Hardship loans.

CFR · 2024-01-01 · US · Title 7

(a) RUS makes hardship loans under section 305(d)(1) of the RE Act. These loans bear interest at a rate of 5 percent per year. To qualify for a hardship loan on or after November 1, 1993, a borrower must meet each of the following requirements: (1) The average number of proposed subscribers per mile of line in the service area of the borrower is not more than 4; (2) The borrower has a projected TIER (including the proposed loan or loans) of at least 1.0, but not greater than 3.0, as determined by the feasibility study prepared in connection with the loan, see 7 CFR part 1737, subpart H; and (3) The Administrator has approved and the borrower is participating in a telecommunications modernization plan for the state, see 7 CFR part 1751, subpart B. (b)(1) Hardship loan funds shall not be used to finance facilities located in any exchange of the borrower that has: (i) More than 1,000 existing subscribers; and (ii) An average number of proposed subscribers per mile of line greater than 17. (2) Those facilities may, however, be financed with a RUS cost-of-money loans or a guaranteed loan if the borrower is eligible for such financing. (c) The Administrator may waive the TIER requirement in paragraph (a)(2) of this section in any case in which the Administrator determines, and sets forth the reasons therefor in writing, that the requirement would prevent emergency restoration of the telephone system of the borrower or result in severe hardship to the borrower. (d) In order to fairl

official document · source cfr-2024 · id 7:§ 1735.30