Credit Enhancement for Charter School Facilities
Program Funding
Annual program obligations reported to SAM.gov.
Program Objective
To provide grants to eligible entities to assist charter schools in acquiring, constructing, and renovating facilities by enhancing the availability of loans and bond financing.
Eligibility
Eligible Applicants
- U.S. State Government
- Local Government Consortium
- Nonprofit Organization
A public entity, such as a State or local government entity, a private nonprofit entity, or a consortium of such entities may apply.
How to Apply
Award Procedure
The Department of Education awards these grants on a competitive basis. The program office notifies successful applicants of awards and negotiates and awards grants. Contact the program office for more information.
The range of approval/disapproval time is approximately 60 to 120 days following the application deadline.
Program details & compliance
Description
The Department makes annual competitive Credit Enhancement grants to public and private nonprofit entities (such as finance authorities and community development financial institutions) that assist charter schools in acquiring, constructing, and renovating facilities by enhancing the availability of loan or bond financing. Grantees must deposit grant funds into a reserve account that is used to, among other things, guarantee and insure debt to finance charter school facilities and guarantee and insure leases of personal and real property. These credit enhancements are intended to reduce risk to lenders, thereby creating access to credit or lowering interest rates and borrowing costs for charter schools.
Mission Categories
Primary: Elementary and Secondary Education
Use of Funds
Allowed Uses
Grant recipients must deposit the funds received under this program (other than funds used for administrative costs) in a reserve account established and maintained by the entity for this purpose. Amounts deposited in such an account must be used by the entity to help charter schools access private-sector capital for acquiring, renovating, or constructing facilities. Reserve accounts must be used for one or more of the following purposes: (1) Guaranteeing, insuring, and reinsuring bonds, notes, evidences of debt, loans, and interests therein; (2) Guaranteeing and insuring leases of personal and real property; (3) Facilitating financing by identifying potential lending sources and encouraging private lending and other similar activities that directly promote lending to, or are conducted for the benefit of, charter schools; and (4) Facilitating the issuance of bonds by charter schools or by public entities for the benefit of charter schools, which may be accomplished by providing technical, administrative, and other appropriate assistance, including the recruitment of bond counsel, underwriters, and potential investors and the consolidation of multiple charter school projects within a single bond issue.
Reporting & Compliance
Applicable 2 CFR 200 Subparts
- Subpart F — Audit Requirements