The Advantages of a Rural Fiber Fund

In two posts, Daily offers an alternative to government grants to build broadband networks in rural areas. Instead, Daily proposes a Rural Fiber Fund which would use government guarantees to unclog billions from the capital markets to shovel-ready rural fiber projects, and sets communities on the path to a connected future. The proposed fund would include $5 billion in partial loan guarantees available to all models of owner/operator/capital or Backstop guarantees for municipal bond insurers. Allocated on an sliding scale of density relative to percentage. Guarantees would cover all losses on this percentage of the total value of defaulted loans/bonds. A fast-track approval process awards guarantees within 60 days to all market-ready projects. Once granted, projects have 120 days to secure capital before the guarantee expires. $5 billion budget equals at least $20 billion in guarantees enabling $40 billion in investment. The proposal would also include $1 billion in matching grants in rural communities.