Private financing could help rural ISPs meet BEAD requirements

Rural internet service providers (ISPs) could find financial support through a new offering from The Avery Companies designed to help them meet the requirements for the Broadband Equity, Access and Deployment (BEAD) Program. The private investment company announced a new initiative to support BEAD applicants in rural and underserved areas by providing the funds needed to obtain a letter of credit (LOC). Currently, BEAD subsidy seekers are required to provide the National Telecommunications and Information Administration (NTIA) with a letter of credit from a bank as evidence that they have at least 25 percent of the grant dollar amount in a cash bank account. That capital would need to be set aside for the entire duration of a BEAD-funded project. With its new initiative, The Avery Companies will step in as the capital source for approved ISPs, posting credit on their behalf to secure LOCs from banks, which could also free up their balance sheets to make it easier to start and complete broadband projects on time, without incurring fines or other penalties.