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Intro:
The following program is brought to you by the Tennessee
Broadband Association.

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Lead Tennessee Radio, conversations with the leaders moving our
state forward.

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We look at the issues shaping Tennessee's future: rural
development, public policy, broadband,

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healthcare, and other topics impacting our communities.

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Trevor Bonnstetter:
Hello, I'm Trevor Bonnstetter, government affairs director for
the Tennessee Broadband Association.

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My guest for this episode of Lead Tennessee Radio is James Wilson
and Tyler Hayes.

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RUS USDA representatives for Kentucky and Tennessee.

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Welcome to the show.

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James Wilson:
Thank you. Trevor. Thank you for having us.

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Tyler Hayes:
Thank you.

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Trevor Bonnstetter:
So, James, tell us a little bit about what you do with RUS, and
what you do when you're not working with RUS and the members

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in Kentucky.

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James Wilson:
So as you just said, Tyler and I are general field
representatives for Kentucky and Tennessee, respectively.

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We basically are representatives of the USDA Rural Utilities
Service in our respective

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states. And we just work closely with the clients that we have
throughout the state and the various programs

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and sort of oversee what's going on, help the clients through
the process of getting

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loans and grants to do telecommunications and infrastructure
work in the states, and then also work with them after receiving

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the grant, just trying to get them to go, you know, through the
process of getting construction activities built, dealing with,

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you know, reports that we need from a federal level and just
trying to help make sure everything runs smoothly.

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Trevor Bonnstetter:
Great. Tyler?

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Tyler Hayes:
Yeah. You know, I like to call ourselves kind of a liaison
between the telco or the borrower and

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DC. So, you know, we've got a national office staff in DC.

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It's really important for us to kind of be that face of the
agency, to be able to work directly with our customers so that

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they know that there is somebody that, you know, they can kind
of rely on.

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If they have a question, they know they're going to respond to.

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From a construction standpoint, we kind of, I don't want to say
we're project managers, but we kind of manage the projects from a

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construction standpoint, to follow the regulations that RUS has.

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Trevor Bonnstetter:
Well, great, great. Tyler, tell us a little bit about what you do
when you're not working with the representatives in Kentucky.

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Tyler Hayes:
Sure. You know, I've worked for Rural Development as an agency
for 18 years, so I've got a long career in government.

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But outside of that, I've got a family.

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I've got a wife, a ten year old son, an eight year old daughter
that are both involved in sports.

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So with practices and games, that keeps you very busy.

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But as far as hobbies, for myself, I really enjoy hunting and
fishing.

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Trevor Bonnstetter:
Okay. James?

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James Wilson:
So as you can tell, I've got a few more revolutions around the
sun than Tyler does.

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So I have a wife and daughter as well.

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My daughter, now she is graduated from college.

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So she actually lives in London, England, and my wife works in
consultanting.

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Outside of RUS, I've recently got into ham radio and so working
on doing some

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construction around the house.

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Maybe my wife likes it, maybe she doesn't.

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But putting antennas up, stuff like that.

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Trevor Bonnstetter:
Well, that's great. So let's talk a little bit about ReConnect.

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We're going onto ReConnect 5 that's going to be showing up here.

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Tell me a little bit about, talk about the previous, James.

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Tell me about some of your experiences with ReConnect in the
state of Kentucky and maybe some of the work that you've done

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outside. I know that you actually have worked maybe not directly
with a borrower, but you've actually worked on looking in

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on ReConnect applications in other states.

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And tell us a little bit about how that process works, and then
talk a little bit about the different levels and how it's got

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more, more regimented in regards to how the practice goes with
ReConnect.

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James Wilson:
So ReConnect started out in, I believe it was around 2019 and
with Congress funding a couple of pilot

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programs. And so under a pilot program, they pretty much come
out with what we call a NOFA or NOSA – notice of funding

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availability, notice of solicitation applications.

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And so that sort of established the ground rules for applying
under the ReConnect program.

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And those first few rounds were pretty open on what information
was required and everything.

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As thing works in the federal government, you can do a pilot
program for a couple of iterations.

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Then you have to codify and go in and have formal regulations
brought out.

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So we went in through that process, got the formal regulations
set up.

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And so we now have a little more streamlined approach.

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So you still have the requirements of the regulations, but then
each funding cycle also has that same NOSA or NOFA

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aspect as well.

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It sort of establishes the parameters we're looking at for this
particular round of funding: broadband speeds, broadband lending

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speeds, something like that.

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So working with the people around the state and some outside of
the state, really, we just go in and talk about,

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you know, here's the funding levels we've got.

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We've got grants, combination loan grants and 100% loan.

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And so we just work with the applicant, try to get an idea of
what they're looking at as far as build out and, you know,

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maybe work with them and try to make some recommendations.

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As you might want to look at this funding flavors, you know, of
loan grant or 100% loan.

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Each one of those funding levels have little different nuances.

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And under 100% loan scenario, Tyler and I can work a little more
closely since it's not a competitive process.

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When we start bringing in grant dollars, then it starts bringing
in competitiveness.

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And so we have to be a little more careful on what we're allowed
to offer as assistance.

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Loans, we can pretty much, you know, talk about anything or make
some recommendations.

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Trevor Bonnstetter:
Yeah. Tyler, tell us a little bit about your experience with
Reconnect 5, and where it's at right now, where do you see the

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state lining up throughout the United States, and its funding on
ReConnect 5?

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Tyler Hayes:
Yeah, sure. So, ReConnect 5 is obviously it's the fifth round of
ReConnect, and it opened up in the spring of 2024.

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We've been reviewing applications for quite some time now, but
we have made some awards just last week.

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Most of those were loan awards.

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There were 10 or 11 awards made total.

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I believe two of those were grant awards.

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The rest were loan awards.

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So that, at this point, that's all that we've awarded.

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But we're expecting to award a whole lot more in the future.

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So we had $700 million available whenever we opened the window.

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I think it's important to note how competitive this program has
been.

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We received 148 applications for a total of 1.97 billion, with a
"B,"

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dollars. So we had 700 million available, but requested $1.97
billion.

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So obviously the demand is there.

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Obviously there's going to be several applications that are not
funded and not awarded.

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And that's tough.

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Of that $700 million available, we had $200 million available in
loans, $100 million available in

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50% loan / 50% grant, $150 million available in 100% grant, and
then $150

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million available to socially vulnerable communities.

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So we break down the allocation to try to award a little bit in
each bucket, which is helpful.

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But as you can imagine, with only 150 million available in the
100% grant for special considerations, we

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actually received applications for $960 million.

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James Wilson:
And I think it speaks highly.

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I mean, as Tyler said, you know, that was for round 5 funding.

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And you see the oversubscription that we've experienced there.

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And so, you know, given that it's the fifth round and funding
cycles, and that was not our our largest round of funding cycles,

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that it clearly shows the need throughout rural America for
getting broadband out into the rural areas.

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And, you know, I know Congress has also implemented the BEAD
program and, you know, looking forward to how that's going to

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impact everything and further the deployment of broadband across
across the US.

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But I think Tyler and I can both speak to I mean, we routinely
will get calls from citizens who are just desperately trying to

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find a way to get broadband service into their areas, to help
their children, to help them with businesses and

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everything. So I think, you know, clearly you see the demand.

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Trevor Bonnstetter:
Yeah. Well, you're talking about ReConnect 5 and the organization
that you work with has been the foundation for all the

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members of the Tennessee Broadband Association and the Kentucky
Association.

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As the foundation previously, it was just strictly loan.

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It was the way that they bought a switch to perform switching
duties, which was a huge computer to process phone calls and to

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put copper lines into the network, and then advancing towards
fiber.

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And so the organization that you guys work with in that
government agency has been the foundation.

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And ReConnect, I think you've seen a very active group working
within the state of Kentucky and the state of

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Tennessee continue to participate.

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There's always been a large amount of money coming out of your
group going to the two states, and I appreciate that's because of

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your active engagement with each one of our members and making
sure they understand what the opportunities would be.

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So I thank you very much for both of what the work you've had.

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Going forward, question in regards to, you mentioned that you're
oversubscribed and ReConnect 5 and with that being the case,

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historically we've had some grants that have been given back to
RUS, and then we have, I don't know another name for it,

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but there's ReCoonnect 5B that comes back around, and people
look so.

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With such an oversubscription, because I don't know that you've
ever been oversubscribed to this level that I can remember

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historically, do you see that there's some that'll probably come
back, and there'll be another Round, or will it be handled in a

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different way? Historically, it's been kind of here's all the
announcements.

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And then there's some people kind of held back a little bit.

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Maybe if there's some funding there's going to be.

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Or do you see it really that that money will get pushed.

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Is there a fiscal year issue here, or is it more?

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Tell me a little bit, James.

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What do you think?

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James Wilson:
I don't think it'll be so much as a fiscal year issue.

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I mean, historically we've always seen a few, for whatever
reason, sort of get turned down.

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The offer get turned down.

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Depending on when that occurs in the time cycle of awards, maybe
that

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will bring somebody in that had scored just a little bit lower
and bring them into an award.

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Or it may just be held for a future funding cycle.

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So, that's historically, that's sort of what we've seen.

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I think we're just, you know, try to get with the applications
we've got in.

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We've got that oversubscription level, you mentioned, try to get
those processed and through and, you know, get those out and

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started constructing

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Trevor Bonnstetter:
You both mentioned, Tyler, maybe you can talk a little bit about,
we talk about grants so much.

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And then I've just talked a little bit about the kind of the
foundation of that funding that's historically been there.

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Talk a little bit about your loan program that's still there,
still available for people to get low interest loans to go out

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and build their infrastructure within their networks.

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Talk a little bit about that.

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Tyler Hayes:
Sure. You know, ReConnect is kind of at a critical juncture right
now in the fact that it's been previously funded as a pilot

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program. And that time frame is kind of over.

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So we really don't know what the future of ReConnect looks like
today.

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We have our guesses.

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We've got some, you know, some thoughts, and we've heard some
rumors.

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With that in mind, the Infrastructure Loan Program that Trevor
is referring to has always been there.

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It continues to be there.

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One of the differences between the two programs is the ReConnect
program usually has an application window with a 30,

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45, 60 day application period that closes, and it's usually just
once per year.

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If you miss that window, you don't get a chance to apply.

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The Infrastructure Loan Program has always had a revolving open
window, so at any time in the year, if an entity wants

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to come apply for a loan, they don't have to wait on an
application period to open or close.

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Historically, we've had about $690 million each year in that
program.

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That program is still the bread and butter program for our
agency in my opinion.

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It's still a cost of money loan program, so the rates are going
to be much more advantageous than you can get out on the

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commercial market today.

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Trevor Bonnstetter:
So where do we go from here?

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ReConnect 5s are being announced.

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Deployment will take place in the following months past that
after environmentals are done.

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Where does RUS go next?

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Is there ReConnect right behind this that people are lining up
for those applications of that billion dollars that was left out?

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Where do you guys see it going next?

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James Wilson:
So as I mentioned a little earlier, you know, with BEAD coming
out, I'm not for certain what time frame of

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a potential ReConnect Round 6 may fall under, and that still
remains to be seen.

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Tyler Hayes:
Yeah. And I would I would just add, there's a strong push from
the current administrator, Andy Berke, to build out the

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projects that have been funded.

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Right. Reconnect Round 1 through 4 and fixing to be 5.

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In Tennessee and Kentucky, you know, we've been very fortunate
that when our projects are awarded, our people are ready to build

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out. You know, they're waiting on us to get environmental
clearance and some other things in order to start building, to

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connect their customers that they so desperately want to
connect.

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That's not the case in other parts of the country.

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There are hurdles that, you know, or unforeseen circumstances.

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So there's lots of dollars out there that hadn't been used to
connect to customers yet.

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And so there's a big push from our administration to focus this
fiscal year on build out.

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Trevor Bonnstetter:
So let me say this in regards to BEAD.

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I know it's coming from a different agency, but I do want to
thank both of you for your participation with all of the

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companies in Kentucky and Tennessee to facilitate not just your
programs, but to facilitate getting broadband built out.

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It's maybe in another agency, but you're a great resource for
each one of our companies to come and talk to about how we get to

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having 100% coverage in Kentucky and Tennessee.

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And I appreciate all your efforts that you're doing today, and
you've done in the past.

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Anything you'd like to share at the end of this, Tyler?

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Tyler Hayes:
You know, just along those lines, Trevor, we really appreciate
our state broadband offices for reaching out to us and using us

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as a resource, like you said.

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I mean, essentially, we'd be competitors in the open market, but
we both work for government agencies, so we shouldn't be.

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And so we get a lot of questions from them, have a lot of
conversations with them being the state broadband offices.

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And we just really appreciate kind of that partnership and that
ability to work together to to get to the end goal that you

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mentioned.

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James Wilson:
I agree with Tyler.

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And, you know, we work.

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You know, obviously we don't want to see duplication of funding
going in the area.

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You know there's a set amount of broadband dollars available for
the nation.

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We wanted to see it, you know, maximize the build out potential,
and then not see any overbuild.

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So I know, you know, our higher ups in Washington have been
working very closely with NTIA, with FCC on

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ensuring that overbuilds don't happen or minimize that as much 
as possible.

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And so, you know, as Tyler said, I'm just real happy to be able
to work with the Kentucky State Broadband

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Office. They've been really good.

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We've got a really good liaison back and forth with everything
and just really, you know, happy to see all

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this done. Just know it's going to be a betterment for both our
states and the citizens in it.

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Tyler Hayes:
Yeah, and I'd be remiss if I didn't just mention a couple other
programs that we offer, and I don't want to go into details on

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this show, but we have the Community Connect Grant Program that
is very specific to a small area, t

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hat's usually open once a year.

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We have a Distance Learning and Telemedicine Grant Program that
is really kind of an oddity when you compare it

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to like the ReConnect or the Infrastructure Loan Program, but it
does have a really big purpose and play a vital role in both of

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our states. So if anybody has information that they'd like about
distance learning and telemedicine, the grant program, please

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feel free to reach out to James or I.

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And then last but not least, we have the Broadband Technical
Assistance Program.

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It's kind of a new program that's just come about the last two
years to help people who may not have the tools to apply for a

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BEAD or ReConnect or an infrastructure loan.

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Try to get from the point of not having the tools to get to the
point of an application.

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So just mention those three other programs that RUS administers.

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And like I said, if there's additional questions, people can get
in touch with James or I by email, telephone.

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Trevor Bonnstetter:
Well, James, Tyler, thank you very much for joining me today for
this episode of Lead Tennessee Radio.

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Tyler Hayes:
Thank you so much for having us.

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James Wilson:
Thank you.