WASHINGTON, May 4, 2004 --Agriculture
Secretary Ann M. Veneman today announced, as part of the Bush Administration’s
effort to expand the availability of broadband technology in rural areas,
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.”
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-Tech 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 by visiting USDA's web site at
http://www.rurdev.usda.gov.
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