; (2) the applicant has an understanding of the applicable regional resources that could support the project, including natural resources, human resources, infrastructure, and financial resources; and (3) the project has clear objectives and includes a means to establish measurable performance measures and to track progress toward meeting such objectives. . (b) Exemption from State agency requirement Section 201 of the Rural Electrification Act of 1936 ( 7 U.S.C. 922 ) is amended in the last sentence by inserting or the application involved is an application described in section 208 before the period at the end. (c) Definition of rural area Section 203(b) of the Rural Electrification Act of 1936 ( 7 U.S.C. 924(b) ) is amended by striking 5,000 and inserting 20,000 . 6. Modifications to existing rural broadband programs (a) Award of grants Section 603 of the Rural Electrification Act of 1936 ( 7 U.S.C. 950bb ), as redesignated by section 2, is further amended— (1) in subsection (a), by striking loans and loan guarantees and inserting loans, loan guarantees, and grants ; (2) in subsection (c)— (A) in the subsection heading, by striking and Loan Guarantees and inserting Loan Guarantees, and Grants ; (B) in paragraph (1), by inserting , and may make grants, after loans ; and (C) in paragraph (2)— (i) in the matter preceding subparagraph (A), by striking loans or loan guarantees and inserting loans, loan guarantees, or grants ; (ii) in subparagraph (A)— (I) by striking loan and loan guarantee and inserting loan, loan guarantee, and grant ; and (II) by striking loans and loan guarantees and inserting loans, loan guarantees, and grants ; and (iii) in subparagraph (C), by striking loans or loan guarantees and inserting loans, loan guarantees, or grants ; (3) in subsection (d)— (A) in paragraph (1)(A)— (i) in the matter preceding clause (i), by striking loan or loan guarantee and inserting loan, loan guarantee, or grant ; (ii) in clause (ii), by striking loan and inserting loan or grant