Purpose
The purpose of this section is to provide grants, provide loans, and provide loan guarantees to provide funds for the costs of the construction, improvement, and acquisition of facilities and equipment for broadband service in rural areas.
Definitions
Broadband service
The term “broadband service” means any technology identified by the Secretary as having the capacity to transmit data to enable a subscriber to the service to originate and receive high-quality voice, data, graphics, and video.
Incumbent service provider
The term “incumbent service provider”, with respect to an application submitted under this section, means an entity that, as of the date of submission of the application, is providing broadband service to not less than 5 percent of the households in the service territory proposed in the application.
Rural area
In general
Urban area growth
section 1991(a)(13)(F)(i)(I) of this titleThe Secretary may, by regulation only, consider an area described in to not be a rural area for purposes of this section.
Exclusion of certain populations
section 1991(a)(13) of this titleSuch term does not include any population described in subparagraph (H) or (I) of .
Grants, loans, and loan guarantees
In general
The Secretary shall make grants, shall make loans, and shall guarantee loans to eligible entities described in subsection (d) to provide funds for the construction, improvement, or acquisition of facilities and equipment for the provision of broadband service in rural areas.
Priority
In general
Other
Grant amounts
Definition of development costs
Eligibility
Maximum
Secretarial authority to adjust
Applications
Density determinations
Fees
In the case of loan guarantees issued or modified under this section, the Secretary shall charge and collect from the lender fees in such amounts as to bring down the costs of subsidies for guaranteed loans, except that such fees shall not act as a bar to participation in the programs nor be inconsistent with current practices in the marketplace.
Eligibility
Eligible entities
In general
Limitation
An eligible entity that provides telecommunications or broadband service to at least 20 percent of the households in the United States may not receive an amount of funds under this section for a fiscal year in excess of 15 percent of the funds authorized and appropriated under subsection (j) for the fiscal year.
Eligible projects
In general
Exception to percent requirement
Subparagraph (A)(i) shall not apply to the proposed service territory of a project if a loan or loan guarantee has been made under this section to the applicant to provide broadband service in the proposed service territory.
Exception to incumbent service provider requirement
In general
Except as provided in clause (ii), subparagraph (A)(ii) shall not apply to an incumbent service provider in the portion of a proposed service territory in which the provider is upgrading broadband service to meet the minimum acceptable level of broadband service established under subsection (e) for the existing territory of the incumbent service provider.
Exception
Clause (i) shall not apply if the applicant is eligible for funding under another subchapter of this chapter.
Equity and market survey requirements
In general
The Secretary may require an entity to provide a cost share in an amount not to exceed 10 percent of the amount of the grant, loan, or loan guarantee requested in the application of the entity, unless the Secretary determines that a higher percentage is required for financial feasibility.
Market survey
In general
The Secretary may require an entity that proposes to have a subscriber projection of more than 20 percent of the broadband service market in a rural area to submit to the Secretary a market survey.
Less than 20 percent
The Secretary may not require an entity that proposes to have a subscriber projection of less than 20 percent of the broadband service market in a rural area to submit to the Secretary a market survey.
Information
State and local governments and Indian tribes
Subject to paragraph (1), a State or local government (including any agency, subdivision, or instrumentality thereof (including consortia thereof)) and an Indian tribe shall be eligible for assistance under this section to provide broadband services to a rural area.
Technical assistance and training
In general
Funding
Not less than 3 percent and not more than 5 percent of amounts appropriated to carry out this section for a fiscal year shall be used for technical assistance and training under this paragraph.
Broadband service
In general
Adjustments
At least once every 2 years, the Secretary shall review, and may adjust through notice published in the Federal Register, the minimum acceptable level of broadband service established under paragraph (1) and broadband buildout requirements under paragraph (4) to ensure that high quality, cost-effective broadband service is provided to rural areas over time.
Prohibition
The Secretary shall not establish requirements for bandwidth or speed that have the effect of precluding the use of evolving technologies appropriate for rural areas.
Broadband buildout requirements
In general
The term “broadband buildout requirement” means the level of internet service an applicant receiving assistance under this section must agree, at the time the application is finalized, to provide for the duration of any project-related agreement between the applicant and the Department.
Broadband buildout requirements further defined
Requirements
Substitute service standards for unique service territories
If an applicant shows that it would be cost prohibitive to meet the broadband buildout requirements established under this paragraph for the entirety of a proposed service territory due to the unique characteristics of the proposed service territory, the Secretary and the applicant may agree to utilize substitute standards for any unserved portion of the project. Any substitute service standards should continue to consider the best technology available to meet the needs of the residents in the unserved area.
Technological neutrality
For purposes of determining whether to provide assistance for a project under this section, the Secretary shall use criteria that are technologically neutral.
Terms and conditions for loans and loan guarantees
In general
Recurring revenue
The Secretary shall consider the existing recurring revenues of the entity at the time of application in determining an adequate level of credit support.
Adequacy of security
In general
The Secretary shall ensure that the type and amount of, and method of security used to secure, any loan or loan guarantee under this section is commensurate to the risk involved with the loan or loan guarantee, particularly in any case in which the loan or loan guarantee is issued to a financially strong and stable entity, as determined by the Secretary.
Determination of amount and method of security
In determining the amount of, and method of security used to secure, a loan or loan guarantee under this section, the Secretary shall consider reducing the security in a rural area that does not have broadband service.
Payment assistance for certain loan and grant recipients
Use of grant funds
section 661a of title 2The Secretary may use the funds appropriated for a grant under this subchapter for the cost (as defined by ) of providing assistance under paragraph (2).
Payment assistance
Agreement on milestones and objectives
With respect to payment assistance provided under paragraph (2), before entering into the agreement under which the payment assistance will be provided, the applicant and the Secretary shall agree to milestones and objectives of the project.
Amendment of milestones and objectives
The Secretary and the applicant may jointly agree to amend the milestones and objectives agreed to under paragraph (3).
Considerations
Limitations on payment assistance
The Secretary may not make a payment assistance loan under paragraph (2)(B) to an entity receiving a grant under this section that is also the recipient of a loan under subchapter I or II that is associated with such grant.
Funding
Authorization of appropriations
There is authorized to be appropriated to the Secretary to carry out this section $350,000,000 for each of fiscal years 2019 through 2023, to remain available until expended.
Allocation of funds
In general
Amount
Unobligated amounts
Any amounts in the reserve established for a State for a fiscal year under subparagraph (B) that are not obligated by April 1 of the fiscal year shall be available to the Secretary to make loans and loan guarantees under this section to eligible entities in any State, as determined by the Secretary.
Termination of authority
No grant, or loan, or loan guarantee may be made under this section after .
May 20, 1936, ch. 432 Pub. L. 107–171, title VI, § 6103(a)116 Stat. 415 Pub. L. 108–199, div. A, title VII, § 772118 Stat. 40 Pub. L. 110–234, title VI, § 6110(a)122 Stat. 1199 Pub. L. 110–246, § 4(a)122 Stat. 1664 Pub. L. 113–79, title VI, § 6104(a)128 Stat. 851 Pub. L. 115–334, title VI132 Stat. 4729 (, title VI, § 601, as added , , ; amended , , ; , , ; , title VI, § 6110(a), , , 1960; , , ; , §§ 6201, 6301(b), , , 4748.)
Editorial Notes
Codification
Pub. L. 115–334Pub. L. 115–334section 102(a) of Pub. L. 118–22section 9001 of this titleThe authorities provided by each provision of, and each amendment made by, , as in effect on , to continue, and authorities to be carried out, until the later of , or the date specified in the provision of, or amendment made by, , see , set out in an Extension of Agricultural Programs note under .
Pub. L. 110–246Pub. L. 110–246section 701(a) of Pub. L. 112–240section 8701 of this titleThe authorities provided by each provision of, and each amendment made by, , as in effect on , to continue, and the Secretary of Agriculture to carry out the authorities, until the later of , or the date specified in the provision of, or amendment made by, , see , set out in a 1-Year Extension of Agricultural Programs note under .
Pub. L. 110–234Pub. L. 110–246Pub. L. 110–234section 4(a) of Pub. L. 110–246 and made identical amendments to this section. The amendments by were repealed by .
Amendments
Pub. L. 115–334, § 6201(1)2018—Subsec. (a). , substituted “provide grants, provide loans, and provide loan guarantees” for “provide loans and loan guarantees”.
Pub. L. 115–334, § 6201(2)Subsec. (b)(3)(A)(ii). , inserted “in the case of a grant or direct loan,” before “a city”.
Pub. L. 115–334, § 6301(b)Subsec. (b)(3)(C). , added subpar. (C).
Pub. L. 115–334, § 6201(3)(A)Subsec. (c). , substituted “Grants, loans, and” for “Loans and” in heading.
Pub. L. 115–334, § 6201(3)(B)Subsec. (c)(1). , substituted “shall make grants, shall make loans, and shall guarantee loans” for “shall make or guarantee loans”.
Pub. L. 115–334, § 6201(3)(C)Subsec. (c)(2) to (4). , added pars. (2) to (4) and struck out former par. (2) which related to priority in making loans or loan guarantees.
Pub. L. 115–334, § 6201(4)(A)(i)(I)Subsec. (d)(1)(A). , substituted “grant, loan, or” for “loan or” in introductory provisions.
Pub. L. 115–334, § 6201(4)(A)(i)(II)Subsec. (d)(1)(A)(i). , added cl. (i) and struck out former cl. (i) which read as follows: “demonstrate the ability to furnish, improve in order to meet the minimum acceptable level of broadband service established under subsection (e), or extend broadband service to all or part of an unserved rural area or an area below the minimum acceptable level of broadband service established under subsection (e);”.
Pub. L. 115–334, § 6201(4)(A)(i)(III)Subsec. (d)(1)(A)(ii). , substituted “an application” for “a loan application”.
Pub. L. 115–334, § 6201(4)(A)(i)(IV)Subsec. (d)(1)(A)(iii). , struck out “loan” before “application” and substituted “infrastructure” for “service”, “5” for “3”, and “assistance under this section is” for “proceeds from the loan made or guaranteed under this section are”.
Pub. L. 115–334, § 6201(4)(A)(ii)Subsec. (d)(1)(B). , substituted “(j)” for “(k)”.
Pub. L. 115–334, § 6201(4)(B)(i)Subsec. (d)(2)(A). , substituted “assistance” for “the proceeds of a loan made or guaranteed” and “of the eligible entity” for “for the loan or loan guarantee” in introductory provisions.
Pub. L. 115–334, § 6201(4)(B)(ii)Subsec. (d)(2)(A)(i). , substituted “50 percent (in the case of loans or loan guarantees provided in accordance with subsection (g)(1)(A))” for “15 percent” and “level of fixed broadband service, whether terrestrial or wireless,” for “level of broadband service”.
Pub. L. 115–334, § 6201(4)(C)Subsec. (d)(3)(A). , substituted “grant, loan, or” for “loan or”.
Pub. L. 115–334, § 6201(4)(D)Subsec. (d)(4). , substituted “assistance” for “a loan or loan guarantee”.
Pub. L. 115–334, § 6201(4)(E)Subsec. (d)(5) to (10). , added par. (5) and struck out former pars. (5) to (10), which related to notice requirements, paperwork reduction, preapplication process, reporting by entities receiving assistance under this section, loan default and deobligation of awards, and service area assessment, respectively.
Pub. L. 115–334, § 6201(5)(A)(i)Subsec. (e)(1)(A). , substituted “25-Mbps” for “4-Mbps”.
Pub. L. 115–334, § 6201(5)(A)(ii)Subsec. (e)(1)(B). , substituted “3-Mbps” for “1-Mbps”.
Pub. L. 115–334, § 6201(5)(B)Subsec. (e)(2). , struck out subpar. (A) designation and heading before “At least once”, inserted “and broadband buildout requirements under paragraph (4)” after “(1)”, and struck out subpar. (B). Prior to amendment, text of subpar. (B) read as follows: “In making an adjustment to the minimum acceptable level of broadband service under subparagraph (A), the Secretary may consider establishing different transmission rates for fixed broadband service and mobile broadband service.”
Pub. L. 115–334, § 6201(5)(C)Subsec. (e)(4). , added par. (4).
Pub. L. 115–334, § 6201(6)Subsec. (f). , substituted “provide assistance” for “make a loan or loan guarantee”.
Pub. L. 115–334, § 6201(7)Subsec. (g)(2), (3). , redesignated par. (3) as (2) and struck out former par. (2). Prior to amendment, text of par. (2) read as follows: “In determining the term and conditions of a loan or loan guarantee, the Secretary may—
“(A) consider whether the recipient is or would be serving an area that is unserved or has service levels below the minimum acceptable level of broadband service established under subsection (e); and
“(B) if the Secretary makes a determination in the affirmative under subparagraph (A), establish a limited initial deferral period or comparable terms necessary to achieve the financial feasibility and long-term sustainability of the project.”
Pub. L. 115–334, § 6201(8)Subsec. (i). , added subsec. (i) and struck out former subsec. (i). Prior to amendment, text read as follows: “Notwithstanding any other provision of this chapter, the proceeds of any loan made or guaranteed by the Secretary under this chapter may be used by the recipient of the loan for the purpose of refinancing an outstanding obligation of the recipient on another telecommunications loan made under this chapter if the use of the proceeds for that purpose will support the construction, improvement, or acquisition of facilities and equipment for the provision of broadband service in rural areas.”
Pub. L. 115–334, § 6201(8)Subsec. (j). , (11), redesignated subsec. (k) as (j) and struck out former subsec. (j) which related to reports to Congress on participation in loan and loan guarantee program.
Pub. L. 115–334, § 6201(11)lSubsec. (k). , redesignated subsec. () as (k). Former subsec. (k) redesignated (j).
Pub. L. 115–334, § 6201(9)Subsec. (k)(1). , substituted “$350,000,000” for “$25,000,000” and “2019 through 2023” for “2008 through 2018”.
lPub. L. 115–334, § 6201(11)lSubsec. (). , redesignated subsec. () as (k).
Pub. L. 115–334, § 6201(10), substituted “grant, or loan, or” for “loan or” and “2023” for “2018”.
Pub. L. 113–79, § 6104(a)(1)2014—Subsec. (c)(2). , added par. (2) and struck out former par. (2). Prior to amendment, text read as follows: “In making or guaranteeing loans under paragraph (1), the Secretary shall give the highest priority to applicants that offer to provide broadband service to the greatest proportion of households that, prior to the provision of the broadband service, had no incumbent service provider.”
Pub. L. 113–79, § 6104(a)(2)(A)Subsec. (d)(1)(A)(i). , added cl. (i) and struck out former cl. (i). Prior to amendment, text read as follows: “demonstrate the ability to furnish, improve, or extend a broadband service to a rural area;”.
Pub. L. 113–79, § 6104(a)(2)(B)(i)Subsec. (d)(2)(A)(i). , added cl. (i) and struck out former cl. (i). Prior to amendment, text read as follows: “not less than 25 percent of the households in the proposed service territory is offered broadband service by not more than 1 incumbent service provider; and”.
Pub. L. 113–79, § 6104(a)(2)(B)(ii)Subsec. (d)(2)(B). , struck out “25” before “percent” in heading.
Pub. L. 113–79, § 6104(a)(2)(B)(iii)(I)Subsec. (d)(2)(C). , struck out “3 or more” before “incumbent” in heading.
Pub. L. 113–79, § 6104(a)(2)(B)(iii)(II)Subsec. (d)(2)(C)(i). , added cl. (i) and struck out former cl.(i). Prior to amendment, text read as follows: “Except as provided in clause (ii), subparagraph (A)(ii) shall not apply to an incumbent service provider that is upgrading broadband service to the existing territory of the incumbent service provider.”
Pub. L. 113–79, § 6104(a)(2)(C)Subsec. (d)(3)(B)(iii). , added cl. (iii).
Pub. L. 113–79, § 6104(a)(2)(D)Subsec. (d)(5). , added par. (5) and struck out former par. (5) which related to notice requirement.
Pub. L. 113–79, § 6104(a)(2)(E)Subsec. (d)(8) to (10). , added pars. (8) to (10).
Pub. L. 113–79, § 6104(a)(3)Subsec. (e). , added pars. (1) and (2), redesignated former par. (2) as (3), and struck out former par. (1) which read as follows: “The Secretary shall, from time to time as advances in technology warrant, review and recommend modifications of rate-of-data transmission criteria for purposes of the identification of broadband service technologies under subsection (b)(1).”
Pub. L. 113–79, § 6104(a)(4)Subsec. (g)(2). , added par. (2) and struck out former par. (2). Prior to amendment, text read as follows: “In determining the term of a loan or loan guarantee, the Secretary shall consider whether the recipient is or would be serving an area that is not receiving broadband services.”
Pub. L. 113–79, § 6104(a)(5)(A)Subsec. (j)(1). , inserted “, including any loan terms or conditions for which the Secretary provided additional assistance to unserved areas” before semicolon at end.
Pub. L. 113–79, § 6104(a)(5)(B)Subsec. (j)(7). –(D), added par. (7).
lPub. L. 113–79, § 6104(a)(6)Subsecs. (k)(1), (). , substituted “2018” for “2012”.
Pub. L. 110–246, § 6110(a)2008—, amended section generally, substituting provisions authorizing loans and loan guarantees for the costs of construction, improvement, and acquisition of facilities and equipment for broadband service in rural areas and terminating such authority on , for provisions authorizing similar loans and loan guarantees and terminating such authority on .
Pub. L. 108–1992004—Subsec. (b)(2). amended heading and text of subsec. (b)(2) generally. Prior to amendment, text read as follows: “The term ‘eligible rural community’ means any incorporated or unincorporated place that—
“(A) has not more than 20,000 inhabitants, based on the most recent available population statistics of the Bureau of the Census; and
“(B) is not located in an area designated as a standard metropolitan statistical area.”
Statutory Notes and Related Subsidiaries
Effective Date of 2008 Amendment
Pub. L. 110–234Pub. L. 110–246Pub. L. 110–234section 4 of Pub. L. 110–246section 8701 of this titleAmendment of this section and repeal of by effective , the date of enactment of , except as otherwise provided, see , set out as an Effective Date note under .
Pub. L. 110–234, title VI, § 6110(c)122 Stat. 1203 Pub. L. 110–246, § 4(a)122 Stat. 1664
Pub. L. 110–234Pub. L. 110–246Pub. L. 110–234section 4(a) of Pub. L. 110–246section 8701 of this title[ and enacted identical provisions. was repealed by , set out as a note under .]
Regulations
Pub. L. 110–234, title VI, § 6110(b)122 Stat. 1203 Pub. L. 110–246, § 4(a)122 Stat. 1664
Pub. L. 110–234Pub. L. 110–246Pub. L. 110–234section 4(a) of Pub. L. 110–246section 8701 of this title[ and enacted identical provisions. was repealed by , set out as a note under .]
Pub. L. 107–171, title VI, § 6103(b)116 Stat. 418
In general .—
Procedure .—
Congressional review of agency rulemaking .—
Transition Rule
Pub. L. 115–334, title VI, § 6213132 Stat. 4746