All About the E-Rate Form 498
At HWC Consultants, we assist schools and school districts, pre-K and Head Start Programs, and libraries to apply for the E-Rate program - both Categories One and Two. Here we go into detail about the purpose of the Form 498, and how applicants can complete and file the form.
The Form 498 collects contact, billing, and remittance information. Its purpose is to collect the appropriate banking information to send wire transfer reimbursements for applicants doing Billed Entity Applicant Reimbursement (BEAR), in which the applicant pays in full for its service(s) and files a request for reimbursement via wire transfer to USAC. This is covered under our “invoicing” blog post.
The Form 498 requires:
Basic information about the applicant - which will mostly auto-populate based on the applicant’s EPC account – such as billed entity name and address.
A Federal Employer Identification Number (EIN) or Taxpayer Identification Number (Tax ID).
A Unique Entity Identifier (UEI) and active SAM.gov registration for your entity. Applicants must obtain a Unique Entity Identifier (UEI), as USAC now requires this for all applicants making changes to their existing form or submitting a new Form 498. See detailed instructions here.
An EIN for your UEI that matches the EIN for your FCC Registration Number.
An EIN for your UEI that matches the EIN on your Form 498.
Remittance contact information.
Financial contact information for the financial institution, such as an account and routing number.
Any other billed entities (BENs) that should be associated with the same banking account information.
The 498 ID is a unique number assigned to each applicant to ensure that approved funds are directed to the correct bank account. When the information provided to USAC on the Form 498 is approved, the applicant receives their Applicant 498 ID.
Filing the Form 498:
The Form 498 must be filed in EPC and processed by USAC prior to USAC commencing direct payments to the applicant. When requesting direct BEAR payments, applicants use their 498 ID. BEAR payments will be made directly to the bank account associated with the 498 ID.
First, the entity’s Account Administrator must assign roles and permissions to individuals responsible for completing and certifying the Form 498. Roles include school or library officials in a position of authority, such as a superintendent, principal, library director, etc. Applicants must assign a general financial contact, which is someone authorized to retrieve Form 498 information, obtain access to the EPC, and complete (but not certify) updates to the Form 498.
Once you have determined who will complete and certify the form, that person can use the Form 498 required information listed above to complete the form. Make sure that once you complete it, you are also going into your “Tasks” bar up at the top to certify it!
Once certified, prepare a clear image of a voided check or a bank statement that includes the bank name and account number provided on the Form 498. You can upload that information online here.
After applicants submit the banking documentation online, USAC verifies your account information and alerts the person who submitted the documentation within 2 business days whether the 498 ID form is approved or rejected.
If assistance is required, HWC Consultants are experts in E-Rate consulting, as well as telecom optimization audits, telecom contract negotiation, and telecom project management. Reach out to us for all of your telecom needs!