Presented by Andrew Hayes Introduction to the USDA

Presented by: Andrew Hayes Introduction to the USDA and Overview of Rural Utilities Service Programs Advancing Georgia’s Counties – Federal Policy Committee Meeting Macon, Georgia August 15, 2017

Telecommunication Programs Page 2

Rural Utilities Telecommunications Programs Telecommunications (Infrastructure) Direct Loans Rural Broadband (Farm Bill) Direct Loans Distance Learning and Telemedicine Grants Community Connect Grants Page 3

Telecommunications Infrastructure Program Available Funding Program Updates FY 2016 • $690 million available in FY 2016 • 14 loans approved: $194 million FY 2017 • $690 million available in FY 2017 • 20 loans in process: $351. 8 million • 9 loans approved: $152. 8 million • Loans finance new & improved telecommunications infrastructure, primarily for the benefit of rural populations of 5, 000 or less <Typically> • Loans may serve non-rural subscribers in some cases • For additional detail, see the Code of Federal Regulations; 7 CFR 1735 • Applications are accepted year round • RD Apply online application system Page 4

Telecommunications Infrastructure Program -- Did You Know? Standard Loan Terms include: • 2 Year Principal Deferral • Interest Rate at the Cost-Of-Money • Loan Maturity - Life of the Facilities Financed Plus 3 Years Staff can assist and review loan applications before submission. Page 5

Telecommunications Farm Bill Broadband Program Available Funding Program Updates FY 2016 • $64 million available in FY 2016 • 1 loan approved: $4. 1 million FY 2017 • $115. 2 available in FY 2017 • 2 applications in process from Window 1 • Loans finance the costs of constructing a broadband network • Notice of Solicitation of Application (NOSA) published on July 25, 2017 for Window 2 • Serving rural communities of 20, 000 or less • $60 million expected to be available for Window 2. • 15% unserved area • RD Apply online application system • Cannot have 3 or more incumbent service providers • Service area cannot be in a RUS previously funded area Window 1 Window 2 Pre Application Window Jan 9, 2017 to Mar 24, 2017 [Closed] Jul 1, 2017 to Sep 22, 2017 Application Window Mar 1, 2017 to Mar 31, 2017 [Closed] Sep 1, 2017 to Sep 30, 2017 Page 6

Telecommunications Farm Bill Broadband Program – FY 17 - Did You Know? Loan Amounts between $100, 000 & $20 Million Unserved areas lacking access to Broadband Service of downstream capacity of 25 megabits per second (Mbps) and an upstream capacity of 3 Mbps for both fixed and mobile service. Applicant Priority the greatest proportion of unserved households. Broadband Lending Speed: Applicants must propose to offer new broadband service at a minimum bandwidth of 25 Mbps downstream and 3 Mbps upstream for both fixed and mobile service to the customer. Special Terms and Conditions may apply if more than 50% of the households are unserved: • up to 4 year principal deferral • 25% extension to the amortization period of the loan up to 35 years Standard Loan Terms include: • 2 Year Principal Deferral • Interest Rate at the Cost-Of-Money • Loan Maturity - Life of the Facilities Financed Plus 3 Years Page 7

Telecommunication Grant Programs Page 8

Community Connect Program Available Funding FY 2016 • $11. 74 million available in FY 2016 Program Updates FY 2016 • Over 70 applications received: $120 million • 8 applications approved: $13. 7 million FY 2017 • $34. 5 million available in FY 2017 • • • FY 2017 • NOSA released on January 10, 2017 • Applications were accepted until March 13, 2017 Grant funds for Broadband Service deployment • 50 Applications received for 92. 6 million Population of 20, 000 or less • 28 applications for $63. 2 million in process Amounts from $100, 000 to $3 million • Awards announced by September 30 Service Area must be entirely unserved Minimum Broadband Service is defined as 4 • Link: http: //www. rd. usda. gov/programs-services/communityconnect-grants. Mbps (download) and 1 Mbps (upload) 15% Matching Requirement Page 9

Distance Learning and Telemedicine (DLT) Program Available Funding FY 2016 • $23. 4 million available in FY 2016 FY 2017 • $23. 6 million available in FY 2017 • Grants for equipment needed to provide Distance Learning and Telemedicine services • 15% Matching Requirement • Minimum Grant amount: $50, 000 • Maximum Grant Amount: $500, 000 • Only grants are available-no loans or combo loan/grants Program Updates FY 2016 • 182 applications received for $55 million • 98 applications approved: $27. 7 million • 56 distance learning & 42 telemedicine projects • 5 Promise Zones • 29 of 98 (30%) include a tribal coverage component FY 2017 • NOSA released May 16, 2017 • Responses due July 17, 2017 • Applications currently being scored • Link: http: //www. rd. usda. gov/programs-services/distancelearning-telemedicine-grants. Page 10

Telecommunications Programs – All State Investments Since FY 2010, RUS has invested over $5. 8 Billion in projects serving rural residents in the United States: Page 11

Telecommunications Programs –Georgia Investments Since 2010, RUS has invested $124, 737, 478 million in projects serving GEORGIA rural residents: Page 12

Questions? Page 13

Rural Utilities Service Telecommunications Key Contacts Assistant Administrator Keith Adams keith. adams@wdc. usda. gov / 202. 720. 9556 Deputy Assistant Administrators Sami Zarour sami. zarour@wdc. usda. gov / 202. 720. 9556 Peter Aimable, Office of Portfolio Management & Risk Assessment peter. aimable@wdc. usda. gov / 202. 720. 1025 Richard Anderson (A), Office of Loan (& Grant) Origination & Approval richard. anderson. 1@usda. gov / 202. 720. 8818 Shawn Arner (A), Office of Policy & Outreach Shawn. Arner@wdc. usda. gov / 202. 720. 0711 Page 14

Andrew Hayes Andrew. Hayes@wdc. usda. gov | Office: 770 -312 -7073 Richard. Jenkins@wdc. usda. gov | Office: 681 -318 -3236 Rural Development | Telecommunications Program Rural Utilities Service | U. S. Department of Agriculture 1400 Independence Ave. , S. W. | Washington, D. C. 20250 www. rd. usda. gov USDA is an equal opportunity provider, employer, and lender. Page 15