Why the Letter of Credit requirement could sink BEAD
The Broadband Equity, Access, and Deployment (BEAD) program, the US government’s $42 billion broadband grants program, requires recipients to provide a Letter of Credit for 25% of the grant award. Alongside the additional 25% match requirement, this capital barrier will shut out a huge number of internet service providers (ISP).The small and community-centered ISPs, minority and women-owned businesses, nonprofits, and municipalities that the program claims to be targeting will be most affected.