Charter School Facilities Credit Enhancement Grant Program (CFDA#84.354A)
Designed to fund debt service reserves for the financing of acquisition, renovation, or construction of charter school facilities, or the refinancing of existing charter school facility debt.
If you have any questions about the Charter School Facilities Credit Enhancement Grant program, please contact CSFA.
The federally-funded Charter School Facilities Credit Enhancement Grant Program provides grants to fully or partially fund debt service reserve accounts on bond transactions issued through the Authority. The grant is intended to reduce the overall cost of borrowing for charter schools as it eliminates the need to fund the reserve through bond proceeds. Unlike traditional public schools, charter schools typically do not receive funding from their local school districts to purchase, lease, or improve facilities. Securing financing can be problematic for new charter schools because they often lack assets to pledge and operating histories that lenders can rely on to evaluate a loan application. As a result, charter schools frequently operate in temporary space that is poorly suited to their educational mission. The program is intended to absorb some of the risks of making loans to charter schools for their facility needs.