USDA ReConnect Loan and Grant Program Round 5

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USDA ReConnect Loan and Grant Program Round 5
February 26, 2024

USDA ReConnect Loan and Grant Program Round 5 (RC5)

Notice of Funding Opportunity (NOFO) Released: February 21, 2024

Application Open: March 22, 2024

Application Deadline: May 21, 2024, 11:59 AM ET

The Proposed Funded Service Area (PFSA) Eligibility Criteria Are: 

  • At least 90 percent of the households in the PFSA must lack sufficient access (any rural area in which households do not have wired or licensed terrestrial fixed wireless broadband service defined as 25/3 Mbps)
  • Applicants must identify all existing providers in the PFSA, and indicate what level of service is being provided
  • Areas that have an Enforceable Commitment (obligation by any federal, state, or local agency, utilizing Federal Funds, to provide broadband service with speeds of at least 100/20 Mbps) at the time of publication of the NOFO are ineligible for ReConnect funds
  • Areas with current broadband service from only satellite or unlicensed wireless facilities are eligible for funding
  • Areas with an enforceable commitment associated with only satellite or unlicensed wireless facilities are eligible for funding

New Additions to the Application Are:

  1. Scoring for Most Unserved Locations Per Square Mile – Applications receive points if 75% of their projects are in one of the ten states which have the highest concentrations of Unserved Broadband Serviceable Locations (UBSLs)
    • Projects in the following states will receive 10 points: Alaska, Idaho, Montana, New Mexico, Wyoming
    • Projects in the following states will receive 5 points: Arkansas, Mississippi, Nevada, South Dakota, West Virginia
  2. Applicants demonstrating maintenance of the following financial ratios and measures, will not be required to submit the five-year pro forma financial projections or maps and information for NFSAs:
    • Current ratio of 2 or higher
    • Times interest earned ratio (TIER) of 2 or higher
    • Debt service coverage ratio (DSCR) of 2 or higher
    • Net worth of 45 percent or more for the two years previous the date the application is submitted

Award Amounts Under the NOFO will be Limited as Follows:

  • 100 Percent Grant
    Up to $150,000,000 is available for grants. The maximum amount of grant funds that can be requested in an application is $25,000,000. A 25% applicant match is required.
  • 100 Percent Grant for Alaska Native Corporations, Tribal Governments, Colonias, Persistent Poverty Areas and Socially Vulnerable Communities
    Up to $150,000,000 is available for grants. The maximum amount of grant funds that can be requested in an application is $25,000,000. There is no matching requirement for this category.
  • 50 Percent Loan / 50 Percent Grant Combination
    Up to $100,000,000 is available for loans and up to $100,000,000 is available for grants. The maximum amount that can be requested in an application is $25,000,000 for the loan and $25,000,000 for the grant. Loan and grant amounts will always be equal.
  • 100 Percent Loan
    Up to $200,000,000 is available for loans. The maximum amount that can be requested in an application is $50,000,000.

For More Information Please Contact: 

Amanda Molina, VP, Advisory and Grant Services, Business Advisory Services: Amanda.Molina@jsitel.com, (321) 985-5709
Bhavini Sokhey, VP, Financial Services: Bhavini.Sokhey@jsitel.com, (301) 459-7590
Diana Zake, Staff Director, Business Advisory Services: Diana.Zake@jsitel.com, (512) 614-3222