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The Building Block Fund works with charter school operators to meet their facility needs by providing schools with credit enhancements that give lenders the confidence and "repayment assurance" they need to make facility and capital improvement loans to charter schools.
Credit enhancements come in the form of partial/limited loan guarantees, first loss/debt service reserves, substitute equity and/or additional collateral for charter school loan repayment obligations.
We also provide partial guarantees of a charter school's lease payment obligations helping schools secure better lease terms.
The Building Block Fund works with non-profit charter schools and education and charter management organizations, and assists both start-up and existing charter schools in need of short- or long-term facility solutions. We primarily serve charter schools that meet one of the following criteria:
- Are located in school districts where significant number of traditional public schools have been identified for improvement, corrective action, or restructuring under the No Child Left Behind Act; or
- Where at least 50 percent of the student population qualifies for federal free or reduced-priced lunches; or
- Are located in low-income communities under the federal New Markets Tax Credit Program.
We advise charter schools to work with local lenders to obtain a tentative loan commitment or term sheet that requires credit enhancement and encourage lenders to contact us directly for help and guidance in working with the school and the Building Block Fund program. The loan commitment or term sheet will specify the credit enhancement amount and term the lender requires and will serve as your application to CSDC for Building Block Fund assistance. Send it to us and we'll work directly with you and your lender or landlord to see how we can be of help.
For charter schools looking for a solution to their facility needs without having to own and manage their own property, CSDC offers its turnkey facilities program. CSDC takes on the role of property owner, developer and manager, providing charter schools with facilities at market or below-market rates, while allowing them to focus on their true mission: education.
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