California PUC Will Accept Loan Loss Reserve Program Applications

California's Broadband Loan Loss Reserve Fund is a $500 million fund that provides a credit enhancement related to the financing of local broadband infrastructure development. The reserve fund expands the ability of local governments, tribes and non-profits to secure financing for building last-mile projects, with an emphasis on public broadband networks. The Fund will provide collateral to local governments to enable more favorable borrowing rates and terms for bonds issued to deploy broadband infrastructure. The Fund was established in 2021. The benefits of the Fund include:

• Public broadband infrastructure can be a cost-effective and revenue-generating solution for providing high-speed broadband in communities with limited or no broadband access that improves access, lowers costs, and improves customer service
• Providing authority to enable local governments to participate in CPUC programs, issue bonds, and acquire, construct, improve, and maintain broadband infrastructure
• Borrowed funding would be returned through the operating funds of a last-mile project upon maturity

The Loan Loss Reserve Program will accept applications from Tuesday, March 12, 2024, through Tuesday, April 9, 2024.