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Q. What entities are eligible for Telecommunications
Program Loans?
A. Public bodies.
Cooperative, non profit, limited dividend or mutual associations.
Entities that are incorporated or a limited liability company.
RUS does not make loans to individuals.
Q. Can someone from RUS help me with my loan application to
RUS?
A. RUS has General Field Representatives (GFRs) covering
all states. The GFRs can visit your site and answer questions,
provide technical assistance and assist you in applying for
an RUS loan. To obtain contact information for your GFR, visit:
www.usda.gov/rus/telecom/staff/index_staff.htm
Scroll to the bottom of the page and click the link corresponding
to your geographical area of the U.S.
Q. What are the requirements for qualifying for an RUS Hardship
loan?
A. To qualify for a Hardship loan, the borrower must meet
each of the following requirements:
1. The average number of proposed subscribers per mile of
line in the borrower's service area is not more than four.
2. The borrower has a projected TIER of at least 1.0, but
not greater than 3.0, as determined by the feasibility study
prepared in connection with the loan.
3. The Administrator has approved, and the borrower is participating
in a telecommunications modernization plan for the state.
Q. How does RUS set the interest rate for Cost-of-Money loans?
A. Each advance of funds bears interest at a rate equal to
the then current cost of money to the Federal Government for
loans of similar maturity. RUS uses the Federal Treasury Statistical
Release issued by the United States Treasury to determine
the interest rate for each advance.
Q. How do I find out the current interest rates for your loans?
A. The current interest rates for Treasury-rate loans can
be found at:
www.federalreserve.gov/releases/h15/ .
At the top of the page, under "Selected Interest Rates
(Weekly)," select the "Current Release" or,
if you want the Adobe pdf version, click on PDF. The rates
are listed for various maturities under "U.S. government
securities/Treasury constant maturities."
Q. What is the Federal Financing Bank and what are the advantages
of this program?
A. The Federal Financing Bank (FFB) is an instrumentality
of the United States Department of the Treasury. RUS offers
100 percent guarantees of loans made by FFB to qualified electric
and telecommunications borrowers. FFB offers a wide range
of financing options, including long- and short-term maturities
and prepayment and refinancing privileges. The borrower selects
these options at the time loan funds are advanced and different
options may be selected for each advance. Short-term interest
rates may be considerably lower than long-term rates and borrowers
may find the flexibility advantageous in their overall interest
rate strategies.
Q. When will RUS consider refinancing the outstanding debt
of another lender?
A. If deemed necessary by RUS to provide adequate security,
RUS will consider refinancing outstanding loans secured by
a lien on property offered as security for the loan, if the
property covered by the lien is integral to the operation
of the system.
RUS will also consider loans for refinancing when the borrower
would otherwise be unable to meet payments on both the outstanding
indebtedness and the new loan as they become due.
Q. Will RUS provide funds for the acquisition of another system?
A. RUS will provide funds for the acquisition of another
system only when the acquisition of another system is incidental
to furnishing or improving rural telephone service. Generally,
RUS will not provide financing for a borrower to pay for the
acquisition of another borrower or an affiliated company.
Q. How do I get my telecommunications product listed on the
List of Materials?
A. The procedures for listing telecommunications products
are located on our website at:
http://www.usda.gov/rus/telecom/listing_procedures/index_listing_procedures.htm
Q. What fees are associated with filing an application for
the List of Materials?
A. There are no fees associated with submitting an application
for listing products on the List of Materials.
Q. I am looking for a copy of the new specifications for outside
plant construction. Do you have the documents in electronic
form?
A. The specifications for outside plant construction are
contained in RUS Form 515a, Specifications and Drawings for
Construction of Direct Buried Plant, (Bulletin 1753F-150);
RUS Form 515b Specification and Drawings for Construction
of Underground Plant (Bulletin 1753F-151); RUS Form 515c Specifications
and Drawings for Construction of Aerial Plant (Bulletin 1753F-152);
and RUS Form 515d Specification and Drawings for Service Installation
at Customer Access Locations (Bulletin 1753F-153). These documents
are available electronically on our web site at:
http://www.usda.gov/rus/telecom/publications/bulletins.htm
Q. I have a telephone company interested in purchasing my
new telecom product but they tell me the product must be on
the RUS List of Materials. How long does it take to get my
product on the List of Materials?
A. It takes approximately two months for a product to be
presented to the Listing Committee. The committee that reviews
the product applications meets each month, usually during
the third week of the month. RUS staff needs approximately
three weeks prior to the meeting to review the information
in the listing application. Please note that if your product
is new and has not been in service in a rural environment
for at least 6 months, a field trial of at least six month
may be required.
Q. Where can I find a copy of the Minor Construction Contract?
A. The Form 773, Minor Construction Contract, is available
in our Publications web site at:
http://www.usda.gov/rus/telecom/publications/forms.htm
Q. Does RUS administer any grant programs?
A. RUS currently administers the following grant programs:
1. The Distance Learning and Telemedicine Grant Program is
designed specifically to meet the educational and health care
needs of rural America. For more information, visit:
www.usda.gov/rus/telecom/dlt/dlt.htm .
2. The Local Dial-Up Internet Grant Program finances projects
to provide local dial-up Internet service in rural areas where
it currently does not exist. For more information, visit:
www.usda.gov/rus/telecom/initiatives/index_initiatives.htm
(NOTE: this program does not extend beyond FY 2002 funding).
3. The Broadband Pilot Grant Program provides financing to
eligible entities that propose, on a "community-oriented
connectivity" basis, to provide broadband transmission
service in rural areas. For more information, visit:
www.usda.gov/rus/telecom/initiatives/index_initiatives.htm
(NOTE: this program does not extend beyond FY 2002 funding).
Q. Do any of the RUS grant programs require matching funds?
A. Yes, two programs require a matching contribution equal
to 15 percent of the grant amount. They are the Distance Learning
and Telemedicine Grant Program and the Broadband Pilot Grant
Program.
Q. When applying for a Distance Learning and Telemedicine
grant, will RUS provide grant funds for salary and administrative
expenses?
A. No, RUS will not provide grant funds for salary or administrative
expenses.
Q. In the Distance Learning and Telemedicine Grant Program,
can matching funds be used for different purposes than grant
funds?
A. No, eligible purposes for which matching funds may be
used (or in-kind items used for the match) are identical to
those for which grant funds may be used. See 7 CFR PART 1738.122.
Q. What is "Universal Service"? Does it have something
to do with the USF charge on my telephone bill?
A. Universal Service embodies the concept that telecommunications
is such a critical service that everyone should have access
to it. Since the passage of the first communications law,
The Communications Act of 1934, universal service has been
a public policy implemented by the Federal Communications
Commission (FCC). The FCC based this policy on the introductory
paragraph of the Act, which states that communications should
be available to all the people of the United States.
In the monopoly environment of that time, regulatory bodies
generally arranged it so that the cost to serve high-cost
and low-cost customers was averaged and everyone paid the
same rate. They also allowed long distance and business rates
to be set above cost so as to keep rates down for residential
and high-cost areas.
Universal Service went from public policy to law when it
was added as Section 254 of the Telecommunications Act of
1996. The law, which promotes deregulation and competition
also charges the FCC with preserving and advancing universal
service. In a competitive environment, the old monopoly-established
rates move toward cost and it becomes complicated to determine
from whom to collect the revenue to support universal service.
The charge on your bill, is a result of the federal mechanism
established by the FCC to collect these costs. Some states
also have also enacted a state mechanism.
Q. What types of "services " are supported under
the Universal Service mechanism?
A. The Telecommunications Act of 1996 establishes the requirement
for defining universal service and the principles by which
it is to be guided. The current definition includes voice-grade
access and access to long-distance and emergency services.
The definition is now under the periodic reexamination required
by law. Whether to include services such as broadband are
important and controversial choices that have yet to be determined.
Q: Can I use Weather Radio grant funds to install a tower?
A: No, grant funds can be only be used for the purchase and
installation of the transmitter and antenna. In special circumstances,
RUS will approve the use of funds to purchase a backup generator
or transmitter shelter.
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