Charter School Facilities Credit Enhancement Grant Program

Background

The Charter School Facilities Credit Enhancement Grant Program was developed by the United States Department of Education to assist charter schools in overcoming financial challenges that limit their access to facilities financing. The program is federally funded through a $20 million grant awarded in 2023 under the Expanding Opportunity through Quality Charter Schools Program (ALN#84.354A). Its goal is to provide grants that fully or partially fund debt service reserve accounts on bond transactions issued through the California School Finance Authority, thereby reducing the overall cost of borrowing for charter schools.

Work Details

The program provides grants intended to absorb some of the risks associated with issuing debt on behalf of charter schools for their facility needs. Applicants must submit a completed application with required information and attachments, including: 1) A copy of the applicant's current charter and verification of the charter term; 2) A description of the project and how program funds will be used; 3) Evidence that the charter school is organized under Section 501(c)(3) or as a nonprofit public benefit corporation; 4) Three years of audited financial statements and budgets; 5) Information regarding student performance, attendance, enrollment, and retention rates; 6) Recent free/reduced price meal data; 7) Documented evidence of substantial equity commitment toward the project; 8) A completed questionnaire regarding legal status. An application fee of $1,000 per financing is required.

Period of Performance

The specific period of performance is not detailed in the solicitation but applicants must comply with all necessary requirements and deadlines as specified by the Authority.

Place of Performance

The geographic location for performance is primarily within California, specifically where the charter schools seeking funding are located.

Bidder Requirements

Applicants must be in good standing with their authorizer and comply with all terms of their charter at the time of application submission. The program requires that applicants hold title or other interest in the financed facility and meet various eligibility criteria as outlined by federal regulations.