Loan Loss Reserve Fund
About the Program
The Broadband Loan Loss Reserve Fund (the Fund) is a new $750 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 email@example.com for more information.
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.
Comments on the Staff Proposal were received October 14, 2022 and reply comments were received October 24, 2022.
Important Information for Grantees
- Commissioner Ruling and Staff Proposal (Sent 2022-09-26)
- Loan Loss FAQ (Updated 2022-08-17)
- Loan Loss Factsheet (Updated 2022-08-22)
- Loan Loss Factsheet (Updated 2022-10-03)
- Loan Loss Reserve Program Primer and Discussion of Comments to the Staff Proposal (2022-11-08)
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
- 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