Similar to the discussion of the Equitable Facilities Fund in the long-term financing section, there is a nonprofit loan fund supported by philanthropic capital dedicated to providing short-term financing for charter schools. 

The Facilities Investment Fund (FIF) is a lending entity from the Building Equity Initiative, capitalized by the Walton Family Foundation and PNC Bank, N.A. Managed by Civic Builders, FIF provides financing for new construction, acquisition, renovation, and refinancing. The fund offers loans of up to $25 million, with five-year terms, 25-year amortization periods, and below-market interest rates (4.60% in the third quarter of 2020). Similar to CDFI financing, FIF provides more flexible terms, including loan to-value ratios of up to 90% and no prepayment penalties. Eligible borrowers include independent charter schools, charter school affiliates, and nonprofit developers. 

FIF can serve as short-term bridge financing for schools that may be ready to exercise a purchase option or refinance other short-term debt but are not in an optimal position to access longer-term sources. Like many of the more mission-aligned capital sources, FIF provides a significant amount of technical assistance as part of its financing services and may minimize the need for external consultant support.

Related Articles in Undertsanding your Needs:

• Facility Refinancing: Preparation & Solicitation
• Assembling Your Facility Refinancing Team
• Facility Refinancing Guide to Underwriting
• Facility Refinancing: Credit Approval, Rating, and Marketing
• Facility Refinancing Guide to Closing
• Facility Refinancing Guide to the Bond Market
• Facility Refinancing Guide to State Credit Enhancement 
• Facility Refinancing Guide to Philanthropically-Enhanced Funds, Equitable Facilities Fund
• Facility Refinancing Guide to the CDFI Bond Guarantee Program
• Facility Refinancing Guide to Banks and Credit Unions
• Facility Refinancing Guide to Community Development Financial Institutions
• Facility Refinancing Guide to Replacement and Reporting 

Legal Disclaimer:

Nothing in this material should be construed as investment, financial, brokerage, or legal advice. Moreover, the facts and circumstances relating to your particular project may result in material changes in the processes, outcomes, and expenses described herein. Consult with your own professional advisors, including your financial advisors, accountants, and attorneys, before attempting to consummate any transaction described in this material.