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MassDevelopment

$8M to Support Charter Schools

U.S. Department of Education Grant Adds to MassDevelopmentā€™s Statewide Fund that Helps Charter Schools Buy & Renovate Facilities


February 8, 2022


Kelsey Schiller, 617-694-9695
kschiller@massdevelopment.com

In 2021, MassDevelopment provided a $13,350,000 tax-exempt bond, enhanced with a charter school loan guarantee from the Massachusetts Charter School Loan Guarantee Fund, to renovate Springfield Preparatory Charter School’s new campus.

BOSTON – MassDevelopment has received an $8 million grant from the U.S. Department of Education for the Massachusetts Charter School Loan Guarantee Fund, a statewide program that supports charter schools by issuing guarantees on a portion of a loan or bond made to a school to buy, renovate, or build a facility. MassDevelopment has previously received more than $33 million from the U.S. Department of Education through five prior grants. With these grants, its own resources, and private funding, MassDevelopment has grown the Massachusetts Charter School Loan Guarantee Fund, created in 2004, to more than $67 million. 

“Massachusetts is home to first-rate educational institutions of all kinds that prepare our young people for success with future academic and job opportunities,” said Massachusetts Housing and Economic Development Secretary Mike Kennealy, who serves as chair of MassDevelopment’s Board of Directors. “MassDevelopment’s breadth of financing tools, including the Massachusetts Charter School Loan Guarantee Fund, helps schools build and renovate their facilities to provide an improved educational experience for students, faculty, and staff.”

“MassDevelopment is proud to administer the Massachusetts Charter School Loan Guarantee Fund, which provides the financial backing schools need as they seek to create state-of-the-art campuses for their students,” said MassDevelopment President and CEO Dan Rivera. “Thank you to the U.S. Department of Education for awarding us an $8 million grant that will continue to make this type of support possible.”

Since the Fund’s inception in 2004, MassDevelopment has provided $83.4 million in guarantees, supporting 53 charter school projects. Recently, MassDevelopment has used the Fund to invest in Springfield Preparatory Charter School, Excel Academy Charter Schools, and Conservatory Lab Charter School.

In addition to the Charter School Loan Guarantee Fund, MassDevelopment offers tax-exempt bonds to help Massachusetts charter schools finance capital projects. To learn more, visit massdevelopment.com

MassDevelopment, the state’s development finance agency and land bank, works with businesses, nonprofits, banks, and communities to stimulate economic growth across the Commonwealth. During FY2021, MassDevelopment financed or managed 416 projects generating investment of more than $1.86 billion in the Massachusetts economy. These projects are estimated to create or support 6,578 jobs and build or preserve 1,909 housing units.