[Federal Register Volume 70, Number 42 (Friday, March 4, 2005)]
[Notices]
[Pages 10595-10596]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-4241]


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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), an agency delivering the 
U.S. Department of Agriculture's Rural Development Utilities Programs, 
announces funding available for the Rural Broadband Access Loan and 
Loan Guarantee program. For FY 2005, no less than $2.157 billion in 
loans is available, $2.032 billion for direct cost-of-money loans, $46 
million for direct 4-percent loans, and $79 million for loan 
guarantees.

FOR FURTHER INFORMATION CONTACT: Jonathan P. Claffey, Acting 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 2005, no less than $2.157 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, $2.032 
billion will be available for direct cost-of-money loans, $46 million 
for 4-percent direct loans, and $79 million for loan guarantees. 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, Public Law 101-171.
    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, Director, Broadband Division, Telecommunications 
Program, RUS/USDA, Room 2846, Stop 1599, 1400 Independence Avenue, SW., 
Washington, DC 20250-1599. (202) 690-4673.

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 2005, 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 2005. 
To ensure the obligations of funds by April, 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. As this deadline has expired for Fiscal Year 
2005, there will be no state allocation.

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

[[Page 10596]]

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: February 28, 2005.
Raymond P. Marchiori,
Acting Administrator, Rural Utilities Service.
[FR Doc. 05-4241 Filed 3-3-05; 8:45 am]
BILLING CODE 3410-15-P