Loans: Charter Schools and Education
Featured Loan: Homework Central
Supporting student success in the South Bay Area
$100,000 working capital loan (October 2022)
The mission of Homework Central (HWC) is to provide students and families in the San Mateo-Foster City School District with the tools they need to foster academic success. HWC partners with local schools and offers tutoring services, literacy programs, and family dinners – primarily to Latina/o English-language learners. For over 20 years now, HWC’s programs have served an average of 80 to 100 students per school year at no cost to their families.
In response to increased demand from the families it serves, over the past two years HWC has expanded its programs and established new ones, including a summer learning program and second-grade literacy pilot. Financed through NFF’s Bay Area Racial Equity Fund, which provides zero-interest loans with flexible repayment plans to BIPOC-led nonprofits in the San Francisco Bay Area, this loan will support the salaries of new staff that will expand the summer learning program and make the second-grade literacy program permanent. With this financing, Homework Central can continue investing in the success of even more students across San Mateo County well into the future.
Marcy Lab School: A 12-month program, a lifelong career in tech
$150,000 facilities loan (January 2022)
Marcy Lab School responds to this by offering a free, one-year software engineering fellowship to students who might not be able to afford a four-year college. Graduates learn how to code, contribute to and lead teams, and remain confident and composed under stress. They enter software engineering jobs that pay $70,000 or more per year. Most importantly, they leave the program knowing that their backgrounds and identities add value to every room they enter. Marcy Lab School has seen an increase in demand for its programs and would like to expand in response. This loan will support Marcy Lab School's expansion into a larger facility, allowing it to offer its programs to 20 more students, a 33% increase.
Graduate Philadelphia: Supporting Philadelphians’ educational and professional aspirations
$250,000 working capital loan (January 2022)
Graduate Philadelphia receives a significant portion of its revenue from contracts with the City of Philadelphia; however, these payments are given after the organization offers services and are often delayed, creating cash flow issues for the nonprofit. Offered through NFF’s zero-interest CARE Fund, this loan will smooth over these cash flow challenges by bridging the period between when they offer services and when they receive payment. An additional source of revenue for the organization is contracts with colleges and universities; however, COVID-19 forced Graduate Philadelphia to cancel recruitment events where they networked with colleges and universities, and their revenue decreased as a result. A portion of this loan will also bridge the period until these events resume at their former frequency and contracts with colleges and universities return. With this capital on hand, Graduate Philadelphia can continue to provide the education and workforce development services that so many Philadelphians depend on to achieve their long-term goals.
KIPP Philadelphia and MIS Capital: Preparing students for success in college and in life
$15.5 million construction loan: $8 million direct loan ($5 million from Reinvestment Fund, $3 million from NFF that includes a 50% participation to Bluehub Capital) $7.5MM source leverage loan within the New Markets Tax Credits structure ($5 million)
This loan will allow KIPP Philadelphia to move their elementary school to a property in West Philadelphia that has remained vacant since 2013. MIS Capital will renovate the entire property, preserving the historic façade and brickwork while making necessary updates to infrastructure like pipes and ventilation and completely redesigning recreational facilities. When this development is complete, KIPP Philadelphia will begin renting the property and opening it to students, with the ultimate goal of purchasing the building and giving its elementary school a permanent home. This development is part of a larger expansion that will allow the KIPP Philadelphia network to nearly double in size, serving an estimated 4,480 students by 2030.
Partners: BlueHub Capital, Cinnaire, National Trust Community Investment Corporation, Philadelphia Industrial Development Corporation, Reinvestment Fund, Truist Community Capital
KIPP New York: A brand-new charter school in the Bronx
$5,000,000 participation in an $18,445,000 loan (June 2021)
Partners: BlueHub Capital, Low Income Investment Fund (LIIF)
Acceleration Day and Evening Academy: A high-quality education for Alabama youth
$1.6 million participation in a $5.2 million facility loan (May 2021)
Partners: BlueHub Capital, HOPE Credit Union
SEED Los Angeles: Breaking down barriers to success through education and wraparound services
$3.75 million sponsor loan + $910,000 direct loan (May 2021)
This campus will form part of a larger community development that includes affordable housing and a major public transit hub. SEED LA will serve 400 high school students, focusing on youth who are homeless or housing insecure, have an immediate family member who is incarcerated, or have interacted with Los Angeles County Children and Family Services. In addition to a high-quality education, SEED LA will provide wrap around services for youth who face barriers inside and outside the school, with the goal of creating a safe environment where those students can achieve academic success and thrive beyond the classroom.
Partners: Chase Bank, Capital Impact Partners (CIP), Low Income Investment Fund (LIIF), Local Initiatives Support Corporation (LISC), Weingart Foundation
Citizens of the World Los Angeles: High-quality education for a diverse community of students
$835,000 participation in $7.5 million construction loan (April 2021)
Partners: Civic Builders
LIFE Academy: Holistic education in Alabama
$1.94 million facility loan (April 2021)
A campus with such a prominent role in the civil rights movement will be a powerfully symbolic location for a school serving a city whose public school students are 75% Black. Owning – rather than renting – this historically significant building will help the school save money in the long term and serve its community for years to come.
Partners: BlueHub Capital, Hope Credit Union
Compass Rose Education: Expanding access to high-quality education across Texas
$3.6 million refinancing of a facility loan (March 2021)
NFF and BlueHub Capital are each providing CRE with $3.6 million in refinancing a loan which supported the renovation of a building that holds CRE’s first San Antonio campus and 850 students. Together with a previous $1.1 million loan to CRE and a $1.4 million loan to CRE’s developer and landlord Building Hope, NFF has invested about $6 million into CRE’s efforts to bring high-quality education to students across Texas.
Partners: BlueHub Capital
Building Hope: A new charter school in San Antonio
$1.4 million facility loan (March 2021)
Partners: BlueHub Capital