 

requirements can be found in the 

applicable Award Documents. 

F. Communications Laws 

Awardees will be required to comply 

with all applicable federal, tribal and 

state communications laws and 

regulations, including, for example, the 

Communications Act of 1934, as 

amended, (47 U.S.C. 151 et seq.) the 

Telecommunications Act of 1996, as 

amended (Pub. L. 104–104, 110 Stat. 56 

(1996), and CALEA. For further 

information, see http://www.fcc.gov. 

G. Executive Order 13132 

It has been determined that this notice 

does not contain policies with 

federalism implications as that term is 

defined in Executive Order 13132. 

H. Authorized Signatories 

Only authorized grant and loan 

officers can bind the Government to the 

expenditure of funds. 

I. Paperwork Reduction Act and 

Recordkeeping Requirements 

Copies of all forms, regulations, and 

instructions referenced in this FOA may 

be obtained from RUS. Data furnished 

by the Applicants will be used to 

determine eligibility for program 

benefits. Furnishing the data is 

voluntary; however, the failure to 

provide data could result in program 

benefits being withheld or denied. 

The Information Collection and 

Recordkeeping requirements contained 

in this FOA have been approved by an 

emergency clearance under OMB 

Control Number 0572–0152. In 

accordance with the Paperwork 

Reduction Act of 1995 (44 U.S.C. 

chapter 35), RUS invites comments on 

this information collection for which 

the Agency intends to request approval 

from the Office of Management and 

Budget (OMB). 

Comments on this notice must be 

received by February 12, 2019. 

Comments are invited on (a) whether 

the collection of information is 

necessary for the proper performance of 

the functions of the agency, including 

whether the information will have 

practical utility; (b) the accuracy of the 

agency’s estimate of burden including 

the validity of the methodology and 

assumption used; (c) ways to enhance 

the quality, utility and clarity of the 

information to be collected; and (d) 

ways to minimize the burden of the 

collection of information on those who 

are to respond, including through the 

use of appropriate automated, 

electronic, mechanical, or other 

technological collection techniques or 

other forms of information technology. 

Comments may be sent to Michele 

Brooks, Team Lead, Rural Development 

Innovation Center—Regulations 

Management Team, U.S. Department of 

Agriculture, 1400 Independence Ave. 

SW, Stop 1522, Room 5162 South 

Building, Washington, DC 20250–1522. 

Title: Rural eConnectivity Pilot 

Program (ReConnect Program). 

Type of Request: New collection. 

Estimate of Burden: Public reporting 

burden for this collection of information 

is estimated to average 6.77 hours per 

response. 

Respondents: Businesses and other 

for-profits. 

Estimated Number of Respondents: 

2000. 

Estimated Number of Responses per 

Respondent: 34.96. 

Estimated Total Annual Burden and 

Record Keeping Hours on Respondents: 

477,820 hours. 

Copies of this information collection 

can be obtained from MaryPat Daskal, 

Rural Development Innovation Center— 

Regulations Management Team, at (202) 

720–7853 or email: marypat.daskal@

wdc.usda.gov. 

All responses to this information 

collection and recordkeeping notice will 

be summarized and included in the 

request for OMB approval. All 

comments will also become a matter of 

public record. 

Dated: December 6, 2018. 

Christopher A. McLean, 

Acting Administrator, Rural Utilities Service. 

[FR Doc. 2018–27038 Filed 12–13–18; 4:15 pm] 

BILLING CODE P 

COMMISSION ON CIVIL RIGHTS 

Notice of Public Meeting of the Ohio 

Advisory Committee to the U.S. 

Commission on Civil Rights 

AGENCY: U.S. Commission on Civil 

Rights. 

ACTION: Announcement of meeting. 

SUMMARY: Notice is hereby given, 

pursuant to the provisions of the rules 

and regulations of the U.S. Commission 

on Civil Rights (Commission) and the 

Federal Advisory Committee Act that 

the Ohio Advisory Committee 

(Committee) will hold a meeting via 

teleconference on Thursday January 17, 

2019, from 2–3 p.m. EST for the purpose 

of reviewing received testimony and 

planning for future testimony on 

education funding in the state. 

DATES: The meeting will be held on 

Thursday, January 17, 2019, at 2:00 p.m. 

EST. 

Public Call Information: Dial: 888– 

254–3590, Conference ID: 3192445. 

FOR FURTHER INFORMATION CONTACT: 

Melissa Wojnaroski, DFO, at 

mwojnaroski@usccr.gov or 312–353– 

8311. 

SUPPLEMENTARY INFORMATION: Members 

of the public can listen to the 

discussion. This meeting is available to 

the public through the above listed toll 

free number. An open comment period 

will be provided to allow members of 

the public to make a statement as time 

allows. The conference call operator 

will ask callers to identify themselves, 

the organization they are affiliated with 

(if any), and an email address prior to 

placing callers into the conference 

room. Callers can expect to incur regular 

charges for calls they initiate over 

wireless lines, according to their 

wireless plan. The Commission will not 

refund any incurred charges. Callers 

will incur no charge for calls they 

initiate over land-line connections to 

the toll-free telephone number. Persons 

with hearing impairments may also 

follow the proceedings by first calling 

the Federal Relay Service at 1–800–877– 

8339 and providing the Service with the 

conference call number and conference 

ID number. 

Members of the public are also 

entitled to submit written comments; 

the comments must be received in the 

regional office within 30 days following 

the meeting. Written comments may be 

mailed to the Regional Programs Unit 

Office, U.S. Commission on Civil Rights, 

230 S. Dearborn, Suite 2120, Chicago, IL 

60604. They may also be faxed to the 

Commission at (312) 353–8324, or 

emailed to Carolyn Allen at callen@

usccr.gov. Persons who desire 

additional information may contact the 

Regional Programs Unit Office at (312) 

353–8311. 

Records generated from this meeting 

may be inspected and reproduced at the 

Regional Programs Unit Office, as they 

become available, both before and after 

the meeting. Records of the meeting will 

be available via www.facadatabase.gov 

under the Commission on Civil Rights, 

Ohio Advisory Committee link. Persons 

interested in the work of this Committee 

are also directed to the Commission’s 

website, http://www.usccr.gov, or may 

contact the Regional Programs Unit 


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