USDSA to offer $1.15 billion in loans, grants for rural broadband

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The U.S. Department of Agriculture will start accepting applicants for loans and grants to help expand broadband in rural areas. | Lucent_Designs_dinoson20/Pixabay

USDSA to offer $1.15 billion in loans, grants for rural broadband

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The U.S. Department of Agriculture will begin accepting applications that will help companies expand broadband Internet in rural areas beginning Nov. 24, a department news release said.

The department has $1.15 billion available in grants and loans for the Reconnect program, according to the news release.

“@USDA will begin accepting ReConnect applications Nov. 24 for up to  $1.15 billion in loans and grants for #broadband deployment in rural communities nationwide,” the National Rural Electric Cooperative Association (NRECA), a national trade association representing more than 900 local electric cooperatives, tweeted.

It's part of President Joe Biden's Build Back Better program, the department said.

"For too long the ‘digital divide’ has left too many people living in rural communities behind, unable to compete in the global economy and  unable to access the services and resources that all Americans need,” Agriculture Secretary Tom Vilsack said in a statement. “As we build back better than we were before, the actions I am announcing will go a long way toward ensuring that people who live or work in rural areas are able to tap into the benefits of broadband, including access to specialized health care, educational  opportunities and the global marketplace. 

"Rural people, businesses and communities must have affordable, reliable, high-speed internet so they can fully participate in modern society and the modern economy,” he added.

In order to be eligible, companies must serve an area without broadband service at speeds of 100 megabits per second (Mbps) (download) and 20 Mbps (upload), the news release said.

"In making funding decisions," the news release said, "the USDA will also consider, among other things, the economic needs of the community to be served, the extent which a provider will offer affordable service options, a project’s commitment to strong labor standards; and whether a project is serving tribal lands or is submitted by a local government, tribal government, non-profit or cooperative." 

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