Charter Schools Development Corporation: Financing Solutions for Charter School Facilities
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The Building Block FundSM Helping Charter Schools
Meet Your Facility Needs

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.

We're Not a Lender

The Building Block Fund is not a lender, but a credit enhancement fund and partial guarantor established to help charter schools secure loans or leases for their facilities. We focus solely on the facility needs of non-profit charter schools and education and charter management organizations, and do not have a role in any operational, working capital or non-facility financing issues.

Qualifying for Building Block Fund Support

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.

The Next Step

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.

More Building Block Fund
Information for Charter Schools

Financial Terms to Know
 
Federal Policy Terms to Know
 
Advice on Approaching a Lender
 
Resources on the Web

The Turnkey Facility Option

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 development 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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" …Regions Bank agreed to finance our expansion, but could only provide 80% of the appraised value. Since we have very little cash in reserve, the amount needed to fill the funding gap was beyond our capability... the Building Block Fund came to our rescue."

Gary L. Moore, Superintendent Benton County School of the Arts, Rogers, AR

 


 

"As a non-profit start-up, our organization was too risky for a bank to commit to… Without the help of CSDC's Building Block Fund, we would not have been able to open City High School…"

Carrie Brennan, Principal
City High School,
Tucson, AZ