To participate in the Schools and Libraries Program, potential applicants, recipients of service, and service providers must first determine if they are eligible. To be eligible for E-rate discounts, a library:

• must be eligible for assistance from a state library administrative agency under the Library Services and Technology Act (LSTA)
• must not operate as a for-profit business
• must have a budget completely separate from any schools

Libraries are not required to have received LSTA funds; they must only be eligible to receive it.

(From the USAC Schools and Libraries News Brief 10/2/09)