How to Line Up BEAD Matching Funds: Experts Offer Advice

The Broadband Equity Access and Deployment (BEAD) program has $42.5 billion to invest in rural broadband. But that funding is not expected to cover the full cost of making broadband available to unserved areas. That’s where matching funds come in. Program rules call for network operators seeking BEAD funding to use other funding sources to cover at least 25% of project costs, except in the highest-cost areas. States have the option of setting the minimum even higher. Where can networks get matching funds? 

• In-Kind Contributions: According to BEAD program rules, in-kind contributions can include donations of property, goods, or services, that benefit the project. Bead administrator National Telecommunications and Information Administration (NTIA) advises applicants to be consistent with uniform administrative requirements for federal awards but notes that examples might include volunteer services, equipment, supplies, rights of way access, pole attachments, conduits, and easements.

• Funds from four federal programs are allowed. The programs include the Families First Coronavirus Response Act, the CARES Act, the Consolidated Appropriations Act of 2021, and the American Rescue Plan Act (ARPA).

• BEAD Matching Fund sources also include network operators who may need to turn to more traditional funding sources, such as loans or equity investors. For example, an electric cooperative won't be giving out shares in the company but instead is more likely to turn to a bank. And large publicly held companies will cover matching costs "through their normal debt financing program."

• Loan financing is also another potential funding source for BEAD applicants.