Telecommunications
The Telecommunications Program creates public/private partnerships to finance the construction of
telecommunications infrastructure in rural America. RUS is a vital source of financing and the technical assistance for
rural telecommunication systems. RUS and the Telephone Bank make loans to finance the improvement, expansion, construction,
or acquisition of telecommunications facilities in rural areas.
In 1949, only 39% of rural residents and US farms were receiving telephone service of any kind. The need and demand for
rural telephones, for area coverage (commonly referred to as "universal service" today), and for a source of long-term
financing to build a rural telecommunications infrastructure was evident.
On October 28, 1949, amendments to the Rural Electrification Act (RE Act) of 1936 paved the way for establishing a source
of long-term financing to build and maintain quality rural telephone systems.
For more information on this Utility program, contact Regional representative Kim Jacobs at (800) 383-7353.
Who may borrow?
- Commercial or Non-profit corporations that are providing or proposing to provide basic local exchange telecommunications service to rural areas.
- The borrower generally must be incorporated.
- The Telephone Bank does not make loans to individuals
The Telephone Bank and Community Programs telecommunications program have been building the foundation for the information superhighway in rural America for 50 years.
| Objective | Provide financial aid through direct and guaranteed loans |
|---|---|
| Applicant | Non-profit and cooperative associations, public bodies and other utilities. Contact: USDA Rural Electric Staff Division STOP 1569 1400 Independence Avenue SW Washington, DC 20250-1569 |
| Uses | Generation, bulk transmission facilities and distribution of electric power. Enhance 911 emergency service, digital switching equipment, fiber optic cable |
| Population | Rural areas |
| Loan/Grant | Direct loan or loan guarantee |
| Terms & Conditions | Interest rates are established in accordance with 7 CFR 17145 |
