Community

Connect Grant

Together, America Prospers

Table of Contents

Introduction and General Information ........................................................................................ 3

Important Updates: ...................................................................................................................... 5

Applying for a Grant ................................................................................................................... 7

Completing the Grant Application ............................................................................................ 10

Required Application Schedules ............................................................................................... 13

used to: (1) deploy service at the Broadband Grant Speed to essential community facilities, rural

residents, and rural businesses, (2) construct, acquire, or expand a community center, and (3)

equip a community center that provides free access to service at the Broadband Grant Speed to

community residents for at least two years. Grants will be awarded on a competitive basis for

entities to serve all premises in eligible rural areas at the Broadband Grant Speed to ensure rural

consumers enjoy the same quality and range of broadband services as are available in urban and

suburban communities.

Applications must be submitted in the RUS online application system available on the

Community Connect web site https://www.rd.usda.gov/community-connect.

the quality of the materials submitted, a substitute for agency review of completed

analysis. The Agency will not solicit or consider scoring or eligibility information that is

submitted after the application deadline. The Agency reserves the right to contact applicants to

seek clarification information on materials contained in the submitted application.

deadline.

with the Unique Entity Identifier (UEI) as the authoritative identifier for organizations that

apply for federal contracts or financial assistance. Applicants must provide a UEI when

applying for Community Connect funding. Obtain your organization’s UEI when you create or

update your SAM.gov entry. You can obtain your UEI at SAM.gov even if you have no

updates to your SAM.gov record. If your organization is currently registered in SAM.gov with

either an active or inactive registration, you have already been assigned a UEI. Your UEI is

viewable on your entity's registration record in SAM.gov. Note that the UEI must belong to the

number. Beginning February 2019, applicants now complete a number of government wide

certifications in SAM. Applicants must have their registration active prior to submitting their

application and must have made all required certifications. Please refer to pages 33 and 34 of

SAM’s Quick Start Guide for Grant Registrations.

The RUS Community Connect Portal system, like all web facilities, has finite capacity. It is

possible system usage could be very high in the final days or hours of the application window

and system issues may be experienced. Please plan accordingly.

population of greater than 50,000 inhabitants, and which excludes certain populations pursuant

to 7 U.S.C. 1991(a)(13)(H) and (I). For purposes of the definition of rural area, an urbanized

area means a densely populated territory as defined in the most recent decennial Census.

Multiple applications may be submitted, but in such a case, only the highest scoring of those

include the RD Form 1980-88. See the SECD website at https://www.rd.usda.gov/programs-

b Broadband Grant Speed means the minimum data rate of one hundred (100)

4. Matching Fund Contribution - The match the applicant is required to contribute towards

6. Community Center – Grant funds for the community center will be limited to the lesser

Only entities legally organized as one of the following are eligible for funding:

as proposed in the application, to enter into contracts and to otherwise comply with applicable

federal statutes and regulations. If the applicant is seeking to partner with another entity to

operate the system, an agreement or draft agreement to do so must be provided with the

application. This agreement must address the specific financial terms of this partnership and the

specific entity/entities must be identified, along with their qualifications to operate the system.

Applications which rely on such a partnership but do not provide pertinent details will be

rejected, as RUS cannot determine the technical and financial feasibility of the project lacking

such information. RUS may consider an application based on such an agreement submitted with

the application, but if the application is ultimately awarded, RUS reserves the right to require

modifications to such agreements if they are found to contain terms which are unacceptable to

C.

Scoring Criteria Documentation

H.

Financial Information

and Sustainability

I.

A Statement of Experience

J.

Additional Funding

K.

Compliance with Other

Federal Statutes and

Regulation

All applicants requesting funding under the Community Connect Grant Program must complete

the Standard Form 424, Application for Federal Assistance (SF 424). A copy of the form and

instructions has been attached to this document. Additional instructions for specific line items

also are included below. The form and any attachments referenced in this Guide can also be

found on our website at https://www.rd.usda.gov/community-connect.

Block 8: There are multiple entries in this block. We will use the contact information provided

in this box for all contact and correspondence. Please complete this in full and attach a sheet if

letter must be signed by the signatory on the SF-424.

Block 10: The Name of the Federal Agency is Rural Utilities Service.

Connect Grant Program”.

Block 14: Please provide the name of the Community(ies), County(ies), and State(s) where the

Block 15: Brief descriptive title of project.

Block 16: Please provide the Congressional District(s) for the service area you are proposing to

cover in your project.

Block 19: Please select “C” “Program is not covered by E.O. 12372”.

Schedule A-2

SAM Registration and Supporting Documentation

The applicant must provide a printout of the organization’s SAM.gov registration which

confirms the registration was active before the application was submitted. The SAM.gov

registration must remain active with current information while RUS is considering an application

and while a Federal Grant Award is active. To maintain the registration in the SAM.gov database

the applicant must review and update annually. Beginning February 2019, applicants now

Certifications in SAM.gov • Applicants will be asked “Does [Entity Name] wish to apply for a

Federal financial assistance project or program, or is [Entity Name] currently the recipient of

funding under any Federal financial assistance project or program?” The system default answer

to this question is “No” Applicants must make the certifications and representations required of

entities which are applying for or have received funding under any Federal financial assistance

project or program to be eligible for the CC program. To do this, applicants must change the

answer to “Yes” as shown below.

the following are eligible for funding:

limited liability company organized on a for-profit or not-for-profit basis.

gives reviewers their first overall view of the area to be served, what problems the residents face,

and how the proposed project will help alleviate those problems, increase quality of life, and

provide enhanced opportunities for businesses and rural residents. This is your opportunity to

3. An explanation of the total Project costs;

4. A general overview of the broadband system to be constructed, including the types of

5. Documentation describing the procedures used to determine the unavailability of

Consulted FCC data and it does not appear that Broadband

Service is available within the PFSA.

not offer, nor do they intend to offer, Broadband Service

anywhere in the PFSA.

nor do they intend to offer, Broadband Service anywhere

f Community members with disabilities that will be served within the PFSA;

g Any other additional factors that may be outlined in the NOFO.

applicable) and the proposed system. The following information must be included in this

section:

1. A detailed description of the existing network, if applicable, which includes the

a. The current service area(s).

subscribers taking each type of service.

a. The PFSA as proposed in the application.

c. The types of services (voice, video and/or data) to be offered in the PFSA.

e. The estimated number of establishments to be served. Provide detailed

information showing that all households and businesses within the PFSA will

be offered broadband service at the Broadband Grant Speed when the system

is complete.

4. A description of any licenses and/or agreements required to construct and operate the

5. A network diagram (Schedule D-1) of the applicant’s existing network (if applicable)

a. The location of the essential community facilities, the proposed community

center, and all major network elements.

c. The bandwidth capacity between the network elements.

which can be accessed on the Community Connect web site.

the businesses that are located in the PFSA, must also be provided. The Community Connect

Grant Application System will provide data based on Census information, however, the applicant

may provide alternate data if it feels that Census information is not accurate. If alternate data is

proposed, documentation supporting the revised data must be provided in Schedule E. At a

minimum, the applicant should provide a table in this schedule listing the demographic data they

Center will be implemented. Grant application budgets will also be reviewed to determine cost

allowability. Review factors affecting cost allowability will be determined by 2 CFR 200 which

is available at http://www.ecfr.gov/cgi-bin/text-idx?tpl=/ecfrbrowse/Title02/2cfr200_main_02.tpl

safety of rural Americans. To further this objective, RUS will provide financial assistance to

eligible entities that propose to provide broadband service that fosters economic growth and

delivers enhanced educational, health care, and public safety services. The “broadband

Specifically, RUS will provide financial assistance to eligible entities that are proposing to

deploy service at the Broadband Grant Speed in an eligible rural service area where Broadband

broadband services. The applicant must provide a community-oriented connectivity plan

consisting of the following:

1. A list of all Essential Community Facilities located in the PFSA, including public

to use as the Community Center.

3. A description of the activities that will be made available through the Community Center

1. If the applicant is an existing company, it must provide complete copies of audited

Balance Sheet, and Statement of Cash Flows.

The financial forecast must cover at least five years and be inclusive of ALL operations of the

applicant (that is, both existing and proposed). It will be used by the RUS to determine whether

the proposed project is financially feasible and sustainable and whether this is a viable operation.

The projections must include detailed financial assumptions, included as Schedule H-2, taking

which should be included in the historical column immediately prior to the forecast years.

Historical and forecast years can be based on either calendar years or fiscal years, but if the

applicant reports by fiscal years, the applicant should note the fiscal year period in the

Assumptions which must accompany the Pro-Forma Financial Forecast.

The statements should also contain all of the applicant’s regulated and non-regulated operations.

Revenues, expenses, assets, liabilities, and related cash flow transactions of non-regulated

operations should be included in detail in the financial forecast.

derived from the proposed project.

contained on the Income Statement worksheet in this template.

i. Network Services Revenues

v. Toll Service/Long Distance Voice revenues are derived from the provision of

vi. Installation Revenues are derived from the installation of network equipment,

network traffic from the customer premises equipment (CPE) or handset to the

point of interconnection to the Internet.

ii. IP/Interconnection expenses are associated with interconnecting with and

transferring traffic across the Internet.

iii. Video Content expenses are related to the provision of video services revenue

and consist of video programming costs and fees.

services network. Amortized spectrum acquisition expenses related to

purchased spectrum should be included in the Amortization Expense category

described below.

vii. Sales/Marketing expenses are all costs associated with marketing to and

obtaining customers and subscribers, including salesperson compensation,

advertising and marketing promotions, and subsidies on customer premises

equipment or handsets.

and collections, and other general and administrative expenses.

x. Property Tax expenses are the costs incurred for state and local property taxes.

above.

Interest Income is interest income earned from marketable securities and/or cash.

Other Non-Operating Income (Expense) is the net income (expense) derived from

Depreciation Community Connect Project Assets is the depreciation expense related to

Depreciation Other Assets is the depreciation expense related to the plant in service not

associated with the proposed Community Connect Grant project.

Income Taxes are the provision or benefit for Federal and state income taxes related to a

for-profit applicant.

i. Cash includes all restricted and non-restricted cash balances.

ii. Marketable Securities consists of all short-term investments of excess cash not

required for on-going operations.

iii. Accounts Receivable consists of amounts owed by customers and subscribers

from the provision of services or the sale of equipment.

including, but not limited to, Inventory, Notes Receivable and Prepayments.

Expenditures – Project Assets category included on the Statement of Cash

Flows.

iii. Accumulated Depreciation – Community Connect Project Assets consists of

assets other than the accumulated depreciation associated with the proposed

Community Connect Grant project. Annual changes to this category should

relate to the Capital Expenditures – Other Assets category included on the

Statement of Cash Flows.

v. Accumulated Depreciation – Other Assets consists of the accumulated

depreciation of assets included in the “Plant in Service –Other Assets”

category. Annual changes to this category should relate to the Depreciation

Expense – Other Assets category included on the Income Statement.

i. Accounts Payable consists of the amounts owed to trade vendors.

ii. Current Portion – Existing Debt consists of the total principal balance related

to existing debt that will be repaid in the following year and should relate to

year and should relate to the “Proceeds from New Debt” and “Repayments of

year and should relate to Amortized Grant Revenue category included on the

Income Statement. However, those applicants that are rate-regulated Telecom

or Electric companies must continue to utilize the accounting required by the

respective uniform system of accounts for those industries, which require that

the plant accounts be reduced by the grant funds received as the grant funds

are received.

v. Other Current Liabilities consists of all other current liabilities not included

above.

vi. Existing Debt consists of the total outstanding principal balance related to the all

vii. New Debt consists of the total outstanding principal balance of all new debt, if

viii. Deferred Grant Revenue: Grantees should account for revenue recognized from

x. Capital Stock consists of the par value of capital stock.

xiii. Retained Earnings represent after-tax profits in the company. The changes from

project funding and investments as well as any additional funding for working capital and other

i. Net Income (Loss) is obtained from the Net Income (Loss) category on the