Getting to “Yes” for Charter Schools

In this interview, Anne Robinson, Senior Director, Education, shares how NFF works to get to a “yes” for charter school financing where other lenders say “no.” This conversation was featured in NFF’s 2024 Annual Report.

“Collaborative.” One thing I love about working at NFF is our commitment to meeting clients where they are and taking a learning approach toward our borrowers. Financing is complicated, and often a charter school will come to us with a proposal that would be a “no” from a traditional bank. Here at NFF we find creative solutions to get to “yes.” Our team is really good at listening to discern a client’s true needs and then partnering to tailor a solution so that the financing benefits the school in a more comprehensive and sustainable way than a traditional loan.

Simply put, it starts with children and then ripples out into the community. Charter schools have unique, community-centered models that meet children where they are and provide creative approaches to fulfilling academic, social, and emotional needs. Especially in low-income communities, families and caregivers also benefit when schools feed children and offer programs and services that would otherwise be unaffordable – things like afterschool activities, clubs, and athletics.

Like all schools, charter schools are community pillars that benefit everyone. They provide meeting places for community groups and nonprofits. Nonprofits will sometimes operate out of the same facility, for example, hosting food banks, health service providers, and workforce development programs. They provide services customized to the unique needs of the community. When NFF talks about building community wealth and well-being, charter schools are powerful examples of what that looks like in practice.

One trend I’m seeing is cost increases. The costs of materials and labor have been increasing since the COVID-19 pandemic, and with current market trends it looks like this will continue. The upshot is that CDFIs have become more collaborative as lending partners because project costs exceed just one organization’s lending limit. It’s a wonderful reminder that we’re all in this work together, aligned in our missions to support quality education for the next generation of children. We all want the best things for our borrowers, our children, and our communities.

I also see schools across the country facing uncertainty about federal and state education budgets. NFF is seeing more requests for working capital loans, especially because many CDFIs don’t offer working capital loans for charters. Another trend is that for schools needing building modernizations, say for a gym or to meet new storm shelter requirements in their state, it can be a strain financially to service a loan without adding new enrollment slots. Again, that’s where our creativity comes in. We have many sources of capital to make the project still work in the school’s existing budget.