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$10 Million "Lifeline" Loan Fund Boosts Enrollment at Twenty-Eight CA Charter Schools

Posted on: Wednesday, 28 June 2006, 12:00 CDT

Twenty-eight high-quality charter public schools in California were able to place 2,818 new students into classrooms this school year as a result of a cash flow loan fund created by the California Charter Schools Association.

In its second year, the program granted nearly double the amount given in its first year, up from $5.5 to $10 million. Since the program's inception, close to 5,000 students have been taken off waiting lists while 100 percent of the interest and principal payments to the lenders has been repaid in full and on time.

The Association developed the Charter School Growth Loan Program through a partnership with Prudential Social Investments, The Low Income Investment Fund, NCB Development Corporation, Local Initiatives Support Corporation and Raza Development Fund, to support growing charter schools that serve high-need urban communities.

The cash flow loan fund has helped alleviate one of the major obstacles facing charter schools -- the lack of timely public funding to support schools as they expand. Growing charter public schools typically face a four-to-six month lag period from the time a new student starts school to when the school receives state funding to support that pupil. An example of this is in Los Angeles Unified, where this year 76 percent of participating charter schools outperformed their two closest district schools on student achievement.

The banking partners supporting the program have taken a bold move towards solving this serious issue by loaning high-performing, growing charter schools a lifeline of financial support at a time when it is most-needed.

"As charter schools continue to prove themselves to be credit worthy, the financial industry is committed to supporting the ongoing success of the charter movement," said Caprice Young, President and CEO of the California Charter Schools Association. "This loan program has been a lifeline for under-served communities by allowing nearly 5,000 mostly low-income students the opportunity to attend a high-quality charter public school."

One of the examples of the program's success was the addition of more than 98 new students admitted to Renaissance Arts Academy this past school year. "Because of this program, we have been able to support a 54 percent growth in enrollment," said P.K. Candaux, executive director of Renaissance Arts Academy located in Los Angeles. "On behalf of the families who have joined RenArts, I would like to extend our gratitude to the financial community for making it possible for these new students to receive a high-quality, free education in a public school of choice."

"We have worked with many low-income communities that demand quality educational opportunities, and charter schools have proven themselves not only a good response to these demands but also financially credit worthy as well," said Susan Harper of the Low Income Investment Fund. "We are pleased to play a significant role in enabling charter schools to meet these demands through the success of the Charter School Growth Loan Program."

The Association projects that the Charter School Growth Loan Program will increase in size next school year to $13 million to fund spaces for over 3,500 new students at 35 charter schools.

The charter public schools participating in the program represent some of the state's highest performing charter schools serving students in low-income, urban neighborhoods. Participating schools include:

 Animo Inglewood Charter High School, Inglewood Oscar De La Hoya Animo Charter High School, Los Angeles Animo South Los Angeles Charter High School, Los Angeles Animo Venice Charter High School, Venice Bert Corona Charter School, Los Angeles Central City Value School, Los Angeles Cornerstone Prep Charter School, Venice Culture and Language Academy of Success, Los Angeles Downtown Value School, Los Angeles Edward B. Cole, Sr. Academy, Santa Ana Imagine Academy, Granada Hills Ivy Academia, Woodland Hills Lighthouse Community Charter School, Oakland Los Angeles Educational Achievement Partnership, Chatsworth KIPP Academy of Opportunity, Los Angeles KIPP Adelante Preparatory Academy, San Diego KIPP Los Angeles College Preparatory Academy, Los Angeles Manzanita Charter School, Richmond New Academy of Science and Arts, Los Angeles Rehoboth Charter Academy, Riverside Renaissance Arts Academy, Los Angeles School of Arts and Enterprise, Pomona Summit Preparatory High School, Redwood City The Learning Choice Academy, San Diego View Park Preparatory Accelerated Charter Elementary, Los Angeles View Park Preparatory Accelerated Middle School, Los Angeles View Park Preparatory Accelerated High School, Los Angeles W.E.B. DuBois Public Charter, Fresno 

About the California Charter Schools Association

The California Charter Schools Association is the membership and professional organization serving over 574 public charter schools serving more than 200,000 charter school students in the state of California. The Association's mission is to increase student achievement by strengthening and expanding public charter schools throughout California.

 CONTACT: Gary Larson Vice President of Communications California Charter Schools Association (415) 722-0127  Sonia Torres Media Relations Manager California Charter Schools Association (213) 618-3801  

SOURCE: California Charter Schools Association

Source: MARKET WIRE

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