One of the biggest challenges facing charter schools is finding quality facilities at an affordable cost - a challenge often compounded by difficulties in securing a loan or a lease. The Building Block Fund helps its client schools cover the facility financing gap so that they can focus on closing the student achievement gap. Our secondary goal is to attract more lenders to charter school lending. We know how to get excellent leverage and provide a 100%-financed facility at an affordable cost to the charter school borrower.

We have worked with a variety of charter schools with diverse student populations and educational models, from start-ups to more established and expanding schools, and both those that are independent and those with management organization affiliations.

The Building Block Fund induces lenders and landlords to extend capital and credit to charter schools by providing partial guarantees for loan and lease payment obligations for charter school facility borrowers and tenants respectively. In our extensive experience, the greatest facility financing need of charter schools is the equity required by lenders who typically can't loan more than 70-80% of the appraised value of the facility (the primary security and collateral for the loan). The Building Block Fund provides the lender with additional security by acting as the charter school's partial guarantor in lieu of an equity contribution or other collateral from the charter school organization.

As a lender, your goal is to make good loans that support the stability and growth of the communities you serve. The Building Block Fund helps you meet that goal by ensuring that some of your best potential customers have the financial backing they need to obtain loans for the opening and operation of one of the most valuable assets a community can have: charter schools.

Getting Results: Building Block Fund Schools