Charter School Credit Enhancement
US Department of Education Credit Enhancement Grant for Charter School Facilities
US Department of Education Credit Enhancement Grant for Charter School Facilities
What It Is
Self-Help has been selected by the federal Department of Education to administer a $10.2 million dollar grant to help charter schools gain access to facilities financing. With this investment, we have committed to lend over $100 million to charter schools.
This grant allowed us to establish a pool of funds to help offset our lending risks. As a result, Self-Help is able to offer more attractive loans for borrowers and serve more schools.
Eligible Projects
Under the Credit Enhancement program, Self-Help primarily serves charter schools located in North Carolina, South Carolina, Georgia, Tennessee, Florida, and Texas. Self-Help will consider lending to other out of state charter schools who have financing needs above $500,000, whose target is low-income areas and at-risk students.
Funds from the Credit Enhancement program have made the following types of financing available:
- Renovation
- Purchase of an existing facility and/or land
- Construction of a new facility
- Permanent take out of construction loans
- A Letter of Credit
Benefits and Requirements
Charter schools with projects eligible for the Credit Enhancement program will receive a lower interest rate than a typical Self-Help borrower would receive. Schools must meet the federal definition of a charter school.
Resources
To learn more about the Credit Enhancement for Charter School Facilities program visit the Federal Department of Education website.
