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The regulation will cover servicing actions associated with the Telecommunications Infrastructure Loan Program, Broadband Access Loan and Loan Guarantee Program, Distance Learning and Telemedicine Program, and Broadband Initiatives Program (hereinafter collectively referred to as the "RUS Telecommunications Programs").

Statement of Need:

The RUS Telecommunications Programs provide loan funding to build and expand broadband service into unserved and underserved rural communities, along with very limited funding to support the costs to acquire equipment to provide distance learning and telemedicine service. This action will provide servicing actions available for the loan portfolio and will enable the Agency to quickly and consistently address servicing actions and improve customer service.

Summary of the Legal Basis:

This action is required by statute, the Agricultural Act of 2014 amendment to section 601 of the Rural Electrification Act of 1936 (7 USC 950bb). This section requires the Secretary to establish written procedures for all broadband programs to recover funds from loan defaults.

Alternatives:

The agency considered using other existing RD agency regulations, however it was determined that other regulations would not significantly cover needed special servicing actions.

Anticipated Costs and Benefits:

There are no anticipated costs. The rule will ensure recipients comply with the established objectives and requirements for loans, repaying loans on schedule and acting in accordance with any necessary agreements, ensure serving actions are handled consistently, and protect the financial interest of the Agency.

Risks:

N/A