Virginia

Website

The Virginia Public School Authority (VPSA), an instrumentality of the Commonwealth of Virginia created by chapter 11, title 22.1, Code of Virginia, 1950, as amended, was established to help address the needs of counties, cities, and towns of the Commonwealth with respect to the financing of public school capital projects and to help meet the public school capital project needs of local issuers. The Authority operates several financing programs for public primary and secondary education, the goals of which are to: provide market access to communities that do not have ready access, provide low-cost financing, and maintain the high credit quality necessary to ensure that borrowers obtain the lowest possible interest rates.   

The VPSA’s financing programs include pooled bond programs for tax-exempt and Taxable Build America Bond (BAB) financings; a stand-alone bond program for special obligation school financing bonds; and the School Educational Technology and Security Notes Program, which provides funds for grants administered by the Virginia Department of Education (1) to establish a computer-based instructional and testing system for the Commonwealth’s Standards of Learning and to develop the capability for high-speed Internet connectivity and (2) to help offset the costs associated with the purchase of appropriate school security equipment. A notable benefit of general obligation bonds in particular issued by localities participating in VSPA financing programs is the State Aid Intercept Provision, a mechanism by statute (section 15.2-2659 of the Code of Virginia, 1950, as amended) providing for the payment of overdue debt service, in the event of a default, from appropriations by the Commonwealth. 

As nonsectarian alternative public schools located within a school division and under the authority of a local school board, charter schools in Virginia are eligible to participate in the Authority’s programs; however, they may only participate as part of their local school divisions and through their local school boards’ county, city, or town. To date no charter schools have participated in any of the VPSA’s financing programs. 

Last Updated: February 2019

Website

The Virginia Small Business Financing Authority (VSBFA) is the state’s economic development and small business financing arm and may act as a conduit issuer of tax-exempt bond financing for nonprofit organizations, including charter schools or related organizations. Bonds issued through the VSBFA may be used for the construction or acquisition of land and buildings; the purchase of equipment, furniture, or fixtures; or leasehold improvements. Through another 501(c)(3) nonprofit organization located in Virginia that served as an intermediary conduit, the VSBFA issued $9.87 million in 2007 for the construction of a new facility for Woods Charter School, a K–12 school in Chapel Hill, North Carolina.

Charter schools in Virginia that meet each program’s requirements also are eligible to participate in any of the VSBFA’s credit enhancement or direct loan programs. These programs include the VSBFA’s Economic Development Loan Fund, which provides loans up to $1 million for uses including land and building acquisition as well as leasehold improvements or expansions, and its Loan Guaranty Program, which provides guaranties of up to $750,000 to support eligible loan types such as loans to finance fixed asset purchases and certain restructured debt.

Last Updated: February 2017

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.