Utilities Programs
Distance Learning and Telemedicine Grants and Loans

PROGRAM DESCRIPTION: The Distance Learning and Telemedicine (DLT) Grant and Loan program was created to encourage and improve telemedicine services and distance learning service in rural areas through the use of telecommunications, computer networks and related advanced technologies by students, teachers, medical professionals and rural residents. Priority will be given to rural areas that are economically challenged, costly to serve and are experiencing outward migration. Applicants are encouraged to obtain community involvement, leverage funding and cooperate with other rural DLT institutions.

TYPE OF ASSISTANCE: The DLT program is established in three separate parts: Grant Financial Assistance, Combination Loan and Grant Financial Assistance and Loan Financial Assistance.

GRANT FINANCIAL ASSISTANCE: Applications are submitted directly to the National Office in Washington , D.C. The minimum grant is $50,000 and the maximum is $500,000. Selection process is competitive, based on needs and benefits, rurality of the service area, economic need, leveraging, innovativeness, cost effectiveness and if in Empowered Zone/Enterprise Community or Champion Community. Applications must have matching non-federal funding at a minimum of 42.85 percent. Grants are limited to the capital costs of setting up the project. Grants cannot be used for operating costs or transmission facilities.

COMBINATION LOAN AND GRANT FINANCIAL ASSISTANCE: Applications are submitted to the USDA Rural Development State Director. Applicants will receive a fixed proportion of $10 of loan funds for every $1 of grant funds. Eligible use of funds includes the grant purposes, equipment needed to implement the project (in addition to telecommunication), providing single site links as long as they are part of a DLT network, site development when not a major portion of the project, and acquiring transmission facilities when such facilities cannot be obtained at a cost that is economically viable for the project.

LOAN FINANCIAL ASSISTANCE: Applications are made to the USDA Rural Development State Director. Loans can be made for any of the grant, or loan and grant purposes, any costs incurred during the first two years of operation of the project after approval of assistance, and costs needed to provide distance learning in broadcasting to rural areas. These loan purposes are subject to additional requirements in the regulation.

ELIGIBLE APPLICANTS: Incorporated organization, Indian Tribe and tribal organization, partnership or other legal entity including a municipal corporation or private corporation organized on a for-profit or not-for-profit basis, which will operate a school, college, university, learning center, educational laboratory, library, hospital, clinic or any rural community facility. Applicants can be a consortium made up of at least one eligible entity. USDA Rural Development electric or telecommunication borrowers are eligible for loans to provide service outside their normal service areas if other providers are unable or unwilling to provide transmission at an economic cost.

FUND AVALIABILITY: Contact the address below or call Bill Slininger (651-602-7810) or Andrew Gag (218-847-5694) of USDA Rural Development to learn of funding availability.