CSDC Uses Financial Assistance Award to Expand Lending Programs
(Hanover, MD, August 7, 2012) The Community Development Financial Institutions Fund (CDFI Fund), a division of U.S. Department of Treasury, has announced a maximum $1,453,806 Financial Assistance award to the Charter Schools Development Corporation (CSDC). The award will be used to leverage new capital for CSDC’s direct lending programs targeted to charter school organizations needing capital financing for their facility needs and located in economically distressed and educationally underserved communities.
For more than a decade, CSDC has played a critical role in delivering financial services and technical assistance to new and early stage charter schools serving low-income families. CSDC, a 501(c)(3) nonprofit corporation with offices in Hanover, MD and Scottsdale, AZ, is the only CDFI in the country focused exclusively on the financing needs of charter school organizations. This award will enable CSDC to attract and raise up to $8 million in additional loan capital for its Mountain West Charter Schools Fund (MWCSF), a regional loan fund and strategic partnership between CSDC, the Daniels Fund of Denver, and Great Western Bank (GWB), serving Colorado, New Mexico, Utah and Wyoming. CSDC also intends to use a portion of the new capital to augment its financial services to charter schools in Arizona.
“This welcomed capital infusion will enable us to respond to the growing demand for CSDC’s services in the Mountain West and Southwest regions and provide more opportunity for students and parents in communities with the greatest need for more educational options,” said Laura Fiemann, CSDC’s Senior Vice President for Western and CDFI Operations.
The Treasury’s CDFI Program awarded $186 million to 210 community-based lending organizations that provide affordable financial products and services to underserved low-income communities. These funds will be matched dollar-for-dollar with non-federal funds, enabling CDFIs to leverage private capital to provide financial products and services and promote economic development in the nation’s disadvantaged urban and rural communities. Said CDFI Fund Director Donna J. Gambrell, “This year’s awardees will continue to provide vital financial services in low-income areas that are typically overlooked by traditional lenders, bettering the lives of Americans nationwide.”
As a $58 million CDFI, CSDC has impacted the lives of over 30,000 students in over 100 schools in 25 states, and become one of the largest originators of both credit enhancement and loan products in the nation. CSDC has used $44 million in financing to leverage over $315 million in total private capital and lease commitments for almost four million square feet of safe, modern and efficient educational facilities.
CSDC has proven that through collaboration and leveraging, its innovative programs positively impact low-income and low-wealth communities by increasing access to high quality public education and reducing the “achievement gap” for minority and at-risk students. Additionally these financially and academically successful schools become the catalyst for broader community revitalization, creating local jobs and spurring additional investment in neighborhood economic development.
For more information about the Charter Schools Development Corporation and the Mountain West Charter Schools Fund, visit the CSDC website (/what-we-do/direct-lending.aspx) or contact Laura Fiemann at (303) 297-1128. For more information on the CDFI Fund awards, click here. ( http://www.cdfifund.gov/news_events/CDFI-2012-29-Treasury_Announces_More_Than_$186_Million_in_Awards_to_Organizations_Serving_Low-Income_and_Native_Communities.asp)