USDA's Rural Utilities Service Takes a New Approach to Broadband Loan Applications

The U.S. Department of Agriculture’s Rural Utilities Service (RUS) has begun accepting RUS broadband loan applications for fiscal year 2018. For years, the program has provided low-interest loans for broadband network construction and is currently operating based on parameters established in the 2014 Farm Bill. There are some changes to the RUS broadband loan application process effective immediately, however.

The minimum and maximum loan amounts that applicants can request have been raised to $100,00 and $25 million, respectively. In addition, the RUS has revised the definition of broadband service and broadband lending service. Those definitions are now identical and are set at 25 Mbps downstream and 3 Mbps upstream, which means that applicants will be eligible for funding for areas lacking 25/3 Mbps service and will be required to deploy service at speeds of at least 25/3 Mbps in areas for which they receive funding. Importantly, the RUS is also taking a new approach to the loan application period and to how applications are selected to receive funding. Traditionally, RUS broadband loan applications have been accepted only during specific time windows, but the agency now plans to accept loan applications on a rolling basis through September 30. The changes are aimed at financing improved broadband service in rural areas.