Category/Topic
Community Development, Economic Development
State or Federal?
Federal
Summary
The Broadband ReConnect Program furnishes loans and grants to provide funds for the costs of construction, improvement, or acquisition of facilities and equipment needed to provide broadband service in eligible rural areas.

Applicants must propose to build a network capable of providing service to all premises in the proposed funded service area at a speed of 25 megabits per second (Mbps) downstream and 3 Mbps upstream. Applicants may request funding from one of the following categories.

Category 1: 100% Grant
Category 2: 50% Loan / 50% Grant
Category 3: 100% Loan
Eligible Entities
Local Public Agencies, Native American Tribes, Nonprofit Organizations, Private Corporations
Eligibility Notes
To be eligible to receive ReConnect Program funds, the proposed service area must meet the following criteria:

-Lack Sufficient Access to Broadband: At least 90% of households in the proposed funded service area (PFSA) must lack access to fixed, terrestrial broadband service of least 10 megabits per second (Mbps) downstream and 1 Mbps upstream.
-Be in a Rural Area: A rural area is any area that is not located in a city, town, or incorporated area that has a population of greater than 20,000 inhabitants or an urbanized area contiguous and adjacent to a city or town that has a population of greater than 50,000 inhabitants. If an applicant is applying for multiple PFSAs, each service area will be evaluated on a stand-alone basis.

***An applicant must be able to supply retail broadband to customers. The only ineligible entities are sole proprietors and limited partnerships.
Most Recent/Current Due Date
Mar 16, 2020
Most Recent RFP Release Date
Jan 31, 2020
Max Award
$25,000,000
Total Possible Multi-Year Award
$25,000,000
Match Required?
Yes
Match Notes
Category 1: 100% Grant
Applicants must provide a matching contribution equal to 25% of the cost of the overall project. The source of funds must be clearly identified. If matching funds are provided by a third party, a serious commitment from the third party must be submitted indicating that the funds will be available at the closing of the award if approved. The matching contribution can only be used for eligible purposes.
Funder
USDA
Total Amount Available for All Grants
$550,000,000
Competition Notes
Category 1: 100% Grant
Up to $200,000,000 is available for grants. The maximum amount that can be requested in an application is $25,000,000. If an applicant receives a 100% grant award, the matching contribution must be expended first, followed by grant funds, except for approved pre-application expenses.

Category 2: 50% Loan / 50% Grant
Up to $200,000,000 is available for loan/grant combinations. The maximum amount that can be requested in an application is $25,000,000 for the loan and $25,000,000 for the grant. Loan and grant amounts will always be equal. The interest rate for the 50% loan component will be set at the Treasury rate for the remaining amortization period at the time of each advance of funds. Applicants may propose substituting cash for the loan component at the time of application. If an applicant receives a 50% loan / 50% grant award, all cash provided in lieu of loan funds must be expended first, followed by loan funds, and then by grant funds, except for approved pre-application expenses. Grant funds must be requested as part of the first advance request for the reimbursement of eligible pre-application expenses.

Category 3: 100% Loan
Up to $200,000,000 is available for loans. The maximum amount that can be requested in an application is $50,000,000. The interest rate for a 100% loan will be set at a fixed 2%. Tangible equity to total assets must be at least 20% at the end of the calendar year starting in the third year of the forecast period through the remainder of the forecast period.
Further Information

Link to Further Information
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