NFF and BlueHub Capital Awarded $12 Million Credit Enhancement
NATIONAL — Oct. 17, 2018 — Nonprofit Finance Fund (NFF) and BlueHub Capital (formerly Boston Community Capital) are improving educational opportunities through loans to charter schools in communities across the US. NFF and BlueHub Loan Fund have received a $12 million credit enhancement from the US Department of Education and are prepared to meet facility financing needs of charter schools in the Northeast, Mid-Atlantic, California, and Tennessee.
It is the third award that NFF and BlueHub will deploy together; schools supported by past awards serve tens of thousands of children and youth.
“The significant costs of securing, establishing, and maintaining appropriate facilities can be big barriers to public charter schools in neighborhoods that need more options,” said Norah McVeigh, Managing Director of Financing at NFF. “We understand charter schools’ business models and financing needs and are pleased to continue to partner with BlueHub Capital to support high-quality education for all students.”
“Economic equity is an enduring value at BlueHub Capital: We believe that everyone is entitled to affordable housing, good jobs and high-quality schools,” said BlueHub Loan Fund President Michelle Volpe. “We’re delighted to partner again with NFF in supporting construction of good schools with the patient flexible financing they need.”
The grant was awarded Oct. 1 through the Department of Education’s Credit Enhancement for Charter School Facilities Program, which was created to improve educational opportunities for students and their families by directing funds to supporting high-quality education. For many public charter schools, there is no public source of capital funding for school facilities.
With this credit enhancement, NFF and BlueHub can offer below-market interest rates to schools that may have trouble accessing conventional debt. The award will support projects costing $129 million, leveraging a range of non-federal funding. Schools will be able to access leasehold improvement, predevelopment, acquisition, and construction/term loans as well as guarantees and subordinate financing.