Rural Development - PowerPoint PPT Presentation

1 / 44
About This Presentation

Rural Development


Camellia Communications. City of Greenville, Alabama ... Development Broadband Loan to Camellia Communications provided financing for the ... – PowerPoint PPT presentation

Number of Views:193
Avg rating:3.0/5.0
Slides: 45
Provided by: edcm


Transcript and Presenter's Notes

Title: Rural Development

Rural Development Telecommunications Program
Rural Development 1400 Independence
Ave. Washington, DC 20250

Telecommunications Program
  • Rural America will have access to
    affordable, reliable, advanced communications
    services to provide a healthy, safe and
    prosperous place to live and work.
  • To improve health, safety, education,
    economic opportunity, and quality of life in
    rural America through leadership and investment
    in communications infrastructure and services.

Rural Development Utilities ProgramsSupport for
Telecommunications Loan and Grant Applicants
  • Strong Local Leadership in Rural Development
    State Offices
  • State Directors and Office Staff work with local
    communities to identify potential projects and
    state needs.
  • State Offices can be identified at
  • Telecom Program Staff provide Financial and
    Engineering support and guidance in all 50
  • 28 General Field Representatives monitoring more
    than 1000 telecom and broadband loan and grant
    projects across the country.
  • These same field representatives provide
    technical assistance to potential applicants and
    provide information to communities who are
    interested in broadband deployment.
  • Identify your local field representative at


Rural Development Utilities Programs

The Rural Development Telecommunications Program
loan and grant programs
  • Infrastructure Loan Program Loans to local
    telephone companies for improving
    telecommunications service in rural communities
  • Broadband Access Loan Program and Community
    Connect Grant Program Loans and grants for
    local telephone companies and other service
    providers who offer Broadband (high-speed
    Internet) services in eligible communities
  • Distance Learning/Telemedicine Loan and Grant
    Program Loans and grants for providing Distance
    Learning and Telemedicine services to rural

Rural Development Telecommunications Program
More than 6 billion invested in rural telecom
infrastructure since 2001
Infrastructure Program
Distance Learning and Telemedicine
  • 306 million in DLT grants and loans have been
  • In FY 2007, 78 grants and 11 loan/grant
    combinations were awarded. 699 educational
    centers and 512 health centers have gained access
    to improved services.
  • Assists the private sector in developing and
    financing the construction of telecom
    infrastructure in rural America.
  • 3.7 billion in principal outstanding 550
  • 92 of borrowers are providing Broadband service.

Community Connect
Broadband Loan Program
  • Since its inception, the program has provided
    148 grants and invested almost 70 million to
    provide service to local communities.
  • Awarded 8.9 million in grants in FY 2007.
  • 79 loans have been made, for 1.6 billion, for
    broadband deployment in more than 1900
  • More than 1.1 million households will receive
    broadband access under loans made.
  • Weather Radio and Public TV Digital Grant
  • 51 Public TV Station Digital Transition grants
    awarded, for 38,837,400
  • 93 Weather Radio Transmitter grants awarded,
    for 5,733,703

Broadband Loans Purpose
To provide loans for the cost of construction,
improvement, and acquisition of facilities and
equipment for broadband services in eligible
rural communities.
Broadband Loans FY 2007 Budget
  • Treasury Rate Funding
  • 998 Million
  • (includes carryover funding from FY 2006)

Broadband LoansStatistics
  • 211 Applications Received
  • Totaling 4,472,879,438
  • Applications Processed as of Nov. 7, 2007
  • 80 Approved 1,553,266,931
  • 18 In Review 594,584,801
  • 113 Returned

Broadband Loans Status and Results (as of
  • Established by the 2002 Farm Bill. 2007 Farm
    Bill reauthorization in process.
  • Originally envisioned to fund 2 billion in rural
    broadband deployment by 2007.
  • To date, 80 loans have been made for
    approximately 1.5 billion to finance facilities
    in 47 states.
  • Projects proposing to serve more than 1.1 million
  • 1,979 communities
  • 10 projects completed in Kansas, Louisiana,
    Michigan, North Dakota, Nebraska, Oregon, South
    Dakota, Texas and Washington

Broadband LoansTypes of Organizations Funded
  • One Size Does Not Fit All
  • Private/public partnerships
  • Traditional telephone companies enhancing
    service offerings
  • Local service providers serving one or a few
    local communities
  • National service providers providing service to
    multiple communities, even multiple states
  • Municipalities
  • 33 of applications approved have been from
    startup companies

As of 11/72007
Broadband LoansExamples
  • Air Advantage a for-profit company which has
    worked with local Michigan communities to obtain
    grants and then applied for and received loans
  • Nex-Tech a subsidiary of a Kansas local
    telephone company formed to provide Broadband
  • UTOPIA a Utah municipal partnership

Broadband LoansTypes of Technologies Funded
As of 11/7/07
Broadband LoansEligible Entities
  • Who is eligible?
  • Corporations
  • Limited Liability Companies
  • Cooperative or Mutual Organizations
  • Indian Tribes
  • Public Body

Broadband LoansIneligible Entities
  • Who is not eligible?
  • Individuals
  • Partnerships (including LLPs)
  • Any entity serving more than 2 of the telephone
    subscriber lines installed in the United States

Broadband LoansDirect Cost-of-Money Loans
Broadband Loans Application Information
The regulation, application, application guide,
and all other relevant information is available
on our website at
Broadband LoansApplication Information
  • New Broadband Loans Search Tool
  • Listing of all approved and pending communities
  • http//
  • This new search tool is regularly updated.

Broadband Loans Application Submission
  • Prospective applicants should contact their
    respective General Field Representative (GFR)
    prior to submitting the application
  • List of the GFRs and the contact information is
    included in Application Guide
  • There is no deadline to submit applications
  • Applications will be reviewed and processed on a
    first-come, first-served basis

Broadband Loans Key Components of an Application
  • Credit Support
  • Business Plan
  • Market Survey
  • Financial Information
  • System Design

7 CFR Part 1738 Rural Broadband Access Loan and
Loan Guarantee Program
  • Proposed Rule Published May 11, 2007 Public
    Comments Were Due July 10, 2007
  • Rural Developments Goals
  • Our Proposed Rules will
  • Promote deployment to rural areas with little or
    no service
  • Limit funding in urban areas and areas where a
    significant share of the market is served by
    incumbent providers
  • Clarify and streamline the equity and marketing
    survey requirements
  • Increase the transparency of the application
  • Promote a better understanding of all application
  • Ensure that projects funded are keeping pace with
    increasing demand for bandwidth
  • 2007 Farm Bill Will Also Impact Broadband Program

Ensure that rural residents have access to
affordable and reliable quality broadband service
in rural communities
Make sound lending decisions and to ensure
positive investment of taxpayer dollars
What is Community Connect?
  • A nationally competitive grant program to provide
    broadband service on a community-oriented
    connectivity basis to the most rural and
    economically challenged communities.
  • Since its inception, the Community Connect
    program has provided 148 grants and invested
    almost 70 million to provide service to local

Program Basics
  • Serves one Community
  • Community without Broadband
  • Provides a Community Center
  • Free service to Critical Facilities

New for 2008
  • Added Rand McNally as a community qualifier if
    the Census is not recognizing a community
  • Using MHI based on the state average rather than
    PCI based on the national level
  • Clarified allowable operating expenses

  • Fosters economic growth
  • Delivers enhanced
  • Educational opportunities
  • Health Care
  • Public Safety Services

Success Story
  • Air Advantage, LLC
  • Community Connect Grants
  • 2003 Unionville, Michigan (Pop. 605) 214,532
  • 2003 Port Hope, Michigan (Pop. 310) 219,176
  • Broadband Loans
  • 2004 43 communities, 1,500,000
  • 2005 12 communities, 1,028,000
  • Exciting Fact Today they are serving 55
    mid-Michigan communities and providing service to
    2,174 rural Michigan customers

Success Story
  • Lenowisco Inc. I
  • Community Connect Grants
  • 2005 Rose Hill, Lee County, Virginia (Pop. 714)
  • 2006 Ewing, Lee County, Virginia (Pop. 436)
  • Exciting Fact Rolling out service at 5 Mb!!

Success Story
  • Nixs Medical Supply
  • Dba
  • 2006 Gans, Sequoya County, Oklahoma (Pop. 208)
  • Exciting Fact They already have 50 subscribers

Keys to Success
  • Good management of the project
  • High local involvement especially local
  • Good service at reasonable rates

Distance Learning/ Telemedicine Programs
The DLT Grant and Loan Programs provide
rural communities with opportunities to obtain
educational and medical services from distant
locations utilizing communications
DLT FY 2007 Budget
  • Combination Loan/Grant 50,000,000
  • 45,000,000 Loan/5,000,000 Grant
  • 91 Ratio
  • Maximum Amount 20,000,000
  • Minimum Amount 50,000

DLT FY 2007 Budget
  • Combination Loan/Grant 25,000,000
  • 20,000,000 Loan/5,000,000 Grant
  • 41 Ratio
  • Maximum Amount 1,000,0000
  • Minimum Amount 50,000

DLT FY 2007 Budget
  • 100 DLT LOANS
  • 62,900,000
  • Maximum Amount 20,000,000
  • Minimum Amount 50,000

DLT GrantsEligibility
  • What Kind of Projects are Eligible for Grants?
  • Just about every type of organization is eligible
    to apply except individuals
  • Benefits must flow to rural areas (not urban
    clusters over 20,000 or urbanized areas)
  • Distance Learning and Telemedicine are defined
    for the grant program to exclude on campus
  • Telecommunications service (the transport
    mechanism itself) is not eligible for grants
  • Every year the emphasis from applicants changes
    in recent years electronic medical technologies,
    such as Picture Archival and Communications
    Systems (PACS), have become dominant

Distance Learning Project Examples
  • Enabling small rural schools to remain accredited
  • and viable by sharing teaching skills and
  • of curriculum from larger schools
  • Bringing specialized nonrecurring programs to
    rural areas
  • NASA space missions
  • Virtual field trips
  • Offering continuing adult education and GED
  • Delivering advanced placement college courses to
    high schools
  • Sharing teaching resources between colleges
  • Bringing accredited professional continuing
    education courses to hospitals

Distance Learning
University Resources
Local Schools
Web Resources
Adult Ed/GED Resources
Telemedicine Examples
  • Providing teleradiology equipment to small
    hospitals and clinics to bring imaging capability
    to rural patients
  • Creating remote treatment/consultation capability
    with videoconferencing
  • Equipping visiting nurses associations with
    remote monitoring capability for home patients
  • Establishing remote diagnostic and monitoring
    capability in ambulances
  • Creating mobile or remote access capability to
    existing Electronic Medical Records Systems
  • Establishing Picture Archival and Communications
    Systems for rural hospitals with no radiologist

Local Hospital Mobile Computing
University Resources
Local Clinics
Regional Hospital
Local Hospital (Hub)
Electronic Med Records
Home Health Monitoring Mobile Health Units
DLT Program Eligible Organizations
  • Must operate a rural community facility and be
    qualified to deliver Distance Learning or
    Telemedicine services.
  • Must be legally organized with capability to
    contract with USDA Rural Development.

DLT Grant Program Eligible Purposes
  • Purchase Installation of
  • Inside Wiring
  • Telecom and Data Terminals
  • Audio and Video Equipment
  • Interactive Video Equipment
  • Computer Hardware Software
  • Medical Equipment for Telemedicine Use
  • Off-the-shelf Instructional Programming

  • For additional information
  • http//

A Broadband Success Story
  • Camellia Communications
  • City of Greenville, Alabama
  • Population 7,166

The situation In 2002, a state-of-the art
Hyundai auto plant was established in nearby
Montgomery this led to the growth of local
businesses supplying the plant broadband
infrastructure was required but not widely
A Broadband Success Story
  • Camellia Communications
  • City of Greenville, Alabama

The Rural Development Broadband Loan to Camellia
Communications provided financing for the
development of a city-wide broadband network,
connecting all municipal and fire/safety offices
and the ability to offer broadband services to
residents and businesses in Greenville and other
nearby communities
A Broadband Success Story

Broadband service is also being deployed in rural
Butler County.
A Broadband Success Story

Economic Impact an example Priesters Pecans,
a local company created in 1935, has modernized
operations and greatly increased Internet sales.
In 2006, Priesters received over 9,000 Internet
orders and shipped out over 71,000 packages.
Write a Comment
User Comments (0)