[Code of Federal Regulations]
[Title 7, Volume 11]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1703.17]

[Page 28-29]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER XVII--RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 1703--RURAL DEVELOPMENT--Table of Contents
 
      Subpart B--Rural Economic Development Loan and Grant Program
 
Sec. 1703.17  Uses of zero-interest loans and grants.

    (a) Zero-interest loans and grants must be used exclusively to 
promote rural economic development and/or job creation projects, 
including, but not limited to, project feasibility studies, start-up 
costs, business incubator projects, and other reasonable expenses for 
the purpose of fostering rural economic development.
    (b) The Administrator will give preference to providing funds under 
this

[[Page 29]]

subpart for projects other than business incubator projects to the 
extent funds are available to borrowers for business incubator projects 
from a rural business incubator fund administered by the Administrator 
in accordance with section 502 of the Act (7 U.S.C. 950aa-1).
    (c) Zero-interest loans and grants may be used for Projects that 
enhance rural economic development by providing advanced 
telecommunications services and computer networks for medical and 
educational services, as follows: (1) For telecommunications end use 
and/or transmission facilities; and (2) Other portions of the project, 
such as modifications to buildings necessary to accommodate 
telecommunications equipment for medical care and other services, public 
or private education, and employment training.
    (d) Zero-interest loans and grants may be used for community antenna 
television systems or facilities. The borrower will document that such 
facilities provide a tangible economic benefit to the proposed service 
area in accordance with Sec. 1703.46 of this subpart. Notwithstanding 
this, the Administrator reserves the right to deny any proposal for 
community antenna television systems or facilities. Community antenna 
television systems or facilities will be considered for funding in 
accordance with Sec. 1703.46 of this subpart and this section only when 
all of the following conditions exist:
    (1) The proposed community antenna television system or facility is 
established in cooperation with a local educational and/or medical 
entity(ies) to provide educational and/or medical programming which 
addresses specific needs of rural residents;
    (2) Services to be provided by the proposed community antenna 
television systems or facilities are not available in the area to be 
served, or services are not being provided by the existing television 
programming carrier at an affordable cost to residents; and
    (3) Such community antenna systems or facilities will not present 
undue competition for existing television programming carriers in the 
area.

[57 FR 44317, Sept. 25, 1992, as amended at 59 FR 11706, Mar. 14, 1994; 
59 FR 53930, Oct. 27, 1994]