Rural Telecommunications Loans

This program provides loans for the construction, maintenance, improvement, and expansion of telecommunications services (telephone and broadband) in rural areas. In facilitating the construction of new and improved infrastructure, the program will

The purpose of this program is to provide loans to rural telecommunications providers for the construction of new and improved telecommunications systems in rural America.

Telephone companies or cooperatives, nonprofit associations, limited dividend associations, mutual associations or public bodies including those located in the U.S. Territories and countries included in the Compact of Free Association Act of 1985, providing or proposing to provide telecommunications service to meet the needs of rural areas.

Residents and businesses of eligible rural areas.

This program provides long-term direct and guaranteed loans to qualified organizations for the purpose of financing the improvement, expansion, construction, acquisition, and operation of telephone lines, facilities, or systems to furnish and improve Telecommunications, 911 and Emergency Communications services in rural areas. "Rural area" is defined as any area of the United States, its territories and insular possessions (including any areas within the Federated States of Micronesia, the Republic of the Marshall Islands, and the Republic of Palau) not included within the boundaries of any incorporated or unincorporated city, village, or borough having a population exceeding 5,000 inhabitants (20,000 for 911 and emergency communications purposes). The population figure is obtained from the Bureau of Census. For purposes of the "rural area" definition, the character of an area is determined at the time the initial loan for the system is made.

Direct and guaranteed 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 borrower and are made subject to requirements.

Applicants must supply environmental documentation to determine if an environmental assessment or an environmental impact statement will be required. Environmental impact information may be required for this program.

Applications must be found to be financially and technically feasible and meet all of the eligibility requirements.

The RUS Administrator, Assistant Administrator, or Deputy Assistant Administrator makes the final decision on approval of the loan or loan guarantee upon a finding that it is economically feasible and serves the purposes of the Rural Electrification Act. Borrowers and Members of Congress are notified of the approval of a loan or loan guarantee directly, and the public is notified through normal media communications.

Application are processed on a first-come, first-served basis. Normal loan processing time is from 3 to 4 months.

Applications may rework and resubmit an unapproved application without prejudice for reconsideration.