Source: https://www.law.cornell.edu/uscode/text/7/950bb
Timestamp: 2019-04-22 12:42:28+00:00

Document:
The purpose of this section is to provide grants, provide loans, and provide loan guarantees to provide funds for the costs of the construction, improvement, and acquisition of facilities and equipment for broadband service in rural areas.
The term “broadband service” means any technology identified by the Secretary as having the capacity to transmit data to enable a subscriber to the service to originate and receive high-quality voice, data, graphics, and video.
The term “incumbent service provider”, with respect to an application submitted under this section, means an entity that, as of the date of submission of the application, is providing broadband service to not less than 5 percent of the households in the service territory proposed in the application.
in the case of a grant or direct loan, a city, town, or incorporated area that has a population of greater than 20,000 inhabitants.
The Secretary may, by regulation only, consider an area described in section 1991(a)(13)(F)(i)(I) of this title to not be a rural area for purposes of this section.
Such term does not include any population described in subparagraph (H) or (I) of section 1991(a)(13) of this title.
The Secretary shall make grants, shall make loans, and shall guarantee loans to eligible entities described in subsection (d) to provide funds for the construction, improvement, or acquisition of facilities and equipment for the provision of broadband service in rural areas.
with respect to 2 or more applications that are given the same priority under clause (i), give priority to an application that requests less grant funding than loan funding.
other development activities, as determined by the Secretary.
not concurrently receive any other broadband grant administered by the Rural Utilities Service.
25 percent of the total project cost with respect to an area with a density of 12 or more and 20 or fewer people per square mile.
make modifications of the density thresholds described in subparagraph (C), in order to ensure that funds provided under this section are best utilized to provide broadband service in communities that are the most rural in character.
provides a single decision to award such grant and such loan.
includes only those areas in which the applicant is able to meet the service requirements under this section, as determined by the Secretary.
In the case of loan guarantees issued or modified under this section, the Secretary shall charge and collect from the lender fees in such amounts as to bring down the costs of subsidies for guaranteed loans, except that such fees shall not act as a bar to participation in the programs nor be inconsistent with current practices in the marketplace.
agree to complete buildout of the broadband infrastructure described in the application by not later than 5 years after the initial date on which assistance under this section is made available.
An eligible entity that provides telecommunications or broadband service to at least 20 percent of the households in the United States may not receive an amount of funds under this section for a fiscal year in excess of 15 percent of the funds authorized and appropriated under subsection (j) for the fiscal year.
broadband service is not provided in any part of the proposed service territory by 3 or more incumbent service providers.
Subparagraph (A)(i) shall not apply to the proposed service territory of a project if a loan or loan guarantee has been made under this section to the applicant to provide broadband service in the proposed service territory.
Except as provided in clause (ii), subparagraph (A)(ii) shall not apply to an incumbent service provider in the portion of a proposed service territory in which the provider is upgrading broadband service to meet the minimum acceptable level of broadband service established under subsection (e) for the existing territory of the incumbent service provider.
Clause (i) shall not apply if the applicant is eligible for funding under another subchapter of this chapter.
The Secretary may require an entity to provide a cost share in an amount not to exceed 10 percent of the amount of the grant, loan, or loan guarantee requested in the application of the entity, unless the Secretary determines that a higher percentage is required for financial feasibility.
The Secretary may require an entity that proposes to have a subscriber projection of more than 20 percent of the broadband service market in a rural area to submit to the Secretary a market survey.
The Secretary may not require an entity that proposes to have a subscriber projection of less than 20 percent of the broadband service market in a rural area to submit to the Secretary a market survey.
the National Broadband Map if address-level data is unavailable.
Subject to paragraph (1), a State or local government (including any agency, subdivision, or instrumentality thereof (including consortia thereof)) and an Indian tribe shall be eligible for assistance under this section to provide broadband services to a rural area.
to assist with other areas of need identified by the Secretary.
Not less than 3 percent and not more than 5 percent of amounts appropriated to carry out this section for a fiscal year shall be used for technical assistance and training under this paragraph.
a 3-Mbps upstream transmission capacity.
At least once every 2 years, the Secretary shall review, and may adjust through notice published in the Federal Register, the minimum acceptable level of broadband service established under paragraph (1) and broadband buildout requirements under paragraph (4) to ensure that high quality, cost-effective broadband service is provided to rural areas over time.
The Secretary shall not establish requirements for bandwidth or speed that have the effect of precluding the use of evolving technologies appropriate for rural areas.
The term “broadband buildout requirement” means the level of internet service an applicant receiving assistance under this section must agree, at the time the application is finalized, to provide for the duration of any project-related agreement between the applicant and the Department.
the financed network is technically capable of providing broadband service for the lifetime of any project-related agreement.
If an applicant shows that it would be cost prohibitive to meet the broadband buildout requirements established under this paragraph for the entirety of a proposed service territory due to the unique characteristics of the proposed service territory, the Secretary and the applicant may agree to utilize substitute standards for any unserved portion of the project. Any substitute service standards should continue to consider the best technology available to meet the needs of the residents in the unserved area.
For purposes of determining whether to provide assistance for a project under this section, the Secretary shall use criteria that are technologically neutral.
have a term of such length, not exceeding 35 years, as the borrower may request, if the Secretary determines that the loan is adequately secured.
The Secretary shall consider the existing recurring revenues of the entity at the time of application in determining an adequate level of credit support.
The Secretary shall ensure that the type and amount of, and method of security used to secure, any loan or loan guarantee under this section is commensurate to the risk involved with the loan or loan guarantee, particularly in any case in which the loan or loan guarantee is issued to a financially strong and stable entity, as determined by the Secretary.
In determining the amount of, and method of security used to secure, a loan or loan guarantee under this section, the Secretary shall consider reducing the security in a rural area that does not have broadband service.
The Secretary may use the funds appropriated for a grant under this subchapter for the cost (as defined by section 661a of title 2) of providing assistance under paragraph (2).
require such nominal periodic payments as the Secretary determines to be appropriate.
With respect to payment assistance provided under paragraph (2), before entering into the agreement under which the payment assistance will be provided, the applicant and the Secretary shall agree to milestones and objectives of the project.
The Secretary and the applicant may jointly agree to amend the milestones and objectives agreed to under paragraph (3).
support the integrity of the broadband programs administered by the Secretary.
The Secretary may not make a payment assistance loan under paragraph (2)(B) to an entity receiving a grant under this section that is also the recipient of a loan under subchapter I or II that is associated with such grant.
There is authorized to be appropriated to the Secretary to carry out this section $350,000,000 for each of fiscal years 2019 through 2023, to remain available until expended.
allocate amounts in the reserve to each State for each fiscal year for loans and loan guarantees to eligible entities in the State.
the number of communities with a population of 2,500 inhabitants or less in all States.
Any amounts in the reserve established for a State for a fiscal year under subparagraph (B) that are not obligated by April 1 of the fiscal year shall be available to the Secretary to make loans and loan guarantees under this section to eligible entities in any State, as determined by the Secretary.
No grant, or loan, or loan guarantee may be made under this section after September 30, 2023.
2018—Subsec. (a). Pub. L. 115–334, § 6201(1), substituted “provide grants, provide loans, and provide loan guarantees” for “provide loans and loan guarantees”.
Subsec. (b)(3)(A)(ii). Pub. L. 115–334, § 6201(2), inserted “in the case of a grant or direct loan,” before “a city”.
Subsec. (b)(3)(C). Pub. L. 115–334, § 6301(b), added subpar. (C).
Subsec. (c). Pub. L. 115–334, § 6201(3)(A), substituted “Grants, loans, and” for “Loans and” in heading.
Subsec. (c)(1). Pub. L. 115–334, § 6201(3)(B), substituted “shall make grants, shall make loans, and shall guarantee loans” for “shall make or guarantee loans”.
Subsec. (c)(2) to (4). Pub. L. 115–334, § 6201(3)(C), added pars. (2) to (4) and struck out former par. (2) which related to priority in making loans or loan guarantees.
Subsec. (d)(1)(A). Pub. L. 115–334, § 6201(4)(A)(i)(I), substituted “grant, loan, or” for “loan or” in introductory provisions.
Subsec. (d)(1)(A)(i). Pub. L. 115–334, § 6201(4)(A)(i)(II), added cl. (i) and struck out former cl. (i) which read as follows: “demonstrate the ability to furnish, improve in order to meet the minimum acceptable level of broadband service established under subsection (e), or extend broadband service to all or part of an unserved rural area or an area below the minimum acceptable level of broadband service established under subsection (e);”.
Subsec. (d)(1)(A)(ii). Pub. L. 115–334, § 6201(4)(A)(i)(III), substituted “an application” for “a loan application”.
Subsec. (d)(1)(A)(iii). Pub. L. 115–334, § 6201(4)(A)(i)(IV), struck out “loan” before “application” and substituted “infrastructure” for “service”, “5” for “3”, and “assistance under this section is” for “proceeds from the loan made or guaranteed under this section are”.
Subsec. (d)(1)(B). Pub. L. 115–334, § 6201(4)(A)(ii), substituted “(j)” for “(k)”.
Subsec. (d)(2)(A). Pub. L. 115–334, § 6201(4)(B)(i), substituted “assistance” for “the proceeds of a loan made or guaranteed” and “of the eligible entity” for “for the loan or loan guarantee” in introductory provisions.
Subsec. (d)(2)(A)(i). Pub. L. 115–334, § 6201(4)(B)(ii), substituted “50 percent (in the case of loans or loan guarantees provided in accordance with subsection (g)(1)(A))” for “15 percent” and “level of fixed broadband service, whether terrestrial or wireless,” for “level of broadband service”.
Subsec. (d)(3)(A). Pub. L. 115–334, § 6201(4)(C), substituted “grant, loan, or” for “loan or”.
Subsec. (d)(4). Pub. L. 115–334, § 6201(4)(D), substituted “assistance” for “a loan or loan guarantee”.
Subsec. (d)(5) to (10). Pub. L. 115–334, § 6201(4)(E), added par. (5) and struck out former pars. (5) to (10), which related to notice requirements, paperwork reduction, preapplication process, reporting by entities receiving assistance under this section, loan default and deobligation of awards, and service area assessment, respectively.
Subsec. (e)(1)(A). Pub. L. 115–334, § 6201(5)(A)(i), substituted “25-Mbps” for “4-Mbps”.
Subsec. (e)(1)(B). Pub. L. 115–334, § 6201(5)(A)(ii), substituted “3-Mbps” for “1-Mbps”.
Subsec. (e)(4). Pub. L. 115–334, § 6201(5)(C), added par. (4).
Subsec. (f). Pub. L. 115–334, § 6201(6), substituted “provide assistance” for “make a loan or loan guarantee”.
Subsec. (j). Pub. L. 115–334, § 6201(8), (11), redesignated subsec. (k) as (j) and struck out former subsec. (j) which related to reports to Congress on participation in loan and loan guarantee program.
Subsec. (k). Pub. L. 115–334, § 6201(11), redesignated subsec. (l) as (k). Former subsec. (k) redesignated (j).
Subsec. (k)(1). Pub. L. 115–334, § 6201(9), substituted “$350,000,000” for “$25,000,000” and “2019 through 2023” for “2008 through 2018”.
Subsec. (l). Pub. L. 115–334, § 6201(11), redesignated subsec. (l) as (k).
Pub. L. 115–334, § 6201(10), substituted “grant, or loan, or” for “loan or” and “2023” for “2018”.
Subsec. (d)(1)(A)(i). Pub. L. 113–79, § 6104(a)(2)(A), added cl. (i) and struck out former cl. (i). Prior to amendment, text read as follows: “demonstrate the ability to furnish, improve, or extend a broadband service to a rural area;”.
Subsec. (d)(2)(A)(i). Pub. L. 113–79, § 6104(a)(2)(B)(i), added cl. (i) and struck out former cl. (i). Prior to amendment, text read as follows: “not less than 25 percent of the households in the proposed service territory is offered broadband service by not more than 1 incumbent service provider; and”.
Subsec. (d)(2)(B). Pub. L. 113–79, § 6104(a)(2)(B)(ii), struck out “25” before “percent” in heading.
Subsec. (d)(2)(C). Pub. L. 113–79, § 6104(a)(2)(B)(iii)(I), struck out “3 or more” before “incumbent” in heading.
Subsec. (d)(3)(B)(iii). Pub. L. 113–79, § 6104(a)(2)(C), added cl. (iii).
Subsec. (d)(5). Pub. L. 113–79, § 6104(a)(2)(D), added par. (5) and struck out former par. (5) which related to notice requirement.
Subsec. (d)(8) to (10). Pub. L. 113–79, § 6104(a)(2)(E), added pars. (8) to (10).
Subsec. (j)(1). Pub. L. 113–79, § 6104(a)(5)(A), inserted “, including any loan terms or conditions for which the Secretary provided additional assistance to unserved areas” before semicolon at end.
Subsec. (j)(7). Pub. L. 113–79, § 6104(a)(5)(B)–(D), added par. (7).
Subsecs. (k)(1), (l). Pub. L. 113–79, § 6104(a)(6), substituted “2018” for “2012”.
2008—Pub. L. 110–246, § 6110(a), amended section generally, substituting provisions authorizing loans and loan guarantees for the costs of construction, improvement, and acquisition of facilities and equipment for broadband service in rural areas and terminating such authority on Sept. 30, 2012, for provisions authorizing similar loans and loan guarantees and terminating such authority on Sept. 30, 2007.
Not later than 180 days after the date of enactment of this Act [May 13, 2002], the Secretary of Agriculture shall promulgate such regulations as are necessary to implement the amendment made by subsection (a) [enacting this section].
chapter 35 of title 44, United States Code (commonly known as the ‘Paperwork Reduction Act’).

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