To provide supplemental financing to extend and improve
telecommunications services in rural areas.
TYPES OF ASSISTANCE:
Direct Loans. Place Cursor Here for Definition
USES AND USE RESTRICTIONS:
Long-term loans to qualified organizations for the purpose of supplying and
improving telecommunications services in rural areas.
ELIGIBILITY REQUIREMENTS:
Applicant Eligibility: Borrowers, including those
located in the U.S. Territories, or possessions which have received a loan or
loan commitment under Section 201 of Rural Electrification Act or which have
been certified by the Administrator as qualified to receive such a loan, are
eligible to borrow from the Rural Telephone Bank.
Beneficiary Eligibility: Residents of rural
areas, and others who receive telecommunications service resulting from
service provided to rural areas.
Credentials/Documentation: None. This program is
excluded from coverage under OMB Circular No. A-87.
Pre-application Coordination: Applicants must supply
environmental impact information to determine whether an environmental impact
assessment or an environmental impact statement will be required. This program
is excluded from coverage under E.O. 12372 and OMB Circular No. A-102.
Application Procedure: The completed loan
application consists of 4 parts, an RUS Form 490, a market survey called Area
Coverage Survey (ACS), and an Application for Telephone Loan or Loan
Guarantee. Detailed information for applying is in 7 CFR Parts 1610 and 1737,
available from RUS upon request. This is the same procedure used when applying
for an RUS telephone loan. This program is excluded from coverage under OMB
Circular No. A-110.
Award Procedure: Depending on the amount of the
application, the Governor of the Rural Telephone Bank (who is also the
Administrator of RUS), Assistant Administrator, or the appropriate Area
Director, makes the final decision, based upon a finding that the loan is
economically feasible and serves the purposes of the Rural Electrification
Act. Borrowers and Members of Congress are notified of loan approval directly,
and the public is notified through normal media communications.
Deadlines: Applications are processed on a
first-come, first-serve basis throughout the fiscal year ending September 30.
Range of Approval/Disapproval Time: From 2 to 3
months.
Appeals: Not applicable.
Renewals: Not applicable.
ASSISTANCE CONSIDERATIONS:
Formula and Matching Requirements: Obtaining a Rural
Telephone Bank loan will require obtaining a concurrent RUS telephone loan.
The statistical factor used for eligibility is any area of the United States
not within the boundaries of any city, village or borough having a population
over 5,000 (farm and non-farm) and the source is the 1990 Decennial Census. The
statistical factor used for fund allocation does not apply to this program.
Length and Time Phasing of Assistance: Loans can
be made for up to 35 years (average loan maturity is 18 yrs). Provision is
normally made for advances to be completed within 5 years, but this period is
subject to extension if required. Advances of loan funds are made as required
by the borrower.
POST ASSISTANCE REQUIREMENTS:
Reports: Each Bank loan recipient must submit to RUS
regularly scheduled operating reports showing financial condition and
operating progress.
Audits: In accordance with the provisions of OMD
Circular No. A- 133 (Revised, June 24,1997), "Audits of States, Local
Governments, and Non-Profit Organizations, nonfederal entities that expend
financial assistance of $300.000 or more in Federal awards will have a single
or a program-specific audit conducted for that year. Nonfederal entities that
expend less than $300,000 a year in Federal awards are exempt from Federal
audit requirements for that year, except as noted in Circular No. A-133. All
other borrowers have their books audited annually by a Certified Public
Accountant. The information on audits of RUS borrowers is in 7 CFR, Part 1773.
Records: Each recipient must keep records
prescribed for telephone companies by the State regulatory body having
jurisdiction, or by the Federal Communications Commission if there is no such
regulatory body.
During fiscal year 2001, 32 borrowers received loans.
REGULATIONS, GUIDELINES, AND LITERATURE:
CFR-XVI. To the extent possible, the Rural Telephone Bank will be covered by
regulations, guidelines, and literature of the Rural Utilities Service
telephone loan program. RUS publishes and issues upon request technical
operations manuals and bulletins covering financing, construction, operation,
and maintenance of rural telephone systems. There are available annual
statistical summaries; and Rural Electrification Act of 1936, as amended.
INFORMATION CONTACTS:
Regional or Local Office: None.
Headquarters Office: Assistant Governor, Rural
Telephone Bank, Department of Agriculture, Washington, DC 20250. Telephone:
(202) 720- 9554. Use the same number for FTS.
