[Federal Register: March 29, 2004 (Volume 69, Number 60)]
[Notices]
[Page 16231-16232]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr29mr04-31]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Rural Utilities Service
Rural Broadband Access Loans and Loan Guarantees Program
AGENCY: Rural Utilities Service, USDA.
ACTION: Notice of funds availability.
-----------------------------------------------------------------------
SUMMARY: The Rural Utilities Service (RUS) announces funding available
for the Rural Broadband Access Loan and Loan Guarantee program. For FY
2004, no less than $2.211 billion in loans is available, $2.051 billion
for direct cost-of-money loans, $80 million for direct 4 percent loans,
and $80 million for loan guarantees.
FOR FURTHER INFORMATION CONTACT: Roberta D. Purcell, Assistant
Administrator, Telecommunications Program, Rural Utilities Service,
STOP 1590, 1400 Independence Avenue, SW., Washington, DC 20250-1590,
Telephone (202) 720-9554, Facsimile (202) 720-0810.
SUPPLEMENTARY INFORMATION:
General Information
During FY 2004, no less than $2.211 billion will be made available
for loans and loan guarantees for the construction, improvement, and
acquisition of facilities and equipment for broadband service in
eligible rural communities. Of the total loan funds available, $2.051
billion will be available for direct cost-of-money loans, $80 million
for 4 percent direct loans, and $80 million for loan guarantees. The
funding levels for the 4 percent direct loans and the loan guarantees
is derived from the budget authority carried over from prior years'
mandatory funding. The Rural Broadband Access Loan and Loan Guarantee
Program is authorized by the Rural Electrification Act (7 U.S.C. 601)
(the Act), as added by the Farm Security and Rural Investment Act of
2002 (Farm Bill), Public Law 101-171.
[[Page 16232]]
Applications must be submitted in accordance with 7 CFR part 1738.
This part and an application guide to assist in the preparation of
applications are available in the Internet at: http://www.usda.gov/rus/telecom/broadband.htm.
Application guides may also be requested from
RUS by contacting the agency contact.
Agency Contacts
For application information, contact the following individual:
Kenneth Kuchno, Program Manager `` Broadband Program,
Telecommunications Program, RUS/USDA, Room 2846, Stop 1599, 1400
Independence Avenue, SW., Washington, DC 20250-1599, (202) 690-4673.
Eligible Rural Community
The definition of eligible rural community in Section 601(b)(2) of
the Rural Electrification Act (7 U.S.C. 950bb)(b)(2), qualifying for
financial assistance under the Rural Broadband Access Loan and Loan
Guaranty Program, has been amended by provisions in the Consolidated
Appropriations Act, 2004, to mean any area of the United States that is
not contained in an incorporated city or town with a population in
excess of 20,000 inhabitants. Therefore, an applicant no longer must
demonstrate that it is not located in an area designated as a standard
metropolitan statistical area. This change supersedes and nullifies
contrary provisions in regulations implementing the broadband program
found at 7 CFR part 1738.
Minimum and Maximum Loan Amounts
Loans and loan guarantees under this authority will not be made for
less than $100,000. Maximum loan amounts apply only to the direct 4
percent loan program. The maximum amount available for any one
applicant for a direct 4 percent loan is $7,500,000.
Minimum Rate of Data Transmission Criteria
The Secretary of Agriculture determines what qualifies as broadband
service for the purpose of determining eligibility for financial
assistance under the Rural Broadband Access Loan and Loan Guarantee
Program. During fiscal year 2004, to qualify as broadband service, the
minimum rate-of-data transmission shall be 200 kilobits/second in the
customer's connection to the network, both from the provider to the
customer (downstream) and from the customer to the provider (upstream).
State Allocations
The annual state allocation will not be made for Fiscal Year 2004.
To ensure the obligation of funds by April 1, as required by the Farm
Bill, an annual application submission deadline of January 31 for
funding from the state allocation reserves was adopted and published in
the enacting regulations. With the enactment of the Consolidated
Appropriations Act on January 23, 2004, insufficient time remained for
the submission of applications by the regulatory deadline.
4 Percent Direct Loans:
An applicant will be eligible for a direct 4 percent loan if: (1)
the community being served has a population of less than 2,500, and is
not currently receiving broadband service as defined at Sec.
1738.11(b)(1); (2) the per capita income in the county being served as
a percent of national per capita income, is not more than 65 percent of
the national per capita income, as determined by the Bureau of Economic
Analysis, U.S. Department of Commerce, at http://www.bea.doc.gov/bea/regional/reis
, and using the data for the most recent year published as of the
date of application; and (3) the population density, calculated as the
total number of persons in the service area divided by the square miles
of the service area is not more than 20 persons per square mile.
Dated: March 24, 2004.
Hilda Gay Legg,
Administrator, Rural Utilities Service.
[FR Doc. 04-6951 Filed 3-26-04; 8:45 am]
BILLING CODE 3410-15-P