On February 13, 2020, Secretary of Agriculture Sonny Perdue announced the U.S. Department of Agriculture (USDA) has invested $9 million in 4 high-speed broadband infrastructure projects that will create or improve rural e-Connectivity for 3,744 rural households, 31 businesses, 41 farms, and a critical community facility in Tennessee. North Central Communications, a subsidiary of NCTC, is one of these recipients. This is one of many funding announcements in the first round of USDA’s ReConnect Pilot Program investments.
“Our core mission at USDA is to increase rural prosperity through boosting economic opportunity in rural America,” Perdue said. “We know that rural communities need robust, modern infrastructure to thrive, and that includes having access to broadband e-Connectivity. Under the leadership of President Trump, USDA is proud to partner with rural communities to deploy this critical infrastructure, because we know when rural America thrives, all of America thrives.”
NCTC/North Central Communications, Inc. is the recipient of a $1.4 million ReConnect Program grant to provide broadband service to residents and businesses in rural Smith County. The funded service areas include 164 households, 10 pre-subscribed businesses and 21 pre-subscribed farms spread over 22 square miles.
Johnny McClanahan, president and CEO of NCTC and North Central Communications expressed his gratitude to the USDA for its efforts in providing funding to the deserving residents of Smith County. “Without USDA RUS support we would not have been able to provide this service to our customers. We are extremely grateful and supportive of the many initiatives sponsored by the USDA RUS and the positive impact on our communities,” stated McClanahan.
NCTC will be serving the Beasley Bend area of Riddleton in Smith County. The USDA will provide approximately $1.5 million, and NCTC will provide approx. $.5 million in funding to build fiber in the rural western portion of the Smith County area. This area consists of rugged terrain including farm land, hillsides, and sharp ridges. The residents have no access to broadband speed services, and many are unable to get reliable landline service.
NCTC has three years from the time the grant is awarded to complete construction and begin providing service to the affected residents.
Background
In March 2018, Congress provided $600 million to USDA to expand broadband infrastructure and services in rural America. On Dec. 13, 2018, Secretary Perdue announced the rules of the program, called “ReConnect,” including how the loans and grants will be awarded to help build broadband infrastructure in rural America. USDA received 146 applications between May 31, 2019, and July 12, 2019, requesting $1.4 billion in funding across all three ReConnect Program funding products: 100 percent loan, 100 percent grant, and loan-grant combinations. USDA is reviewing applications and announcing approved projects on a rolling basis. Additional investments in all three categories will be made in the coming weeks.
These grants, loans and combination funds enable the federal government to partner with the private sector and rural communities to build modern broadband infrastructure in areas with insufficient internet service. Insufficient service is defined as connection speeds of less than 10 megabits per second (Mbps) download and 1 Mbps upload.
In December 2019, Agriculture Secretary Perdue announced USDA will be making available an additional $550 million in ReConnect funding in 2020. USDA will make available up to $200 million for grants, up to $200 million for 50/50 grant/loan combinations, and up to $200 million for low-interest loans. The application window for this round of funding will open Jan. 31, 2020. Applications for all funding products will be accepted in the same application window, which will close no later than March 16, 2020.
A full description of 2020 ReConnect Pilot Program funding is available on page 67913 of the Dec. 12, 2019, Federal Register (PDF). To learn more about eligibility, technical assistance and recent announcements, visit the USDA Reconnect page.
In April 2017, President Donald J. Trump established the Interagency Task Force on Agriculture and Rural Prosperity to identify legislative, regulatory and policy changes that could promote agriculture and prosperity in rural communities. In January 2018, Secretary Perdue presented the Task Force’s findings to President Trump. These findings included 31 recommendations to align the federal government with state, local and tribal governments to take advantage of opportunities that exist in rural America. Increasing investments in rural infrastructure is a key recommendation of the task force. To view the report in its entirety, please view the Report to the President of the United States from the Task Force on Agriculture and Rural Prosperity (PDF). In addition, to view the categories of the recommendations, please view the Rural Prosperity infographic (PDF).
USDA Rural Development provides loans and grants to help expand economic opportunities and create jobs in rural areas. This assistance supports infrastructure improvements; business development; housing; community facilities such as schools, public safety and health care; and high-speed internet access in rural areas. For more information, visit the USDA Rural Development page on Tennessee.