In today’s economic climate, securing charter school facility financing is not an easy feat. The ability to secure financing is perhaps one of the most important factors influencing whether or not a new building is in your school’s future.
Historically, bond financing has been the chief source of capital for charters schools looking to finance and build a new facility. However, with the collapse of the bond market and the economy at large in 2008, it became significantly more difficult for charter schools, especially start-up charter schools, to access the capital necessary to design and build a new facility.
It can also be difficult for charter schools to qualify for bonds or conventional loans from commercial banks due to the fact that many newer charter schools do not have the history and track record necessary to underwrite a loan of several million dollars or more for a single-purpose facility. From the perspective of investors, banks, and municipalities, the risk is simply too high.
CSMC has facilitated dozens of construction, acquisition, and facility financing projects for its clients in the last 10 years.
With New Market Tax Credit (NMTC) opportunities, Municipal Tax Exempt Bond Financing, Conventional Financing, and Lease to Purchase options, CSMC can assist with the facilities option best suited to your needs.