US Department of Education Grant Will Support Financing for New Charter School Facilities
NATIONAL – August 25, 2015 – Boston Community Loan Fund, an affiliate of Boston Community Capital, and Nonprofit Finance Fund will jointly receive an $8 million grant from the United States Department of Education to support the development and growth of high-quality charter school facilities across the United States.
The grant was awarded through the Department of Education’s Credit Enhancement for Charter School Facilities Program, which was created to improve educational opportunities for students and their families by directing funds to areas with high need for public school choice. The program enables lenders to loan more money to charter schools that are in their early stages, or established but struggling to obtain financing. For many charter schools, there is no public source of capital funding for school facilities, and new and expanding schools are often unable to access conventional debt financing. This credit enhancement enables recipients to guarantee charter school loans or lease payments and expand potential financing sources.
Through their partnership, Boston Community Capital and Nonprofit Finance Fund intend to make loans to charter schools in the New England area, the Mid-Atlantic region, Michigan and California. These geographic areas account for 46 percent of students enrolled in charter schools nationwide. The partners estimate that the $8 million grant will enable their respective loan funds to leverage more than $100 million of financing to early-stage and mature charter schools providing exceptional educational opportunities to low-income families and communities.
“We are proud to receive this grant and thrilled about the ways it will help us build stronger families and communities by supporting high-quality education in low income communities,” said Michelle Volpe, President of Boston Community Loan Fund. “This gives us an opportunity to engage with the folks on the ground doing the vital work of providing the children of America the great education they deserve.”
“Many charter schools have a hard time securing the financing they need to grow and thrive,” said Norah McVeigh, Managing Director of Financial Services at Nonprofit Finance Fund. “With this generous grant, we will be able to put high-performing schools on firmer financial footing and give them the space and stability they need to do what they do best – improve the lives of their students.”
Boston Community Capital and Nonprofit Finance Fund have a demonstrated track record of strengthening communities through support for education. Investments made by the organizations have supported education facilities that serve tens of thousands of children and youth across the country.
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Nonprofit Finance Fund (NFF) unlocks the potential of mission-driven organizations through tailored investments, strategic advice and accessible insights. Founded in 1980, NFF helps organizations connect money to mission effectively through established and innovative approaches to social sector finance. A leading community development financial institution with over $300 million in assets under management, NFF has provided $575 million in financing and access to additional capital in support of over $1.5 billion in projects for thousands of organizations nationwide. NFF is headquartered in New York City and serves clients from five offices across the country.
Boston Community Capital (BCC) is a nonprofit community development financial institution dedicated to building healthy communities where low-income people live and work. Since 1985, BCC has invested nearly $1 billion in projects that provide affordable housing, good jobs, and new opportunities in low-income communities, connecting these neighborhoods to the mainstream economy.
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