(October 3, 2018, Columbia, MD) Charter Schools Development Corporation (CSDC) is pleased to announce that it has received a $12 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 an emphasis on serving new, early stage and slow growth model schools located in economically distressed communities.
This is CSDC’s seventh federal credit enhancement grant, the most individual awards received by any organization, bringing the organization’s cumulative total funding to $45.6 million. CSDC will leverage this award into a new $25 million subordinate loan fund that will, in turn, further leverage approximately $125 million in new private sector senior financing for charter schools serving predominately low-income student populations.
Charter schools nationwide are forced to divert operating funds to cover the cost of facilities, taking valuable dollars away from the students in the classrooms. As an organization, CSDC helps charter schools gain access to affordable financing to have better control over their facility costs, thereby returning more funds to directly support children academically. In 2017 CSDC partner schools had an average increase on state test scores of more than 13%.
Since CSDC guaranteed its first loan in 2002, CSDC has deployed $80 million in credit enhancement funds to serve close to 200 schools operating in almost 7 million square feet of educational space. Today, CSDC’s loan guarantees, turn-key development services, and direct loans have opened the door to increased educational opportunities for 71,265 students across the country.
“This grant will enable CSDC to substantially expand its capacity to meet the unique needs of slow growth model schools by investing higher percentages of lower-cost sub-debt into projects, thereby reducing the overall lease rate to schools during those crucial first years when enrollment is growing and stabilizing,” said CSDC’s EVP Michelle Liberati.