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What is the purpose of this program?
This program provides grants to eligible entities to leverage funds through credit enhancement initiatives in order to assist charter schools in using private sector capital to acquire, construct, renovate, or lease academic facilities.
How can these funds be used?
Grant recipients shall, in accordance with state and local law, directly or indirectly, alone or in collaboration with others, deposit the funds received under this program (other than funds used for administrative costs) in a reserve account established and maintained by the entity for this purpose. Amounts deposited in such an account shall be used by the entity to help charter schools access private sector capital for acquiring, renovating, or constructing facilities. Reserve accounts must be used for one or more of the following purposes:
· Guaranteeing, insuring, and reinsuring bonds, notes, evidences of debt, loans, and interests therein.
· Guaranteeing and insuring leases of personal and real property.
· Facilitating financing by identifying potential lending sources and encouraging private lending and other similar activities that directly promote lending to, or are conducted for the benefit of, charter schools.
· Facilitating the issuance of bonds by charter schools or by public entities for the benefit of charter schools. This may be accomplished by providing technical, administrative, and other appropriate assistance. Other appropriate assistance includes the recruitment of bond counsel, underwriters, and potential investors and the consolidation of multiple charter school projects within a single bond issue.
What are the eligibility requirements?
Under the program the Department can award competitive grants to non-profit entities, public entities, and consortia of these two entities. These grants have not gone directly to charter schools; instead they have been awarded to public and non-profit entities that have a strong background in investment banking and serving charter schools.
What is the application or allocation process?
Information on the application process is available through the OII office listed below.
Application Deadline:
06/03/2003
Funding Process for Schools:
Competitive grants
Total FY 2004 Funding:
$37,278,750
Office of Innovation and Improvement
This information also appears at the US Department of Education:
http://www.ed.gov/programs/charterfacilities/index.html?exp=0
Authorizing Legislation:
Elementary and Secondary Education Act of 1965, as amended, Title V, Part B, Subpart 2
Name: Jim Houser
Phone: (202) 401-0307
Email: Jim.Houser@ed.gov
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