For all funding categories, the proposed funded service area must be in an area where 90% of households do not have sufficient access to broadband. Applicants must propose to build a network capable of providing 100 megabits per second (Mbps) symmetrical service to all premises in the proposed funded service area at the same time.
Applicants may request funding from one of the following categories:
100% Grant
Up to $150,000,000 is available. The maximum amount that can be requested in an application is $25,000,000. The minimum amount that can be requested in an application is $100,000.
Applicants must provide a matching contribution of cash equal to at least 25 percent of the cost of the overall project. The applicant must clearly identify the source of the matching funds even if the match is to be provided from the applicant’s operating accounts.
RUS has agreed to modify the grant agreement to permit awardees to deposit the required matching and other required funds into the Pledged Deposit Account (PDA) on a rolling basis. If the matching funds are provided by a third party, a commitment letter from the third party must be submitted indicating that the funds will be available as needed to support the deposit of funds into the PDA. If the commitment letter is not provided, then the application may be rejected. If the applicant elects to initiate a loan to satisfy the matching requirement, documentation must be included as part of the application indicating the terms and conditions for the loan and that the grant funded assets cannot be used as collateral for the matching funds loan. The loan must be entered into and funds transferred into the applicant’s accounts by the closing of the award.
The advance of funds for 100 percent grants that require a matching component will be prorated against the amount of matching funds that are required and the amount of the grant funds approved.
100% Grant for Alaska Native Corporations, Tribal Governments, Colonias, Persistent Poverty Areas and Socially Vulnerable Communities
Up to $150,000,000 is available. The maximum amount that can be requested in an application is $25,000,000. The minimum amount that can be requested in an application is $100,000.
For applications submitted under this funding category that meet one of the following criteria, no matching funds will be required:
- Alaska Native Corporations may submit an application to provide service on land owned by the corporation, as defined in the Alaska Native Claims Settlement Act. Applicants must submit documentation supporting the incorporation.
- Tribal Governments may submit an application to provide service on Tribal Lands as defined in the Notice of Funding Opportunity published on February 21, 2024. Applicants must submit documentation supporting land ownership, services, or administration.
- Projects where 75 percent of the applicant’s PFSA(s) are located in areas recognized as Colonia as of October 1, 1989. Colonias are identified using the GIS layer (Colonia Areas) in the RUS mapping tool located at reconnect.usda.gov.
- Projects where 75 percent of the applicant’s PFSA(s) is located in persistent poverty counties.
- Projects where 75 percent of the area of an applicant’s PFSA(s) consists of Socially Vulnerable Communities identified on the GIS layer (Socially Vulnerable Communities) included in the RUS mapping tool located at reconnect.usda.gov.
Colonias, persistent poverty counties, Socially Vulnerable Communities, and most Tribal Lands are identified on the GIS layers included in the ReConnect Program Service Area Map.
50% Loan / 50% Grant
Up to $100,000,000 is available for loan-grant combinations. The maximum amount that can be requested in an application is $25,000,000 for the loan and $25,000,000 for the grant. Loan and grant amounts must be equal. The minimum amount that can be requested in an application is $100,000.
The interest rate for the 50% loan component will be set at the Treasury rate for the remaining amortization period at the time of each advance of funds. The latest Treasury rates for the ReConnect Program can be found under U.S. government securities, available at federalreserve.gov/release/h15. RUS also provides the latest information on interest rates at Rural Utilities Loan Interest Rates. Loans shall bear interest equal to the cost of borrowing to the Department of Treasury for obligations of comparable maturity. Principal and interest payments will be deferred for three years. The amortization period will be based on the composite economic life of the assets funded plus three years. Applicants may propose substituting cash for the loan component at the time of application and funds must be available in the applicant’s operating accounts at the closing of the award.
For this Notice of Funding Opportunity, the advance of funds for a 50/50 loan grant combination will be as follows: funds substituted for the loan component will be advanced first, loan funds will be advanced second and grant funds will be advanced third.
100% Loan
Up to $200,000,000 is available for loans. The maximum amount that can be requested in an application is $50,000,000. The minimum amount that can be requested in an application is $100,000.
The interest rate for a 100% loan will be set at a fixed 2%. Principal and interest payments will be deferred for three years. The amortization period will be based on the composite economic life of the assets funded plus three years.
❮ SERVICE AREA MAP EVALUATION CRITERIA ❯