Curated News
By: NewsRamp Editorial Staff
July 09, 2024

NASBP and SFAA Release Surety Bond Information Kit for BEAD Program

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Source News Release

TLDR

  • The BEAD Program Surety Bond Information Kit provides small ISPs with an alternative to LOCs, giving them a competitive advantage in securing federal funding.
  • The Kit includes bond forms and model language to facilitate the use of surety bonds to meet BEAD Program security requirements.
  • The use of surety bonds will ensure that vital broadband systems will be constructed and realized, providing crucial connections, information, and opportunities for communities.
  • The BEAD Program Surety Bond Information Kit offers a first-of-its-kind solution for small ISPs to secure federal funding for broadband infrastructure development.

Impact - Why it Matters

This news matters as it marks a significant shift in the use of surety bonds for securing federal and state funding of broadband infrastructure construction. The release of the BEAD Program Surety Bond Information Kit will benefit small internet service providers and provide added protection for state broadband offices and taxpayers. It also highlights the vital role of surety bonds in public procurement and the development of broadband infrastructure, emphasizing their use as a viable security option.

Summary

The National Association of Surety Bond Producers (NASBP) and The Surety & Fidelity Association of America (SFAA) have released a groundbreaking Broadband Equity, Access, and Deployment (BEAD) Program Surety Bond Information Kit. This Kit includes bond forms aimed at the announcement by the National Telecommunications & Information Administration (NTIA) to accept surety bonds as an additional form of security in lieu of letters of credit (LOCs) for the BEAD Program. The NTIA issued a programmatic waiver in November 2023, allowing surety bonds to be used as an alternative to LOCs to secure the performance of recipients of BEAD grant funds for broadband infrastructure construction. NASBP and SFAA developed performance bond forms and model language to facilitate the use of surety bonds to meet BEAD Program security requirements.

Source Statement

This curated news summary relied on this press release disributed by News Direct. Read the source press release here, NASBP and SFAA Release Surety Bond Information Kit for BEAD Program

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