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USDA proposes rule on broadband funding

The Agriculture Department on Thursday published a rule establishing two funding cycles to review and prioritize applications for the Rural Broadband Access Loan and Loan Guarantee Program.

USDA also is setting a minimum level of acceptable broadband service at 4 megabits downstream and 1 megabit upstream. Applicants are urged to design systems that allow for 25 megabits downstream and 3 megabits upstream to meet future needs.

USDA is accepting comments on these changes through September 28.

To be eligible for funding, an applicant must serve an area where at least 15 percent of the households are unserved. Applications with the most unserved households will be processed first.

The maximum loan amount under today's announcement is $20 million. Applications will be accepted through September 30, 2015.

A USDA spokesman said this rule is separate from the funding for rural broadband through the Recovery Act.

An article in Politico this week was critical of the way that program was handled, but Agriculture Secretary Tom Vilsack said this week that he expects “only a handful” — about 15 — of those projects not to be fully complete by the September 30 deadline.

Vilsack also said that since 2009, USDA has brought broadband to 1.5 million rural residents, businesses or institutions.