A bill to amend the Rural Electrification Act of 1936 to provide for the financing of telecommunications facilities for broadband services in small towns and rural areas, and for other purposes.

Amends the Rural Electrification Act of 1936 to authorize the Administrator of the Rural Electrification Administration to make loans to finance the improvement, expansion, construction, acquisition, and operation of lines, facilities, or systems to provide (separately or in conjunction with telephone service) present or future broadband telecommunications service in any rural area.

Directs the Administrator to determine that there is no reasonable probability that the proposed service will be made available in any rural area by any other person before making a loan for service for such area to any applicant.

Directs the Administrator, in consultation with the National Telecommunications and Information Administration of the Department of Commerce, and after holding public hearings, to prescribe specific standards to be followed in determining: (1) which of any competing applicants should receive assistance; and (2) the need and demand in the area concerned for proposed services and facilities. Directs the Administrator to publish notice of such application in the area concerned which: (1) specifies types of facilities, services, and approximate dates; (2) invites interested persons to comment on the desirability of approving such loan; and (3) indicates that public hearings, if requested by persons in the area concerned, will be held on the question of such approval.

Requires, in cases in which two or more persons apply for such loans, that all such persons be given fair and equal consideration for such assistance. Requires that applicants who directly or through an affiliate own or control poles, ducts, conduits, or rights-of-way, used, in whole or in part, for wire communications: (1) certify that rates for the use (by others) of such facilities are regulated by the Federal Communications Commission; or (2) make a prima facie showing to the Administrator that such use rates would have been or would be in compliance with certain standards for just and reasonable rates under the Communications Act of 1934.

Directs the Administrator, in consultation with the National Telecommunications and Information Administration, to: (1) conduct field hearings in rural areas to inform interested persons of the availability and purposes of broadband telecommunications loans; and (2) determine and publish a description of essential broadband telecommunications needs of rural areas which could be served through facilities constructed with the aid of such loans.

Directs the Administrator to obtain all possible assurances from loan recipients that broadband telecommunications service furnished with such assistance will be available to the largest practical number of rural users.

Prohibits the making of any such loan unless: (1) the Administrator finds and certifies that the security for such loan is reasonably adequate and that such loan will be repaid within the time agreed; and (2) all required State or local authorizations for such service are first obtained.

Prohibits the use of facilities constructed in whole or part with such loans to provide service not initially indicated in the application unless the applicant has first submitted to the Administrator all required State or local authorizations.

Prohibits loans for such service in States with no legally authorized State or regulatory body to issue such authorizations, unless the Administrator determines that no duplication of service will result.

Requires applicants for such loans to certify to the Administrator that they: (1) have consulted with the governmental unit of the State concerned having jurisdiction over telecommunications and social services; and (2) are in compliance with all requirements of the State relating to telecommunications and social services.

Redefines the term "telephone service" to, among other changes, specifically exclude broadband telecommunications service.

Defines "broadband telecommunications service" as any telecommunications service requiring bandwidth capacity which is constructed for the purpose of distributing broadcast quality video and audio television signals, whether or not such service is actually provided, and including all facilities or systems used in the rendition of such service.