Co-Ops Can Look to Counties for BEAD Match Requirement

Partnering with counties is an asset for electric co-operatives seeking capital for the matching requirement in the $42.5 billion Broadband Equity, Access and Deployment (BEAD) program, said an expert. Darren Farnan, chief operating officer of rural electric co-op United Fiber. He said that Missouri counties used Capital Project Fund (CPF) and Rural Digital Opportunity Fund (RDOF) money to help with the co-op’s American Rescue Plan Act (ARPA) application. Counties have the same goal as co-ops to connect every address to high-speed internet, said Farnan. He said that many counties will work with co-ops to help them in their applications for more federal funding. Additionally, electric co-ops entering into the broadband space can use community buildouts as a funding mechanism, said Farnan. Electric co-ops have an advantage to traditional internet service providers in that they can guarantee financing a letter of credit because they are accustomed to long-term builds like fiber projects, noted Farnan, saying that his co-op is in a “favorable position” to handle the requirements that come with the BEAD program. He added that banks are seeing success in co-ops providing broadband and are more willing to finance these programs.