CFDA Number: 84.354A
Program Type: Discretionary/Competitive Grants

The Charter Schools Program completed its competition for the Credit Enhancement for Charter School Facilities Grant Program and awarded one new grant of $9.98 million to the Local Initiative Support Corporation. Click here for more information on the 2011 grant. Click here for more information about the 2011 competition.

The Credit Enhancement for Charter School Facilities grants are available to help public charter schools improve their credit in order to obtain private sector capital to buy, construct, renovate, or lease academic facilities.

The Department established this program to allow charter schools to overcome financial challenges that can limit the charter school's ability to find appropriate accommodations. Unlike traditional public schools, charter schools typically do not receive funding from their school districts to purchase, lease, or improve facilities. Securing financing can be problematic for a new charter school because it lacks tangible assets and an operating history that lenders can use when evaluating a mortgage loan application. As a result, charter schools frequently operate in temporary space that is poorly suited to their educational mission. The Credit Enhancement for Charter School Facilities Program provides grants to absorb some of the risk of making loans to charter schools.