Rural Telephone Bank Loans

 

To provide supplemental financing to extend and improve telecommunications services in rural areas.

Deleted 10/17/2007 (There is no longer authorization for this program.) 10.852 RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE Direct Loans. During fiscal year 2002, 32 borrowers received loans. Rural Electrification Act of 1936, as amended, Title IV, 7 U.S.C. 921a, 921b and 941-950b. Borrowers, including those located in the U.S. Territories, or possessions which have received a loan or loan commitment under Section 201 of Rural Electrification Act or which have been certified by the Administrator as qualified to receive such a loan, are eligible to borrow from the Rural Telephone Bank. Residents of rural areas, and others who receive telecommunications service resulting from service provided to rural areas. None. This program is excluded from coverage under OMB Circular No. A-87. Applicants must supply environmental impact information to determine whether an environmental impact assessment or an environmental impact statement will be required. This program is excluded from coverage under E.O. 12372 and OMB Circular No. A-102. The completed loan application consists of 4 parts, an RUS Form 490, a market survey called Area Coverage Survey (ACS), and an Application for Telephone Loan or Loan Guarantee. Detailed information for applying is in 7 CFR Parts 1610 and 1737, available from RUS upon request. This is the same procedure used when applying for an RUS telephone loan. This program is excluded from coverage under OMB Circular No. A-110. Depending on the amount of the application, the Governor of the Rural Telephone Bank (who is also the Administrator of RUS), Assistant Administrator, or the appropriate Area Director, makes the final decision, based upon a finding that the loan is economically feasible and serves the purposes of the Rural Electrification Act. Borrowers and Members of Congress are notified of loan approval directly, and the public is notified through normal media communications. Applications are processed on a first-come, first-serve basis throughout the fiscal year ending September 30. From 2 to 3 months. Not applicable. Not applicable. Not applicable. Long-term loans to qualified organizations for the purpose of supplying and improving telecommunications services in rural areas. Each Bank loan recipient must submit to RUS regularly scheduled operating reports showing financial condition and operating progress. In accordance with the provisions of OMD Circular No. A- 133 (Revised, June 24,1997), "Audits of States, Local Governments, and Non-Profit Organizations, nonfederal entities that expend financial assistance of $300.000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $300,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133. All other borrowers have their books audited annually by a Certified Public Accountant. The information on audits of RUS borrowers is in 7 CFR, Part 1773. Each recipient must keep records prescribed for telephone companies by the State regulatory body having jurisdiction, or by the Federal Communications Commission if there is no such regulatory body. Obtaining a Rural Telephone Bank loan will require obtaining a concurrent RUS telephone loan. The statistical factor used for eligibility is any area of the United States not within the boundaries of any city, village or borough having a population over 5,000 (farm and nonfarm) and the source is the 1990 Decennial Census. The statistical factor used for fund allocation does not apply to this program. Loans can be made for up to 35 years (average loan maturity is 18 yrs). Provision is normally made for advances to be completed within 5 years, but this period is subject to extension if required. Advances of loan funds are made as required by the borrower. None. Assistant Governor, Rural Telephone Bank, Department of Agriculture, Washington, DC 20250. Telephone: (202) 720- 9554. Use the same number for FTS. http://www.rurdev.usda.gov 12-1231-0-1-452; 12-4231-0-3-452. (Direct Loans) FY 02 $174,999,300; FY 03 est $174,615,000; and FY 04 est $175,000,000. FY 02 $169,050 to $35,918,400. Average: $5,468,728. CFR-XVI. To the extent possible, the Rural Telephone Bank will be covered by regulations, guidelines, and literature of the Rural Utilities Service telephone loan program. RUS publishes and issues upon request technical operations manuals and bulletins covering financing, construction, operation, and maintenance of rural telephone systems. There are available annual statistical summaries; and Rural Electrification Act of 1936, as amended. Not applicable.