Eligible assistance purposes.

CFR · 2024-01-01 · US · Title 7

Assistance under this part may be used to pay for any of the following expenses: (a) To fund the construction, improvement, or acquisition of all facilities required to provide service at the broadband lending speed to rural areas, including facilities required for providing other services over the same facilities. (b) To fund the cost of leasing facilities required to provide service at the broadband lending speed if such lease qualifies as a capital/finance lease under GAAP. Notwithstanding, assistance can only be used to fund the cost of the capital/finance lease for no more than the first three years of the lease period. If an IRU qualifies as a capital/finance lease, the entire cost of the lease will be amortized over the life of the lease and only the first 3 years of the amortized cost can be funded. (c) To fund an acquisition, provided that: (1) The acquisition is necessary for furnishing or improving service at the broadband lending speed; (2) The acquired service area, if any, meets the eligibility requirements set forth in § 1738.53; (3) The acquisition cost does not exceed 50 percent of the broadband assistance; and (4) For the acquisition of another entity, the purchase provides the Applicant with a controlling majority interest in the entity acquired. (d) To refinance an outstanding obligation of the Applicant on another telecommunications loan made under the RE Act or on a non-RUS loan if that loan would have been for an eligible purpose under the Rural Broadba

official document · source cfr-2024 · id 7:§ 1738.56