[Federal Register Volume 69, Number 60 (Monday, March 29, 2004)]
[Notices]
[Pages 16231-16232]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-6951]


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DEPARTMENT OF AGRICULTURE

Rural Utilities Service


Rural Broadband Access Loans and Loan Guarantees Program

AGENCY: Rural Utilities Service, USDA.

ACTION: Notice of funds availability.

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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 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