The California Public Utilities Commission held a webinar on BEAD (Broadband Equity, Access, and Deployment) financial requirements that explained what applicants and potential subgrantees must submit to demonstrate financial capacity for grant awards.

The presentation, led by Laura Sasaki, grants and project supervisor for the CPUC’s BEAD program, and a guest presenter from CTC & Energy, focused on three categories of financial requirements: (1) applicant financial health (chiefly via audited financial statements), (2) officer certifications, and (3) project‑level financials such as build‑out budgets, a pro forma business case and third‑party guarantees.

The webinar emphasized that audited financial statements for prior fiscal years are preferred and should be “unqualified,” meaning clean audits. Presenters said applicants with auditor qualifications must explain the qualification and measures taken to address it. For entities without audited statements — for example, some public entities — the CPUC said applicants may submit alternative financial documentation and must certify they will provide audited statements within 12 weeks of application submission when applicable.

Presenters reviewed third‑party guarantee options required at award. A letter of credit must generally equal at least 25% of the subaward value, with a common reduction option tied to build‑out milestones. As an alternative, applicants may supply a letter of credit equal to 10% of the subaward, but that 10% must be maintained until the project is complete. A performance bond is the default surety and typically must equal 100% of the subaward, with a similar milestone reduction option; applicants may instead present a 10% performance bond that must be held in full through project completion. The CPUC presentation tied acceptable sureties to federal rules (47 CFR) and said credit unions may qualify if insured by the National Credit Union Administration and meeting specified safety ratings.

The webinar pointed applicants to alternatives and supports, including California’s Loan Loss Program, which can cover costs of debt insurance, credit enhancements and other guarantees to help local governments, nonprofits and eligible entities meet letter‑of‑credit or bond requirements. Presenters noted the program requires a separate application and commitment to its standards.

On project financials, speakers said applications must include a build‑out budget and narrative that align with BEAD‑eligible cost categories, a pro forma business case with a 10‑year horizon showing assumed take rates, revenues, operating expenses, capital expenditures and cash flow, and templates that applicants can use. The CPUC noted that the NOFO prescribes a maximum four‑year build‑out window unless an applicant proposes and documents a faster schedule.

Presenters reiterated procedural details: applicants may bid for fewer than 100% of locations in an eligible area (90% examples were discussed), in which case only minimal supplemental budget and location details are required. The webinar also listed submission logistics and resources: templates, the BEAD NOFO and the Initial Proposal Volume 2 for California on the CPUC BEAD website, and an applicant contact email for follow‑up questions.

The session closed with scheduling information: slides will be posted the same day and the recording in the following days; upcoming webinars and office hours were announced for additional technical topics and Q&A. The CPUC provided an applicant contact address: beadgrant@cpuc.ca.gov.

The presentation contained detailed guidance intended for prospective BEAD applicants and did not include formal votes or regulatory decisions by the CPUC.