BlueHub Capital
BlueHub Capital is a nationwide non-profit providing capital to underserved communities through non- and for-profit affiliates. Since 1985 the organization has invested over $2.1 billion including $200 million supporting facilities for over 50 charter schools.
Open process / apply anytime
Loan size (range, $): $50K-$10M ($3M-$6M avg.)
Current portfolio ($; #): $150M; 50+ schools
Cost share (equity) required: No
Collateral required: Yes (real estate)
Standard CDFI due diligence
BlueHub Capital – formerly known as Boston Community Capital – is a national mission-driven non-profit dedicated to building healthy communities where low-income people live and work. The organization offers a broad range of financial tools connecting low-income communities with capital and other resources. BlueHub leverages various federal programs including the Department of Education Credit Enhancement, USDA Rural Development programs, and New Market Tax Credits that all support their flexible approach to charter school lending.
BlueHub Capital’s areas of activity include:
- BlueHub Loan Fund: This area focuses on lending for community and economic development. It has invested over $1.3 billion toward creating over 24,000 units of affordable housing and 13,800 jobs, providing healthcare for more than 197,000 patients, and serving more than 50,000 children at charter schools and daycares. Financing is customized to match the unique needs of each borrower, for example with flexibility on interest-only and amortization periods, and loan-to-value parameters.
- BlueHub SUN: This is a foreclosure prevention program that provides distressed homeowners in seven states with a 30-year mortgage with affordable monthly payments.
- BlueHub Energy: This is an energy resiliency program developing financing tools and renewable energy projects, primarily for the affordable housing and non-profit sectors.
- BlueHub Capital’s New Markets Tax Credit (NMTC): This program invests in economic development projects that create jobs and opportunities in economically distressed communities. BlueHub Capital has deployed $523 million across more than 45 NMTC transactions in 22 states.
Public Policy and Civic Leadership: This is the organization’s advocacy and civic leadership program focusing on cultivating inclusive prosperity and economic equity.
Focus Areas:
Geographies: Nationwide activities with dedicated charter facilities focus in Tennessee, Alabama, Louisiana, and Texas; does not lend in Indian Country
Sectors: Affordable housing, child and youth programs, school and healthcare facilities, commercial real estate in distressed neighborhoods, solar power for low-income families, homeowners facing foreclosure
Schools: Focused on those serving low-income communities (as measured by % economically disadvantaged) demonstrating unmet educational needs or where schools offer special programming
Compass Rose Public Schools (San Antonio, TX): BlueHub Capital provided $1,500,000 in financing to build 70,000 square feet of permanent space for their growing middle and high school. The new facility will allow Compass Rose to serve a total of 830 students in grades 6 through 12. BlueHub partnered with the Nonprofit Finance Fund and used U.S. Department of Education Credit Enhancement to support subordinate financing at a level of over 100% loan-to-value. The total cost for this build-out was $9 million.
Compass Rose is a charter management organization with five campuses in the San Antonio and Austin areas. Over 85% of students are low-income and 91% are Latino. Compass Rose started in 2017 and is quickly growing to five campuses in the San Antonio and Austin area. Over 85% of students are low-income and 91% are Latino. Compass Rose students have outperformed those attending local public schools in most grades and most subjects.
Contact BlueHub Capital directly to initiate a conversation and application process. It takes an average of six weeks to approve project financing once BlueHub Capital has all due diligence information.