U.S. Department of Agriculture, USDA Rural Development, USDA Rural Utilities Service

Apr 15, 2020

Chad Parker
202.720.9554
chad.parker@usda.gov

Online contact form

The Rural eConnectivity Broadband Loan and Grant Pilot Program (Short title: ReConnect) provides funding to expand broadband service to rural areas without sufficient broadband access, which is defined as 10 megabits per second (Mbps) downstream and 1 Mbps upstream.

Applicants are limited to one of the following project types:

1. 100% grant - The proposed funded service area for this category must be in an area where 90% of the households do not have sufficient broadband access.
2. 50% grant/50% loan - The proposed funded service area for this category must be in an area where 90% of the households do not have sufficient broadband access.
3. 100% loan - The proposed funded service area for this category must be in an area where 90% of the households do not have sufficient broadband access.

ReConnect provides funding for:

• Construction, improvement, and acquisition of facilities required to provide service at a minimum of 25 Mbps downstream and 3 Mbps upstream
• Acquisition of an existing system not currently providing sufficient access to broadband, under certain circumstances and with restrictions
• Some pre-application expenses may also be eligible for reimbursement

Eligible applicants include:

• Nonprofit entities
• For-profit corporations
• Limited liability companies
• Cooperative or mutual organizations
• States, local governments, or any agency, subdivision, instrumentality, or political subdivision thereof
• Territories or possessions of the United States
• Indian tribes (as defined in section 4 of the Indian Self-Determination and Education Assistance Act

Nationwide and U.S. territories

The type and amount of award will depend on the type of financing or funding that best fits the applicant's business model, service area, and financial plan.

100% grant:

• Award ceiling: $25,000,000
• Total funding available: $200,000,000

50% grant/50% loan :

• Award ceiling: $25,000,000 loan and $25,000,000 grant
• Total funding available: $200,000,000
• Interest rate: Set at the Treasury rate for the remaining amortization period at the time of each advance of funds

100% loan:

• Maximum loan request: $50,000,000
• Total funding available: $200,000,000
• Interest rate: Set at a fixed 2%

Application instructions are available in the Federal Register and on the program website.

A Federal Register announcement extended the deadline to March 31, 2020.

Broadband · Infrastructure