Rural Utilities Service (RUS)

The Recovery Act also establishes authority for the RUS to make grants and loans for the deployment and construction of broadband systems. The purpose of the additional RUS broadband authority is to improve access to broadband areas without service or that lack sufficient access to high-speed broadband service to facilitate economic development.

$2.5 Billion for grants, loans, and loan guarantees Award funds by September 30, 2010:

Key criteria to obtain funding:

  • 75% of the area served must be rural area without "sufficient" broadband service
  • Preference is given to unserved areas
  • Preference is given to past or current RUS borrowers
  • Projects should be ready to start immediately
  • Loans under Farm Bill require 10% match

Challenges:

How does the stimulus plan priority fit with the Farm Bill & annual Broadband appropriations?

  • Almost 100x the current amount of funding
  • Daunting task of awarding $2.5B by September 30, 2010

Will this mean a shift to awarding grants to meet timelines?

  • Remove due diligence associated with loans 

 Increase in oversight by Congress