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Grace Global Corporation is committed to participate in the Federal Communications Commission’s E-Rate discount program established under the authority of the Federal Telecommunications Act of 1996, as well as our commitment to help you understand the technology products and services that could benefit your organization.
The E-Rate program was developed to ensure that schools and libraries have easy access to affordable telecommunications services, internet access, internal connections and information services. The USAC website below is your connetion and access for up-to-date information, date notifications, important forms, and help with questions and answer about the E-Rate Program.
Our Grace Global Corporation Spin # is 143030527.

We have compiled a summary of commonly sought eligible and ineligible products offered to you through the E-Rate program

Our list of qualifying and non-qualifying products and services are:


E-mail Service

Internet-based Grace Global Hosted E-mail Service is eligible. Such a service is often included in the cost of basic conduit access to the Internet or may be provided at a separate cost, either as a fixed charge and/or on a per-user or other basis. Some e-mail services may include substantial ineligible features, such as collaboration tools, and services to ineligible users. Funding is limited strictly to the eligible e-mail portion.

Any cost allocation must be based on tangible information that provides a reasonable and appropriate delineation between the eligible and ineligible components.


Data Distribution

Components used to distribute information from telecommunication or Internet access facilities all the way to individual classrooms or public areas of a library are eligible.

Such components may include:

Access Point used in a LAN environment


Multiplexer used as part of a LAN

Network Switches are eligible for discount when used for an eligible purpose

Routers are eligible for a discount when used for an eligible purpose


Voice/Video over IP (VoIP) components are eligible as Internal Connections.


Components such as those indicated above are typically configured into a local area network or wireless local area network.

Some products may have modules or features that are not eligible, (e.g., content filtering, network management, and caching). If these ineligible components are available separately, or the applicant specifically seeks the ineligible functions, their cost must be subtracted from the amount eligible for discount.


Data Protection

Data protection components are used to ensure the continued operation of eligible equipment by protecting equipment and computer files from environmental or security hazards. The following components are eligible if used to provide basic and reasonable measures for data protection:


Proxy Server

Tape Backup when used as part of an eligible server

Virtual Private Network (VPN) Components

Tape backup cartridge units are eligible when used as part of an eligible server. A cartridge included with a tape backup may be provided as an integral component of the backup unit, if the cartridge is part of the standard product configuration and provided at no

additional cost.


Internal Connections

An Uninterruptible Power Supply (UPS)/Battery Backup) that protects eligible equipment is eligible as a data protection component, but no funding will be provided for UPS systems that can provide continued backup power for substantial periods in excess of that necessary for basic power protection.

The following components used for the reliable operation of a UPS are eligible:

UPS Interface Expander

Relay I/O Module



Computers used as servers or similar centralized functions are eligible if the use is necessary to transport information all the way to individual classrooms or public areas of a library. A server can be eligible or not eligible, depending on how it is used. An eligible server must serve as a conduit for information rather than as a source for content. Servers typically provide multiple functions. If servers are used for both eligible and ineligible purposes, the cost of the ineligible portion must be cost allocated. The following uses are eligible:

Dynamic Host Configuration Protocol (DHCP)

Domain Name Service (DNS)


Firewall or Proxy Server


The following servers are eligible only in certain cases:

Remote Access Components— Eligible if steps are taken to ensure that remote access is limited to connections from eligible locations. Remote access cannot be provided to homes or other non-school or non-library sites.

Terminal Server— Eligible to the extent that the use meets the other eligible server types indicated in this section but not eligible as a source for ineligible software applications or other ineligible uses.

Web Server— Eligible if used to provide content to users of the Internet but not eligible as a source for software applications, database functions, or storage of end-user files.

One monitor per eligible server or other eligible component requiring a visual display is eligible for discount. However, special-purpose devices, such as large screen monitors, are not eligible.

A KVM switch (“keyboard-video-mouse” switch) is eligible if cost-effective in comparison to the individual components that would otherwise be necessary.



Some types of computer software are eligible for discount.

Operating system software, such as network operating system software required to obtain operation of an eligible component, is eligible, including functionality provided with the core operating system at no cost. Additional software products available separately that provide optional operational features are not eligible for discount.

E-mail software that is a server-based, shared product is eligible. If such a software product provides substantial additional functionality that is not eligible, such as database, workflow, or groupware features, only the e-mail portion of the product is eligible and the cost of the ineligible portion must be cost allocated.


Internal Connections

E-mail software or other eligible components that include content filtering as an integral component part are eligible, but a separately priced content filtering module or product is not eligible.

Software for a server-based, shared voice mail system is eligible.

Client Access Licenses for eligible software products are eligible, but Client Access Licenses for ineligible software products are not eligible.


Storage Devices

Storage devices provide electronic data storage on magnetic or other media. Devices include hard disk drives, CD ROM drives, DVD drives, and floppy disk drives. Storage products may be used to store the operating system of an eligible product, such as a network server used for an eligible purpose. (See the entry for Servers for further information.) In addition, storage products may be used for

eligible e-mail files. An eligible server or other eligible component that provides a storage product such as a DVD drive as an integral component part at no additional cost is eligible.


Internal Connections Components

Documentation in hard copy or electronic form is eligible for discount if it is basic and is provided as part of the purchase of eligible components.


Racks and cabinets are eligible only to the extent that the components they contain are eligible. A surge protector provided as an integral component of a rack or cabinet without separately identifiable cost can be included in the cost of the rack or cabinet, but a separately-priced surge protector is not eligible.


System improvements and upgrades to eligible components are eligible for discount. Memory upgrades, for example, to eligible servers are eligible, but memory upgrades would not be eligible in end-user workstations.


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