National Telecommunications and Information Administration

Below we provide some important overview facts about NTIA and the second funding round:

NTIA will entertain Comprehensive Community Infrastructure Projects (the core of these projects is Middle Mile Access combined with service to critical community facilities – partnerships with municipalities that need broadband will be attractive in this round). NTIA also will consider applications for Public Computer Centers and Sustainable Broadband Adoption.
For the Second Round, NTIA has allocated $2.6 Billion for broadband projects. $2.35 Billion will be available for a new category of application -- Comprehensive Communities Infrastructure projects. $150 Million will be available for Public Computer Centers and $100 Million for Sustainable Broadband Adoption.
NTIA can increase these amounts to include unobligated funds from the first broadband stimulus round. In addition, for categories of funding that do not receive sufficient applications requesting the full amount of funds allocated, excess funds may be directed to another category of funding in NTIA’s discretion.
NTIA also has reserved the right to reopen the application window or release a subsequent NoFA to ensure that all funds are awarded by September 30, 2010. NTIA expects that it will begin announcing awards from round two on a rolling basis, starting June 2010.
To date, NTIA has funded a limited number of Middle Mile, Public Computer Center and Sustainable Broadband Adoption projects, but it has funded no Last Mile projects, and it has essentially eliminated this category of application for the Second Round. Last Mile applications are only viable in the Second Round if they are combined with Middle Mile, or they focus on rural service areas.
Comprehensive Communities Infrastructure (“CCI”) projects will fund Middle Mile infrastructure projects that offer new or substantially upgraded connections to community anchor institutions – this category theoretically combines Middle Mile and Last Mile opportunities from the last round. In a significant change from the first round, these infrastructure projects are not restricted to serving “unserved” and “underserved” areas. However, service to unserved and underserved areas is one of the Priority Criteria for processing CCI applications. Other types of connections also are possible with CCI projects, including to residential end users and others. There is a hierarchy of the kinds of CCI projects NTIA wishes to fund, and the hierarchy is described in further detail in our summary memoranda.
Another important change for this round is that applications for rural areas are no longer REQUIRED to be filed with RUS first, with a potential referral from RUS to NTIA later if RUS determines not to fund. Instead, rural Applicants can apply for funding directly to NTIA if the project meets NTIA’s goals and parameters. However, NTIA may refer the application back to RUS if it determines that RUS is the more appropriate forum for the application. Both agencies strongly recommend that current RUS loan or grant recipients apply to RUS.
Similar to the last round, NTIA will continue using a 2-step application process – RUS has gone to a 1-step process.
NTIA and RUS are not using a joint application form for this round. Applicants will no longer be able to submit one joint application to both agencies. Applicants must choose to submit an application either to NTIA or RUS.
Two additional important developments in this round are that the Mapping Tool has been eliminated by NTIA for drawing service area maps, and engineering certifications will not be required. Both of these requirements were problematic for Applicants during the first round. NTIA Applicants are required to include service area maps as attachments to their applications. Service areas are to be based on Census block groups or tracts rather than Census blocks.
Similar to the last round, standard NTIA funding will consist of 80% grants with a 20% match from the Applicant (matches can range from permitted in-kind contributions to cash). Applicants may request more than 80% grants by submitting a waiver request, demonstrating a need for additional grant funding, up to 100%.
Note, however, that Applicants providing greater matches, at 30% or above, requesting smaller loans, and providing all cash matches, will be given favorable consideration.
Partnering with an Indian Tribe or a Socially and Economically Disadvantaged Businesses (SDBs) in the community is very important to NTIA. NTIA will consider state and tribal entity recommendations.
NTIA will not fund Middle Mile / CCI projects in areas that NTIA or RUS has already granted Middle Mile awards. These areas can be found at www.broadbandUSA.gov.
NTIA has capped broadband funding for Last Mile components of any CCI projects to less than $10,000 per household or per subscriber, unless the Applicant can demonstrate why it should be permitted to exceed this ceiling. NTIA will look more favorably upon applications with lower costs per household or per subscriber.
Also unchanged from the first round -- Applicants must provide documentation that the project would not have been implemented during the grant period “but for” the federal grant.
Applicants must demonstrate that the project can be substantially complete within 2 years of the date of issuance of the grant, loan, or loan/grant award and finished within 3 years of the date of the award.