This federal program provides grant funds on a competitive basis to public and nonprofit entities to develop innovative credit enhancement models that assist charter schools in leveraging capital from the private sector. Program funds may not be used for the direct purchase, lease, renovation, or construction of facilities. Instead, funds must be used to attract other financing for such purposes. Examples include guaranteeing and insuring debt for charter school facilities, guaranteeing and insuring leases for personal and real property, assisting facilities financing by identifying potential lending sources, encouraging private lending and other similar activities, and establishing charter school facility “incubator” housing that new charter schools may use until they can acquire their own facilities.

To date the Credit Enhancement Program has made 82 awards to public and nonprofit entities totaling approximately $730 million.

As of October 1, 2022, grantees have provided over 1100 charter schools with access to financing to help them acquire, build, or renovate school facilities, leveraging over $8 billion on behalf of these schools. 

See the downloadable spreadsheet for historical appropriations information.