Civic Builders
Service Providers: Nonprofit LenderNonprofit Real Estate Developer
- less than one year
- one to three years
- more than three years of operating history or one charter renewal
- charter management organizations
- stand-alone schools
- single-site schools
The mission of Civic Builders is to ensure that real estate will never be a barrier to an excellent education.
Civic Builders provides financing directly to charter schools. Its development model includes the following roles and services: fee-based development, project management, turnkey development, landlord and lease-to-purchase options, credit enhancement, feasibility assessment/site selection, site identification, and leasehold improvement loans. It also helps connect charter schools to lenders.
| Type of Product | Terms | Amortization |
|---|---|---|
| Acquisition Loans | 1 years | 1 year |
| Construction Loans | 5 years | Lesser of lease term or 25 years |
| Mini-Permanent Loans | 7 years | Lesser of lease term or 25 years |
| Predevelopment Loans | 2 years | 2 years |
| Maximum Financing for a Single Project | $20,000,000 |
When evaluating a school project, Civic Builders considers historical financial and academic performance, school leadership and governance, and projected cash flows available for lease payments.
| Name of School | Total Project Cost | Lenders Involved |
|---|---|---|
| Brilla Veritas | $9,000,000 | Civic Builders, Low Income Investment Fund |
| Neighborhood Charter School - Bronx | $29,000,000 | Civic Builders, Low Income Investment Fund, Nonprofit Finance Fund, Reinvestment Fund, NYC Regional Center, The Community Builders, Chase |
| Classical Charter Schools - Bronx | $29,000,000 | Civic Builders, M&T Bank, Local Initiatives Support Corporation |
| Hyde Leadership Charter School - Brooklyn | $12,000,000 | Civic Builders, Dime Bank |
| Harlem Children's Zone Promise Academy II | $21,000,000 | Civic Builders, NYC Regional Center, Chase |
Key Statistics:
| Financial Overview | |
|---|---|
| U.S. Department of Education (ED) Credit Enhancement | $18,500,000 |
| New Markets Tax Credit (NMTC) allocation total | $173,000,000 |
| Community Development Financial Institutions Bond Guarantee Program (CDFI BGP) allocation total | N/A |
| Portfolio Statistics | |
|---|---|
| Total historic financing1 | $806,461,674 |
| Number of schools/projects supported | 56 |
| NMTC allocation employed for charter facilities | $173,000,000 |
| Number of schools supported with NMTC | 17 |
| CDFI BGP allocation deployed for schools | N/A |
| Number of schools supported with CDFI BGP | N/A |
| Remaining capacity in CDFI BGP allocation | N/A |
| Portfolio Performance | |
|---|---|
| $ amount of financing repaid/refinanced2 | $123,470,971 |
| NMTC matured/refinanced | $38,000,000 |
| Total number of transactions3 | 15 |
| Original $ amount of defaults4 | $0 |
| Number of defaults | 0 |
| Default rate (% of total $ amount of financing) | N/A |
| Default rate (% of total number of financings) | N/A |
| $ amount write-offs | $0 |
| Number of write-offs | 0 |
| Write-off rate (% of total $ amount of financing) | N/A |
| Write-off rate (% of total number of financings) | N/A |
Footnotes:
1Financing defined as grants, recoverable grants, loans, and guarantees.
2Includes full repayments only; does not include partial amortizations or restructurings.
3Number includes only those financings with a repayment obligation; it excludes grants.
4A defaulted loan is defined as one in which the school can no longer make debt service payments and the lender must litigate or foreclose for repayment. This figure represents the loan amount at origination, not the amount outstanding at default.
Last updated: January 2022
Disclosure: Information on this page has been provided by the organization. Any questions related to figures or programs listed should be directed to the contact shown above. Keep in mind that each school’s situation will differ slightly and you’ll need to speak to the contact listed for information specific to your school.