Frequently Asked Questions
Does my charter school qualify for CSDC
Programs?
CSDC works with non-profit new
(start-up), early stage or existing charter schools in need of
short- or long-term facility solutions. Any charter school, in any
state, that is in good standing with their chartering authority,
qualifies for CSDC program consideration. Before contacting CSDC
you should meet the following criteria:
- Have applied for and been approved to operate a public charter
school.
- Have an executed contract with an authorizer / sponsor to
operate a public charter school.
- Have a current or pending 501(c)(3) designation from the IRS
for the school.
What programs does CSDC offer?
CSDC has a number of programs to
help charter schools with their financing and facilities needs,
including:
- Direct loans (CSDC Direct)
- Lease and loan guarantees (Building Block Fund)
- Real estate development services (Turnkey Development
Program)
CSDC also has two geographically
targeted programs:
- Mountain West Charter Schools Fund provides direct loans to
charter schools located in Colorado, New Mexico, Utah and
Wyoming.
- The Indianapolis Building Block Fund provides lease and loan
guarantees for charter schools sponsored by the Mayor of
Indianapolis.
Which CSDC program is right for my charter
school?
CSDC
DIRECT
Our direct loan program is available
to schools seeking the following types of loans:
- Working capital / cash flow notes
- Furniture, Fixtures & Equipment (FF&E)
- Leasehold or tenant improvement loans
- Facility acquisition, construction, expansion or
renovation
BUILDING BLOCK
FUND
Lease Guaranty: If your
charter school has identified a facility for lease, and obtained a
lease commitment from a landlord that stipulates a need for a
guaranty, the Building Block Fund may be right for you.
Examples of typical types of lease guarantees are:
- payment reserves equivalent to 6-12 months of base rental
payments
- collateral for improvements financed by the landlord
- security deposits
Loan Guaranty: If you are
already working with a lender to obtain a loan for tenant
improvements, facility acquisition, construction, expansion or
renovation and have obtained a term sheet from a lender, the
Building Block Fund may be right for you. Examples of typical types
of loan guarantees are:
- Debt service reserve funds equivalent to 6-12 months of
principal & interest payments
- Additional collateral for leasehold or tenant improvements
- Substitute equity equal to 10-25% loan to value
Whether you're seeking a lease or
loan guaranty, the following general parameters will likely
apply:
- Minimum guaranty amount: $100,000
- Maximum guaranty amount: $500,000
- Term: 3-5 years
TURNKEY DEVELOPMENT
PROGRAM
CSDC offers the following real
estate development services:
- acquisition & renovation of an existing building
- acquisition of land and construction of a new building
- expansion in current facility
- 5-20 year lease terms
- real estate consulting services
For more information about any of
CSDC's programs, visit the individual program page. To contact CSDC
about participation in any of these programs, please complete our
school pre-qualification form.
Does a charter school need to be open to apply for a
CSDC program?
A school does not have to be open to
qualify for help from CSDC; however, it must meet the three criteria noted above.
Can a facility house more than a charter
school?
Yes, but a charter school, or
schools, must be the primary user of the facility. A charter school
may rent out a portion of its facility (or all of the facility for
part of the time), but the primary use of the facility must be for
charter school operations.
When you are ready to contact CSDC about your specific
project, please complete our School Prequalification
Form.
