The Biden administration is advancing its commitment to extend internet access to rural areas through its $42 billion Broadband Equity and Access Development (BEAD) program – and insurers might just hold the key to its success.
Surety bonds, according to Dave Herman, President of General Indemnity Group, are set to play a crucial role in President Biden's plans for accelerating internet access expansion.
With a history dating back to the 1935 Miller Act, surety bonds offer a trusted guarantee in construction projects, ensuring completion and fostering trust among stakeholders.
A recent policy shift permitting the use of performance bonds in the Broadband Infrastructure Program (BEAD) is welcomed by Herman, as it provides a more flexible and capital-efficient option for service providers, particularly smaller ones.
This change is anticipated to expedite infrastructure projects, opening doors for advisors to explore new opportunities in the surety bond market.
