USDA Announces $47 Million in Loans to Support Rural Access to High-Speed Internet Technology
37,732 Rural Households and Businesses in Five States to Benefit from Improved Telecommunication Technology

   “Advanced high-speed Internet technology enables more rural Americans to access information to improve their educational, health and business opportunities,” said Veneman. “President Bush established the goal to have broadband access to every household by 2007 because he understands the value of such technology and is committed to the idea that every American should have the opportunity to succeed.”

   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 $253 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 propose to serve areas where no residential broadband service currently exists.

   In South Dakota, $19,879,000 in loan funds will assist Sancom, Inc. with constructing a ‘fiber to the premise’ broadband system that will serve approximately 6,300 new voice subscribers, 821 new data subscribers and 3,386 new video subscribers in the rural community of Mitchell, South Dakota. Additional loans announced include:

Hood Canal Telephone Company of Union, Washington -- $1,777,000 Broadband Telecommunications loan. The funds will be used to provide voice services to 1,971 subscribers, video services to 4,197 subscribers and broadband services to 1,029 subscribers. They will upgrade and existing analog cable TV system to a Hybrid Fiber Coax network to enable the delivery of broadband, video and voice services.

Red Oak Communications, LLC of Red Oak, Iowa -- $8,082,000 Broadband Telecommunications loan. The funds will be used to connect 782 high-speed data subscribers, 1,858 video subscribers and 3,354 voice subscribers. Fiber optic mainline cable will extend from the hub to several cabinets throughout the service area. Fiber distribution cable will extend from the cabinets to optical pedestals located in the residential areas, with drops installed from the pedestals to connect the optical network interface device located on the subscriber's premises. The funding will also provide video set-top boxes.

Hayneville Fiber Transport, Inc. (Camellia Communications) of Hayneville, Ala. -- $13,100,000 Broadband Telecommunications loan. The funds will be used to provide service to 6,138 access lines for voice services, 88 subscribers for dial-up service and 1,375 subscribers for DSL service. The funds will enable the company to expand an existing DSL-based broadband system from the towns of Greenville and Fort Deposit into the towns of Georgiana and McKenzie and the rural portion of Butler County, Alabama.

Midwest Broadband, LLC of St. Louis Missouri -- $4,343,000 Broadband Telecommunications loan. The funds will be used to serve 19 communities in Missouri. Of the 80,819 households and 7,824 businesses to which the new system will be available, approximately 5,953 residences and 480 businesses will subscribe to broadband internet service.

   Funding of selected applicants will be contingent upon meeting the conditions of the loan agreements. 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.

   Since the beginning of the Bush Administration, over $2 billion in telecommunication funding has provided over one million rural homes and businesses with access to high speed broadband connections. To learn more about available funding through USDA’s broadband program, visit www.usda.gov or contact USDA Rural Development broadband staff at (202) 720-9554.

   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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