Charter School Financing

Lease and Loan Guarantee

Our Experience
CSDC has been the largest financial intermediary and credit enhancement provider to charter schools nationally for more than two decades.

Think of CSDC as your "co-signer" to help with qualifying for an initial lease or loan to finance a charter school.

Direct Lending for Charter School Funding

For more than 25 years, CSDC has played a pivotal role in delivering innovative charter school financing, lending support, and loan assistance. As a CDFI Loan Fund, CSDC proactively invests in K-12 public charter schools in educationally and economically underserved communities.

CSDC is a proud member of the Opportunity Finance Network® (OFN), the nation’s leading network of high-performing CDFIs, and is the only CDFI in the country focused on the facility and financing needs of charter school organizations. CSDC helps charter school entrepreneurs and leaders finance, build and expand their school facilities with the goal of ultimately increasing school choice and student achievement.

  • Short or long term lease with options to extend

  • Fixed and below-market rent escalations

  • Fixed-price purchase option set at commencement of the lease and exercisable at any time

  • Fixed-price purchase option set at commencement of the lease and exercisable at any time

CSDC has developed over 8.4 million square feet of educational facilities. Many of the schools that were CSDC’s clients and tenants have gone on to successfully purchase their buildings from us – establishing “permanent homes” for themselves as community institutions.


Charter School Loan Products:

  • Short to Medium-term loans for the acquisition, development, construction, renovation or expansion of educational facilities

  • Debt Refinancing

  • Leasehold Improvement Loans

  • Senior, Subordinate or Tenant Improvement Loans

Prospective and current clients can confidently rely on CSDC’s expertise in identifying and addressing their unique challenges and circumstances. CSDC’s tailored development services increase each school’s capacity to plan and manage their finances to meet their facility needs while maximizing the dollars available for classroom teaching and learning.

Financial Support and Assistance

An integral part of CSDC’s mission as a CDFI is to provide counseling to both prospective and client charter schools, enabling charter schools to take maximum advantage of CSDC’s financial expertise and services.

CSDC’s development services generally address the following areas, and can be customized to each client:

  • Financial modeling

  • Growth and business planning

  • Cash flow analysis

  • Budgeting and forecasting

Lease and Loan Guarantees

CSDC's Building Block Fund™ offers crucial credit enhancement support for charter schools trying to secure facility loans or leases.

Our Building Block Fund credit enhancement program is focused on getting charter schools into safe, modern, economical and efficient facilities.

CSDC knows how to get excellent leverage and help charter schools secure a 100% financed facility at an affordable cost. CSDC’s credit enhancements are flexible and take many forms:

  • Partial, limited lease and loan guarantees

  • Additional collateral

  • Loan loss reserves

  • Debt service reserve funds

Direct Lending

For more than 20 years, CSDC has played a pivotal role in delivering innovative financing and providing support and assistance to charter schools. 
CSDC is a proud member of the Opportunity Finance Network® (OFN), the nation’s leading network of high-performing CDFIs. As the only CDFI in the country focused exclusively on the facility and financing needs of charter school organizations, CSDC helps charter school entrepreneurs and leaders finance, build, and expand their educational facilities. 
CSDC offers the following loan products: 
  • Short to Medium-term loans for the acquisition, development, construction, renovation or expansion of educational facilities
  • Debt Refinancing
  • Leasehold Improvement Loans
  • Senior, Subordinate or Tenant Improvement Loans
 Prospective and current clients can confidently rely on CSDC’s expertise in identifying and addressing their unique challenges and circumstances. 

Frequently Asked Questions

What approach does CSDC use for charter school facility financing?

The CSDC team takes an innovative approach, collaborating with each school to identify affordable financing options that are scaled to support a school’s growth. CSDC partners with various financial institutions and utilizes flexible financing options to assist schools serving under-resourced communities with obtaining low-cost financing for the acquisition, construction, or renovation of educational facilities.

How are Charter Schools financed?

Charter schools are tuition-free public schools and are an integral part of our nation’s public education system. Charter schools receive funding from the federal and state government with per-pupil funding levels varying by state. The amount of per-pupil funding that a school receives has a huge impact on determining a school’s afford ability for a facility. Some states have specific provisions allowing schools to access additional facilities funding. For example, Minnesota offers Lease Aid to schools that meet a certain criteria.

With experience working in 30 different states and D.C., the CSDC team is well versedin the nuances of state facilities funding. Please contact us if you have additional questions about your charter school’s facility financing needs.

What type of financing does CSDC offer charter schools?

CSDC provides a range of financing options to support charter schools and their facility

needs, which includes the following:

▪ Direct Loans

▪ Lease and Loan Guarantees (Credit Enhancement)

▪ Financial Support and Assistance

A prospective school will need to complete an application to be considered for CSDC’s financing services. Contact us to learn more about our financing services and to begin the application process.

How does CSDC provide financing solutions for charter schools?

CSDC has long-standing partnerships with lending institutions, philanthropic partners, and multiple public finance authorities throughout the country. CSDC’s experienced team knows how to leverage those relationships to provide new, early-stage, and established schools with low priced capital to support their facility needs. CSDC’s range of financial services ensure that there is a right-fit solution for each charter school.

How does CDSC help charter schools manage their finances?

Setting clear budgetary parameters is critical in assessing any facility financing needs. CSDC’s expertise in providing strategic facility advisory services helps a school assess its finances with its short-term and long-term goals in mind.