Loan Loss Reserve Fund

ANNOUNCEMENT (March 1, 2024)

The Loan Loss Reserve Program will accept applications from Tuesday, March 12, 2024, through Tuesday, April 9, 2024.

Applications for the Loan Loss Reserve Program will be accepted from Tuesday, March 12, 2024 at 12:01 a.m. Pacific Time through Tuesday, April 9, 2024 at 4 p.m. Pacific Time. If applicants cannot meet this deadline, contact CD staff at broadband.loanloss@cpuc.ca.gov.

The Broadband Loan Loss Reserve Program is a $500 million fund that provides credit enhancement for bonds, loans, and letters of credit related to financing local broadband infrastructure development. The Loan Loss Reserve fund expands the ability of local governments, Tribes and non-profits to secure more favorable borrowing rates and terms for building publicly owned broadband projects.

Download the Loan Loss Reserve Application.

The Loan Loss Reserve Application's current version is V.1-1. The application materials may be updated in response to feedback. Before applying, please check the Loan Loss Reserve website for updates. Changes will be noted in the Application version control tab.

Visit the Application Guidelines section of the Loan Loss Reserve Program Requirements and Guidelines (on pages 20 to 23) adopted by the Commission on November 2, 2023, and Decision (D.) 23-11-045 or email broadband.loanloss@cpuc.ca.gov for more information.

Prospective Loan Loss Reserve applicants can request a 30-minute consultation with Communications Division staff. Please send an email request to broadband.loanloss@cpuc.ca.gov.

In order to submit a completed application, applicants shall submit a Loan Loss Application along with other required documents to broadband.loanloss@cpuc.ca.gov via email or via Kiteworks Secure FTP to broadband.loanloss@cpuc.ca.gov for large files (such as emails with combined attachments larger than 10 megabytes).

About the Program

The Broadband Loan Loss Reserve Fund (the Fund) is a $500 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.