Charter Schools Development Corporation
Service Providers: Nonprofit LenderNonprofit Real Estate Developer
- less than one year of operating history
- one to three years of operating history
- more than three years of operating history or one charter renewal
- charter management organizations
- stand-alone schools
- single-site schools
Charter Schools Development Corporation (CSDC) supports quality school choice for underserved students by developing and financing affordable charter school facilities. CSDC is a nonprofit lender and real estate developer whose services include the following: credit enhancement, feasibility assessment, site selection, fee-based development, project management, turnkey development with lease-to-purchase option, leasehold improvement, and acquisition/renovation loans. CSDC has developed 92 charter school campuses/facilities on behalf of 75 charter school organizations.
CSDC provides financing, financing technical assistance, real estate development, and real estate technical assistance services. List of financing products available below:
| Terms (Years) | |
|---|---|
| Acquisition loans | 5 |
| Construction loans | 3 |
| Mini-permanent loans | 5 |
| Permanent loans | N/A |
| Predevelopment loans | N/A |
| Working capital | N/A |
| Maximum financing for a single project | $3,000,000 |
| Maximum amortization (years) | 25 |
CSDC's due diligence across all of its programs begins with determining if the school is a mission fit, and if so, the extent to which the following characteristics of high-quality schools are present: capacity, character, curriculum, collateral, and external conditions such as the strength of the state's charter laws, community support, board expertise, demographics, location, condition and accessibility of the facility, enrollment, and the terms of the charter. CSDC requires all applicants to provide a leadership and succession plan for the school's daily leader and key board members. CSDC also requires all schools to provide marketing plans demonstrating how they intend to meet or exceed enrollment goals, as well as an accountability statement detailing how they plan to assure individual student achievement and compliance with their charter contracts.
Recent Projects:
| Name of School | Total Project Cost | Lenders Involved |
| Shining Stars Montessori | $7,500,000 | CSDC, Reinvestment Fund, City First Bank of DC |
| New Century Academy | $4,592,500 | CSDC, Partners for the Common Good, USDA |
| Modern Montessori Charter School | $3,967,232 | CSDC, Old National Bank |
| Distinctive College Prep Harper Woods | $2,132,277 | CSDC, Starr Commonwealth |
Key Statistics:
| Financial Overview | |
|---|---|
| U.S. Department of Education (ED) Credit Enhancement | $60,600,000 |
| New Markets Tax Credit (NMTC) allocation total | $40,000,000 |
| Community Development Financial Institutions Bond Guarantee Program (CDFI BGP) allocation total | $0 |
| Portfolio Statistics | |
|---|---|
| Total historic financing1 | $183,193,774 |
| Number of schools/projects supported | 233 |
| NMTC allocation employed for charter facilities | $40,000,000 |
| Number of schools supported with NMTC | 5 |
| CDFI BGP allocation deployed for schools | N/A |
| Number of schools supported with CDFI BGP | N/A |
| Remaining capacity in CDFI BGP allocation | N/A |
| Portfolio Performance | |
|---|---|
| $ amount of financing repaid/refinanced2 | $37,428,370 |
| NMTC matured/refinanced | $40,000,000 |
| Total number of transactions3 | 216 |
| Original $ amount of defaults4 | $5,766,523 |
| Number of defaults | 17 |
| Default rate (% of total $ amount of financing) | 3.14% |
| Default rate (% of total number of financings) | 7.8% |
| $ amount write-offs | $3,116,637 |
| Number of write-offs | 13 |
| Write-off rate (% of total $ amount of financing) | 1.7% |
| Write-off rate (% of total number of financings) | 6.06% |
Footnotes:
1Financing defined as grants, recoverable grants, loans, and guarantees.
2Includes full repayments only; does not include partial amortizations or restructurings.
3Number includes only those financings with a repayment obligation; it excludes grants.
4A defaulted loan is defined as one in which the school can no longer make debt service payments and the lender must litigate or foreclose for repayment. This figure represents the loan amount at origination, not the amount outstanding at default.
Last updated: November 2021
Disclosure: Information on this page has been provided by the organization. Any questions related to figures or programs listed should be directed to the contact shown above. Keep in mind that each school’s situation will differ slightly and you’ll need to speak to the contact listed for information specific to your school.