| Funding flexibility |
6/8/04 12:54 PM |
| Author:
Mark Medema
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One of the biggest challenges for charter schools is financing a facility. While Title V(b) funds can be used for start-up costs, they are rarely eligible for facility related expenses. There are two qualifying expenses that could be described as start-up related: 1) the equity contribution needed for a facility - this is a one-time up-front expense that is needed to qualify for a loan. 2) guaranteeing debt for a facility - this is another one-time up-front expense needed to qualify for a loan. By allowing the Title V(b) funds to be used for these one-time start-up related costs, the DOE would help charter schools qualify for loans to finance their facilities.
Posted as a reply to:
Impact of Federal Policy on the Charter School Movement by Bob Montgomery 
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