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Frequently Asked Questions

Does my charter school qualify for CSDC Programs?

CSDC works with non-profit new (start-up), early stage or existing charter schools in need of short- or long-term facility solutions. Any charter school, in any state, that is in good standing with their chartering authority, qualifies for CSDC program consideration. Before contacting CSDC you should meet the following criteria:

  1. Have applied for and been approved to operate a public charter school.
  2. Have an executed contract with an authorizer / sponsor to operate a public charter school.
  3. Have a current or pending 501(c)(3) designation from the IRS for the school.

What programs does CSDC offer?

CSDC has a number of programs to help charter schools with their financing and facilities needs, including:

  • Direct loans (CSDC Direct)
  • Lease and loan guarantees (Building Block Fund)
  • Real estate development services (Turnkey Development Program)

CSDC also has two geographically targeted programs:

  • Mountain West Charter Schools Fund provides direct loans to charter schools located in Colorado, New Mexico, Utah, Wyoming and Arizona.
  • The Indianapolis Building Block Fund provides lease and loan guarantees for charter schools sponsored by the Mayor of Indianapolis.

Which CSDC program is right for my charter school?

CSDC DIRECT

Our direct loan program is available to schools seeking the following types of loans:

  • Leasehold or tenant improvement loans
  • Facility acquisition, construction, expansion or renovation
  • Subordinate loans

BUILDING BLOCK FUND

Lease Guaranty: If your charter school has identified a facility for lease, and obtained a lease commitment from a landlord that stipulates a need for a guaranty, the Building Block Fund may be right for you.  Examples of typical types of lease guarantees are:

  • payment reserves equivalent to 6-12 months of base rental payments
  • collateral for improvements financed by the landlord
  • security deposits

Loan Guaranty: If you are already working with a lender to obtain a loan for tenant improvements, facility acquisition, construction, expansion or renovation and have obtained a term sheet from a lender, the Building Block Fund may be right for you. Examples of typical types of loan guarantees are:

  • Debt service reserve funds equivalent to 6-12 months of principal & interest payments
  • Additional collateral for leasehold or tenant improvements
  • Substitute equity equal to 10-25% loan to value

Whether you're seeking a lease or loan guaranty, the following general parameters will likely apply:

  • Minimum guaranty amount: $100,000
  • Maximum guaranty amount: $500,000
  • Term: 3-5 years

TURNKEY DEVELOPMENT PROGRAM

CSDC offers the following real estate development services:

  • acquisition & renovation of an existing building
  • acquisition of land and construction of a new building
  • expansion in current facility
  • 5-20 year lease terms
  • real estate consulting services

For more information about any of CSDC's programs, visit the individual program page. To contact CSDC about participation in any of these programs, please complete our school pre-qualification form.

Does a charter school need to be open to apply for a CSDC program?

A school does not have to be open to qualify for help from CSDC; however, it must meet the three criteria noted above.

Can a facility house more than a charter school?

Yes, but a charter school, or schools, must be the primary user of the facility. A charter school may rent out a portion of its facility (or all of the facility for part of the time), but the primary use of the facility must be for charter school operations.

When you are ready to contact CSDC about your specific project, please complete our School Prequalification Form.

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CSDC is a 501(c)(3) nonprofit corporation and Community Development Financial Institution
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