Charter school financing becomes more favorable when schools demonstrate consistent operational and financial performance such as growing enrollment, strong academic outcomes, and clean, audited financials.
By aligning documentation and performance metrics, schools can improve their charter school loan eligibility and strengthen their case for charter school financing, making it easier for lenders like Capital Impact Partners to offer flexible financing that supports expansion, refinancing, or acquisition.
Capital Impact Partners delivers tailored charter school loans by working closely with school leadership teams to align loan structures with both financial goals and long-term community impact.
Charter schools often turn to financing when they need to make long-term investments in their facilities and operations. Common reasons include:
Facility acquisition: Many schools begin in temporary or co-located spaces and later seek to purchase or build a permanent facility (PDF) to stabilize enrollment and improve the learning environment
Refinancing high-interest loans: Schools that initially relied on short-term or expensive debt may refinance into more affordable charter school loans to strengthen their balance sheets
Campus expansion: As enrollment grows, schools often need financing to add classrooms, gyms, or multipurpose spaces to serve more students.
Renovations or upgrades: Financing can support critical improvements such as technology infrastructure, ADA compliance, or safety renovations
What Lenders Consider in Charter School Financing
When schools apply for charter school financing, lenders review several indicators to assess sustainability and repayment ability. These factors provide underwriters with a snapshot of overall stability:
Years of operation and track record: Lenders look for evidence that a school has demonstrated stability over time. Schools with several years of successful performance provide more data for lenders to assess risk.
Audited financials: Clean audits confirm that the school is managing resources responsibly and transparently. Strong financial controls signal lower risk.
Enrollment trends: Predictable or growing student enrollment suggests steady per-pupil revenue, which is a key repayment source.
Academic outcomes: Lenders also evaluate whether schools are delivering strong student results. High academic performance builds trust that the school is fulfilling its mission and will maintain community support.
Governance and leadership: An engaged board and experienced leadership team provide oversight, continuity, and accountability. Strong governance makes lenders more confident in long-term sustainability.
Overall financial health: Lenders often use metrics like debt service coverage ratio (DSCR), liquidity, and cash reserves to gauge whether the school can service new or refinanced debt.
The William A. Lawson Institute for Peace and Prosperity (WALIPP) received a New Markets Tax Credit allocation and financing from Capital Impact Partners to build a new charter school facility.
How to Qualify for Charter School Financing
While lenders have their own review processes, charter school leaders can take proactive steps to make financing requests stronger and improve charter school loan eligibility:
Prepare comprehensive financials: Maintain three years of clean, audited statements and implement consistent financial reporting practices. This makes it easier for lenders to assess your fiscal management.
Build enrollment documentation: Track student counts carefully and develop realistic projections. Providing both past and projected enrollment shows lenders that your revenue base is reliable.
Strengthen governance: Recruit board members with diverse expertise (PDF) (finance, education, law) and ensure they are active in decision-making. Strong governance builds lender confidence in oversight.
Highlight academic performance: Regularly collect and share student achievement data. Schools that can demonstrate progress with evidence strengthen their case for financing.
Plan for sustainability: Create budgets that align with conservative growth forecasts, maintain reserves, and monitor DSCR or liquidity ratios. This demonstrates that the school is resilient to financial fluctuations.
By following these steps, schools strengthen their readiness for charter school financing and improve their ability to secure competitive loans for facility acquisition, refinancing, or expansion.
Not sure if your school qualifies? Contact our lending team to discuss eligibility for charter school loans or fill out this form and we will be in touch.
Financing Options Available for Charter Schools
Charter schools have access to a variety of financing options depending on their stage of growth, facility needs, and long-term plans. Understanding these options helps leaders evaluate which structure best supports their school’s sustainability.
Refinancing existing debt: Schools with short-term or high-interest debt can refinance into long-term, fixed-rate loans. This reduces financial pressure and creates stability for operations.
Expansion and renovation financing: Funding that supports classroom additions, multipurpose space buildouts, technology upgrades, or major renovations to meet enrollment growth.
Bridge and construction-to-permanent loans: Short-term financing that transitions into permanent loans once a project is complete, ensuring continuity from construction through stabilization.
These charter school financing options are offered by a range of mission-driven lenders, community development financial institutions (CDFIs), and banks. The right choice depends on a school’s operating history, financial position, and its overall charter school loan eligibility.
When schools apply for charter school financing, lenders review several indicators to assess sustainability and repayment ability, including enrollment trends.
Preparing for Charter School Financing
Eligibility is only part of the journey. Schools that manage the process strategically can move through underwriting and closing with fewer obstacles.
Start conversations early: Schools that reach out to lenders well before a lease ends or debt matures give themselves more time to prepare and avoid delays during underwriting.
Engage the board proactively: Boards should be ready to review financing options, understand project timelines, and approve loan decisions. This demonstrates governance strength and timely oversight.
Build a project team: For acquisitions, expansions, or renovations, schools should involve advisors, architects, and financial consultants early. Having a clear plan for scope, cost, and timelines reassures lenders.
Understand underwriting steps: Lenders may request site visits, financial projections, or updated appraisals as part of due diligence. Knowing this process in advance helps schools avoid surprises.
Anticipate closing requirements: Lenders often require documents such as environmental reports, insurance coverage, and board resolutions. Preparing these in advance makes closing smoother.
Approaching financing strategically helps schools save time and increase the likelihood of success.
Strong Applications for Charter School Financing Depend on 3 Things
By focusing on these areas, charter school leaders can improve their chances of securing favorable terms for facility acquisition, refinancing, or expansion.
Knowing what lenders look for
Taking steps to strengthen loan eligibility
Preparing for the process with foresight
How Capital Impact Partners Supports Charter School Financing
Because we understand what lenders consider and how schools can strengthen loan eligibility, we structure financing to help charter schools put their best case forward. Capital Impact Partners, part of the Momentus Capital branded family of organizations, has supported charter schools nationwide for more than 20 years. Our lending approach combines flexibility with a focus on long-term partnership, helping schools expand access to quality education and strengthen community impact.
We provide:
Charter school loans for facility acquisition, refinancing, and expansion
Experience with diverse school models, from single-site schools to charter management organizations
A place-based strategy focused on growth markets where demand for charter school facilities continues to grow
Mission-driven partnership that goes beyond underwriting, with financing structures aligned to a school’s long-term educational and financial goals
For example, Capital Impact Partners supported the William A. Lawson Institute for Peace and Prosperity (WALIPP) with a $2 million leverage loan as part of a $10.5 million New Markets Tax Credit transaction. The financing enabled the ground-up construction of a 36,632-square-foot school building that will serve as The Academy’s permanent home in Houston’s Third Ward. The new facility allows the school to more than double enrollment to 350 students, creating a stable learning environment and providing more Houston children with access to a brighter future.
Ready to Access Financing with Capital Impact Partners?
In this series about community development lending, we aim to shed light on the various loans we offer, in the hope that it will provide the clarity our borrowers need to make an informed decision about applying for a community development loan.
In this sixth installment, we explain New Markets Tax Credit (NMTC) Qualified Low Income Community Investment (QLICI) loans and how they are pivotal in supporting projects that uplift communities living with low incomes by providing crucial financing under favorable terms.
Understanding the New Markets Tax Credit Program
The New Markets Tax Credit (NMTC) program is a federal initiative designed to stimulate investment and economic growth in urban and rural communities living with low incomes, communities that often lack adequate access to capital. The primary goal of the NMTC program is to encourage economic development and job creation in areas living with low incomes. This is achieved by providing tax incentives to investors.
Under this program, Community Development Entities (CDEs) like Capital Impact Partners provide subsidized financing for qualifying businesses or real estate projects that meet the federal definition of a Qualified Active Low-Income Community Business (QALICB).
A QALICB is typically a business that is located in, or provides services to, communities living with low incomes. The capital provided to these qualifying projects is known as a Qualified Low-Income Community Investment (QLICI), which is typically structured as a seven-year, interest-only loan.
Understanding QLICI Loans
A QLICI is a specific type of investment that is central to the New Markets Tax Credit program. It involves directing financial capital into projects or businesses in communities living with low incomes that meet the qualifications set under the NMTC program.
A QLICI is essentially the financial vehicle through which capital flows from CDEs to QALICBs at favorable rates and terms that traditional financing might not offer.
Why is QLICI Valuable to Developers?
Access to Favorable Financing
QLICIs often come with more favorable terms than those available through conventional financial products. This can include lower interest rates, longer amortization periods, and interest-only payment periods. Such terms can significantly reduce the cost of capital for developers, making projects more financially viable.
Filling Funding Gaps
Many projects in areas experiencing low incomes struggle to secure funding because they are perceived as higher risk. QLICIs can provide the essential capital needed to fill these funding gaps and make such projects feasible. This is particularly important for large-scale developments that can have transformative impacts on their communities.
The importance of this type of loan can be seen through two QLICI notes totaling $7.7 million that Capital Impact provided for Coastal Bend Food Bank in Corpus Christi, Texas. This funding was essential for constructing a new 108,200-square-foot warehouse and distribution center. The project addressed urgent facility needs sparked by explosive growth at the food bank and was critical in a community prone to hurricanes, requiring more expensive construction to meet specific safety standards. New Markets Tax Credits played an indispensable role in the capital stack, preventing potential reductions in food distribution that would have created significant community hardship.
Enabling Comprehensive Development Projects
Developers using QLICIs can undertake comprehensive projects that might include various community-serving elements such as affordable housing, health care facilities, education institutions, and commercial spaces that create jobs. The flexible nature of QLICIs allows for multi-faceted development that addresses various community needs.
Leveraging Additional Financing
A QLICI can act as a critical piece in the capital stack that attracts other sources of funding. For example, the presence of a QLICI can help reassure other investors and lenders about the viability of a project, leading to increased overall investment.
Community Impact & Compliance Benefits
Projects funded through QLICIs are required to provide measurable community impacts, particularly in communities living with low incomes. This aligns with the growing focus among developers and investors on impact investing and social responsibility, while also supporting compliance with regulatory and corporate responsibility standards.
For example, Capital Impact Partners closed QLICI loans totaling $10.6 million to assist the Center for Transforming Lives in Fort Worth, Texas. The funding supported the conversion of a 102,000-square-foot warehouse into an early childhood education and economic mobility center, increasing child care availability by 57 percent and boosting economic mobility services to 1,200 parents by 65 percent annually. This initiative, crucially supported by NMTC, enabled the construction of a facility dedicated to creating intergenerational wealth through programming that supports workers’ physical, financial, and emotional needs.
QLICIs are a powerful tool in community development, providing critical financial incentives and benefits that support significant and impactful development projects in communities. For developers, the strategic use of QLICIs not only enhances the feasibility and scope of their projects but also contributes to their broader economic and social objectives, making them valuable partners in community revitalization efforts.
Check out our mission-driven lending page for more information about our products and to find out which might work best for you.
Whether you are an experienced charter school operator refining your approach or an enterprising newcomer ready to break ground in the charter school education sector, there is always more to discover and master to advance your institution and widen your impact. This series is crafted to deliver crucial insights and practical advice to drive your charter school projects and overall mission forward.
At the Momentus Capital branded family of organizations, which includes Capital Impact Partners, CDC Small Business Finance, and Momentus Securities, we are dedicated to expanding capital and opportunities for communities and local leaders, including those innovating in charter school education.
Charter schools stand at the forefront of educational innovation, offering tailored learning experiences that meet the many needs of their students. However, the journey from conceptualization to realization is complex, necessitating a deep understanding of community needs, financial intricacies, and the importance of a solid real estate development team. Inspired by the guidance provided in the report created by Capital Impact Partners, ‘The Answer Key: How to Plan, Develop, and Finance Your Charter School Facility (PDF)’, this blog series distills critical insights and strategic advice, tailored to the unique challenges faced by charter school operators:
A Thorough Concept: Discover the importance of crafting a comprehensive and compelling concept that aligns with community needs and educational goals.
Meeting Lender’s Expectations: Navigate the financial landscape with confidence, learning what lenders seek in charter school projects and how to effectively present your vision.
Assembling a Solid Real Estate Development Team: Understand the crucial role of assembling a skilled team to turn your educational vision into reality, from architects to legal advisors.
Closing out this series, we explore the crucial aspect of assembling a solid real estate development team for your charter school. A well-rounded team is necessary to navigate the multifaceted journey of opening a charter school.
The Core of Your Real Estate Development Team
A successful charter school project relies on the collective expertise of several key professionals and essential roles:
Project Manager: Often the linchpin of the development process, a skilled project manager oversees the project from conception through completion, ensuring milestones are met and the project stays within budget. Their experience in charter school projects can provide invaluable foresight and problem-solving capabilities.
Architect: The architect’s role is to translate your educational vision into a practical, regulatory-compliant design. Their expertise is crucial in creating spaces that are not only conducive to learning, but also inspire students and staff alike.
Legal Counsel: Given the complex regulatory environment surrounding charter schools, having knowledgeable legal counsel is non-negotiable. They navigate zoning laws, compliance issues, and other legal aspects to prevent unforeseen challenges.
General Contractor: Responsible for bringing the architectural vision to reality, the right contractor will manage the construction phase, ensuring quality, timeliness, and fiscal responsibility.
Selecting Your Team
Selecting the right professionals is about more than verifying credentials and experience. The Answer Key suggests that all team members should have/foster:
Shared Vision: Team members should share your commitment to the school’s mission, understanding the broader impact of the project on the community;
Experience in Charter Schools: Professionals with specific experience in charter school projects bring a nuanced understanding of unique challenges and opportunities;
Community Engagement: Team members who value community input can contribute to a design and development process that reflects the needs and aspirations of the community your school will serve.
Team members should share your commitment to the school’s mission, understanding the broader impact of the project on the community.
Fostering Collaboration
Collaboration among your team members can significantly influence the success of your project. Open communication and mutual respect among team members ensures that each professional’s expertise is effectively integrated into the project. Regular meetings and clear, shared goals help maintain alignment and momentum.
Building a solid real estate development team is fundamental to transforming your charter school vision into reality. By carefully selecting a team that not only possesses the requisite professional skills but also aligns with your educational mission and values community input, you set the stage for a successful charter school development. The Answer Key provides a framework for understanding the roles and relationships that will support your project from the ground up.
Collaboration among your team members can significantly influence the success of your project.
Review “The Answer Key” in its entirety and use it as a resource as you plan and work through your charter school development. If you decide that you need financing, you can reach out to our Lending team to discuss your options; our Construction team is another resource to support you as your development progresses.
At Capital Impact Partners, we specialize in offering flexible and affordable financing to a broad spectrum of community development projects that yield significant social impact. We extend our support to educational projects that elevate communities and promote sustainable growth. Additionally, we provide extensive support and resources tailored to the unique needs of charter schools, helping to ensure access to a quality charter school education for all students.
In this series about community development lending, we aim to shed light on the various types of loans we offer, in the hope that it will provide the clarity our borrowers need to make an informed decision about applying for a community development loan.
In this fifth installment, we explore an essential financial tool in community development: loan refinancing.
What is Loan Refinancing?
Loan refinancing in the context of community development involves replacing an existing debt obligation with another under different terms. This strategy is often used to secure lower interest rates, extend repayment terms, or access additional funds for project development. Refinancing can alleviate financial pressure, provide more favorable terms, and free up capital for further investment into community-centric projects. If approved, the borrower gets a new contract that takes the place of the original agreement.
Transforming Communities Through Strategic Refinancing
Refinancing can play a pivotal role in sustaining and scaling community development efforts. It offers developers the flexibility to adjust their financial strategies in response to changing market conditions or project needs, ensuring long-term project viability and impact.
The Benefits of Refinancing
Refinancing offers several advantages:
Reduced Costs: Lower interest rates can significantly decrease the overall cost of borrowing.
Improved Cash Flow: Extended loan terms provide developers with better cash flow management, enabling them to allocate resources more effectively across projects.
Strategic Allocation: Access to additional funds allows for investment in other critical aspects of development, such as predevelopment costs and new projects.
Example: Capital Impact Partners provided a $10 million loan to refinance an existing loan on a 45,252-square-foot property located in Los Angeles. This refinancing was strategically executed to replace the existing loan and secure additional capital for soft costs, predevelopment, and approvals necessary for transforming the property. This loan enabled the conversion of vacant buildings into a six-story, 252-unit, 100-percent affordable multifamily apartment building targeting tenants living with low and moderate incomes, helping address the acute demand for affordable housing in Los Angeles.
For community developers looking to maximize the impact of their projects, understanding and utilizing refinancing can be a game changer. By adjusting financial strategies to better suit their needs, developers can ensure the sustainability and expansion of their community initiatives.
Check out our mission-driven lending page for more information about our products and to find out which might work best for you.
Whether you’re a seasoned real estate developer fine-tuning your strategies or an aspiring newcomer eager to make your mark in the industry, there is always more to know and learn to help grow your business and scale your impact. This series is designed to provide invaluable insights and actionable advice to propel your development projects and your business forward.
At Capital Impact Partners, in particular, we offer flexible and affordable financing to a wide array of community development projects that deliver tangible social impact. From community health centers to affordable housing developments, we are committed to supporting projects that uplift communities and foster sustainable growth. We also offer programmatic services that equip you with the resources, support, and networking opportunities you need to succeed in the real estate development world.
In the competitive realm of real estate development, success hinges not only on vision and execution, but also on the ability to navigate complex relationships, craft solid projections, and attract investors. These pillars serve as the bedrock upon which thriving projects are built, distinguishing between mere ventures and enduring successes.
In this final installment of our series, let’s explore the key elements that set a developer up for attracting investors for real estate development, as well as strategies for anticipating and meeting their needs.
Financial Statements & Bankability
Ensuring that developers’ balance sheets and other financial statements accurately reflect their business’ health is paramount to attracting investors for real estate development. Lenders and investors look for reliability, organization, and trustworthiness when evaluating potential projects. By conveying a deep understanding of the project, its financing strategy, and the market, developers can instill confidence and mitigate lender scrutiny.
“For the Bobbi project, I was able to prepare for lender scrutiny by knowing the deal inside and out better than any consultants on my project, and being able to articulate the vision, the financing strategy, and the market.”
– Ronette (Ronnie) C. Slamin, Founder and Principal at Embolden Real Estate
In an effort to support developers to overcome barriers to success, Capital Impact Partners has partnered with Amazon to launch the Housing Accelerator Fellowship (HAF) in the Washington Metropolitan area to support our organizations shared goals of facilitating new opportunities for real estate developers while also increasing affordable and workforce housing across the region. On October 10, 2023, Capital Impact Partners celebrated the first HAF cohort of 15 fellows to complete the program.
Anticipating Investor & Lender Needs
Before approaching lenders or investors, developers must ask themselves critical questions about their project and financing strategy. Being upfront about personal finances, including credit score and debt payment history, is essential for building trust and credibility. By aligning project goals with lender portfolios and understanding their business models, developers can tailor their pitches to meet lender and investor needs effectively.
Professional Patience & Effective Communication
Patience is a virtue in real estate development, particularly during the funding and underwriting phases. Rushing the underwriting process can lead to misunderstandings and delays, so developers must approach it with professionalism and collaboration. Maintaining effective communication, especially in challenging situations, is crucial for building strong relationships, attracting investors, and hence securing financing.
By emphasizing transparency, aligning with lender objectives, and fostering collaboration throughout the underwriting process, developers can forge robust partnerships with lenders and investors, ensuring the financing needed for their projects.
Whether you are an experienced charter school operator refining your approach or an enterprising newcomer ready to break ground in the charter school education sector, there is always more to discover and master to advance your institution and widen your impact. This series is crafted to deliver crucial insights and practical advice to drive your charter school projects and overall mission forward.
At the Momentus Capital branded family of organizations, which includes Capital Impact Partners, CDC Small Business Finance, and Momentus Securities, we are dedicated to expanding capital and opportunities for underestimated communities, including those innovating in charter school education.
Charter schools stand at the forefront of educational innovation, offering tailored learning experiences that meet the many needs of their students. However, the journey from conceptualization to realization is complex, necessitating a deep understanding of community needs, financial intricacies, and the importance of a cohesive real estate development team. Inspired by the guidance provided in Capital Impact Partners’ report “The Answer Key: How to Plan, Develop, and Finance Your Charter School Facility (PDF),” this blog series distills critical insights and strategic advice, tailored to the unique challenges faced by charter school operators:
A Thorough Concept: Discover the importance of crafting a comprehensive and compelling concept that aligns with community needs and educational goals;
Meeting Lenders’ Expectations: Navigate the financial landscape with confidence, learning what charter school lenders look for and how to effectively present your vision;
Assembling a Solid Real Estate Development Team: Understand the crucial role of assembling a skilled team to turn your educational vision into reality, from architects to legal advisors.
In the second installment of this series, we turn our focus to understanding what charter school lenders look for. Financing is the lifeblood of any charter school project, transforming visions into tangible institutions. We will highlight crucial factors that can influence a lender’s decision to fund your project.
Financial Stability & Revenue Streams
One of the core considerations for lenders is the financial stability of your charter school. The Answer Key emphasizes the importance of demonstrating a reliable revenue stream from multiple funding sources. One of the elements charter school lenders look for is seeing your school has a solid plan for maintaining operational sustainability, which often includes state or federal per-pupil funding, grants, and other fundraising efforts.
Lenders need to see that your school has a solid plan for maintaining operational sustainability.
Realistic Enrollment Projections
Lenders pay close attention to your enrollment projections. Accurate and realistic estimates are crucial as they directly impact the school’s revenue and financial viability. The Answer Key advises operators to conduct thorough market analyses to support their enrollment numbers, showcasing a clear demand for the school within the community.
Strong Leadership & Management
The expertise and experience of your school’s leadership and management team are critical to securing financing. Charter school lenders look for teams with a proven track record in education and school management. Demonstrating that your project is guided by knowledgeable and skilled professionals can significantly enhance your credibility with potential lenders.
Well-Defined Facility Plan
A well-defined facility plan – including details about the location, size, and condition of the property – is essential for lenders. Our report highlights the need for a clear understanding of the costs associated with acquiring, renovating, or constructing a facility. A comprehensive plan that addresses these aspects, supported by realistic cost estimates and timelines, is vital for gaining lender confidence.
Demonstrating that your project is guided by knowledgeable and skilled professionals can significantly enhance your credibility with potential lenders.
Compliance & Accreditation
Ensuring compliance with all relevant educational regulations and working towards accreditation are key factors that lenders consider. Charter school operators are advised to be well-versed in state and federal education laws and to outline their strategies for meeting these requirements. Accreditation, or the process to achieve it, signals a commitment to educational quality and standards, making your project more appealing to lenders.
Moving Forward
Understanding and addressing these critical areas can significantly improve your chances of securing the necessary financing for your charter school project. By focusing on financial stability, enrollment projections, strong leadership, a well-defined facility plan, and compliance with educational standards, you present your charter school as a viable and attractive investment.
At Capital Impact Partners, we specialize in offering flexible and affordable financing to a broad spectrum of community development projects that yield significant social impact. From community health centers to affordable housing, we extend our support to educational projects that elevate communities and promote sustainable growth. Additionally, we provide extensive support and resources tailored to the unique needs of charter schools, helping to ensure access to a quality charter school education for all students.
In this series about community development lending, we aim to shed light on the various loans we offer, in the hope that it will provide the clarity our borrowers need to make an informed decision about applying for a community development loan.
In this fourth installment, we take a look at business acquisition loans, a vital tool in the realm of community development allowing developers to broaden their reach and create lasting impact.
What is a Business Acquisition Loan?
A business acquisition loan is a financial instrument designed to provide funding for individuals or businesses to purchase an existing business. These loans are often sought by entrepreneurs looking to expand their business portfolio, individuals seeking to become business owners, or existing business owners interested in broadening their operations by acquiring complementary businesses. In the case of community developers, the specific goal would be to further community development initiatives.
Two noteworthy business acquisition loans within the realm of community development, and which we offer at Capital Impact Partners, are cooperative loans, and working capital line of credit loans. One of the most significant steps a business can take is acquiring another business or securing essential working capital. These pivotal moments can be catalysts for growth, job creation, and lasting community impact.
Unlocking Opportunities Through Cooperative Business Acquisitions: Cooperative Business Loans
Cooperatives have long been champions of community-driven economic development. Whether it is workers seeking to purchase a business from their employer, or a group of farmers joining forces to better serve their local markets, business acquisitions can be a game-changer.
Broaden impact: acquiring an established business can expedite a cooperative’s growth and its ability to serve the community.
Leverage expertise: gain access to experienced staff, established customer bases, and valuable industry knowledge.
Ensure stability: preserve jobs, retain local ownership, and maintain the legacy of the business being acquired.
Capital Impact Partners has closed a business acquisition loan to Ward Lumber Worker Cooperative, Inc. (WLWC) to support the acquisition of 100 percent of the capital stock of Ward Lumber Co. (Ward), representing the conversion to employee ownership of the company and all of its assets. The transaction marked a couple of firsts for the North Country region of New York State: the first employee ownership transition (or worker co-op conversion) and the largest of its kind in the region.
This business acquisition that led to Ward’s conversion to the employee ownership model helps to continue to support the region’s farm and construction industries, provide for above-average employee retention and wages, sustain the future of the enterprise, and build wealth in the community through ownership.
The Lifeline for Day-to-Day Operations: Working Capital Line of Credit Loans
In the ever-evolving world of business, maintaining a healthy cash flow is paramount. Working capital lines of credit are the financial lifelines that enable businesses to navigate the ebb and flow of daily operations effectively. These small-business loans are a type of short-term financing that is used to cover a business’s operating expenses, such as rent, payroll or inventory.
Working Capital Line of Credit loans offer several advantages:
Flexibility: borrow what you need when you need it, providing the agility required to seize opportunities or address unforeseen challenges.
Stabilizing cash flow: ensure that your business can cover operational expenses, pay suppliers, and meet payroll without interruptions.
Fueling growth: invest in inventory, equipment, or marketing initiatives that drive business expansion and community impact.
In 2020, Capital Impact Partners closed on a Working Capital Line of Credit loan to The Achievable Foundation (Achievable), an organization focused on health and wellness, and supportive services for people with disabilities based out of Los Angeles, California. A year prior, a few setbacks had negatively impacted the business including the loss of providers, amongst other difficulties. This line of credit allowed Achievable to replenish their cash and weather the operational challenges that emerged that year.
Working Capital Line of Credit loans represent a necessary lifeline for organizations such as Achievable, that more often than not find it challenging to receive financing from traditional lending institutions, particularly in rough times. This loan has helped Achievable stay operational, and carry out their mission of serving their communities.
Check out our mission-driven lending page for more information about our products to find out which might work best for you.
Whether you’re a seasoned real estate developer fine-tuning your strategies or an aspiring newcomer eager to make your mark in the industry, there is always more to know and learn to help grow your business and scale your impact. This series is designed to provide invaluable insights and actionable advice to propel your development projects and your business forward.
At Capital Impact Partners, in particular, we offer flexible and affordable financing to a diverse array of community development projects that deliver tangible social impact. From community health centers to affordable housing developments, we are committed to empowering projects that uplift communities and foster sustainable growth. We also offer programmatic services that equip you with the resources, support, and networking opportunities you need to succeed in the real estate development world.
In the competitive realm of real estate development, success hinges not only on vision and execution but also on the ability to navigate complex relationships, craft solid real estate development projections, and attract investors. These pillars serve as the bedrock upon which thriving projects are built, distinguishing between mere ventures and enduring successes.
Solid real estate development projections are a key to success, providing a roadmap for project feasibility and financial viability. In this installment, we’ll explore the critical aspects of creating pro forma models and building capital stacks, essential for navigating the complexities of the development process.
Creating Pro Formas: A Vital Tool for Success
A pro forma model is a financial projection tool that forecasts the potential financial outcomes of a real estate development project. It serves as a crucial guide for developers, investors, and lenders, offering insights into project feasibility and potential returns on investment. To create a robust pro forma model, developers must consider a range of factors, including land acquisition costs, construction expenses, operating expenses, and projected rental income.
Key Considerations in Pro Forma Development
Developers must carefully balance short-term and long-term real estate development projections in their pro forma models, taking into account factors such as vacancy rates, management costs, taxes, and rent projections based on cost per square foot. Challenges may arise during the creation and updating of pro forma models, requiring developers to adapt and address uncertainties effectively. Pre-development phase costs, including environmental reports and market studies, are crucial considerations that must be prioritized in pro forma development.
“One of the critical elements that need to be in your pro forma are projections into the future, which are costs and rent, and more importantly, how long it’s going to take.”
– Christopher Agorsor, Principal at Agorsor Equities
Agorsor: Solid real estate development projections are a key to success, providing a roadmap for project feasibility and financial viability.
Lessons Learned & Tips for Success
Throughout the development process, developers must remain vigilant and adaptable, learning from their experiences and refining their strategies for future projects. Transparency and open communication with lenders are essential for building strong relationships and securing project financing. By attending industry events, networking, and staying informed about market conditions, developers can streamline their capital stacks and secure financing tailored to their project’s needs.
Building Capital Stacks: Navigating Project Financing
A capital stack represents the various sources of funding, including debt and equity, that finance a real estate development project. Developers must carefully structure their capital stacks to ensure project feasibility and mitigate risk.
By mastering the art of pro forma development and capital stack structuring, developers can navigate the complexities of the development process with confidence and achieve their goals. Training and resources provided through our programmatic services will help give you the confidence needed to build solid projections.
Whether you are an experienced charter school operator refining your approach or an enterprising newcomer ready to break ground in the charter school education sector, there is always more to discover and master to advance your institution and widen your impact. This series is crafted to deliver crucial insights and practical advice to drive your charter school projects and overall mission forward.
At the Momentus Capital branded family of organizations, which includes Capital Impact Partners, CDC Small Business Finance, and Momentus Securities, we are dedicated to expanding capital and opportunities for communities, including those innovating in charter school education.
Charter schools stand at the forefront of educational innovation, offering tailored learning experiences that meet the many needs of their students. However, the journey from conceptualization to realization is complex, necessitating a deep understanding of community needs, financial intricacies, and the importance of a cohesive real estate development team. Inspired by the guidance provided in Capital Impact Partners’ report “The Answer Key: How to Plan, Develop, and Finance Your Charter School Facility (PDF),” this blog series distills critical insights and strategic advice, tailored to the unique challenges faced by charter school operators:
A Thorough Concept: Discover the importance of crafting a comprehensive and compelling concept that aligns with community needs and educational goals;
Meeting Lenders’ Expectations: Navigate the financial landscape with confidence, learning what charter school lenders look for and how to effectively present your vision;
Assembling a Solid Real Estate Development Team: Understand the crucial role of assembling a skilled team to turn your educational vision into reality, from architects to legal advisors.
In the first installment of this series, we unravel the complexities of developing a thorough charter school concept for your charter school that not only resonates with your community’s educational aspirations, but also stands the test of sustainability and growth.
Identifying Community Needs
A successful charter school concept begins with an understanding of the community it aims to serve. Our report (PDF) highlights the importance of conducting thorough market analysis and feasibility studies. These studies ensure that your school not only meets a genuine educational need, but also positions itself for sustainability and growth within the community. Ask yourself: What local educational gaps exist, and how can my school address them?
Demonstrating that your project is guided by knowledgeable and skilled professionals can significantly enhance your credibility with potential lenders.
A successful charter school concept begins with an understanding of the community it aims to serve.
Conducting a Feasibility Study
Once you have identified a potential niche, the next step is evaluating the feasibility of your concept (PDF). This means looking at potential enrollment numbers, assessing the financial landscape, and understanding zoning and regulatory requirements. Your school’s concept should be both ambitious and grounded in what is achievable given your resources and community context.
Community Engagement
Your charter school concept should also involve early and ongoing engagement with the community. This approach ensures that your school remains closely aligned with the needs and aspirations of the students and families it will serve. Building a dialogue with community members can provide invaluable insights that refine your charter school concept and strengthen your school’s local support network.
The aim is to create a school that not only fills an educational gap but also becomes an integral part of the community’s fabric.
Moving Forward
Crafting a thorough and community-driven charter school concept is just the beginning. It sets the stage for everything that follows in the journey of developing a charter school that truly makes a difference. With a charter school concept that’s informed by community needs, feasibility, and engagement, you are laying a strong foundation for your charter school. The aim is to create a school that not only fills an educational gap but also becomes an integral part of the community’s fabric.
At Capital Impact Partners, we specialize in offering flexible and affordable financing to a broad spectrum of community development projects that yield significant social impact. From community health centers to affordable housing, we extend our support to educational projects that elevate communities and promote sustainable growth. Additionally, we provide extensive support and resources tailored to the unique needs of charter schools, helping to ensure access to a quality charter school education for all students.
Whether you’re a seasoned real estate developer fine-tuning your strategies or an aspiring newcomer eager to make your mark in the industry, there is always more to know and learn to help grow your business and scale your impact. This series is designed to provide invaluable insights and actionable advice to propel your development projects and your business forward.
At Capital Impact Partners, in particular, we offer flexible and affordable financing to a wide array of community development projects that deliver tangible social impact. From community health centers to affordable housing developments, we are committed to empowering projects that uplift communities and foster sustainable growth. We also offer programmatic services that equip you with the resources, support, and networking opportunities you need to succeed in the real estate development world.
In the competitive realm of real estate development, success hinges not only on vision and execution but also on the ability to ensure real estate development relationship building, craft solid projections, and attract investors. These pillars serve as the bedrock upon which thriving projects are built, distinguishing between mere ventures and enduring successes.
Real estate development relationship building is the cornerstone of success in the field, spanning two critical areas: building a stellar development team, and engaging local stakeholders and the community. Let’s delve into each of these aspects to understand their significance and how they contribute to project success.
Building a Stellar Development Team
Real estate development relationship building starts with building a great team. A successful development project begins with assembling a stellar team that shares your vision and values. From project managers to architects, each team member plays a vital role in bringing your vision to life. As a new developer, being actively involved in the team-building process is essential. Seek out experienced professionals who align with the specific needs of your project, whether it’s historic preservation or meeting energy requirements. By asking for references and recommendations and ensuring each team member is comfortable and capable in their role, you can build a cohesive team poised for success.
In an effort to support developers to overcome barriers to success, Capital Impact Partners has partnered with Amazon to launch the Housing Accelerator Fellowship (HAF) in the Washington Metropolitan area to support our organizations’ shared goals of facilitating new opportunities for real estate developers while also increasing affordable and workforce housing across the region. On October 10, 2023, Capital Impact Partners celebrated the first HAF cohort of 15 fellows to complete the program.
Engaging Local Stakeholders & Community
Engaging with local stakeholders and the community is not just a box to check — it’s a fundamental aspect of successful real estate development. From the early stages of planning to project completion, involving the community in the decision-making process is essential for building trust and goodwill. Define ‘community’ in the context of your project and understand the unique dynamics at play. Be deliberate in your outreach efforts, ensuring that community input informs every stage of the project lifecycle. While challenges may arise, proactive engagement and genuine listening can help overcome obstacles and foster meaningful connections.
As you embark on your journey as a real estate developer, remember that success is built on relationships. Whether it’s with your development team, lenders, or the local community, cultivating strong connections is essential to bringing your vision to life.
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional
Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
