Rural eConnectivity Pilot Program

The ReConnect Program provides loans, grants, and loan/grant combination awards to facilitate broadband deployment in rural areas. An essential goal of the ReConnect Program is to expand broadband service to rural areas without sufficient access to b

The purpose of the ReConnect Program is to expand broadband service to rural areas without sufficient access to broadband, defined at the time of each funding notice (at a minimum: 25 megabits per second (Mbps) downstream and 3 Mbps upstream). This program provides financing in the form of loans, grants, and loan/grant combinations to facilitate broadband deployment in rural areas. Applications for loan financing will be awarded on a noncompetitive basis, whereas applications for grant and loan/grant combination funding will be scored; applications with the highest score will receive an award offer until all funds are expended for these categories.

Applicants must submit unqualified, audited financial statements for the two previous years from the date the application is submitted. Applicants may have limited eligibility for the program depending on the characteristics of the proposed funded service area defined in the application.

Applicants must submit their applications online through the ReConnect Program Portal's online application system. The online application requires applicants to provide documentation related to the organization; relationships with parent, subsidiary, or other affiliated entities; state or tribal certifications; organization financial position; existing network; and the proposed project.

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 premises in the PFSA, and offers subscribers reasonable service plans that do not cap bandwidth usage.

Loans can be made not to exceed the composite economic life of facilities and equipment plus three years (average loan maturity is 18 yrs). See the following for information on how assistance is awarded/released: Provision is normally made for advances to be completed within 5 years. Advances of funds are requested by the recipient and are made subject to requirements. Method of awarding/releasing assistance: Provision is normally made for advances to be completed within 5 years. Advances of funds are requested by the recipient and are made subject to requirements.

Coordination is required with state(s) or tribe(s), depending on the organization and proposed project. An EIS or EA may be required.

Applicants must create a Level II eAuthentication Account, register in SAM.gov, acquire a Unique Entity Identifier (UEI), create a Resolution identifying the applicant and specific representatives, request access to the ReConnect Online Application System, create an online account in the ReConnect Program Portal, create an application, and submit the application online. The online application system guides applicants as they complete their application.

The ReConnect Program specifies evaluation criteria for the competitive windows (i.e., grant and 50/50 loan/grant combination). Applications are scored based on rurality of the proposed funded service area; the number of farms, businesses, healthcare, educational, and critical community facilities served; performance of the offered service; presence of certain state broadband activities; and presence of tribal lands in the proposed funded service area.

The Agency approves the award. Successful applicants will receive an offer letter and award documents from RUS following award notification. 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. RUS loan and grant advances are made at the request of the Awardee according to the procedures stipulated in the Award Documents.