Frequently Asked Questions
This page contains answers to common questions submitted by interested ReConnect Program applicants during webinars, regional workshops, and via the Contact Us form on the ReConnect website. The questions and answers are organized by topic of interest and are updated on a regular basis. To view answers, click the plus sign (+) next to your question of interest. A full list of ReConnect Program FAQs are available for download on the Forms and Resources Page.
ReConnect Program Overview
- Q: What is the ReConnect Program?
A: The ReConnect Program offers federal loans, grants, and combinations thereof to facilitate broadband deployment in rural areas. ReConnect loans and grants provide funds for the costs of construction, improvement, or acquisition of facilities and equipment needed to provide broadband service to rural areas without sufficient broadband access, as defined in the FOA published on August 4, 2022.
Eligibility
- Q: Who is eligible to receive funds?
A: As defined in the Rural eConnectivity Program Regulation (published on February 26, 2021), the following entities are eligible to apply for assistance:
- Corporations
- Limited liability companies and limited liability partnerships
- Cooperative or mutual organizations
- States or local governments, including any agency, subdivision, instrumentality, or political subdivision thereof
- A territory or possession of the United States
- An Indian tribe (as defined in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b))
Individuals and legal general partnerships formed with individuals are not eligible for ReConnect funding. In addition, co-applicants are not eligible. If two entities would like to partner with each other in delivering broadband to areas without sufficient access, then one entity must take the lead on submitting an application. In this case, intercompany agreements can be used to account for revenues and expenses on the applicant’s financial projections.
- Q: I'm looking for help getting broadband internet at my residence. Is this program for me?
A: Individuals are not eligible for funding under this program.
- Q: Is there a limit on the number of applications an entity may submit?
Yes. An entity may submit only one application under any funding window. Although the online application system will allow you to create multiple applications, you can only submit one.
Mapping
- Q: What areas are eligible for ReConnect funding?
A: To be eligible for ReConnect Funding, a Proposed Funded Service Area (PFSA) must be (1) rural and (2) lack sufficient access to broadband service:
- According to the ReConnect Regulation, a rural area is any area which is not located within: (1) A city, town, or incorporated area that has a population of greater than 20,000 inhabitants; or (2) an urbanized area contiguous and adjacent to a city or town that has a population of greater than 50,000 inhabitants.
- Sufficient access to broadband, as defined in the FOA published on August 4, 2022, is 100 megabits per second (Mbps) downstream and 20 Mbps upstream (100/20). Mobile/cellular and satellite services will not be considered in making the determination of sufficient access to broadband. Note, for all funding categories except “Projects where 90 percent of households lack sufficient access to broadband”, 50% of households within each proposed service area must lack sufficient access to broadband. For the “Projects where 90 percent of households lack sufficient access to broadband” funding category, 90% of households within each proposed service area must lack sufficient access to broadband.
In addition, a PFSA may not include areas that have been previously funded by other RUS telecommunications programs if those areas have sufficient access to broadband. Additional eligibility requirements will be determined by the latest FOA. Ineligible areas include:
- Overlapping service areas
- Areas where there are pending applications for USDA Rural Utilities Service programs
- Protected RUS Broadband Borrowers
- Service areas that received federal grant funds to construct facilities to provide broadband service at the level defined in the latest FOA
- Q: Can USDA definte ineligible areas that relate to RUS lending like the RUS broadband loan, telecommunications infrastructure loan, and RUS electric loans including smart grid funding?
A: For the ReConnect Program only, RUS broadband loan means any loan that has been approved or is currently under review by RUS after the beginning of Fiscal Year 2000 in the Telecommunications Infrastructure Program, Farm Bill Broadband Program, Broadband Initiatives Program or the ReConnect Program. Loans that were rescinded or defaulted on, or the terms and conditions of which were not met, are not included in this definition. RUS electric loans are also not included in this definition. It should also be noted that if the project funded by such a “Broadband Loan” does not provide sufficient access to broadband as defined in the Funding Opportunity Announcement published on August 4, 2022 then those areas covered by the broadband loan are open to any provider wishing to submit an application.
Financial Requirements
- Q: Does RUS require financial statements as part of the application?
A: Yes, there are three options for an applicant regarding financial statements:
- Corporations, commercial businesses, Limited Liability Companies, and cooperatives must submit unqualified, comparative, audited financial statements for the previous year from the date the application has been submitted. Non-Federal entities are subject to 2 CFR 200 and must have a single audit conducted. Non-federal entities include authorities, municipalities, public bodies, public power or utilities districts, Indian Tribes, Tribal governments, higher education institutions, non-profits, Territories or possessions of the United States, and state or local governments.
- If an applicant does not have completed audited financial statements from the previous year, then the applicant can submit the two previous unqualified audits that have been completed.
- An applicant can use the consolidated audit of its parent as long as the parent fully guarantees the loan, or in the case of a grant, guarantees that construction will be completed as approved in the application or will repay the grant to RUS. If an applicant has more than one parent, then each parent’s audits must be submitted, and each parent must fully guarantee the award.
Note: For governmental entities, financial statements must be accompanied with certifications as to unrestricted cash that may be available on a yearly basis to the applicant.
- Q: Can a subsidiary use a parent company's financials?
A: A subsidiary may use consolidated financials of the parent company if the parent fully guarantees the loan, or in the case of a grant, guarantees construction will be completed.
Environmental Requirements
- Q: What will be required for the environmental portion of the applications?
A: All Applicants must follow the requirements in 7 CFR part 1970. Project maps or site plans are required to identify cable routes, building locations, tower locations, equipment locations, and all structures and facilities that are part of the project.
Applicants will be required to draw sites and routes using the Construction Mapping Tool in the ReConnect Online Application System. The Application System will also require that applicants provide specific information on the cable routes and facility locations including the completion of Environmental Questionnaires (EQs). All project activities, specific project locations, and supporting documentation must be provided to assist the Agency’s analysis of potential impacts on the environment, including whether a categorical exclusion applies to an area in a proposed project.
The Application Guide will address the specific requirements for the environmental portion of the application and will walk the applicant through the process in the application portal.
Evaluation Criteria
- Q: What are the application evaluation criteria?
A: Applications for the 50/50 loan-grant combination, 100% grant, 100% grant for Alaska Native Corporations, Tribal Governments, Colonias, Persistent Poverty Areas and Socially Vulnerable Communities, and Projects serving areas where 90% of households lack sufficient access to broadband will be scored and ranked against the following criteria:
Evaluation Criteria
Points
Rurality of the Proposed Service Area
25
Level of Existing Service
25
Economic Need of the Community
20
Affordability
20
Labor Standards
20
Tribal Areas
15
Local Governments, Nonprofits, and Cooperatives
15
Socially-Vulnerable Communities
15
Net Neutrality
10
Wholesale Broadband Services
10
Total: 175 Points
Please consult the Funding Opportunity Announcement (FOA) published on August 4, 2022 for more details on the criteria.
Technical Assistance
- Q: Who can I contact for more information about USDA loan programs?
A: You can submit your ReConnect program questions by using the Contact Us Form located at www.usda.gov/reconnect/contact-us. USDA also encourages you to reach out to your General Field Representative (GFR) or State office for more guidance related to your specific community. A list of GFRs, their service areas, and their contact information can be found here: www.rd.usda.gov/contact-us/telecom-gfr/all; State office contact information can be found here: www.rd.usda.gov/contact-us/state-offices.
- Q: Will USDA offer training or other resources to help with ReConnect applications?
A: USDA will conduct a series of webinars addressing specific ReConnect topics. Register to receive updates about the program, including upcoming workshops and webinars, on the ReConnect website by clicking the "Stay up to date" link toward the bottom of the ReConnect homepage.
