Texas BEAD Performance Bond

Get bonded before your grant agreement gets signed. Your project can start on time.

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When Janie Meadows here at Strive got her first call about BEAD bonds, the contractor on the other end had already done everything right. He’d applied. He’d won. His project was approved. Then he hit a wall: he couldn’t sign his grant agreement until he had a performance bond in place and he had no idea where to start.

That call came from Oklahoma. But Janie’s getting more of them now from Texas contractors and the questions are the same every time.

“Do I need a bond or a letter of credit?”

“How much is this going to cost me?”

“How fast can you get this done?”

Texas’ BEAD Final Proposal was approved December 4, 2025. Twenty-two subgrantees were selected to connect over 240,000 broadband serviceable locations and 2,700+ community anchor institutions across the state, backed by $3.3 billion in federal funds and $177 million in state match. The Texas Broadband Development Office (BDO) is working with awardees right now to execute grant agreements, with construction expected to begin as early as Summer 2026.

If you’re one of those 22 awardees or a fiber contractor working for one, you’re going to need a Texas BEAD performance bond before any of that starts. That’s what this page is about.

Texas Fiber Installation Bonds

A fiber installation bond is a type of performance bond written specifically for broadband infrastructure work. It guarantees that you (the internet service provider or ISP or the contractor doing the physical build) will complete the work you said you’d do, the way you said you’d do it.

If you don’t finish the project or you finish it wrong, the bond protects the Texas Broadband Development Office (and in some cases your ISP partner). They can file a claim and the surety company (the insurance company that issued the bond) steps in to cover the loss.

Think of it like a financial guarantee you put up before you ever break ground. It tells the BDO: this company is committed and if they fall short, there’s real money behind that promise.

For BEAD projects, Texas BEAD fiber installation bonds most often come in the form of performance bonds. You’ll also hear them called BEAD program bonds or broadband performance bonds. They’re all the same thing, just different names depending on who’s talking.

What Is a Texas BEAD Performance Bond and Why Do You Need One?

Here’s the short version: you can’t sign your Texas BEAD grant agreement without financial assurance in place. And the most flexible way to meet that requirement is a Texas BEAD performance bond.

Under federal rules from the National Telecommunications and Information Administration (NTIA), every BEAD subgrantee has to provide the state broadband office some form of financial security before the grant agreement is executed. Originally, that meant an irrevocable standby letter of credit (LOC). It’s a bank instrument that essentially freezes a portion of your cash as collateral.

Then NTIA issued a waiver. They decided that smaller ISPs were getting squeezed out because they couldn’t easily get LOCs from banks. So they opened the door to performance bonds as an alternative. A Texas BEAD performance bond, issued by a surety company on the Department of Treasury Circular 570 approved list (the federal government’s list of pre-vetted surety companies), can now replace the LOC entirely.

The bond amount has to equal 100% of your subaward when you start. So if your project was awarded $5 million, you need a $5 million bond. That sounds steepbut you don’t pay $5 million. You pay a premium, a fraction of the total and the surety company backs the rest. We’ll cover what that actually costs in the next section.

There are two scenarios for who gets bonded:

Scenario 1: The ISP bonds directly. If your company (the subgrantee) can qualify for bonding, you get the bond and deliver it to the Texas BDO. The BDO is the protected party.

Scenario 2: The construction contractor bonds. Sometimes the ISP isn’t set up for bonding but the fiber contractor doing the actual build is. In that case, the contractor gets the bond and both the ISP and the BDO are protected. This is called dual obligee coverage. NTIA’s waiver specifically allows this.

Not sure which scenario fits your project? That’s exactly the kind of question we sort out on the first call.

What Texas BEAD Fiber Installation Bonds Actually Cost

The honest answer: it depends. But here’s a realistic range.

Most Texas BEAD performance bond premiums land somewhere between 3% and 10% of the total bond amount. The better your company’s credit and financial history, the closer to the lower end you’ll be. Newer companies, tighter financials or larger subawards generally push toward the higher end.

Here’s a quick example:

Say your project was awarded $10 million in BEAD funding. You need a $10 million performance bond. At a 4% premium rate, that’s a $400,000 cost. At 6%, it’s $600,000.

That’s real money. But here’s where it gets better.

Your bond amount doesn’t stay at 100% forever. As you hit deployment milestones set by the Texas BDO, the required bond amount can be reduced. Your premium obligation drops with it. A contractor who reaches 50% of their agreed deployment could see their bond obligation cut nearly in half, with their costs falling accordingly.

The factors that affect your rate the most:

Credit scores: personal and business, the biggest driver

Financial statements: the surety wants to see you can back this project

Time in business: a longer track record generally means lower rates

Project size and complexity: larger subawards get more scrutiny

Prior bonding history: if you’ve been bonded before without claims, that works in your favor

One thing worth knowing: because Strive is an independent agency, we shop your bond across multiple Treasury Circular 570-approved surety companies. We’re not locked into one carrier’s rate. We find the best option for your situation.

Bond vs. Letter of Credit: Which One Makes Sense for Your Project?

Most ISPs and contractors who won Texas BEAD subawards will find a performance bond easier to work with than a letter of credit. Here’s why.

A letter of credit is a bank instrument. Your bank sets aside cash (at least 25% of your subaward) that the state can draw on if you don’t perform. If your subaward is $5 million, that’s $1.25 million sitting frozen at a bank, doing nothing, for the life of the project. Getting a bank to issue that LOC isn’t always simple either, especially for smaller or newer providers.

A Texas BEAD surety bond works differently. Instead of tying up your cash, you pay a premium to a surety company, which backs the full bond amount on your behalf. Your capital stays liquid. You can put it toward equipment, labor and the actual construction work.

That’s a real difference when you’re building out rural broadband infrastructure across multiple Texas counties.

The tradeoff: qualifying for a bond requires an underwriting review. The surety company looks at your financials and decides whether to back you. It’s not automatic but for most established ISPs and contractors it’s a manageable process.

Bottom line: If your company has decent credit and at least some operating history, a performance bond is almost always the better option. If you’re a brand-new entity with no track record, an LOC might be your only path. That’s worth a conversation too.

How Getting Your BEAD Bond Actually Works

A lot of contractors come to us expecting this to take weeks. For most projects, it doesn’t. Here’s the process from start to finish.

Step 1: You call us (or fill out the form). We start with a quick conversation about your subaward amount, what part of Texas you’re working in and whether you’re the ISP or the contractor. About 15 minutes.

Step 2: You submit your application. We’ll ask for basic company information, financial statements, your subaward letter or grant details and a credit check authorization. Most of this you already have.

Step 3: Underwriting. The surety company reviews your application. They’re looking at your financial strength, credit, project history and the size of the bond relative to your company. For straightforward applications, this can turn around in a few business days.

Step 4: You get your bond. Once approved, the surety issues the bond. You get a bond certificate to deliver to the Texas BDO as part of your grant agreement execution.

Step 5: You sign your grant agreement and get to work. You’ve met the financial assurance requirement. Construction can start.

The whole process typically takes anywhere from a few days to a couple of weeks depending on the complexity of your application. Larger subawards with more underwriting scrutiny take longer.

From David at Strive: “The contractors who have the smoothest experience are the ones who get started on the bond before they think they need to. Don’t wait until the BDO is pushing you to sign the agreement. Get the process going early and it won’t slow you down.”

What You’ll Need to Get Bonded

Getting this together ahead of time speeds things up considerably.

Company Information:

Legal business name, structure (LLC, Corp, etc.) and date of formation

Owner and principal names with ownership percentages

States where you’re licensed to operate

Financial Documents:

Business financial statements (balance sheet and income statement), last two years if available

Personal financial statements for owners with 10%+ ownership stake

Recent business bank statements

Project Details:

Your BEAD subaward letter or award documentation from the Texas BDO

Total subaward amount

Project scope and description

Service area: the counties and cities you’re deploying in

Credit Authorization:

Consent to a personal credit check for principal owners. This is standard for surety underwriting.

If your company is newer or this is your first time getting bonded, don’t let that stop you from calling. There are surety companies that specialize in emerging contractors and smaller ISPs. Matching you to the right surety for your situation is a big part of what we do.

Why Work With Strive Insurance Group

When you’re dealing with a federal grant program, the last thing you want is an agency that’s learning about BEAD bonds at the same time you are.

Strive has been deep in the BEAD bonding space since the program launched in Oklahoma, working through the application and bonding process with ISPs and contractors from the start. When Texas’ Final Proposal was approved in December 2025, we were already getting calls from Texas contractors. We knew the program. We knew what financial assurance requirements looked like in practice. And we knew which surety companies were actively writing BEAD bonds and at what rates.

From Janie at Strive: “Oklahoma went through this process ahead of Texas. So when Texas contractors call us, we’re not starting from scratch. We’ve already seen what works, what slows things down and what gets you to signing day faster.”

A few other things worth knowing about how we operate:

We’re an independent agency. We work with multiple Treasury Circular 570-approved surety companies, not just one. That means we shop for the best rate and terms for your specific project and financial situation.

We’re licensed in Texas. Strive Insurance Group is authorized to write surety bonds in Texas. The entire process is handled remotely, by phone and secure document exchange. No one needs to come into an office.

We won Top Commercial Lines Agency of the Year in our first year as an independent agency. We’re a small team that moves fast and stays on top of our clients’ files. When you call, you’re talking to someone who knows BEAD bonding. Not a call center.

Questions Texas Contractors Ask Us All the Time

Do I need a performance bond or a letter of credit for my Texas BEAD grant?

You need one or the other. Not both. The Texas BDO follows NTIA’s financial assurance requirements, which give you a choice: a letter of credit from a bank equal to at least 25% of your subaward or a Texas BEAD performance bond equal to 100% of your subaward from a Treasury Circular 570-approved surety. Most ISPs and contractors find the performance bond easier to work with since it doesn’t freeze working capital the way an LOC does.

How much does a Texas BEAD performance bond cost?

Premiums typically range from 3% to 10% of the bond amount, which starts at 100% of your subaward. On a $2 million subaward, you’re looking at roughly $60,000 to $200,000 depending on your financials and credit. The better your company’s financial profile, the lower your rate. And as you hit deployment milestones, the bond obligation and the ongoing premium both drop.

How long does it take to get bonded?

Plan on a few business days to a couple of weeks for most applications. Simple applications with strong financials move faster. Larger or more complex subawards take longer because the surety does more underwriting. Start the process well before your grant agreement signing deadline. Don’t wait for the BDO to ask.

What’s the difference between a performance bond and a payment bond for BEAD projects?

A performance bond guarantees project completion: it protects the BDO if you don’t finish the work as agreed. A payment bond protects your subcontractors, laborers and material suppliers: it guarantees they’ll get paid even if there’s a dispute. Texas Government Code Chapter 2253, sometimes called the Texas Little Miller Act, requires payment bonds on public works contracts over $100,000. Depending on your project structure, you may need both.

Can my construction contractor get the bond instead of me (the ISP)?

Yes and this is common. If the ISP doesn’t qualify for bonding but the fiber contractor doing the physical build does, the contractor can get the performance bond. In that setup, both the ISP and the Texas BDO are protected. The NTIA waiver calls this a dual obligee arrangement and specifically allows it for exactly this situation.

Does my bond amount go down as I complete the project?

Yes. The Texas BDO can set deployment milestones and as you hit them, the required bond amount and your premium cost can both be reduced. You’re not locked into paying full-amount premiums for the entire life of the project.

What happens if I can’t qualify for a bond on my own?

Don’t assume you’re out of options. It’s worth a conversation before you conclude an LOC is your only path. Depending on your situation and which sureties we can match you with, there may be more flexibility than you’d expect.

What surety companies are approved for BEAD bonds?

The bond has to come from a company holding a certificate of authority as an acceptable surety on federal bonds. That’s the Department of Treasury Circular 570 list. It’s the same federal approval list used for government construction projects. Not every surety company qualifies, which is another reason working with an independent agency matters. We only place bonds with carriers already on that list.

When do I need to have my bond in place?

Before you sign your grant agreement with the Texas BDO. Grant agreement execution is happening now, with construction expected to start Summer 2026. If you’re one of the 22 selected subgrantees, the bonding process should already be on your radar.

Can an out-of-state agency really write my Texas BEAD bond?

Yes. Strive Insurance Group is licensed to write surety bonds in Texas. This isn’t like hiring a local contractor. A surety bond is a financial instrument and the process happens entirely by phone and secure document exchange. What matters is whether the agency knows BEAD bonding and works with Treasury Circular 570-approved sureties. We do both.

Serving BEAD Contractors Across the State of Texas

Strive writes Texas BEAD performance bonds for ISPs and fiber contractors across all of Texas, from the Panhandle to the Gulf Coast and East Texas to the Hill Country. You don’t need to be near a physical office. The entire process is handled remotely.

Texas’ approved BEAD projects span 150 deployments statewide, covering roughly 20,500 miles of fiber infrastructure and an estimated 1,500 construction jobs. Below are ten active deployment areas where contractors will need bonds in place before construction begins. If your project is anywhere else in Texas, we serve you too. These are highlighted examples, not the full picture.

San Antonio (Bexar County). The largest single BEAD award in the state: $152.2 million in federal support and $202.9 million total project value. 12,273 broadband serviceable locations and 159 community anchor institutions, with 2,250 miles of buried fiber to be deployed.

Harper (Gillespie County). A $101 million BEAD award covering 7,192 locations across 24 project areas in the Texas Hill Country. 1,538 miles of buried fiber.

Splendora (Montgomery County). A $72.9 million BEAD award totaling $97.1 million, serving over 9,500 locations in the Houston metro exurbs. 918 miles of aerial and 262 miles of buried fiber. This project alone is expected to create 165 construction jobs.

Taylor (Williamson County). A $58.8 million BEAD award in the fast-growing Austin corridor. Nearly 1,900 combined miles of aerial and buried fiber serving 5,889 locations and 37 community anchor institutions.

Pollok (Angelina County). A $51.9 million BEAD award in Deep East Texas. 242 miles of aerial and 725 miles of buried fiber across 7,414 locations.

Holland (Bell County). A $47.6 million award in Central Texas, connecting 3,412 locations and 40 community institutions with 715 miles of buried fiber.

Nacogdoches (Nacogdoches County). A $44.2 million BEAD award connecting 5,559 locations and 59 community anchor institutions across 218 aerial and 654 buried fiber miles.

Franklin (Robertson County). A $42.2 million award in the Brazos Valley region. 645 miles of buried fiber serving 3,325 locations and 53 community institutions.

Atlanta (Cass County). A $40.5 million BEAD award in Northeast Texas covering 3,302 locations with 250 aerial and 403 buried fiber miles and an estimated 58 construction jobs.

Marshall (Harrison County). A $33.8 million award in the Ark-La-Tex region, connecting 5,773 locations with 740 miles of buried fiber.

These ten projects alone represent over $645 million in BEAD investment and thousands of miles of fiber build. Every one of them requires a bond before a single shovel hits the ground.

Related Bonds and Coverage for Fiber Contractors

A performance bond might not be the only thing you need for your Texas BEAD project. Here’s what else comes up for fiber ISPs and contractors:

Payment Bond. Required under Texas Government Code Chapter 2253 for public works contracts over $100,000. Protects your subcontractors, laborers and material suppliers.

Contractor License Bond. Required by many Texas municipalities as part of the local permitting and registration process.

Commercial General Liability Insurance. Standard in most BEAD project agreements and a good idea regardless.

Commercial Auto. If your crews are running trucks and equipment across job sites in multiple counties, this needs to be in place.

Ask us about bundling your bond and insurance coverage when you call. We handle all of it.

Ready to Get Your Texas BEAD Bond?

Construction on Texas BEAD projects starts Summer 2026. Grant agreements are being executed now. If you’re a BEAD subgrantee or a fiber contractor on one of these projects, your bond needs to be in place before any of that happens.

Give us a call or fill out the form below. We’ll figure out which bond you need, get your application moving and find you the best rate from a Treasury Circular 570-approved surety. No obligation. Just a straight answer on what it’s going to take to get you bonded.

(405) 341-0630

Start Your Free Bond Application →

Strive Insurance Group 17933 N Pennsylvania Ave, Suite 101 Edmond, OK 73012 (405) 341-0630 striveins.com

Licensed to write surety bonds in Texas and additional states. Strive Insurance Group is an independent insurance brokerage.