CSDC Announces New Program to Focus on Rural Charter School Facilities
(September 1, 2015, Columbia, MD) Charter Schools Development Corporation (CSDC) is pleased to announce that it has received a $5 million grant under the U.S. Department of Education’s (ED) Credit Enhancement for Charter Schools Facilities Program that will enable the organization to expand its lending and development capacity to multiple charter schools over a broad geographic area, with a new emphasis on serving schools located in rural communities.
This is CSDC’s fifth federal credit enhancement grant bringing the organization’s cumulative total funding to $28.6 million, and making CSDC the second largest grant recipient under the program. CSDC will leverage the award into a new $10 million loan fund that will have an emphasis on subordinate debt and leasehold improvement financing that will, in turn, further leverage approximately $83.5 million in new private sector financing for urban and rural charter schools serving predominately low-income student populations.
CSDC partnered with Building Hope (BH), a like-minded and mission-aligned 501 (c)(3) nonprofit, that has committed the first $5 million to capitalize the new fund. “CSDC and BH share a common commitment to increasing and supporting the creation and expansion of high-quality charter schools throughout the country, and we are very excited about our partnership with them in this new fund,” said Michelle Liberati, Executive Vice President of CSDC.
While most charter schools are forced to divert operating funds to cover the cost of facilities, the problem is more acute for rural charters. “Our organizations are dedicated to closing the financing gap so that educators can close the achievement the gap, and we’ll now be able to serve a previously underserved segment of the education reform movement – rural charter schools,” said BH’s Mark Medema.
Together, CSDC and BH investments have supported the development of over 4 million square feet of facilities and created or maintained over 50,000 student seats.
About Charter Schools Development Corporation
Charter Schools Development Corporation, a 501(c)(3) nonprofit corporation and Community Development Financial Institution (CDFI), promotes innovation and excellence in education by helping charter school entrepreneurs and leaders finance, build and expand their school models, with the goal of ultimately improving student achievement by increasing school choice within the American public education system. www.csdc.org
About Building Hope
Founded in 2003, Building Hope is a non-profit organization based in Washington, DC that works to close the educational achievement gap by giving students access to high quality public charter schools. Building Hope supports the expansion of successful charter school organizations with the capacity to grow their enrollments in order to catalyze change across the public education system. http://www.buildinghope.org/