USDA Grants $40 Million in Loans for Broadband Expansion in Rural Areas

The USDA invests in rural communities to update broadband service across the United States and foster a more prosperous future.
The USDA invests in rural communities to update broadband service across the United States and foster a more prosperous future.

According to a recent news release, the USDA has loaned nearly $40 million to improve broadband service in rural part of Minnesota, North Dakota and Texas.

This is a part of the Obama Administration’s mission to build stronger rural economies, which is fundamental towards making the United States more prosperous. These loans will be funded through USDA Rural Utilities Service’s Telecommunication Infrastructure Loan Program to finance projects to expand voice, video and data services.

Tom Vilsack says, "Broadband is essential to the economic strength of rural communities. It improves access to education and quality health care, and it leads to new jobs and business opportunities. Broadband is part of everyday life in most of America and vital for economic success in the 21st Century. Rural America cannot be left out."

In Texas, the Community Telephone Company will upgrade its old copper system with a working fiber-to-the-premises network and make improvements in its six exchanges by using a $26.4 million loan.

The Red River Rural Telephone Association was awarded $8.5 million to construct 145 miles of buried fiber optical cable throughout various areas of North Dakota and in Minnesota as well. These areas will include Abercrombie, Colfax, Fairmount, Great Bend, Hankinson, Lidgerwood, Mooreton and Wyndmere in North Dakota; and in Barnesville and Rollag in Minnesota. With fiber-to-the-premises network, this improved system will meet current and future capabilities for voice, video and high-speed data services.

The Griggs County Telephone Company will implement fiber-to-the-premises in Binford and Cooperstown, North Dakota and update four exchanges in the system with a $4.7 million loan. This will also offer expanded voice, video and data services to 682 subscribers.

In 2010, The Dakota Central Communications Cooperative received a $2.2 million USDA broadband loan to bring fiber-to-the premises service to Gackle and Streeter, North Dakota. This updated network alone connected more than 400 rural subscribers. This prior grant also played part in building what is known to be the largest 100% fiber-to-the-home network in the United States, covering 10,000 square miles and reaching about 18,000 homes.

The USDA’s investments in rural communities support efforts to improve broadband service in rural areas across the United States and aim to build a more prosperous future.