Like other schools across this country, public charter schools are increasingly required to do more with less as state and local budgets are impacted by the economic downturn. In many cases, however, charter school funding is made more difficult by a lack of statutory authority to directly tax or bond – tools commonly used by public schools – to finance their capital expenditures.
As a result, the methods typically used to finance charter school facilities are limited to state or federal grants, traditional bank financing, private funds or general operating revenues. Unfortunately, these restrictions can often result in a school being forced to utilize temporary space that may be inadequate for its educational needs or require the school to frequently move from one space to another in order to better serve its student population.
By serving as an issuer of conduit debt, PFA enables 501(c)(3) charter schools to finance their long-term capital needs through access to the tax-exempt bond market. Due to its nationwide scope, streamlined issuance policies and ability to aggregate multiple issuances, PFA is able to provide bond financing in a way that is efficient and affordable for 501(c)(3) borrowers.
PFA staff, with more than 20 years’ experience with capital markets and tax-exempt bond issuances, can guide charter schools through the bond issuance process and help assemble a team of respected finance professionals. PFA is able to work expeditiously through the process to ensure that schools needing to meet condensed construction timelines are able to do so on time and on budget.
For more information or to discuss a specific project, contact PFA.