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Federal Register / Vol. 86, No. 173 / Friday, September 10, 2021 / Rules and Regulations prior three months demonstrating that the asserted level of broadband is being provided. The test results shall be for different times of the day.
c The Agency may contact service providers that respond under paragraph b of this section to validate their submission, and so responding service providers should be prepared to:
1 Provide additional information supporting that the area in question has sufficient access to broadband service;
2 Have a technician on site during the field validation by RUS staff;
3 Run on site tests with RUS
personnel being present, if requested;
and 4 Provide copies of any test results that have been conducted in the last six months and validate the information submitted in the public notice response months.
d If no broadband service provider submits information pursuant to a pending application or if the existing provider does not provide the information requested under paragraphs b and c of this section, RUS will consider the extent of broadband service using any other data available through reasonable efforts, including utilizing the National Telecommunications and Information Administrations National Broadband Availability Map and the Federal Communications Commission broadband availability map. That may include the agency conducting field validations so as to locate facilities in the application service area and determine, to the extent possible, if those facilities can provide the minimum threshold of broadband.
Notwithstanding, conclusive evidence as to the existence of the level of broadband will be taken only through the public notice process. As a result, the Agency highly recommends that existing service providers in a PFSA
submit public notice response to ensure that their service is considered in the determination of eligibility on an application.
e The Agency will notify respondents who are existing service providers whether their public notice response was accepted or not and allow for an opportunity to respond.
f The information submitted by an existing service provider under paragraphs b and c of this section will be treated as proprietary and confidential and not subject to disclosure, pursuant to 7 U.S.C.
950ccb3.
g For all applications that are approved, the following information will be made available to the public:
1 The information provided in paragraph a of this section;

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2 Each annual report required under 1735.24 will be redacted to protect any proprietary information; and 3 Such other information as the Administrator of the RUS deems sufficient to allow the public to understand the assistance provided.
9. Add 1735.24 to read as follows:
1735.24 Additional reporting requirements.

Subpart EBasic Requirements for Loan Approval 10. Amend 1735.51 by revising paragraph c to read as follows:

Required findings.

c Nonduplication or certificate requirement. The borrower shall provide RUS with satisfactory evidence to enable the Administrator to determine that no duplication of telephone service shall result from a particular loan.

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Amended
11. Amend 1735.52 by removing paragraph a and removing the paragraph b designation and heading.

PART 1737PRE-LOAN POLICIES
AND PROCEDURES COMMON TO
INSURED AND GUARANTEED
TELECOMMUNICATIONS LOANS
12. The authority citation for part 1737 continues to read as follows:

a Entities receiving financial assistance from RUS that are used for retail broadband must submit annual reports for 3 years after project completion. The reports must include the following information:
1 The purpose of the financing, including new equipment and capacity enhancements that support high-speed broadband access for educational institutions, health care providers, and public safety service providers including the estimated number of end users who are currently using or forecasted to use the new or upgraded infrastructure; and 2 The progress towards fulfilling the objectives for which the assistance was made, including:
i The number of service points that will receive new broadband service, existing network improvements, and facility upgrades resulting from the federal assistance;
ii The speed of the broadband services;
iii The average price of the most subscribed tier of retail broadband service in each PFSA;
iv The number of new subscribers generated from the project; and v Complete, reliable, and precise geolocation information that indicates the location of new broadband service that is being provided or upgraded within the service territory supported by the grant, loan, or loan guarantee.
b A notice will be published on the Agencys website that will include each annual broadband improvement report, redacted as appropriate to protect any proprietary information in the report.

1735.51

1735.52

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Authority: 7 U.S.C. 901 et seq., 1921 et seq.; Pub. L. 103354, 108 Stat. 3178 7
U.S.C. 6941 et. seq..

Subpart CThe Loan Application 13. Amend 1737.22 by:
a. Removing paragraph a13;
b. Redesignating paragraphs a14
through 20 as paragraphs a13
through 19, respectively;
c. Designating the text of newly redesignated paragraph a19 as paragraph a19i;
d. Designating the undesignated paragraph following newly designated paragraph a19i as paragraph a19ii;
e. In newly designated paragraph a19ii, removing a19 and adding a18 in its place;
f. Revising paragraphs b introductory text, c introductory text, and c3;
g. Redesignating paragraph d as paragraph e; and h. Adding a new paragraph d and paragraph f.
The revisions and additions read as follows:

1737.22

Supplementary information.

b The following must be submitted by borrowers seeking subsequent loans:

c For borrowers requesting funds for construction or refinancing, in addition to the information included in paragraphs a and b of this section, the following must be submitted:

3 Justification for refinancing and evidence that the underlying loan to be refinanced would have been eligible for RUS financing under the RE Act.
d Loan requests whose sole purpose is to refinance loans under Titles II and VI of the RE Act must submit the following:
1 Certified financial statements for the last 3 years.
2 Five-year financial projections consisting of Income Statement, Balance Sheet, and Cash Flow Statement.
3 A Certification Regarding Lobbying for loans, or a Statement for Loan Guarantees and Loan Insurance
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