[Federal Register Volume 65, Number 234 (Tuesday, December 5, 2000)]
[Notices]
[Pages 75920-75921]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-30872]
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Notices
Federal Register
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This section of the FEDERAL REGISTER contains documents other than rules
or proposed rules that are applicable to the public. Notices of hearings
and investigations, committee meetings, agency decisions and rulings,
delegations of authority, filing of petitions and applications and agency
statements of organization and functions are examples of documents
appearing in this section.
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Federal Register / Vol. 65, No. 234 / Tuesday, December 5, 2000 /
Notices
[[Page 75920]]
DEPARTMENT OF AGRICULTURE
Rural Utilities Service
Construction and Installation of Broadband Telecommunications
Services in Rural America; Availability of Loan Funds
AGENCY: Rural Utilities Service, USDA.
ACTION: Notice of Funds Availability.
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SUMMARY: The Rural Utilities Service (RUS) announces a new loan program
and the availability of loan funds under this program to finance the
construction and installation of broadband telecommunications services
in rural America. The President of the United States and the United
States Congress have made $100 million in treasury rate loan funds
available, through a one-year Pilot Program, to encourage
telecommunications carriers to provide broadband service to rural
consumers where such service does not currently exist. This program
will provide loan funds, on an expedited basis, to communities up to
20,000 inhabitants to ensure rural consumers enjoy the same quality and
range of telecommunications services that are available in urban and
suburban communities. Loan funds are available immediately and
applications will be processed and approved on a first-come, first
served basis throughout FY 2001 until the appropriation is utilized in
its entirety.
DATES: Applications for loans will be accepted as of the date of this
notice and will be accepted anytime on or before September 30, 2001;
however, all applications must be postmarked no later than September
30, 2001. Applications will be processed and approved on a first-come,
first-served basis until the $100 million appropriation is utilized in
its entirety.
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
For FY 2001, $100 million in loans will be made available for the
construction and installation of facilities and for other costs as RUS
deems necessary to provide broadband services in rural areas. The
broadband pilot program is authorized by 7 U.S.C. 950 aaa.
Applications
Applications will be accepted as discussed previously in the
``Dates'' section. All interested parties are strongly encouraged to
contact the Rural Utilities Service, USDA to discuss its financial
needs and eligibility.
Use of Loan Funds
Loan funds may be used to finance the improvement, expansion,
construction, and operation of systems or facilities to furnish or
improve broadband service in rural areas.
Definition of Broadband Services
As used in this notice, the term broadband services means providing
an information rate equivalent to at least 200 kilobits/second in the
consumer's connection to the network, both from the provider to the
consumer (downstream) and from the consumer to the provider (upstream).
Definition of Rural Area
As used in this notice, rural area means any area of the United
States not included within the boundaries of any incorporated or
unincorporated city, village, or borough having a population in excess
of 20,000 inhabitants.
Loan Terms
For FY 2001, $100 million in loans will be made available to
eligible applicants. The loans will bear interest at the comparable
Treasury rate for comparable maturities not to exceed ten years.
Eligible Applicants
Loans may be made to legally organized entities providing, or
proposing to provide, broadband services in rural areas. Eligible
entities may be public bodies, cooperatives, nonprofits, and limited
dividend or mutual associations and must be incorporated or a limited
liability company.
RUS Findings
Feasibility of and security for the Loan. A borrower shall provide
RUS with satisfactory evidence to enable the Administrator to determine
that the security for the loan is reasonably adequate and that the loan
will be repaid on time. Factors used in making this determination
include, but are not limited to:
(1) Evidence of sufficient revenues from the borrower's system, in
excess of operating expenditures (including maintenance and
replacement), for full repayment of the loan with interest;
(2) Reasonable assurance of achieving market penetration
projections upon which the loan is based;
(3) Adequate security for the loan;
(4) Appropriate financial controls included in the loan documents;
and
(5) Other factors determined relevant by RUS.
Loan Application
RUS suggests that an application for a loan pursuant to this notice
include a loan design that contains a forecast of service requirements
and a narrative describing the planned construction and delivery of
broadband services. The narrative should detail the purposes and
amounts of the proposed project including construction, the proposed
service area, and the basis for subscriber forecasts. Other items
include:
(1) Certified financial statements, if available;
(2) 10 years of pro-forma financial information;
(3) An environmental report;
(4) Depreciation rates for the equipment being financed;
(5) A sketch or map showing existing and proposed service areas;
(6) A description of the current level of service available;
(7) All other required forms for Federal assistance; and
(8) If not a current RUS borrower, information on the owners and
principal employees' relevant work experience that would ensure the
success of the project.
Loan Security
Loans must be repaid according to their terms. RUS will require
security to
[[Page 75921]]
be provided for each loan. RUS generally obtains a lien on all the
property financed by the loans. The borrower will need to provide
adequate security and execute the appropriate legal documents.
Evaluation Criteria
Loan applications will be accepted as of the date of this notice
and will be processed and approved on a first-come, first served basis
throughout FY 2001 until the appropriation is utilized in its entirety
provided that:
(1) The loan is for approved loan purposes for broadband
telecommunications services in rural areas;
(2) The loan is deemed to be feasible and adequate security is
provided;
(3) The system design is appropriate; and
(4) All other applicable Federal requirements are met.
Dated: November 27, 2000.
Christopher A. McLean,
Administrator, Rural Utilities Service.
[FR Doc. 00-30872 Filed 12-4-00; 8:45 am]
BILLING CODE 3410-15-P