1738.16—Eligible entities.
(a)
RUS makes broadband loans to legally organized entities providing, or proposing to provide, broadband services in eligible rural communities.
(1)
Types of eligible entities include cooperative, nonprofit, limited dividend or mutual associations, limited liability companies, commercial organizations and Indian tribes and tribal organizations as defined in 25 U.S.C. 450b (b) and (c). Individuals or partnerships of individuals are not eligible entities.
(2)
An entity is not eligible if it serves more than 2 percent of the telephone subscriber lines installed in the United States.
(3)
To be eligible, an entity must have sufficient authority to enter into a contract with RUS and to carry out the purposes of the proposed loan.
(b)
A State or local government, including any agency, subdivision, or instrumentality thereof (including consortia thereof) shall be eligible for a broadband loan only if, not later than April 30, 2003, no other eligible entity is already offering or has committed to offer broadband services to the eligible rural community. RUS will determine whether the commitment is sufficient for purposes of this paragraph.