(B) may have a lien on revenues described 
in subparagraph (A), subject to any lien secur-
ing project obligations. 
(4) INTEREST RATE.—The interest rate on a 
secured loan under this section shall be not less than 
the yield on United States Treasury securities of a 
similar maturity to the maturity of the secured loan 
on the date of execution of the loan agreement. 
(5) MATURITY DATE.—The final maturity date 
of the secured loan shall be the lesser of— 
(A) 35 years after the date of substantial 
completion of the project; and 
(B) if the useful life of the infrastructure 
for the provision of broadband service being fi-
nanced is of a lesser period, the useful life of 
the infrastructure. 
(6) NONSUBORDINATION.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), the secured loan shall not be 
subordinated to the claims of any holder of 
project obligations in the event of bankruptcy, 
insolvency, or liquidation of the obligor. 
(B) PREEXISTING INDENTURE.— 
(i) IN GENERAL.—The Assistant Sec-
retary shall waive the requirement under 
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subparagraph (A) for a public agency bor-
rower that is financing ongoing capital 
programs and has outstanding senior 
bonds under a preexisting indenture, if— 
(I) the secured loan— 
(aa) is rated in the A cat-
egory or higher; or 
(bb) in the case of a small 
project, 
meets 
an 
alternative 
standard that the Assistant Sec-
retary shall establish under sec-
tion 6 for purposes of this sub-
clause; 
(II) the secured loan is secured 
and payable from pledged revenues 
not affected by project performance, 
such as a tax-backed revenue pledge 
or a system-backed pledge of project 
revenues; and 
(III) the BIFIA program share 
of eligible project costs is 33 percent 
or less. 
(ii) LIMITATION.—If the Assistant 
Secretary waives the nonsubordination re-
quirement under this subparagraph— 
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(I) the maximum credit subsidy 
to be paid by the Federal Government 
shall be not more than 10 percent of 
the principal amount of the secured 
loan; and 
(II) the obligor shall be respon-
sible for paying the remainder of the 
subsidy cost, if any. 
(7) FEES.—The Assistant Secretary may estab-
lish fees at a level sufficient to cover all or a portion 
of the costs to the Federal Government of making 
a secured loan under this section. 
(8) NON-FEDERAL SHARE.—The proceeds of a 
secured loan under the BIFIA program, if the loan 
is repayable from non-Federal funds— 
(A) may be used for any non-Federal share 
of project costs required under this Act; and 
(B) shall not count toward the total Fed-
eral assistance provided for a project for pur-
poses of paragraph (9). 
(9) MAXIMUM
FEDERAL
INVOLVEMENT.—The 
total Federal assistance provided for a project re-
ceiving a loan under the BIFIA program shall not 
exceed 80 percent of the total project cost. 
(c) REPAYMENT.— 
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(1) SCHEDULE.—The Assistant Secretary shall 
establish a repayment schedule for each secured loan 
under this section based on— 
(A) the projected cash flow from project 
revenues and other repayment sources; and 
(B) the useful life of the infrastructure for 
the provision of broadband service being fi-
nanced. 
(2) COMMENCEMENT.—Scheduled loan repay-
ments of principal or interest on a secured loan 
under this section shall commence not later than 5 
years after the date of substantial completion of the 
project. 
(3) DEFERRED PAYMENTS.— 
(A) IN GENERAL.—If, at any time after 
the date of substantial completion of the 
project, the project is unable to generate suffi-
cient revenues to pay the scheduled loan repay-
ments of principal and interest on the secured 
loan, the Assistant Secretary may, subject to 
subparagraph (C), allow the obligor to add un-
paid principal and interest to the outstanding 
balance of the secured loan. 
(B) INTEREST.—Any payment deferred 
under subparagraph (A) shall— 
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(i) continue to accrue interest in ac-
cordance with subsection (b)(4) until fully 
repaid; and 
(ii) be scheduled to be amortized over 
the remaining term of the loan. 
(C) CRITERIA.— 
(i) IN GENERAL.—Any payment defer-
ral under subparagraph (A) shall be con-
tingent on the project meeting criteria es-
tablished by the Assistant Secretary. 
(ii) REPAYMENT
STANDARDS.—The 
criteria established pursuant to clause (i) 
shall include standards for reasonable as-
surance of repayment. 
(4) PREPAYMENT.— 
(A) USE OF EXCESS REVENUES.—Any ex-
cess revenues that remain after satisfying 
scheduled debt service requirements on the 
project obligations and secured loan and all de-
posit requirements under the terms of any trust 
agreement, bond resolution, or similar agree-
ment securing project obligations may be ap-
plied annually to prepay the secured loan with-
out penalty. 
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(B) 
USE
OF
PROCEEDS
OF
REFI-
NANCING.—The secured loan may be prepaid at 
any time without penalty from the proceeds of 
refinancing from non-Federal funding sources. 
(d) SALE OF SECURED LOANS.— 
(1) IN GENERAL.—Subject to paragraph (2), as 
soon as practicable after substantial completion of a 
project and after notifying the obligor, the Assistant 
Secretary may sell to another entity or reoffer into 
the capital markets a secured loan for the project if 
the Assistant Secretary determines that the sale or 
reoffering can be made on favorable terms. 
(2) CONSENT OF OBLIGOR.—In making a sale 
or reoffering under paragraph (1), the Assistant 
Secretary may not change the original terms and 
conditions of the secured loan without the written 
consent of the obligor. 
(e) LOAN GUARANTEES.— 
(1) IN
GENERAL.—The Assistant Secretary 
may provide a loan guarantee to a lender in lieu of 
making a secured loan under this section if the As-
sistant Secretary determines that the budgetary cost 
of the loan guarantee is substantially the same as 
that of a secured loan. 
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(2) TERMS.—The terms of a loan guarantee 
under paragraph (1) shall be consistent with the 
terms required under this section for a secured loan, 
except that the rate on the guaranteed loan and any 
prepayment features shall be negotiated between the 
obligor and the lender, with the consent of the As-
sistant Secretary. 
(f) STREAMLINED APPLICATION PROCESS.— 
(1) IN
GENERAL.—The Assistant Secretary 
shall develop one or more expedited application proc-
esses, available at the request of entities seeking se-
cured loans under the BIFIA program, that use a 
set or sets of conventional terms established pursu-
ant to this section. 
(2) TERMS.—In establishing the streamlined 
application process required by this subsection, the 
Assistant Secretary may allow for an expedited ap-
plication period and include terms such as those that 
require— 
(A) that the project be a small project; 
(B) the secured loan to be secured and 
payable from pledged revenues not affected by 
project performance, such as a tax-backed rev-
enue pledge, tax increment financing, or a sys-
tem-backed pledge of project revenues; and 
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(C) repayment of the loan to commence 
not later than 5 years after disbursement. 
SEC. 5. LINES OF CREDIT. 
(a) IN GENERAL.— 
(1) AGREEMENTS.—Subject to paragraphs (2) 
through (4), the Assistant Secretary may enter into 
agreements to make available to one or more obli-
gors lines of credit in the form of direct loans to be 
made by the Assistant Secretary at future dates on 
the occurrence of certain events for any project se-
lected under section 3. 
(2) USE OF PROCEEDS.—The proceeds of a line 
of credit made available under this section shall be 
available to pay debt service on project obligations 
issued to finance eligible project costs, extraordinary 
repair and replacement costs, operation and mainte-
nance expenses, and costs associated with unex-
pected Federal or State environmental restrictions. 
(3) RISK ASSESSMENT.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), before entering into an 
agreement under this subsection, the Assistant 
Secretary, in consultation with the Director of 
the Office of Management and Budget and each 
rating agency providing a preliminary rating 
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opinion letter under section 3(b)(2)(A), shall 
determine an appropriate capital reserve sub-
sidy amount for each line of credit, taking into 
account the rating opinion letter. 
(B) SMALL
PROJECTS.—Before entering 
into an agreement under this subsection to 
make available a line of credit for a small 
project, the Assistant Secretary, in consultation 
with the Director of the Office of Management 
and Budget, shall determine an appropriate 
capital reserve subsidy amount for each such 
line of credit, taking into account the alter-
native documentation provided under section 
3(b)(2)(B) instead of preliminary rating opinion 
letters provided under section 3(b)(2)(A). 
(4) 
INVESTMENT-GRADE
RATING
REQUIRE-
MENT.—The funding of a line of credit under this 
section shall be contingent on— 
(A) the senior obligations of the project re-
ceiving an investment-grade rating from 2 rat-
ing agencies; or 
(B) in the case of a small project, the 
project meeting an alternative standard that the 
Assistant Secretary shall establish under section 
6 for purposes of this paragraph. 
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(b) TERMS AND LIMITATIONS.— 
(1) IN GENERAL.—A line of credit under this 
section with respect to a project shall be on such 
terms and conditions and contain such covenants, 
representations, warranties, and requirements (in-
cluding requirements for audits) as the Assistant 
Secretary determines to be appropriate. 
(2) MAXIMUM AMOUNTS.—The total amount of 
a line of credit under this section shall not exceed 
33 percent of the reasonably anticipated eligible 
project costs. 
(3) DRAWS.—Any draw on a line of credit 
under this section shall— 
(A) represent a direct loan; and 
(B) be made only if net revenues from the 
project (including capitalized interest, but not 
including reasonably required financing re-
serves) are insufficient to pay the costs speci-
fied in subsection (a)(2). 
(4) INTEREST RATE.—The interest rate on a 
direct loan resulting from a draw on the line of cred-
it shall be not less than the yield on 30-year United 
States Treasury securities, as of the date of execu-
tion of the line of credit agreement. 
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(5) SECURITY.—A line of credit issued under 
this section— 
(A) shall— 
(i) be payable, in whole or in part, 
from— 
(I) amounts charged to— 
(aa) 
subscribers 
of 
broadband service for such serv-
ice; or 
(bb) subscribers of any re-
lated service provided over the 
same infrastructure for such re-
lated service; 
(II) user fees; 
(III) payments owing to the obli-
gor under a public-private partner-
ship; or 
(IV) other dedicated revenue 
sources that also secure the senior 
project obligations; and 
(ii) include a coverage requirement or 
similar security feature supporting the 
project obligations; and 
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(B) may have a lien on revenues described 
in subparagraph (A), subject to any lien secur-
ing project obligations. 
(6) 
PERIOD
OF
AVAILABILITY.—The 
full 
amount of a line of credit under this section, to the 
extent not drawn upon, shall be available during the 
10-year period beginning on the date of substantial 
completion of the project. 
(7) RIGHTS OF THIRD-PARTY CREDITORS.— 
(A) AGAINST FEDERAL GOVERNMENT.—A 
third-party creditor of the obligor shall not have 
any right against the Federal Government with 
respect to any draw on a line of credit under 
this section. 
(B) ASSIGNMENT.—An obligor may assign 
a line of credit under this section to— 
(i) one or more lenders; or 
(ii) a trustee on the behalf of such a 
lender. 
(8) NONSUBORDINATION.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), a direct loan under this sec-
tion shall not be subordinated to the claims of 
any holder of project obligations in the event of 
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(III) the BIFIA program share 
of eligible project costs is 33 percent 
or less. 
(ii) LIMITATION.—If the Assistant 
Secretary waives the nonsubordination re-
quirement under this subparagraph— 
(I) the maximum credit subsidy 
to be paid by the Federal Government 
shall be not more than 10 percent of 
the principal amount of the secured 
loan; and 
(II) the obligor shall be respon-
sible for paying the remainder of the 
subsidy cost. 
(9) FEES.—The Assistant Secretary may estab-
lish fees at a level sufficient to cover all or a portion 
of the costs to the Federal Government of providing 
a line of credit under this section. 
(10) RELATIONSHIP TO OTHER CREDIT INSTRU-
MENTS.—A project that receives a line of credit 
under this section also shall not receive a secured 
loan or loan guarantee under section 4 in an amount 
that, combined with the amount of the line of credit, 
exceeds 49 percent of eligible project costs. 
(c) REPAYMENT.— 
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(1) TERMS AND CONDITIONS.—The Assistant 
Secretary shall establish repayment terms and condi-
tions for each direct loan under this section based 
on— 
(A) the projected cash flow from project 
revenues and other repayment sources; and 
(B) the useful life of the infrastructure for 
the provision of broadband service being fi-
nanced. 
(2) TIMING.—All repayments of principal or in-
terest on a direct loan under this section shall be 
scheduled— 
(A) to commence not later than 5 years 
after the end of the period of availability speci-
fied in subsection (b)(6); and 
(B) to conclude, with full repayment of 
principal and interest, by the date that is 25 
years after the end of the period of availability 
specified in subsection (b)(6). 
SEC. 6. ALTERNATIVE PRUDENTIAL LENDING STANDARDS 
FOR SMALL PROJECTS. 
Not later than 180 days after the date of the enact-
ment of this Act, the Assistant Secretary shall establish 
alternative, streamlined prudential lending standards for 
small projects receiving credit assistance under the BIFIA 
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program to ensure that such projects pose no additional 
risk to the Federal Government, as compared with 
projects that are not small projects. 
SEC. 7. PROGRAM ADMINISTRATION. 
(a) REQUIREMENT.—The Assistant Secretary shall 
establish a uniform system to service the Federal credit 
instruments made available under the BIFIA program. 
(b) FEES.—The Assistant Secretary may collect and 
spend fees, contingent on authority being provided in ap-
propriations Acts, at a level that is sufficient to cover— 
(1) the costs of services of expert firms retained 
pursuant to subsection (d); and 
(2) all or a portion of the costs to the Federal 
Government of servicing the Federal credit instru-
ments. 
(c) SERVICER.— 
(1) IN
GENERAL.—The Assistant Secretary 
may appoint a financial entity to assist the Assistant 
Secretary in servicing the Federal credit instru-
ments. 
(2) DUTIES.—A servicer appointed under para-
graph (1) shall act as the agent for the Assistant 
Secretary. 
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(3) FEE.—A servicer appointed under para-
graph (1) shall receive a servicing fee, subject to ap-
proval by the Assistant Secretary. 
(d) ASSISTANCE FROM EXPERT FIRMS.—The Assist-
ant Secretary may retain the services of expert firms, in-
cluding counsel, in the field of municipal and project fi-
nance to assist in the underwriting and servicing of Fed-
eral credit instruments. 
(e) EXPEDITED PROCESSING.—The Assistant Sec-
retary shall implement procedures and measures to econo-
mize the time and cost involved in obtaining approval and 
the issuance of credit assistance under the BIFIA pro-
gram. 
(f) ASSISTANCE
TO
SMALL
PROJECTS.—Of the 
amount appropriated under section 10(a), and after the 
set-aside for administrative expenses under section 10(b), 
not less than 20 percent shall be made available for the 
Assistant Secretary to use in lieu of fees collected under 
subsection (b) for small projects. 
SEC. 8. STATE AND LOCAL PERMITS. 
The provision of credit assistance under the BIFIA 
program with respect to a project shall not— 
(1) relieve any recipient of the assistance of any 
obligation to obtain any required State or local per-
mit or approval with respect to the project; 
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(2) limit the right of any unit of State or local 
government to approve or regulate any rate of re-
turn on private equity invested in the project; or 
(3) otherwise supersede any State or local law 
(including any regulation) applicable to the construc-
tion or operation of the project. 
SEC. 9. REGULATIONS. 
The Assistant Secretary may promulgate such regula-
tions as the Assistant Secretary determines to be appro-
priate to carry out the BIFIA program. 
SEC. 10. FUNDING. 
(a) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to the Assistant Secretary 
$5,000,000,000 for fiscal year 2022 to carry out this Act, 
and such amount is authorized to remain available until 
expended. 
(b) ADMINISTRATIVE EXPENSES.—Of the amount 
appropriated under subsection (a), the Assistant Secretary 
may use not more than 5 percent for the administration 
of the BIFIA program. 
SEC. 11. REPORTS TO CONGRESS. 
(a) IN GENERAL.—Not later than 1 year after the 
date of the enactment of this Act, and every 2 years there-
after, the Assistant Secretary shall submit to Congress a 
report summarizing the financial performance of the 
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