Telecommunications Infrastructure Loans and Loan Guarantees

State Telecommunications Field Representatives

Federal program office:
202.720.0800

USDA Telecommunications Infrastructure Loans and Loan Guarantees provide financing for telephone and broadband infrastructure in rural areas.

This program is governed by the Rural Electrification Act of 1936. Funds may be used to finance broadband capable telecommunications service:

• Improvements
• Expansions
• Construction
• Acquisitions
• Refinancing

Additional information may be found in the Code of Federal Regulations (7 CFR 1735).

Eligible borrowers are entities that provide telecommunications in qualified rural areas, including:

• State and local government entities
• Federally recognized tribes
• Nonprofit organizations, including cooperatives and limited dividend or mutual associations
• For-profit corporations and limited liability companies

Loan amounts are based upon need and available funds. Funding my be provided in the form of:

• Direct loans from USDA Rural Utilities Service based on current, fixed U.S. Treasury rates
• Loan Guarantees of up to 80% that allow private lenders to extend credit to qualified borrowers in rural areas. Interest and maturity rates vary.
• Hardship Loans may be used at the discretion of USDA Rural Utilities Service to assist applicants in meeting financial feasibility requirements for applications to serve underserved areas. Hardship loans have a fixed interest rate of 5% for up to 20 years and require special qualifications.

Links to program guidance, forms, and the online application portal are available on the program website.

Applications are accepted through the local Rural Development offices year-round.