NEWS RELEASE 1303 SW First American Place, Suite 100, Topeka, KS 66604-4040 Voice (785) 271-2701, FAX (785) 271-2708, WEB www.rurdev.usda.gov/ks

FOR IMMEDIATE RELEASE – May 4, 2004
Contact - Harold Alford (785) 271-2701

Rural Kansas Broadband Projects Receive Funding

Topeka, KS. – USDA Rural Development State Director Chuck Banks congratulated three rural Kansas broadband projects which will receive nearly $70 million in funding. The Kansas projects were a part of USDA Secretary Ann M. Veneman’s announcement this morning of the Bush Administration’s effort to expand the availability of broadband technology in rural areas with the approval of 20 rural broadband and telecommunication loans totaling $190 million to expand access to advanced technology in 19 states.

“President Bush is committed to ensuring that every household in America has access to broadband by the year 2007,” said Veneman. “This technology is important for families and businesses to succeed in a global environment.”

“Expanding high-speed internet access to our rural areas is critical to improving economic opportunities and enhancing the quality of life to Kansans. Rural citizens need this service to grow businesses, provide added educational opportunities to our rural schools, and support critical health care. Rural Kansas welcomes this funding and the entire state benefits,” commented State Director Banks on today’s announcement.

The Kansas projects announced follow:

Nex-Tech, Inc.; Lenora, KS – $5,395,000 serving six Kansas counties

H & B Communications, Inc.; Holyrood, KS – $7,706,000 serving four Kansas counties

Poplar PCS, LLC.; Memphis, TN - $56,869,000 for eight states; serving 32 Kansas counties

Veneman announced in January 2003 that USDA would expand efforts to bring farmers, rural residents and businesses greater access to improved telecommunication technology through loans and loan guarantees to rural telecommunications providers. Funds for the program were authorized through the 2002 Farm Bill. To date, over $206 million in broadband loans have been approved in this program.

The rural broadband access program provides loans and loan guarantees for the construction, improvement, and acquisition of facilities and equipment for broadband service in eligible rural communities. Priority is given to applications that are proposing to serve areas where no residential broadband service currently exists.

Telecommunication companies like Nex-Tech, Inc. of Lenora, Kansas are improving the capability for rural businesses and farmers and ranchers to compete globally through better access to the Internet. One of their customers, Osborne Industries, shared with Veneman in January 2003, how their local agricultural services manufacturing company is utilizing high-speed connection to better manage and market their products in domestic and international markets. Nex-Tex will receive a $5.4 million loan to further expand broadband access to 1,400 new subscribers.

Of the $190 million announced today, $150 million resulted from funding available through the 2002 Farm Bill. The remaining $40 million in loans announced came from Rural Development’s traditional telecommunications program. Borrowers are required under the traditional telecommunication loan program to ensure that all infrastructure built include broadband capability. Since the beginning of the Bush Administration, the traditional program has provided $2.0 billion in funding, providing over 771,000 rural homes and businesses with access to high speed broadband connections.

USDA provides a number of other important tools to advance broadband service in rural America. Included is the Distance Learning and Telemedicine grant program, with

funding levels of $25 million a year during the Bush Administration. USDA has also used a broadband grant program called Community Connect as well as community facilities programs to build connectivity for rural homes and businesses.

USDA Rural Development’s mission is to deliver programs in a way that will support increasing economic opportunity and improve the quality of life of rural residents. Rural Development provides investment and technical assistance to finance and foster growth in homeownership, business development, and critical community and technology infrastructure. Further information on rural programs is available at a local USDA Rural Development office or visiting USDA’s web site at http://www.rurdev.usda.gov.

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