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Release No. 0427.06
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  Release No. 0427.06
Contact:
Claiborn Crain (202)720-1263
Kristin Scuderi (202)720-4623

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  CONNER ANNOUNCES ALMOST $210 MILLION IN RURAL BROADBAND, TELECOMMUNICATIONS LOANS
 

WASHINGTON, Oct. 26 , 2006-Deputy Agriculture Secretary Chuck Conner announced today that broadband and telecommunications loans totaling almost $210 million are being awarded to communications firms in four states. The funds, provided through two USDA Rural Development programs, will allow for the extension of new and improved telecommunications services to more than 40,000 residential and business subscribers.

"Providing state-of-the-art communications service in rural areas not only allows for improved access to educational services, it promotes the development of business ventures and increased job opportunities," said Conner. "This is part of the President's commitment to make quality communications services available to the residents of rural America."

One of the loans, in New Mexico, will extend telecommunications services to 5,765 new customers, most of whom do not have telephone service. That loan, to Sacred Wind Communications, Inc. of Santa Fe, will provide funds to establish a microwave network, install microwave towers, and wire the inside of homes for telecommunications service in five counties. Another loan, to the Cheyenne River Sioux Tribe Telephone Authority of Eagle Butte, S.D., will be used to provide new and improved service to subscribers in two counties, including connecting 724 new subscribers and deploying 45 miles of new cable. Additionally, the Southwest Texas Telephone Company of Rocksprings will receive a loan to connect 68 new consumers and deploy 125 miles of cable in six counties. The USDA Rural Development telecommunications loan program, consisting of hardship, cost of money, and guaranteed loans, finances voice telephone service, and since 1995, every telephone line this program has constructed has been capable of providing broadband service using digital subscriber loop (DSL) technology.

A broadband loan is being awarded to Fiber 520-522 LLC, of Salem, Ill., to construct a fiber-to-the-home system in 12 counties. The system will connect 32,732 residential and 1,494 business subscribers, providing high speed data, video and voice services. The loan program authorizes USDA Rural Development to make loans to deploy broadband service to communities with a population of 20,000 or less, with first priority going to communities without broadband service. The loans are low interest and allow for the technology to be market driven.

USDA Rural Development's mission is to increase economic opportunity and improve the quality of life in rural communities. As a venture capital entity, Rural Development has invested over $76 billion since the beginning of the Bush Administration to provide equity and technical assistance to finance and foster growth in homeownership, business development, and critical community and technology infrastructure. About

1.5 million jobs have been created or saved through these investments.

Further information on rural programs is available at a local USDA Rural Development office or by visiting USDA's web site at http://www.rurdev.usda.gov.