News Release

Tim McNeilly (202) 720-1019

USDA PUBLISHES PROPOSED RULE FOR TELEVISION LOAN PROGRAM

     WASHINGTON, Aug. 15, 2003-Agriculture Under Secretary for Rural Development Thomas C. Dorr today announced a proposed regulation that will make funds available for needed access to rural broadcast systems. The LOCAL Television Loan Guarantee program is designed to enhance the services and economic opportunities available in rural America.

     "This proposed rule builds on President Bush's efforts to assist rural residents to achieve a better quality of life and boosts available economic opportunities," said Dorr. "The LOCAL Television program will benefit the lives of rural residents who currently have limited or poor quality television service."

     The proposed rule would make available loan guarantees for the purpose of financing the acquisition, improvement, or construction of television broadcast systems serving viewer areas defined as nonserved or underserved. USDA would guarantee up to 80 percent of the principal amount of up to $1.25 billion in loans made by banks and other lenders.

     The rule was prepared by the LOCAL Television Guarantee Board, which was established to govern the program's operation. The Board's membership is comprised of the Secretary of the Treasury, Chairman of the Board of Governors of the Federal Reserve, the Secretary of Agriculture and the Secretary of Commerce.

     The LOCAL Television program will expire when either the Secretary of Agriculture makes the determination that at least 75 percent of the Designated Market Areas -- other than the top 40 Designated Market Areas -- have adequate access to local television broadcasts, or by December 31, 2006, whichever occurs first.

     The proposed rule is published in today's Federal Register and available on the Web at the following address: http://frwebgate6.access.gpo.gov/cgi-bin/waisgate.cgi?WAISdocID=978686205389+4+0+0&WAISaction=retrieve

     Comments must be sent no later than September 15, 2003 to Jacqueline G. Rosier, Secretary, LOCAL Television Loan Guarantee Board, 1400 Independence Avenue, SW., STOP 1575, Room 2919-S, Washington, DC 20250-1575. Telephone (202) 720-0530; Facsimile (202) 720-2734; E-mail localtv@rus.usda.gov.

#

USDA Rural Development is an Equal Opportunity Lender, Provider, and Employer. Complaints of
discrimination should be sent to: USDA, Director, Office of Civil Rights, Washington, D.C. 20250-9410

Return to Rural Development News and Information Room.