made available under the BIFIA program with re-
spect to a project. 
(6) INVESTMENT-GRADE
RATING.—The term 
‘‘investment-grade rating’’ means a rating of BBB 
minus, Baa3, bbb minus, BBB (low), or higher as-
signed by a rating agency to project obligations. 
(7) LENDER.—The term ‘‘lender’’ means any 
non-Federal qualified institutional buyer (as defined 
in section 230.144A(a) of title 17, Code of Federal 
Regulations (or any successor regulation), known as 
Rule 144A(a) of the Securities and Exchange Com-
mission and issued under the Securities Act of 1933 
(15 U.S.C. 77a et seq.)), including— 
(A) a qualified retirement plan (as defined 
in section 4974(c) of the Internal Revenue Code 
of 1986) that is a qualified institutional buyer; 
and 
(B) a governmental plan (as defined in 
section 414(d) of the Internal Revenue Code of 
1986) that is a qualified institutional buyer. 
(8) LETTER OF INTEREST.—The term ‘‘letter 
of interest’’ means a letter submitted by a potential 
applicant prior to an application for credit assistance 
in a format prescribed by the Assistant Secretary on 
the website of the BIFIA program that— 
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(A) describes the project and the location, 
purpose, and cost of the project; 
(B) outlines the proposed financial plan, 
including the requested credit assistance and 
the proposed obligor; 
(C) provides a status of environmental re-
view; and 
(D) provides information regarding satis-
faction of other eligibility requirements of the 
BIFIA program. 
(9) LINE OF CREDIT.—The term ‘‘line of cred-
it’’ means an agreement entered into by the Assist-
ant Secretary with an obligor under section 5 to pro-
vide a direct loan at a future date upon the occur-
rence of certain events. 
(10) LOAN GUARANTEE.—The term ‘‘loan guar-
antee’’ means any guarantee or other pledge by the 
Assistant Secretary to pay all or part of the prin-
cipal of and interest on a loan or other debt obliga-
tion issued by an obligor and funded by a lender. 
(11) OBLIGOR.—The term ‘‘obligor’’ means a 
party that— 
(A) is primarily liable for payment of the 
principal of or interest on a Federal credit in-
strument; and 
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(B) may be a corporation, company, part-
nership, joint venture, trust, or governmental 
entity, agency, or instrumentality. 
(12) PROJECT.—The term ‘‘project’’ means a 
project— 
(A) to construct and deploy infrastructure 
for the provision of broadband service; and 
(B) that the Assistant Secretary deter-
mines will— 
(i) provide access or improved access 
to broadband service to consumers residing 
in areas of the United States where such 
service is not available with a download 
speed of at least 100 megabits per second 
and an upload speed of at least 3 megabits 
per second; or 
(ii) provide access or improved access 
to broadband service to— 
(I) schools, libraries, medical and 
healthcare providers, community col-
leges and other institutions of higher 
education, and other community sup-
port organizations and entities to fa-
cilitate greater use of broadband serv-
ice by or through such organizations; 
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(II) organizations and agencies 
that provide outreach, access, equip-
ment, and support services to facili-
tate greater use of broadband service 
by low-income, unemployed, aged, and 
otherwise vulnerable populations; 
(III) job-creating strategic facili-
ties located within a State-designated 
economic zone, Economic Develop-
ment District designated by the De-
partment 
of 
Commerce, 
Renewal 
Community or Empowerment Zone 
designated by the Department of 
Housing and Urban Development, or 
Enterprise Community designated by 
the Department of Agriculture; or 
(IV) public safety agencies. 
(13) 
PROJECT
OBLIGATION.—The 
term 
‘‘project obligation’’ means any note, bond, deben-
ture, or other debt obligation issued by an obligor in 
connection with the financing of a project, other 
than a Federal credit instrument. 
(14) PUBLIC
AUTHORITY.—The term ‘‘public 
authority’’ means a Federal, State, county, town, or 
township, Indian tribe, municipal or other local gov-
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ernment or instrumentality with authority to fi-
nance, build, operate, or maintain infrastructure for 
the provision of broadband service. 
(15) RATING AGENCY.—The term ‘‘rating agen-
cy’’ means a credit rating agency registered with the 
Securities and Exchange Commission as a nationally 
recognized statistical rating organization (as defined 
in section 3(a) of the Securities Exchange Act of 
1934 (15 U.S.C. 78c(a))). 
(16) SECURED
LOAN.—The term ‘‘secured 
loan’’ means a direct loan or other debt obligation 
issued by an obligor and funded by the Assistant 
Secretary in connection with the financing of a 
project under section 4. 
(17) 
SMALL
PROJECT.—The 
term 
‘‘small 
project’’ means a project having eligible project costs 
that are reasonably anticipated not to equal or ex-
ceed $20,000,000. 
(18) STATE.—The term ‘‘State’’ has the mean-
ing given such term in section 3 of the Communica-
tions Act of 1934 (47 U.S.C. 153). 
(19) SUBSIDY
AMOUNT.—The term ‘‘subsidy 
amount’’ means the amount of budget authority suf-
ficient to cover the estimated long-term cost to the 
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Federal Government of a Federal credit instru-
ment— 
(A) calculated on a net present value basis; 
and 
(B) excluding administrative costs and any 
incidental effects on governmental receipts or 
outlays in accordance with the Federal Credit 
Reform Act of 1990 (2 U.S.C. 661 et seq.). 
(20) SUBSTANTIAL
COMPLETION.—The term 
‘‘substantial completion’’ means, with respect to a 
project receiving credit assistance under the BIFIA 
program— 
(A) the commencement of the provision of 
broadband service using the infrastructure 
being financed; or 
(B) a comparable event, as determined by 
the Assistant Secretary and specified in the 
credit agreement. 
SEC. 3. DETERMINATION OF ELIGIBILITY AND PROJECT SE-
LECTION. 
(a) ELIGIBILITY.— 
(1) IN GENERAL.—A project shall be eligible to 
receive credit assistance under the BIFIA program 
if— 
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(A) the entity proposing to carry out the 
project submits a letter of interest prior to sub-
mission of a formal application for the project; 
and 
(B) the project meets the criteria described 
in this subsection. 
(2) CREDITWORTHINESS.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), to be eligible for assistance 
under the BIFIA program, a project shall sat-
isfy 
applicable 
creditworthiness 
standards, 
which, at a minimum, shall include— 
(i) adequate coverage requirements to 
ensure repayment; 
(ii) an investment-grade rating from 
at least 2 rating agencies on debt senior to 
the Federal credit instrument; and 
(iii) a rating from at least 2 rating 
agencies on the Federal credit instrument. 
(B) SMALL
PROJECTS.—In order for a 
small project to be eligible for assistance under 
the BIFIA program, such project shall satisfy 
alternative creditworthiness standards that shall 
be established by the Assistant Secretary under 
section 6 for purposes of this paragraph. 
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(3) APPLICATION.—A State, local government, 
agency or instrumentality of a State or local govern-
ment, public authority, public-private partnership, or 
any other legal entity undertaking the project and 
authorized by the Assistant Secretary shall submit a 
project application that is acceptable to the Assist-
ant Secretary. 
(4) ELIGIBLE PROJECT COST PARAMETERS FOR 
INFRASTRUCTURE PROJECTS.—Eligible project costs 
shall be reasonably anticipated to equal or exceed 
$2,000,000 in the case of a project or program of 
projects— 
(A) in which the applicant is a local gov-
ernment, instrumentality of local government, 
or public authority (other than a public author-
ity that is a Federal or State government or in-
strumentality); 
(B) located on a facility owned by a local 
government; or 
(C) for which the Assistant Secretary de-
termines that a local government is substan-
tially involved in the development of the project. 
(5) DEDICATED REVENUE SOURCES.—The ap-
plicable Federal credit instrument shall be repayable, 
in whole or in part, from— 
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(A) amounts charged to— 
(i) subscribers of broadband service 
for such service; or 
(ii) subscribers of any related service 
provided over the same infrastructure for 
such related service; 
(B) user fees; 
(C) payments owing to the obligor under a 
public-private partnership; or 
(D) other dedicated revenue sources that 
also secure or fund the project obligations. 
(6) APPLICATIONS WHERE OBLIGOR WILL BE 
IDENTIFIED
LATER.—A State, local government, 
agency or instrumentality of a State or local govern-
ment, or public authority may submit to the Assist-
ant Secretary an application under paragraph (3), 
under which a private party to a public-private part-
nership will be— 
(A) the obligor; and 
(B) identified later through completion of 
a procurement and selection of the private 
party. 
(7) BENEFICIAL EFFECTS.—The Assistant Sec-
retary shall determine that financial assistance for 
the project under the BIFIA program will— 
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(A) foster, if appropriate, partnerships 
that attract public and private investment for 
the project; 
(B) enable the project to proceed at an 
earlier date than the project would otherwise be 
able to proceed or reduce the lifecycle costs (in-
cluding debt service costs) of the project; and 
(C) reduce the contribution of Federal 
grant assistance for the project. 
(8) PROJECT READINESS.—To be eligible for 
assistance under the BIFIA program, the applicant 
shall demonstrate a reasonable expectation that the 
contracting process for the construction and deploy-
ment 
of 
infrastructure 
for 
the 
provision 
of 
broadband service through the project can commence 
by no later than 90 days after the date on which a 
Federal credit instrument is obligated for the project 
under the BIFIA program. 
(b) SELECTION AMONG ELIGIBLE PROJECTS.— 
(1) ESTABLISHMENT
OF
APPLICATION
PROC-
ESS.—The Assistant Secretary shall establish a roll-
ing application process under which projects that are 
eligible to receive credit assistance under subsection 
(a) shall receive credit assistance on terms accept-
able to the Assistant Secretary, if adequate funds 
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are available to cover the subsidy costs associated 
with the Federal credit instrument. 
(2) PRELIMINARY RATING OPINION LETTER.— 
The Assistant Secretary shall require each project 
applicant to provide— 
(A) a preliminary rating opinion letter 
from at least 1 rating agency— 
(i) indicating that the senior obliga-
tions of the project, which may be the Fed-
eral credit instrument, have the potential 
to achieve an investment-grade rating; and 
(ii) including a preliminary rating 
opinion on the Federal credit instrument; 
or 
(B) in the case of a small project, alter-
native documentation that the Assistant Sec-
retary shall require in the standards established 
under section 6 for purposes of this paragraph. 
(3) TECHNOLOGY NEUTRALITY REQUIRED.—In 
selecting projects to receive credit assistance under 
the BIFIA program, the Assistant Secretary may 
not favor a project using any particular technology. 
(c) FEDERAL REQUIREMENTS.— 
(1) IN GENERAL.—The following provisions of 
law shall apply to funds made available under the 
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BIFIA program and projects assisted with those 
funds: 
(A) Title VI of the Civil Rights Act of 
1964 (42 U.S.C. 2000d et seq.). 
(B) The National Environmental Policy 
Act of 1969 (42 U.S.C. 4321 et seq.). 
(C) 54 U.S.C. 300101 et seq. (commonly 
referred to as the ‘‘National Historic Preserva-
tion Act’’). 
(D) The Uniform Relocation Assistance 
and Real Property Acquisition Policies Act of 
1970 (42 U.S.C. 4601 et seq.). 
(2) NEPA.—No funding shall be obligated for 
a project that has not received an environmental cat-
egorical exclusion, a finding of no significant impact, 
or a record of decision under the National Environ-
mental Policy Act of 1969 (42 U.S.C. 4321 et seq.). 
(3) TITLE VI OF THE CIVIL RIGHTS ACT OF 
1964.—For purposes of title VI of the Civil Rights 
Act of 1964 (42 U.S.C. 2000d et seq.), any project 
that receives credit assistance under the BIFIA pro-
gram shall be considered a program or activity with-
in the meaning of section 606 of such title (42 
U.S.C. 2000d–4a). 
(d) APPLICATION PROCESSING PROCEDURES.— 
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(1) NOTICE OF COMPLETE APPLICATION.—Not 
later than 30 days after the date of receipt of an ap-
plication under this section, the Assistant Secretary 
shall provide to the applicant a written notice to in-
form the applicant whether— 
(A) the application is complete; or 
(B) additional information or materials are 
needed to complete the application. 
(2) APPROVAL OR DENIAL OF APPLICATION.— 
Not later than 60 days after the date of issuance of 
the written notice under paragraph (1), the Assist-
ant Secretary shall provide to the applicant a writ-
ten notice informing the applicant whether the As-
sistant Secretary has approved or disapproved the 
application. 
(3) APPROVAL BEFORE NEPA REVIEW.—Subject 
to subsection (c)(2), an application for a project may 
be approved before the project receives an environ-
mental categorical exclusion, a finding of no signifi-
cant impact, or a record of decision under the Na-
tional Environmental Policy Act of 1969 (42 U.S.C. 
4321 et seq.). 
(e) DEVELOPMENT PHASE ACTIVITIES.—Any credit 
instrument secured under the BIFIA program may be 
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used to finance up to 100 percent of the cost of develop-
ment phase activities as described in section 2(4)(A). 
SEC. 4. SECURED LOANS. 
(a) IN GENERAL.— 
(1) AGREEMENTS.—Subject to paragraphs (2) 
and (3), the Assistant Secretary may enter into 
agreements with one or more obligors to make se-
cured loans, the proceeds of which shall be used— 
(A) to finance eligible project costs of any 
project selected under section 3; 
(B) to refinance interim construction fi-
nancing of eligible project costs of any project 
selected under section 3; or 
(C) to refinance long-term project obliga-
tions or Federal credit instruments, if the refi-
nancing provides additional funding capacity for 
the completion, enhancement, or expansion of 
any project that— 
(i) is selected under section 3; or 
(ii) otherwise meets the requirements 
of section 3. 
(2) LIMITATION ON REFINANCING OF INTERIM 
CONSTRUCTION
FINANCING.—A loan under para-
graph (1) shall not refinance interim construction fi-
nancing under paragraph (1)(B)— 
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(A) if the maturity of such interim con-
struction financing is later than 1 year after 
the substantial completion of the project; and 
(B) later than 1 year after the date of sub-
stantial completion of the project. 
(3) RISK
ASSESSMENT.—Before entering into 
an agreement under this subsection, 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 secured loan, taking into account each rating 
letter provided by a rating agency under section 
3(b)(2)(A)(ii) or, in the case of a small project, the 
alternative documentation provided under section 
3(b)(2)(B). 
(b) TERMS AND LIMITATIONS.— 
(1) IN GENERAL.—A secured loan 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 AMOUNT.—The amount of a se-
cured loan under this section shall not exceed the 
lesser of 49 percent of the reasonably anticipated eli-
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gible project costs or, if the secured loan is not for 
a small project and does not receive an investment- 
grade rating, the amount of the senior project obli-
gations. 
(3) PAYMENT.—A secured loan under this sec-
tion— 
(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 
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(ii) include a coverage requirement or 
similar security feature supporting the 
project obligations; and 
(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. 
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(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, 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-
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ceiving a loan under the BIFIA program shall not 
exceed 80 percent of the total project cost. 
(c) REPAYMENT.— 
(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-
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paid principal and interest to the outstanding 
balance of the secured loan. 
(B) INTEREST.—Any payment deferred 
under subparagraph (A) shall— 
(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-
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ment securing project obligations may be ap-
plied annually to prepay the secured loan with-
out penalty. 
(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 
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of the loan guarantee is substantially the same as 
that of a secured loan. 
(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-
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enue pledge, tax increment financing, or a sys-
tem-backed pledge of project revenues; and 
(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 
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the Office of Management and Budget and each 
rating agency providing a preliminary rating 
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 
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Assistant Secretary shall establish under section 
6 for purposes of this paragraph. 
(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 
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States Treasury securities, as of the date of execu-
tion of the line of credit agreement. 
(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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bankruptcy, insolvency, or liquidation of the ob-
ligor. 
(B) PRE-EXISTING INDENTURE.— 
(i) IN GENERAL.—The Assistant Sec-
retary shall waive the requirement of sub-
paragraph (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 line of credit— 
(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 BIFIA program loan re-
sulting from a draw on the line of 
credit is payable from pledged reve-
nues not affected by project perform-
ance, such as a tax-backed revenue 
pledge or a system-backed pledge of 
project revenues; and 
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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 
are authorized to be appropriated to the Assistant Sec-
retary to carry out this Act $5,000,000,000 for fiscal year 
2018, 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 
projects that are receiving, or have received, assistance 
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under the BIFIA program, including a recommendation 
as to whether the objectives of the BIFIA program are 
best served by— 
(1) continuing the program under the authority 
of the Assistant Secretary; or 
(2) establishing a Federal corporation or feder-
ally sponsored enterprise to administer the program. 
(b) APPLICATION PROCESS REPORT.— 
(1) IN GENERAL.—Not later than 1 year after 
the date of the enactment of this Act, and annually 
thereafter, the Assistant Secretary shall submit to 
the Committee on Energy and Commerce of the 
House of Representatives and the Committee on 
Commerce, Science, and Transportation of the Sen-
ate a report that includes a list of all of the letters 
of interest and applications received for assistance 
under the BIFIA program during the preceding fis-
cal year. 
(2) INCLUSIONS.— 
(A) IN
GENERAL.—Each report under 
paragraph (1) shall include, at a minimum, a 
description of, with respect to each letter of in-
terest and application included in the report— 
(i) the date on which the letter of in-
terest or application was received; 
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(ii) the date on which a notification 
was provided to the applicant regarding 
whether the application was complete or 
incomplete; 
(iii) the date on which a revised and 
completed application was submitted (if 
applicable); 
(iv) the date on which a notification 
was provided to the applicant regarding 
whether the project was approved or dis-
approved; and 
(v) if the project was not approved, 
the reason for the disapproval. 
(B) 
CORRESPONDENCE.—Each 
report 
under paragraph (1) shall include copies of any 
correspondence provided to the applicant in ac-
cordance with section 3(d). 
Æ 
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