PNC Creates Charter School Revolving Loan Fund
New program provides expansion financing for high-performing charter schools
Jun 13, 2012
PITTSBURGH, June 13, 2012 – PNC announced today the creation of its Charter School Revolving Loan Fund (CSRLF). The new fund is designed to create access to capital for high-performing charter schools for the purposes of expanding enrollment.
The CSRLF is targeted to schools with financing needs of more than $7 million. Eligible schools must have a proven track record of academic and financial success. The funds are intended to be used to grow enrollment by adding capacity to an existing facility or acquiring a new facility to accommodate recent or expected growth.
“Facility ownership and ability to expand is crucial to charter schools seeking to grow their enrollment,” said Greg McKenna, managing director at PNC Capital Markets. “The CSRLF is a convenient option for schools seeking growth in the near-term but lack the necessary funds to move forward.”
The fund will advance up to 80 percent loan to value for mortgaged property and permits subordinated debt from a qualified community development financial institution. Repayment of the revolving loan occurs once the school’s permanent financing is in place.
“Financing has been a persistent challenge for even the best performing charter schools,” said McKenna. “The revolving loan fund will provide an alternative source of capital to help top performing schools continue to thrive and grow.”
PNC is a leader in charter school financing. For more information, visit www.pnc.com/charterschools.
PNC Capital Markets is a member of The PNC Financial Services Group, Inc. (NYSE:PNC).
The PNC Financial Services Group, Inc. (www.pnc.com) is one of the nation's largest diversified financial services organizations providing retail and business banking; residential mortgage banking; specialized services for corporations and government entities, including corporate banking, real estate finance and asset-based lending; wealth management and asset management. Follow @PNCNews on Twitter for breaking news, updates and announcements from PNC.