Charter School Financing
HOPE invests its capital, collaborates with other lenders, and leverages $20 million in credit enhancement awards from the U.S. Department of Education to structure flexible, low-cost facility loans to meet the diverse needs of rural, urban, new, early-stage, and more mature schools in our footprint. By deploying the credit enhancement awards, HOPE is able to make loans that other lenders typically find too risky to fund. Loan funds may be used to acquire, build, expand, or renovate facilities for elementary and secondary schools. In addition to providing financing, HOPE serves as a technical assistance partner to charter school leaders and their board members. HOPE also works with schools to help build the financial capabilities of their students, parents and teachers by offering banking and other wealth building services, which support the surrounding community.
Since 1994, HOPE (Hope Enterprise Corporation/Hope Credit Union) has been ensuring children and families living in some of the distressed communities in the United States have access to a high-quality education in modern and well-equipped facilities by providing affordable capital to high-quality public charter schools. HOPE is a mission driven lender focused on creating and expanding equity and to ensuring the most vulnerable students in our communities have access to appropriate social and emotional support in addition to a high-quality education program. HOPE has supported more than 29 facility projects, helping to create over 10,972 seats across Alabama, Arkansas, Louisiana, Mississippi and western Tennessee.
| ELIGIBILITY |
- Located in Alabama, Arkansas, Louisiana, Mississippi or greater Memphis Area
- Loans available to independent schools and non-profit, charter management organizations
- Has 50% or more of students who are eligible for free or reduced lunch
|
| USES |
- Acquisition
- Construction
- Renovation
- Permanent Financing
- Leasehold Improvements
- Subordinate Debt
- Leveraged Loans Using New Market Tax Credits
|
| LOAN SIZE |
- Determined by the project cost, collateral, financial history, and ability to repay
|
| RATE |
- Varies by product and term
|
| TERM |
- Acquisition or construction loans: Up to 18 months
- Permanent loans: 5 to 15 years; amortizations up to
- 25 years
- Leasehold improvement loans: Loan term not to exceed term of lease
|
| COLLATERAL |
- Real estate mortgage or leasehold mortgage
- Security interest in personal property
- Guarantee from another creditworthy entity
|
| FEES |
- Commitment Fee
- Borrower to pay all costs incurred in the making and enforcement of the loan
|
For more information contact Charity Hallman, Vice President, Community and Economic Development, at 501-551-2206 or charity.hallman@hope-ec.org.
