Loan Loss Reserve Fund
ANNOUNCEMENT (July 11, 2024)
The Loan Loss Reserve Program Received $50 Million
On June 28, 2024, SB109 appropriated $50 million for the Loan Loss Reserve Program. The bill can be viewed here.
The Loan Loss Reserve Program received requests for over $451 million in credit enhancements, during the program's first application cycle from March 12 to April 9, 2024. The list of the 38 Loan Loss Reserve applicants can be viewed here.
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Email Broadband.Loanloss@cpuc.ca.gov for more information.
About the Program
The Broadband Loan Loss Reserve Fund (the Fund) is a $50 million fund that provides a credit enhancement related to the financing of local broadband infrastructure development. The reserve fund expands the ability of local governments, tribes and non-profits to secure financing for building last-mile projects, with an emphasis on public broadband networks. The Fund will provide collateral to local governments to enable more favorable borrowing rates and terms for bonds issued to deploy broadband infrastructure. The Fund was established in 2021 as a part of SB 156, codified in Public Utilities Code 281.2.
The benefits of the Fund include:
- Public broadband infrastructure can be a cost-effective and revenue-generating solution for providing high-speed broadband in communities with limited or no broadband access that improves access, lowers costs, and improves customer service
- Providing authority to enable local governments to participate in CPUC programs, issue bonds, and acquire, construct, improve, and maintain broadband infrastructure
- Borrowed funding would be returned through the operating funds of a last-mile project upon maturity
If you are new to this type of program and need more information, email the CPUC's Communications Division at broadband.loanloss@cpuc.ca.gov for more information.
Funding Focus
The Broadband Loan Loss Reserve Fund will provide funds related to the financing of the deployment of broadband infrastructure by a local government or non-profit agency, including, but not limited to, the payment of costs of debt issuance, obtaining credit enhancement, and establishing and funding of reserves for the payment of principal and interest on debt issued by fund participants.
The CPUC’s procedural schedule for establishing the program is outlined in a September 16th ruling in the California Advanced Services Fund Rulemaking 20-08-021. A staff proposal for implementing this fund, including a request for public comments regarding eligibility, financing terms and conditions, and criteria for the infrastructure supported by the funds was issued September 26, 2022. A revised staff proposal was issued June 21, 2023, comments and reply comments on the revised staff proposal are due July 10, 2023, and July 20, 2023, respectively. On Nov. 2, 2023, the CPUC adopted requirements and guidelines for the fund.
Important Information for Applicants
Resources and More Information
Public-Private Partnership, Public Network and Bond Financing Network Projects & Organizations:
- Utah Telecommunication Open Infrastructure Agency (UTOPIA) Fiber Project
- Sifi Networks California "FIBERCITIES"
- Muninetworks.org community map
- US Ignite Broadband Models Report/White Paper
General Information:
- Department of Energy explanation of Loan Loss Programs and other credit enhancements
- California’s PACE Loan Loss for Clean Energy (administered by CAEATFA)
- New York’s NYSERDA Loan Loss for Clean Energy
