USDA Announces $342M in Rural Broadband, Telecommunications Loans

Support going to residents, businesses

Published in the January 2009 Issue Published online: Jan 13, 2009
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Agriculture Secretary Ed Schafer announced in September broadband and telecommunications loans totaling more than $342 million are being awarded to 18 communications firms serving 22 states.

The funds will help bring new and improved telecommunications services to rural residents and businesses.

“Providing state-of-the-art communications services in rural areas promotes business development, increases job opportunities and improves access to educational services,” Schafer said. “The funding … will provide more rural Americans with high-quality, affordable broadband services.”

For example, Fort Mojave Telecommunications, Inc. in Mojave Valley, Ariz., will use a $16.9 million Rural Development telecommunications loan to connect 60 subscribers, deploy 36 route miles of fiber and copper cables, make improvements and additions to its existing plant and construct a 2,000-square-foot warehouse.

International Broadband Electric Communications, Inc., in Hokes Bluff, Ala., was selected to receive a $49.2 million loan to construct a broadband over power line (BPL) network.

The company will partner with 13 electric utilities to provide BPL service in seven states to connect 62,143 subscribers. The states are Alabama, Indiana, Maryland, Pennsylvania, Texas, Virginia and Wisconsin.

TCT West, Inc., Basin, Wyo., will use an $11.4 million Rural Development loan to construct a fiber-to-the-home system in Cody, Wyo.; connect 7,278 subscribers and provide enhanced services to approximately 5,306 video and 9,823 voice subscribers.

The loans are being made through the Rural Development Broadband Loan and Loan Guarantee Program, which provides low-interest loans to deploy broadband and telecommunications services to rural communities of 20,000 residents or less, with first priority going to areas without broadband.

Rural Development is also providing funding through the Telecommunications Infrastructure Loan Program, which makes loans to local firms working to provide both voice and broadband services in areas with 5,000 or fewer citizens.

USDA Rural Development’s mission is to increase economic opportunity and improve the quality of life for rural residents. Rural Development has invested more than $90 billion since 2001 for equity and technical assistance to finance and foster growth in homeownership, business development and critical community and technology infrastructure.

More than 1.7 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 the USDA Rural Development web site at www.rurdev.usda.gov .