CSDC LAUNCHES NEW CREDIT ENHANCEMENT PROGRAM FOR INDIANAPOLIS CHARTER SCHOOLS
(Hanover, MD, October, 2010) The Charter Schools Development Corporation (CSDC) has announced the creation of the Indianapolis Building Block Fund (IBBF) in partnership with the Indianapolis Mayor’s Office. Launched with the support of the Indianapolis Local Public Improvement Bond Bank (Bond Bank), this new $2 million credit enhancement program exclusively serves charter schools sponsored by the Mayor of Indianapolis.
One of the biggest challenges facing charter schools is finding quality, affordable facilities – a challenge often compounded by difficulties in securing a loan or a lease. The IBBF offers third party credit enhancements to secure charter schools’ lease or loan payment obligations, providing facilities funding support to Indianapolis charter schools, either new or expanding, that are trying to do more with less.
By acting as a partial guarantor or “co-signer” for the school’s lease or loan payment obligations, IBBF is used to induce, leverage and partially secure funding from private capital investors and traditional banking sources (landlords and lenders) to provide a 100 percent financed facility at an affordable cost to the charter school borrower.