LISC has been awarded $6.9 million by the U.S. Department of Education as part of the Credit Enhancement for Charter School Facilities Program. We will use this support to “expand access to capital and in many cases lower the cost of capital for schools. This in turn keeps scarce resources in the classroom, paying for great teachers, curriculum and other program supports,” said Sara Sorbello, LISC’s Vice President of Charter School Financing.
Is it possible to put more dollars into charter school classrooms without increasing the cost to taxpayers? A new study by LISC and Charter School Advisors on the charter school bond market says it is. Three states have developed programs that extend their strong credit ratings to qualified schools so they can raise low-cost capital to build and expand. That saves schools millions of dollars in borrowing costs that are then redirected to meet the needs of teachers and kids. LISC's Reena Abraham noted that academic performance is a key indicator of credit quality. "Good schools have proven to be good investments."
Always at the vanguard of financial innovation for community development, LISC is making the first-ever loans to help build charter schools through a new federal bond program. Geared to energizing disinvested neighborhoods, the bonds make it possible for LISC to channel $10 million to developing facilities that will serve some 1700 students each school year in Albany and Newark.